Chap 19 Practice Questions, marketing test 3 ch 20, AGR 130- CHAP. 9, Mktg TB: Chap 16, Chapter 16 - Practice Problems, MKT 230 Chapter 14, MKTG 351 CHAPTER 15, chpt 13, chapter 11marketing, MKTG CH 12 TRUE OR FALSE, Marketing Study Questions, ch 13,...

In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and

a modification should make the product more consistent with customers' desires.

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

aesthetic

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.

aesthetic; functional

Which of the following products is most likely to have an elastic demand curve?

airline tickets for vacation travel

a product mix is best described as

all products offered by a firm

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

external reference price

T F A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

f

T F A firm operating in a one-state market would not regionalize its market.

f

T F A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

f

T F A market segment profile deals primarily with demographic characteristics.

f

T F A market segment profile provides customers with an understanding of how a business can use its capabilities.

f

T F A marketer can use regression analysis techniques to predict the sales of new products.

f

T F A person who has buying power also has the authority to buy.

f

T F A segmentation variable is used to group smaller markets into one larger market.

f

T F An undifferentiated targeting strategy does not target a single market with one marketing mix.

f

T F Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

f

T F Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

f

T F During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments.

f

T F Effective product positioning helps serve the total market by creating a concept that appeals to the general public.

f

T F Family life cycle is a psychological dimension used for segmenting markets.

f

T F Head-to-head competition is most appropriate when the product performance characteristics do not differ significantly from those of competing brands.

f

T F In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.

f

how they satisfy customers

organizations should define themselves not according to the products they produce but according to

T F It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and compete in any market segments.

f

T F Lifestyle is a product-related variable.

f

T F Market potential is the amount of a product that an organization could sell during a specified time period.

f

T F Only one variable can be used to segment a market.

f

T F Product positioning refers to marketers' efforts to have their brands located in the most appropriate location in stores.

f

T F Sales forecasts are always long-range in nature.

f

T F The executive judgment method of sales forecasting is very accurate in predicting future sales.

f

customer relationship management

long-term relationships with profitable customers is the key objective of what?

Shopping products have a ____ inventory turnover and need ____ distribution outlets than convenience goods.

lower; fewer

the forces of the marketing environment

political, legal and regulatory, sociocultural, technological, economic, and competitive the forces change dramatically and quickly, and a change in one force is likely to affect the other forces

All the elements, individuals, or units of interest to researchers for a specific study are called the Select one: a. sample. b. population. c. focus group. d. target market. e. data set.

population

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand

To determine the breakeven point in units, divide the fixed costs by

price minus variable costs

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

the firm's financial condition is tied to a single and specialized marketing mix.

customers

the focal point of all marketing activities

Price is a key element in the marketing mix because it relates directly to

the generation of total revenue.

Venture team members usually come from the same functional areas within the firm.

FALSE

b

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

SWOT ANALYSIS

An assessment of an organizations strengths and weaknesses (internal) opportunities and threats (external)

Difference between market and market shares

Focus on market shares and what piece of pie you have

STAR

High growth market- dominate market share

What are the three ways you can cultivate service leadership?

Hire the right people Emphasize the trust factor Invest in employee sucess

Marketing Planning

Internal and defines the assignment of responsibilities and tasks and sets schedules for implementation

Time Warner Cable uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, Time Warner Cable is using Select one: a. internal secondary data. b. external primary data. c. internal sampling. d. external secondary data. e. internal primary data.

Internal secondary data

Market

A group of individuals or organizations that have needs for products in a product class and have ability willingness and authority to purchase those products

Most business buying decisions are made by a) one person. b) a team of purchasing agents. c) a firm's buying center. d) inventory control personnel. e) the sales force.

C

d

The oldest form of exchange—trading of products—is known as a) credit. b) buying. c) purchasing. d) barter. e) pricing.

71. In which stage of the product life cycle do profits peak? a) Introduction b) Growth c) Decline d) Termination e) Maturity

b

b

A marketer sometimes uses temporary price reductions to a) increase the number of competitors. b) gain market share. c) decrease volume sold. d) increase revenue per item. e) control demand.

strong

during the industrial revolution demand for manufactured goods was

Information from the U.S. Census Bureau is commonly used as ____ by a variety of agencies and organizations. a) external secondary data b) sampling systems c) primary data d) internal secondary data e) hypotheses

A

D

A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation

d

A measure of sensitivity of demand in relation to changes in price is a) a demand curve. b) a prestige graph. c) marginal analysis. d) price elasticity of demand. e) quantity elasticity.

Information provided by a single firm on household demographics, consumer purchases, television viewing behavior, and responses to promotions is called ___________ data. a) single-source b) census c) consumer demographic d) multi-point e) single-point

A

A

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated

Consumers begin to become more price and value conscious during periods of a) prosperity b) uncertainty c) recovery d) expansion e) recession

e

Consumers buying products online have dramatically affected the ___________ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution

e

Discretionary income is associated with all of the following except a) automobiles. b) education. C) pets. d) furniture. e) food.

e

D

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

When researchers divide the population of interest in a study into groups and then arbitrarily choose participants from each group, they are using a) quota sampling. b) selective surveying. c) random sampling. d) stratified sampling. e) researcher samples.

A

When the requirements associated with a new-task purchase are changed the second or third time, this is called a ___________ purchase. a) modified rebuy b) continued new-task c) contractual d) straight rebuy e) negotiated rebuy

A

A Values attitude and lifestyle

A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.

great service solidifes customer ____

realtionships

strategy defines the company's "_ _ _"

reason for being

what is the second essential componenet of service?

recovery

Age, rate of product use, location, and gender are all examples of common

segmentation variables

T F The ways in which customers use a particular product may be a basis for segmenting the market.

t

T F Trend analysis is a sales forecasting technique based on historical sales data.

t

What equation shows organizations the relationship between price and profit?

(Price × Quantity Sold) Total Costs = Profits

If a company increased its price from $100 to $120 and the percentage change in quantity demanded was 40 percent, the price elasticity of demand for this product is

-2

Marketing control process

1. Establishment of performance standards 2. Evaluation of actual performance relative to establish standards 3. corrective action if necessary

The target market of a regional shopping center typically includes how many people?

150,000

Marketing Mix

4 activities- product, distribution (placement), promotion, pricing (4 P's)

Online sales account for about ____ percent of all retail sales in the U.S.

5

Any service provider that offers time-sensitive services receives most of its revenue during a. peak demand. b. heavy use time. c. the off-season. d. preferred demand. e. customer contact time.

A

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? A) Product, price, distribution, and promotion variables B) Marketing environment variables C) Product and promotion variables D) Product, price, and customer variables

A

A university's student body would be considered its ____ public, and parents, alumni, and trustees would be included as its ____ public. a. client; general b. specialized; general c. target; simple d. general; client e. target; market

A

A university's student body would be considered its ____ public, and parents, alumni, and trustees would be included as its ____ public. a. client; general b. specialized; general c. target; simple d. general; client e. target; market

A

A(n) ___________ is a collection of information arranged for easy access and retrieval. a) database b) marketing information system c) marketing decision support system d) online information service e) e-mail system

A

According to the text, ___________ interpretation focuses on what is typical or what deviates from the average. a) statistical b) descriptive c) exploratory d) secondary e) primary

A

Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center. a) gatekeeper b) user c) influencer d) buyer e) controller

A

All of the following describe the demand for business products except a) elastic. b) derived. c) joint. d) inelastic. e) fluctuating.

A

An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ___________ question. a) open-ended b) dichotomous c) forced-sum-choice d) multiple-choice e) limited-choice

A

An offshoot of mail surveys, ______ have shortcomings because the people who participate in them generally have higher incomes and education levels than the general population. a) purchase diaries b) telephone surveys c) online surveys d) focus-group interviews e) immediate feedback forms

A

An overall plan for obtaining the information needed to address a research problem or issue is called the a) research design. b) problem recognition. c) hypothesis. d) data collection method. e) sampling procedure.

A

Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Antonio is using before his trip are called _______ and those he uses during the trip are called _____. a. search; experience b. search; credence c. credence; experience d. credence; search e. experience; credence

A

Antonio is planning a trip to Cancun for spring break. He will likely be able to evaluate the hotel's size, amenities offered, and prices by looking at information on its website. However, he won't be able to evaluate the comfort level of the bed or the friendliness of the employees until he actually spends time at the hotel. The type of evaluation attributes Antonio is using before his trip are called _______ and those he uses during the trip are called _____. a. search; experience b. search; credence c. credence; experience d. credence; search e. experience; credence

A

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision. a) gatekeeper b) buyer c) decider d) buying center captain e) order giver

A

Because practically all marketers provide some services, ____ typically do not exist in today's business environment. a. pure goods b. pure services c. customer services d. service products e. tangible-dominant products

A

Before administering the questionnaire, Colin discovered through talking to other sports rental businesses that, although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Colin decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ___________ sampling. a) quota b) stratified c) random d) representative e) area

A

Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ____ for this charitable organization. a. target publics b. target population c. general publics d. focus groups e. client publics

A

Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ____ for this charitable organization. a. target publics b. target population c. general publics d. focus groups e. client publics

A

Client-based relationships are least likely to be developed by a. appliance repairmen. b. accountants. c. beauticians. d. orthodontists. e. psychiatrists.

A

Darren uses Microsoft Excel to determine how much the responses to his survey about household decision making for toilet paper vary. Darren is in the ______ step of the marketing research process. a) interpreting research findings b) reporting research findings c) collecting data d) designing the research project e) developing a hypothesis

A

Demand-based pricing most closely relates to the ____ of services. a. perishability b. intangibility c. heterogeneity d. customer contact aspect e. inseparability

A

Designing research procedures that produce reliable marketing data means that a) others using the same procedure will get almost identical data. b) the procedure must give results that support the hypothesis. c) the procedure must not give results that contradict other research studies. d) the procedure may give results that contradict other research studies. e) sampling must be done in a completely random manner

A

Emily Dawson and seven other people were paid to get together and discuss a new product idea proposed by Johnson & Johnson. Researchers observed the interaction of the group. This method is called a a) focus-group interview. b) group survey. c) personal interview survey. d) sampling team. e) mail survey.

A

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services. a. intangibility b. perishability c. heterogeneity d. inseparability e. customer service

A

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services. a. intangibility b. perishability c. heterogeneity d. inseparability e. customer service

A

In reporting marketing research findings, the researcher should a) provide explanations in language that those who use the report to make decisions can understand. b) write the report in an extremely technical and statistical style. c) fit the problem to a favored statistical technique. d) not acknowledge any limitations associated with the study. e) give management the answers it wants.

A

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations? a) Conduct market research. b) Use management judgment. c) Trace existing service levels. d) Stress quality service with employees. e) Train employees better.

A

Kelsey thinks she will be able to get the highest quality of responses concerning the product features most sought by consumers through personal interviews. She decides to conduct her interviews at _____ because this is the most common location for personal interviews. a) a shopping mall b) the respondent's home c) the interviewer's home d) the company's offices e) a city park

A

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a) partnerships. b) co-ops. c) monopolies. d) reciprocity. e) alliances.

A

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a. Heterogeneity b. Intangibility c. Perishability d. Inseparability e. Homogeneity

A

Marketing research is best defined as a) the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. b) a framework for the day-to-day management and structuring of information gathered by marketers. c) a continuous gathering of data for an organization to make marketing decisions d) the collecting of data from secondary sources and internal documents. e) an intuitive process for making decisions based on personal knowledge and experience.

A

Marketing researchers at Essex Co. repeated a particular experiment several times and discovered that the results produced each time were nearly identical. This phenomenon would indicate that the results were a) reliable. b) valid. c) unusable. d) predictable. e) compatible.

A

Marriott wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 50 employees by having a computer program automatically pick which employees will be in the sample. If every employee has an equal chance of being selected, Marriott is using a) random sampling. b) sampling populations. c) stratified sampling. d) nonprobability sampling. e) quota sampling.

A

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a _____ market. a) producer b) government c) reseller d) construction e) institutional

A

Nelson Marketing Research is concerned about using surveys to conduct a marketing research project because a) response rates are declining. b) primary data are so much cheaper and easier to gather. c) survey data collection is highly inaccurate. d) survey data do not provide in-depth responses. e) the survey method has been replaced by the Internet.

A

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services. a. intangibility b. perishability c. tangibility d. inseparability e. heterogeneity

A

Peter Demos, director of marketing at Holcomb, Inc., calls in Andrea Carter, the firm's marketing research director. Peter wants a study done to assess the company's image relative to a new competitor, Levitt Labs. He has a flexible time schedule, has very little money to devote to the research, and feels that a relatively low response rate will not be a major problem. Andrea will probably recommend using a ___________ survey. a) mail b) telephone c) random d) personal interview e) population

A

Product specifications are a) physical characteristics and level of quality. b) types of services that are provided with the product. c) financing available for the product. d) types of competitors offering similar products. e) product return policies.

A

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by a. emphasizing tangible cues in promoting the service. b. using word association. c. personalizing the selling of the service. d. utilizing publicity techniques to enhance the service. e. distributing the service directly through television.

A

Retailers like Target and Kmart are considered to be members of which business market? a) Reseller b) Customer c) Producer d) Institutional e) Services

A

Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as a. peak demand. b. preferred demand. c. off-peak demand. d. high-contact time. e. high intensity time.

A

Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as a. peak demand. b. preferred demand. c. off-peak demand. d. high-contact time. e. high intensity time.

A

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? a) Reseller b) Producer c) Consumer d) Government e) Supply

A

Students from marketing research class collect data from three areas on campus. When they analyze their data the responses are very similar. The students can state they achieved which of the following? a) reliability b) causal relationships c) validity d) sampling e) measurability

A

SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD's A) target market. B) consumer advocates. C) marketing strategy. D) marketing mix. E) marketing tactic.

A

Surveys, focus groups, and customer comment cards are all methods used by service companies to a. understand customer needs and expectations. b. set service quality specifications. c. establish guidelines for employee performance. d. manage service expectations. e. control service intangibility.

A

Surveys, focus groups, and customer comment cards are all methods used by service companies to a. understand customer needs and expectations. b. set service quality specifications. c. establish guidelines for employee performance. d. manage service expectations. e. control service intangibility.

A

The continuum of tangibility goes from ____ on one end to ____ on the other end. a. service-dominant products; good-dominant products b. pure products; pure services c. rational products; irrational products d. mostly service goods; mostly product goods e. easy to see; not easy to see

A

The continuum of tangibility goes from ____ on one end to ____ on the other end. a. service-dominant products; good-dominant products b. pure products; pure services c. rational products; irrational products d. mostly service goods; mostly product goods e. easy to see; not easy to see

A

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services. a. heterogeneity b. customer contact aspect c. intangibility d. inseparability e. perishability

A

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services. a. heterogeneity b. customer contact aspect c. intangibility d. inseparability e. perishability

A

The heterogeneity characteristic of services provides marketers with tremendous opportunity to a. customize their services to meet unique individual needs. b. hold down the cost of providing services to customers. c. create standardized packages that will appeal to many customers. d. offer the same service as all of their competitors. e. develop relationship marketing with their customers.

A

The necessary interaction between service provider and customer that allows a service to be delivered is called a. customer contact. b. service exchange. c. marketing. d. relationship marketing. e. service contact.

A

The necessary interaction between service provider and customer that allows a service to be delivered is called a. customer contact. b. service exchange. c. marketing. d. relationship marketing. e. service contact.

A

The primary value that a marketer expects to receive from a customer in an exchange relationship is A) the price charged for the product. B) customer satisfaction. C) references to other potential customers. D) quality merchandise that meets expectations. E) few returns of the merchandise purchased.

A

The stages of the business buying decision process, in order, are a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

A

To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on uncovering the nature and boundaries of the marketing situation to be studied? a) Locating and defining problems b) Designing the project c) Collecting data d) Interpreting findings e) Reporting findings

A

Using appointments or reservations for scheduling delivery of services is an attempt to address the ____ characteristic of services. a. perishability b. intangibility c. heterogeneity d. inseparability e. homogeneity

A

Wade is puzzled by the recent decrease in sales at one of the Auto Zone locations for which he is the regional manager. He knows the best way to approach this problem and obtain accurate information is to use a) the marketing research process. b) the opinions of store managers. c) company sales' data. d) hypothesis testing. e) stratified sampling of customers.

A

What are the four major categories of factors that influence business buying decisions? a) Environmental, organizational, interpersonal, and individual b) Environmental, organizational, psychological, and individual c) Environmental, psychological, individual, and technological d) Technological, organizational, environmental, and interpersonal e) Environmental, organizational, technological, and individual

A

When Expedia.com offers a special price for customers who chose an airline ticket, hotel, and a rental car, it is using ____ a. bundled-pricing. b. time-based pricing. c. off-peak demand pricing. d. preferred demand. e. time dependent pricing.

A

When Expedia.com offers a special price for customers who chose an airline ticket, hotel, and a rental car, it is using ____ a. bundled-pricing. b. time-based pricing. c. off-peak demand pricing. d. preferred demand. e. time dependent pricing.

A

When Precision Brake's sales team calls on tractor manufacturing companies, the first person they usually talk to is the receptionist. In this example, the receptionists would be considered to be ________, part of the buying center. a) gatekeepers b) influencers c) users d) buyers e) controllers

A

Which of the following best defines nonprofit marketing? a. Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment b. Marketing activities conducted by organizations other than business organizations c. Nonbusiness activities aimed at goals such as profit or return on investment d. Marketing activities aimed at getting the product to the retailers, through intermediaries e. The marketing activities conducted by individuals and organizations that are considered volunteer establishments

A

E

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

b

A certain location of O'Charley's Restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even? a) 2,000 b) 5,000 c) 10,000 d) 3,333 e) 2,500

Which of the following is not a service product?

A 100% service satisfaction guarantee

Market Opportunity

A combo of circumstances and timing that permits an organization to reach a target market

b

A company trying to position itself as value oriented should not a) set prices that are reasonable relative to product quality. b) use premium pricing for its products. c) set prices similar to those of its competitors. d) use any advertising for its products. e) consider costs when determining the price of products.

a

A concession in price in business markets to achieve a desired goal is called a(n) a) allowance. b) objective-oriented discount. c) cash discount. d) trade discount. e) cumulative discount.

e

A customer who is ___________ is likely to say, "People notice when you buy the most expensive brand of a product." a) price-conscious b) quality-conscious c) value-conscious d) socially conscious e) prestige-sensitive

b

A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) _____ that will be harmful to both companies. a) reduction in cost b) price war c) competitive draw d) industry collapse e) advertising battle

c

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a a) noncumulative quantity discount. b) additive cash discount. c) cumulative quantity discount. d) cumulative discount allowance. e) additive quantity reduction.

A

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

Strategic business unit (SBU)

A division, product line or other profit center within a parent company (a business within a business)

A

A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.

e

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a a) price graph. b) supply curve. c) price/quantity graph. d) marginal revenue curve. e) demand curve.

C

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

e

A price developed in the consumer's mind through experience with the product is called a(n) a) external reference price. b) value-price guideline. c) frame of reference. d) internalized price. e) internal reference price.

b

A product under nonprice competition would most likely not succeed in the market if a) a new advertising campaign is established for it. b) it is easy to duplicate. c) it is packaged differently from similar products. d) it is priced near the competitors' price. e) its quality has been upgraded.

Target Market?

A specific group of customers on whom an organization focuses on (Can be large or small groups)

Study of Marketing is what?

A spin off of economics

Surveys, focus groups, and customer comment cards are all methods used by service companies to a) understand customer needs and expectations. b) set service quality specifications. c) establish guidelines for employee performance. d) manage service expectations. e) control service intangibility.

A understand customer needs and expectations

c

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be a) survival. b) cash flow. c) competition. d) return on investment. e) profit.

c

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of a) service. b) market share. c) price. d) selection. e) packaging.

C

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

E

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

D

Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.

E

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. a) multivariable b) use of product c) breakdown d) regression e) buildup

What has to happen in the Marketing Concept?

Allows organization to achieve goals and has to be win-win

Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences.

TRUE

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

TRUE

The major drawback in using aesthetic modifications is that their value is determined subjectively

TRUE

The product development stage determines the technical feasibility of producing the new product.

TRUE

The runout approach to product deletion is used for technologically obsolete products

TRUE

The sum of all the product's physical characteristics is called product quality.

TRUE

There is no best approach to managing products

TRUE

Time spent in test marketing can benefit a firm's competitors.

TRUE

Venture teams work outside of established organization divisions

TRUE

Sales personnel are an external source for new product ideas.

FALSE

Test marketing is an extension of the product screening process

FALSE

Test marketing should be conducted when a product has been given a low probability of success.

FALSE

Warranties and customer training are examples of customer services

TRUE

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

FALSE

The decision to drop a product should always be a unanimous decision of the management team.

FALSE

The dropping approach to product deletion generates a sales spurt just before removing the product from the market.

FALSE

b

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable

Customer cost

Anything customers give up in exchange for benefits

Customer benefits

Anything desired by the customer that is received in exchange

What is price?

Anything the customer has to give up

a

At the breakeven point, a) the money a company brings in from selling products equals the amount spent producing the products. b) the total fixed costs are exactly equal to the total variable costs. c) profits are exactly equal to the difference between revenue and total variable costs. d) the marginal revenue of a product is exactly equal to the marginal cost of producing one more unit. e) the marginal cost curve and the average cost curve will be identical for a particular product.

a

At what point does a firm maximize profit? a) The point at which marginal cost equals marginal revenue b) The point at which the firm sells its product at the highest price c) The breakeven point plus the adjusted marginal cost d) The point at which marginal profits equal marginal revenue e) The point at which marginal cost equals marginal profits

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process. a) environmental b) organizational c) interpersonal d) individual e) demographic

B

A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service. a. primary; secondary b. core; supplementary c. bundled; extra d. complementary; main e. major; minor

B

A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service. a. primary; secondary b. core; supplementary c. bundled; extra d. complementary; main e. major; minor

B

A framework for gathering and managing information from sources both inside and outside an organization is referred to as a) marketing research agencies. b) a marketing information system. c) the marketing mix. d) a marketing research system. e) a secondary data system.

B

A study that is valid and reliable a) is called a marketing research study. b) measures what it is supposed to measure and produces almost identical results every time. c) is expensive to implement and complete. d) measures subtle differences in the population being studied. e) is difficult to produce without expert researchers.

B

A target market A) involves a large number of customers B) is a specific group of customers on whom a company focuses its marketing efforts. C) already has several competitors vying for customers' business. D) is the same as a salesperson's prospective client list. E) is a customer group classified as people with similar demographic characteristics.

B

American Flooring sells all types of floor coverings to contractors and other businesses. It keeps a collection of information about all of its clients that can be easily accessed on the company's computer system. This collection of information is called a a) marketing information system. b) database. c) management information system. d) single-source data. e) marketing decision support system.

B

An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing? a. Bundled b. Demand-based c. Supply-based d. Upfront e. Customer-based

B

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market. a) consumer b) producer c) reseller d) government e) institutional

B

Assume that Verizon Wireless is interested in studying the pricing expectations of its customers. If the study calls for selecting at random 100 people from each of three age groupings, ___________ sampling is being used. a) random b) stratified c) quota d) area e) experimental

B

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a) their markup. b) sales per square foot of selling area. c) how many of the product they can fit in a certain amount of space. d) profit per dollar of selling price. e) the reliability of the supplier.

B

Colin went to the university library and collected everything he could find on the kayaking and canoeing sports industries. The type of data he collected are known as ___________ data. a) primary b) secondary c) descriptive d) exploratory e) mixed

B

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ___________ of the alternative machines. a) descriptions b) inspections c) a sampling d) specifications e) reputations

B

Compared with consumer goods, marketers aiming at business customers a) do not need to select target markets. b) have an enormous amount of information available concerning potential customers. c) have more difficulty in determining where their customers are located. d) are restricted in the types of promotion they can use. e) have more difficulty in estimating customers' purchase potential

B

Decreasing sales, increasing expenses, or decreasing profits a) are to be expected during the marketing research process. b) are examples of symptoms that point to larger problems. c) usually have no effect on the marketing research process. d) are important considerations in designing the research project. e) should be carefully considered before collecting data.

B

Demand for a business product is _____ when two or more items are used in combination to produce a product. a) inelastic b) joint c) fluctuating d) derived e) partnered

B

Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. a) elastic b) inelastic c) derived d) joint e) separate

B

Distribution, price, promotion, and product are all elements of A) marketing strategy. B) the marketing mix. C) a target market. D) a consumer good. E) a business strategy.

B

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. a) cost b) value c) profit d) strategic e) SWOT

B

For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) _____ question. a) dichotomous b) multiple-choice c) categorized d) open-ended e) optional respons

B

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a. Intangibility b. Inseparability c. Perishability d. Heterogeneity e. Homogeneity

B

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a. Intangibility b. Inseparability c. Perishability d. Heterogeneity e. Homogeneity

B

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services. a. core b. supplementary c. bundled d. business e. complimentary

B

Which step in the marketing research process follows collecting data? a) Reporting research results b) Implementing organizational change c) Interpreting research findings d) Designing the research project e) Refining the research issue

C

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services. a. core b. supplementary c. bundled d. business e. complimentary

B

If Carrie wants to do some market research about the footwear industry that her company is a part of, but she has limited money and time, she would most likely collect a) sampling units. b) secondary data. c) quota data. d) primary data. e) survey data.

B

If Staples believes that most of its sales are to businesses rather than consumers and that women are more likely to be making purchasing decisions, this would be a(n) ______ that Staples could test through marketing research. a) description b) hypothesis c) explanation d) sample e) experiment

B

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use a) observation. b) a focus-group interview. c) an on-site computer interview. d) a shopping mall intercept interview. e) a telephone survey.

B

If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a. Perishability b. Inseparability c. Heterogeneity d. Intangibility e. Homogeneity

B

If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a. Perishability b. Inseparability c. Heterogeneity d. Intangibility e. Homogeneity

B

If you were to choose a sample with which to study the market for preschool toys in Illinois, the population would logically be defined as all a) children in Illinois. b) families in Illinois that have or are expecting preschool children. c) people in Illinois. d) preschools in Illinois. e) preschool children in Illinois.

B

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 4.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 4.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? a) Searching b) Specification development c) Alternative evaluation d) Selection e) Performance evaluation

B

In nonprofit organizations, a. development of a marketing strategy should focus on the general public. b. the direct consumers of the product are the client public. c. target markets are defined much more easily. d. the techniques used by for-profit organizations to define target markets cannot be applied. e. goods are marketed more often than ideas or services.

B

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher

B

In the process of conducting marketing research, marketers should allow for a) periodic review of data during the collection period. b) continual evaluation of the data during the entire collection period. c) no data review during collection; instead, they should wait for later interpretation of research findings. d) descriptive research to solve general problems. e) statistical analysis during the collection period.

B

Inelastic demand in business markets refers to a situation where a) demand for a given product fluctuates very little over time. b) price increases or decreases will not significantly change demand for a given product. c) demand for a given product fluctuates significantly over time. d) demand for one product depends heavily on the demand for another product. e) supply for a given product cannot keep pace with the demand for it.

B

Input-output analysis is most likely to yield what type of information? a) Number of employees that a firm has b) Industries that purchase the major portion of an industry's output c) Kinds of returns a firm is getting on its equipment investments d) Type of inventory turnover that is characteristic of a firm e) Kinds of variables that would be used to segment the target market

B

Jack Bateson knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should next move on to a) calculating reliability and validity. b) designing the research project. c) collecting data. d) interpreting research findings. e) taking corrective action.

B

Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false? a) Resellers are concerned with the level of demand for the product. b) Resellers are not concerned with how much space the product takes up as long as it has a high price. c) Resellers want producers to be able to supply adequate quantities of the product. d) Resellers are concerned with the availability of technical and promotional assistance from the producer. e) Resellers are concerned with the markup percentage they can get on the product.

B

Marketers often begin the data collection phase of a research project by gathering secondary data. This type of information may come from both ___________ and ___________ sources. a) government; business b) internal; external c) primary; secondary d) formal; informal e) collected; distributed

B

One overlooked internal source of secondary marketing information discussed in the text is a) sales receipts. b) accounting records. c) interviews with salespeople. d) quality control data. e) consumer surveys.

B

Palmetto Regional Hospital has designed an upcoming research project for determining the best methods for improving patient care. The next step the organization must take in the marketing research process is a) interpreting research findings. b) collecting data. c) developing a testable hypothesis. d) sampling the population. e) reporting research findings.

B

Participants in _______ frequently get to see pictures, products, advertising samples, and diagrams. a) online surveys b) personal interview surveys c) mail surveys d) telephone surveys e) probability samples

B

Production and consumption of services must simultaneously occur due to the ____ characteristic of services. a. intangibility b. heterogeneity c. customer contact d. perishability e. inseparability

B

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) a) reciprocity agreement. b) partnership. c) intra-organizational group. d) alliance. e) tying arrangement.

B

Select the true statement regarding nonprofit marketing. a. Nonprofit marketing strategy should be developed to offer unrestricted alternatives and distribution activities that help accomplish the organization's goals. b. Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets. c. A nonprofit organization usually attempts to serve fewer market segments than a for-profit organization. d. Selection of the target market is the only major strategy development task in nonprofit marketing. e. The narrowest definition of price should be used in developing the marketing mix strategy.

B

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ______ for a purchase decision. a) sampling b) negotiation c) inspection d) elimination e) description

B

Stephanie sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Stephanie's work, so Stephanie redoes the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business. a. service expectations b. word-of-mouth communication c. zones of tolerance d. customer perceptions e. experience qualities

B

Suppose that a retail store conducts a mail survey of its customers and finds that 50 percent of the customers believe store personnel are "courteous." Which benchmark or comparison would be most useful for interpreting this result? a) The annual dollars spent at the store by those customers who believe store personnel are courteous b) How the 50 percent figure compares with that for competitors c) The percentage of store personnel who have completed training in customer service and public relations d) How the 50 percent figure compares with industrial or wholesale institutions and stores e) The percentage of store personnel who feel they are courteous to customers

B

Suppose that when selecting the 5,000 homes to participate in scanner studies in one city, the research firm first divided the city's population into upper-, middle-, and lower-class families, then took a probability sample within each group. This would be a(n) _________ sample. a) random b) stratified c) area d) quota e) population

B

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many ____ qualities. a. experience b. search c. intangible d. credence e. assurance

B

The major disadvantage of a mail survey versus a telephone or personal survey is a) having to offer premiums. b) the failure of respondents to return the questionnaire. c) the elimination of interview bias. d) the lack of open-ended questions. e) the cost.

B

The two basic types of sampling that marketing researchers use are a) random and nonrandom. b) probability and nonprobability. c) stratified and quota. d) even and odd. e) planned and spontaneous

B

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called a. reliability. b. responsiveness. c. empathy. d. tangibles. e. assurance.

B

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called a. reliability. b. responsiveness. c. empathy. d. tangibles. e. assurance.

B

There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from ___________ because the researcher wants to obtain favorable results. a) using an inappropriate sample b) bias and distortion c) trying to be objective about views and opinions d) using in-house research departments e) employing large research firms, such as Gallup

B

Troy is a service provider for a low-contact type of service. Which of the services below is Troy most likely to provide? a. Childcare b. Website design c. Health care d. Auto detailing e. Personal trainer

B

Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___. a. functions performed; time b. time; functions performed c. objectives accomplished; time d. demand; objectives accomplished e. time; demand-based pricing.

B

Tutors, attorneys, and consultants are most likely to price their services based on ____, while auto repair, hair stylists, and house painters are likely to price their services based on ___. a. functions performed; time b. time; functions performed c. objectives accomplished; time d. demand; objectives accomplished e. time; demand-based pricing.

B

What is the primary factor contributing to the increasing difficulty associated with gathering primary data through surveys? a) Most companies do not have any funding for survey research. b) Fewer people are willing to participate in surveys. c) Laws significantly limit firms' ability to conduct surveys. d) Unreliable methods of distributing surveys make them difficult to conduct. e) Very little useful information is ever gathered from survey results.

B

When Pepsi Max implemented a telephone survey to determine the effectiveness of a recent advertising campaign. One of the questions the interviewer asked was, "Have you ever heard of a cola with twice the caffeine of regular colas?" This is an example of which of the following kinds of questions? a) Open-ended b) Dichotomous c) Multiple-choice d) Imperative e) Declarative

B

When Precision Brake sells to the individual dealers, they would be considered which of the following business types? a) Producer b) Reseller c) Government d) Institutional e) Covert

B

When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered a) primary data. b) secondary data. c) information data from syndicated research services. d) secondhand data. e) a primary database.

B

Which is the most typical distribution channel used in nonprofit organizations? a. Nonprofit organization, intermediary, client b. Nonprofit organization, client c. Nonprofit organization, middleman, client d. Nonprofit organization, government, client e. Government, nonprofit organization, client

B

Which is the most typical distribution channel used in nonprofit organizations? a. Nonprofit organization, intermediary, client b. Nonprofit organization, client c. Nonprofit organization, middleman, client d. Nonprofit organization, government, client e. Government, nonprofit organization, client

B

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? a) Negotiation b) Sampling c) Description d) Inspection e) Homogeneous selection

B

Which of the following basic survey methods is the least expensive method if there is an adequate response rate? a) Mail surveys b) Online surveys c) Telephone surveys d) Personal interview surveys e) Focus groups

B

The majority of new-product projects initiated by major companies reach the commercialization stage.

FALSE

Which of the following countries was the world's first service economy? a. England b. United States c. Sweden d. Canada e. Germany

B

Which of the following countries was the world's first service economy? a. England b. United States c. Sweden d. Canada e. Germany

B

Which of the following is a probability sampling technique used to reduce errors within random sampling? a) Quota b) Stratified c) Nonprobability d) Cluster e) Snowball

B

Which of the following is similar for both for-profit and nonprofit marketing? a. Emphasis on profit as a motive b. Ability to use effective marketing activities c. Concern for the entry of competitors into the field d. Complexity of the typical distribution channels e. Definition of target markets

B

Which of the following services falls closest to the middle of the tangibility continuum? a. College education b. Dinner at the Olive Garden c. A new Ford Escape d. A custom built yacht e. A trip to Brazil

B

Which of the following services falls closest to the middle of the tangibility continuum? a. College education b. Dinner at the Olive Garden c. A new Ford Escape d. A custom built yacht e. A trip to Brazil

B

Which of the following statements about customer contact in services marketing is false? a. Service employees are important in creating satisfied customers. b. High-contact services are less expensive to deliver because they are typically equipment-based. c. The main principle of customer contact is that satisfied employees lead to satisfied customers. d. Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e. Employee training programs are an effective way to ensure good customer contact and reduce problems.

B

Which one of the following best characterizes a marketing information system (MIS)? a) An MIS is an orderly gathering of information that is not supplied through routine reporting systems such as sales reports and accounting data. b) An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses. c) An MIS is conducted on a special-project basis when needed. d) An MIS requires adjustments to its techniques to adapt to environmental circumstances and is in reality part of the accounting system. e) An MIS involves internal information collection about employees and customers

B

Which sampling design gives every member of the population an equal chance of appearing in the sample? a) Nonprobability b) Random c) Quota d) Stratified e) Poll

B

Zach has just opened Tri-State Partners and has the need for several business services from other companies. Which of the following is most likely to be considered a service product for Zach's business? a. Housecleaning b. Parking lot maintenance c. Computer software d. Coffeepot for employees e. Uniforms

B

____ is the value of the benefit that is given up by selecting one alternative rather than another. a. Benefit loss b. Opportunity cost c. Privileged cost d. Selection cost e. Exchange loss

B

____ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. a. Cause b. Nonprofit c. Social d. Individual e. Channel

B

____ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. a. Cause b. Nonprofit c. Social d. Individual e. Channel

B

_________ is(are) a major threat to the sales success of jointly demanded products. a) Price changes b) Shortages c) Economic instability d) Inventory buildup e) Proliferation of brands

B

___________ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. a) Value b) Vendor c) Buying center d) Strategic e) Cost

B

Which of the following groups should Samsung not include in its buying center for the new equipment? a) Purchasing agents at Samsung b) Eventual users within Samsung c) Potential future Samsung customers d) Gatekeepers within Samsung e) Senior managers at Samsung

C

e

Below the breakeven point, a firm is operating a) with fixed costs only. b) with minimal variable costs. c) with no revenue. d) profitably. e) at a loss.

c

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit a) freezing prices. b) independent pricing policies. c) deceptive pricing. d) price fixing. e) price differentials.

A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many a. search qualities. b. undefined parameters. c. credence qualities. d. experience qualities. e. unknown results.

C

A

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller

C

Which of the following is always used to determine the classification of a good?

Buyer's intent for using the product

d

Buyers who focus on purchasing products that signify prominence and status are a) value-conscious consumers. b) price-conscious consumers. c) socially elite buyers. d) prestige-sensitive buyers. e) brand aware consumers.

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? a) Description b) Inspection c) Sampling d) Negotiation e) Selection

C

A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with a) secondary data. b) reliability. c) validity. d) reporting findings. e) generalizability.

C

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? a) New-task b) Modified rebuy c) Straight rebuy d) Bid e) Negotiated

C

A research method in which a number of people are exposed to an idea or concept and the interaction of the people is observed is called a(n) a) in-home interview. b) mail-group survey. c) focus-group interview. d) shopping mall intercept interview. e) chat room interview.

C

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services. a. basic b. tangible c. supplementary d. auxiliary e. other core

C

A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the ____ aspect of services. a. tangibility b. perishability c. inseparability d. customer contact e. heterogeneity

C

About what percentage of the annual U.S. gross domestic product is government spending? a) 2 percent b) 10 percent c) 20 percent d) 30 percent e) 50 percent

C

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? a) Problem recognition b) Product specification c) Product-supplier search and evaluation d) Product-supplier selection e) Product-supplier post-evaluation

C

All of the following are important concerns of business customers except a) achieving a specific level of quality in the products offered to target markets. b) obtaining a level of quality that meets specifications. c) obtaining products that exceed specifications to ensure the best possible product performance. d) obtaining products for which the quality level is consistent. e) supporting customers with services they expect.

C

All the elements, individuals, or units of interest to researchers for a specific study are called the a) data set. b) sample. c) population. d) focus group. e) target market.

C

An important difference between for-profit and nonprofit marketing is that a. there is no exchange in nonprofit marketing because the nonprofit organization receives something of value but does not give anything of value. b. marketing exists only in the for-profit organization. c. the goals of the nonprofit organization differ from the goals of the for-profit organization. d. a target market need not be determined in the nonprofit marketing scheme. e. there is no price in the marketing mix of the nonprofit organization.

C

An informed guess or assumption about a certain problem or set of circumstances is known as a) a description of the situation. b) good research design. c) a hypothesis. d) a reliable guess. e) managerial intuition.

C

Andrea has just opened a new service business called Paws n' Claws, which provides dog grooming and doggie day care. Andrea has done research about the role dogs play in today's culture, particularly for those people who do not have children. She knows that some of these people represent a target that is urban, professional, and who travel frequently. Andrea's business is likely to have a _____ and she will probably refer to the dog owners as ___. a. high level of tangibility; customers. b. high level of inseparability; customers. c. high level of customer contact; clients d. low level of perishability; customers e. low level of intangibility; clients

C

Andrea has just opened a new service business called Paws n' Claws, which provides dog grooming and doggie day care. Andrea has done research about the role dogs play in today's culture, particularly for those people who do not have children. She knows that some of these people represent a target that is urban, professional, and who travel frequently. Andrea's business is likely to have a _____ and she will probably refer to the dog owners as ___. a. high level of tangibility; customers. b. high level of inseparability; customers. c. high level of customer contact; clients d. low level of perishability; customers e. low level of intangibility; clients

C

As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities? a. Experience b. Credence c. Search d. Perishability e. Inseparability

C

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and balancing weights for the truck tires. Such business products are characterized as having ____________ demand. a) derived b) inelastic c) joint d) fluctuating e) higher

C

Attributes which are assessed only during the consumption of a service are called a. tangibles. b. search qualities. c. experience qualities. d. use benefits. e. credence qualities.

C

Avon believes that sales of one of its lipstick lines have fallen due to the introduction of a new lipstick line, but it wants to make this tentative hypothesis more specific before proceeding. Avon should conduct a) experimental research. b) hypothesis testing. c) exploratory research. d) conclusive research. e) descriptive research.

C

Bart's Appliance Center owner Ron Bart feels that his organization has access to a great deal of information generated both inside and outside the firm, but much of this information is presently going to waste. Apparently, Bart needs to develop a a) marketing research focus. b) marketing knowledge bank. c) marketing information system. d) marketing strategy. e) data-gathering system.

C

Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically. This practice is known as a) cost-benefit analysis. b) cooperative selling. c) reciprocity. d) supplier agreement. e) modified rebuy purchase.

C

Business markets are typically divided into four categories. These categories are a) retailers, wholesalers, services, and nonprofit firms. b) producer, manufacturer, reseller, and government. c) producer, reseller, government, and institutional. d) manufacturer, wholesaler, retailer, and services. e) reseller, retailer, government, and institutional.

C

By installing automated check-in kiosks in some airports, airlines have increased production capacity and reduced the number of personnel. This results in a decrease in a. perishability. b. intangibility. c. customer contact. d. inseparability. e. customer service.

C

Carlos is speaking to his brother about the interaction he had today with one of his clients. Since he is referring to his customer as a client, Carlos is most likely a(an)___ a. Funeral director b. House painter c. Masseur d. Dry cleaner e. Auto repairman

C

Carlos was given the task of conducting a research project for his firm and proceeds with the following steps: he asks questions to determine the research topic, conducts a telephone survey, writes a report describing the survey results, and gives that report to his boss. Which step of the marketing research process has Carlos omitted? a) Collecting data b) Defining and locating problems c) Interpreting research d) Designing the research project e) Reporting research findings

C

Churches, charitable organizations, and private colleges are considered _____ buyers. a) corporate b) government c) institutional d) producer e) nonprofit

C

Colin decided to apply some of the things he had learned in his MBA marketing research class to his business. The first thing he did was to a) develop a questionnaire. b) identify a sample frame. c) define the problem to be researched. d) conduct store exit interviews. e) collect secondary data.

C

Compared with the SIC system, the North American Industry Classification System (NAICS) will a) look at many industries at one time. b) be used throughout the world. c) contain the most up-to-date information for the NAFTA partners. d) provide less information about service industries. e) generate statistics that will not be useful in comparing countries.

C

Demand for business products is characterized as derived. From what is the demand derived? a) Industrial demand b) Modified demand c) Demand for consumer products d) Future product demand e) The business cycle

C

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality. a. search b. experience c. credence d. tangible e. separable

C

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. a) inelastic b) fluctuating c) derived d) elastic e) nonderived

C

Having recording biases and collecting only descriptive information are two of the primary drawbacks to a) statistical interpretation. b) mail surveys. c) observation. d) personal interviews. e) experimentation.

C

If Bloomingdale's wants to learn about consumers' attitudes toward on-line purchases and conducts a study to acquire this information, this study would collect ____________ data. a) causal b) experimental c) primary d) laboratory e) secondary

C

In a buying center, purchasing agents or purchasing managers are also known as a) gatekeepers. b) deciders. c) buyers. d) users. e) influencers.

C

In general, differences between goods and services are determined by the a. degree of labor intensiveness. b. type of target market. c. degree of tangibility. d. type of provider. e. degree of consumer contact.

C

In general, differences between goods and services are determined by the a. degree of labor intensiveness. b. type of target market. c. degree of tangibility. d. type of provider. e. degree of consumer contact.

C

In marketing research, a sample is best described as a) a small group that is a part of a larger group. b) all the elements, units, or individuals of interest to researchers for a specific study. c) a limited number of units chosen to represent the characteristics of a total population. d) a group that shares a common attribute within a population. e) a small portion of a product offered to customers to try a new product.

C

In most service industries, customer-contact employees are a. valued as the most important employees in the organization. b. the best trained employees in the organization. c. the lowest-paid and least-trained employees. d. well-trained but have high turnover rates. e. moderately paid personnel with high rates of turnover.

C

In service marketing, the most important link to the customer is a. effective advertising. b. good word-of-mouth communication. c. well-trained contact employees. d. the tangible aspects of the service. e. exceptional service quality.

C

Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.

C

Julianne is planning her upcoming wedding later this year. She has made a list of all the expenses which will be required for the wedding she has planned. Which of the following is not one of the service products associated with Julianne's wedding? a. Delivery of the wedding cake b. Hiring a limo and driver c. Flowers for the church d. Renting the reception hall e. String quartet music

C

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on a. news stories. b. a webpage. c. word of mouth. d. newspaper ads. e. television ads.

C

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services. a. credence b. heterogeneity c. perishability d. search e. inseparability don't let it trick you...

C

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services. a. credence b. heterogeneity c. perishability d. search e. inseparability

C

Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of a) Product scarcity b) Joint demand c) Derived demand d) Reciprocity demand e) Inelastic demand

C

Maggie has limited funds for collecting data about a new pricing strategy, but she needs data from a wide geographic area. Under these circumstances, Maggie should use a) telephone surveys. b) in-home interviews. c) mail surveys. d) shopping mall intercept interviews. e) focus-group interviews

C

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? a) Develop a code of service. b) Set service objectives. c) Formally survey customers. d) Specify service uniformity. e) Stress truthfulness with employees.

C

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a. time-based pricing. b. off-peak demand. c. demand-based pricing. d. time dependence pricing. e. bundled costing.

C

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a. time-based pricing. b. off-peak demand. c. demand-based pricing. d. time dependence pricing. e. bundled costing.

C

Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges? a. Inseparability b. Customer contact c. Perishability d. Heterogeneity e. Intangibility

C

Marketing research is a process designed to gather information a) exclusively about a company's customers. b) from the company's database. c) not currently available to decision makers. d) about the needs and desires of employees. e) concerning the interpretation of the company's sales goals

C

Most business purchases can be classified as belonging to one of three types: a) delinquent, repetitive, or delivered. b) repetitive, new-task, or modified rebuy. c) modified rebuy, new-task, or straight rebuy. d) delinquent, new-task, or reciprocal. e) rebuy, reciprocal, or delayed.

C

Nathan, a marketing manager for Casual Express, a retail clothing store chain, wants to use observation methods to gather information about shopping behavior. Which of the following should Nathan know about observation methods of data collection? a) Observation uses secondary sources of data. b) Observation depends on mall interviews. c) Observation can tell Nirendra what is being done, but not why. d) Observation focuses on open-ended questions. e) Observation works best for telephone surveys.

C

Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's a) experiment. b) dependent variable. c) population. d) independent variable. e) sample.

C

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase. a) modified rebuy b) straight rebuy c) new-task d) reevaluated e) repetitive

C

Personal trainers cannot complete their work without their clients present because of the ____ feature of services. a. perishability b. intangibility c. inseparability d. heterogeneity e. tangibility

C

Primary data are best described as the a) first batch of data collected for a specific study. b) data that are necessary for a correct decision. c) data that are observed, recorded, or collected directly from subjects. d) data that are compiled for some purpose other than the study in question. e) data that are collected inside and outside the organization for some purpose other than the current investigation.

C

Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ______ research. a) primary b) experimental c) descriptive d) secondary e) exploratory

C

Select the true statement about nonprofit marketing. a. The chief beneficiaries of a nonprofit organization are the owners or stockholders. b. The planning of market strategies requires less refinement and coordination of goals in the nonprofit field than in the for-profit field. c. Major nonprofit marketers in the United States are social causes and charitable organizations. d. Marketing goals in nonprofit activities cannot be determined. e. All nonprofit organizations that have adopted the marketing concept have been successful.

C

Services are usually provided through ____ directed at people or objects. a. tangible and intangible products b. physical labor c. the application of human or mechanical efforts d. ideas and other intangible efforts e. knowledge and technology

C

Suppose that marketers at Lever Bros. are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is a) exploratory. b) descriptive. c) experimental. d) informal. e) qualitative.

C

The 5,000 households that allowed their group purchases to be scanned are a a) focus group. b) quota. c) sample. d) target market. e) population.

C

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is a) joint. b) economically stable. c) derived. d) inelastic. e) more fluctuating.

C

The intangibility aspect of a service means that a. there is a lack of perceived quality compared to a tangible good. b. unused capacity cannot be stockpiled or inventoried for later use. c. consumers may have a problem evaluating service offerings. d. services are not produced at the same time they are consumed. e. services are not labor-intensive.

C

The main focus of a marketing information system is on a) the coordination of external information sources. b) classifying data into the proper information categories. c) data storage and retrieval. d) the accurate maintenance of inventory levels. e) gathering information on competitive activity.

C

The manager of MegaMarket is interested in asking consumers what they think about the store's new layout and expanded produce selection. If the manager would like to obtain a high response rate and have the study conducted as quickly as possible, which data collection method would you recommend? a) Mail survey b) Direct observation of consumers in the store c) Telephone survey d) Focus-group interview e) Shopping mall intercept interview

C

The marketing Mix is built around the A) product. B) company. C) customer. D) employee. E) retail outlet.

C

The objective of sampling in marketing research is to a) obtain responses from as many people as possible. b) control independent variables that might influence research results. c) select representative units from a total population. d) ensure that measures in the study are reliable. e) provide data that can be used to test the hypotheses being investigated.

C

The recently created Department of Homeland Defense is a member of the _____ market. a) regulatory b) reseller c) government d) producer e) institutional

C

The second stage in the business buying decision process is to a) search for products and suppliers. b) select the most appropriate product. c) develop product specifications. d) evaluate product and supplier performance. e) recognize the problem.

C

The three purposes for which individuals or groups can use products in order for it to be considered a business market are a) use in daily operations, end consumption, and resale. b) direct use in producing other products, company travel, and end consumption. c) resale, use in daily operations, and direct use in producing other products. d) governmental, institutional, and reseller purposes. e) making other products, selling to other businesses, making component parts.

C

Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by a. the health department. b. restaurant management. c. the customer's perceptions. d. temperature guidelines. e. general practices.

C

What are the two ways governments make purchases? a) Cash or credit b) Contracting previous suppliers and bids c) Bids and negotiated contracts d) Lottery system and contract negotiations e) Request for new purchases and recurring orders

C

What type of business purchase is Samsung undertaking? a) Modified rebuy b) Straight rebuy c) New-task d) Straight purchase e) New rebuy

C

What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods? a) Searching for products and suppliers b) Selecting and ordering the most appropriate product c) Recognizing the problem or need d) Establishing product specifications e) Evaluating the product relative to specifications

C

When Prize Pet Grooming offers pet owners who recommend the business to a friend $10 off their next grooming bill, it is a program designed primarily to a. increase the amount of customer contact. b. elevate expectations. c. encourage word-of-mouth communication. d. increase the commitment of the customer. e. increase advertising effectiveness.

C

When a business routinely purchases the same product with similar terms of sale, the purchase is called a a) new-task. b) repetitive purchase. c) straight rebuy. d) modified rebuy. e) standard order.

C

When a market researcher is using ethnographic techniques, he or she is engaging in a) mail surveys. b) personal interview surveys. c) observation. d) experimentation. e) focus groups.

C

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a) Does the quality of the goods meet company specifications? b) Does the supplier consistently deliver on time? c) Does the supplier also sell to my competitors? d) Does the supplier offer the services required? e) Does the price meet company budget requirements?

C

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct _________ research. a) descriptive b) experimental c) exploratory d) analytical statistical e) conclusive

C

When service companies change high-contact services into low-contact services, the a. service becomes more expensive to deliver. b. quality of the service declines. c. service becomes less personalized. d. time required to deliver the service increases. e. service becomes less standardized.

C

When service companies change high-contact services into low-contact services, the a. service becomes more expensive to deliver. b. quality of the service declines. c. service becomes less personalized. d. time required to deliver the service increases. e. service becomes less standardized.

C

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a) Homogeneous selection b) Inspection c) Description d) Sampling e) Negotiation

C

Which of the following is not a service product? a. Justin Bieber concert b. Flight on Southwest Airlines c. A 100 percent service satisfaction guarantee d. Overnight stay at Holiday Inn Express e. Dry cleaning of a suit

C

Which of the following is true with respect to buyers in business markets? a) Business buyers always act rationally when making purchases for their company. b) Business customers tend to be less informed about the products they purchase than consumer buyers. c) Business customers demand detailed information about a product's quality, features, or technical specifications. d) Business customers are no different than buyers in consumer markets. e) Business customers tend to buy products from their friends and contacts with business suppliers.

C

Which of the following issues is least important in nonprofit marketing? a. Distribution b. Exchange c. Profits d. Negotiation e. Persuasion

C

Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers? a. Homogeneity b. Perishability c. Heterogeneity d. Intangibility e. Inseparability

C

Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers? a. Homogeneity b. Perishability c. Heterogeneity d. Intangibility e. Inseparability

C

Which of the following best describes Nintendo's initial strategy when introducing the Wii? A) Increase its sales of software to current gamers B) Increase its sales of game consoles to the under-25 market C) Increase its sales of game consoles by broadening the appeal of gaming to all ages

C) Increase its sales of game consoles by broadening the appeal of gaming to all ages

What is customer relationship management?

CPM is using info about customers to create marketing strategies that develop desirable customer relationships

Compete primarily on the basis of lwo prices and enourmous product availability.

Category killers

Toys "r" Us, Michae's, Petsmart, Staples are examples of?

Category killers

C

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing

Promotion=?

Communication

This shopping center can have two department stores and some specialty and convenience stores. It serves a large geographic area and holds special events to stimulate consumer traffic.

Community shopping center

E

Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.

What are we concerned with?

Competitve forces

Which of the following statements does not apply to convenience goods?

Consumers are brand loyal to convenience products and are not likely to substitute other brands.

Dannon Yogurt represents what type of product for most consumers?

Convenience

Energizer batteries would be classified as which type of product?

Convenience

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as?

Convenience store

This was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes.

Convenience stores

a

Costs that do not vary with changes in the number of units produced and sold are called ____ costs. a) fixed b) total c) invariable d) variable e) set

b

Costs that vary directly with changes in the number of units produced or sold are called a) changeables. b) variable costs. c) direct costs. d) fixed costs. e) marginal costs.

To find a target market, a firm can use the

undifferentiated strategy, the concentrated strategy, and the differentiated strategy

FORMULA WE NEED TO KNOW

Customer value = customer benefits - customer costs

Marketing focus?

Customers

Value

Customers subjective assessments of benefits relative to the cost in determining the worth of a product

A disadvantage of reciprocity is that it can lead to a) a price war. b) higher promotional costs. c) more competitive firms entering the industry. d) less-than-optimal purchases for the buyer. e) longer periods of negotiation.

D

A practice in which two businesses agree to buy from each other is a) a new task purchase. b) a straight rebuy. c) a modified rebuy. d) reciprocity. e) a straight purchase.

D

A survey question that requires a yes or no answer is called a a) qualifier. b) multiple-choice question. c) 50-50 question. d) dichotomous question. e) bimodal question.

D

According to the text, the direct consumers of a nonprofit organization's ideas or services are called its ____ public. a. general b. consumer c. member d. client e. nonbusiness

D

According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____. a. sporting event; spectators b. concert; audience c. play; actors d. performance; audience e. presentation; spectators

D

According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____. a. sporting event; spectators b. concert; audience c. play; actors d. performance; audience e. presentation; spectators

D

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a. reliability. b. assurance. c. responsiveness. d. tangibles. e. empathy.

D

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a. reliability. b. assurance. c. responsiveness. d. tangibles. e. empathy.

D

Although telephone surveys can be conducted very quickly, a major limitation is a) the ability to gain rapport with respondents. b) the difficulty in asking probing questions. c) that few companies prefer this survey method. d) that only a small portion of the population likes to participate in telephone surveys. e) the expense compared to in-home interviews.

D

American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a. the FAA. b. airline competitors. c. bus line customers. d. American Airlines employees. e. American Airlines shareholders.

D

American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are) a. the FAA. b. airline competitors. c. bus line customers. d. American Airlines employees. e. American Airlines shareholders.

D

Analysis of business input-output data by the federal government allows the government to have a better understanding of the a) cash flows that exist among industries. b) raw materials and labor required to produce a given product. c) amount of reinvestment that different industries use. d) types of industries that purchase particular products. e) growth projections for a given industry.

D

Any human or mechanical effort that adds value to a product is called a. a service. b. an intangible. c. overhead. d. customer service. e. service marketing.

D

Any human or mechanical effort that adds value to a product is called a. a service. b. an intangible. c. overhead. d. customer service. e. service marketing.

D

Baskin Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of ______ sampling. a) nonprobability b) random c) quota d) stratified e) selective

D

Because of a service's ____, standardization and quality are difficult to control. a. intangibility b. inseparability c. homogeneity d. heterogeneity e. perishability

D

Besides administering the questionnaire, Colin observed people who went kayaking and canoeing on the Chatsworth River, making notes about their appearance and behavior. The type of data he collected are ___________ data. a) indirect b) mechanical c) secondary d) primary e) direct

D

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services. a. heterogeneity b. perishability c. customer contact d. intangibility e. inseparability

D

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services. a. heterogeneity b. perishability c. customer contact d. intangibility e. inseparability

D

Cameras, counting machines, and scanners are used most often in a) surveys. b) secondary data gathering. c) field settings. d) observation. e) experimentation.

D

The fact the services cannot be inventoried and then sold at a later date is called a. intangibility. b. heterogeneity. c. inseparability. d. perishability. e. nonstorability.

D

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ___________ analysis. a) vendor b) downsizing c) strategic d) value e) profit

D

Client-based relationships are most likely to be developed by a. funeral directors. b. electricians. c. installers. d. doctors. e. brick layers.

D

Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These health-conscious customers represent Coke's A) audience. B) sales alternative. C) business group. D) target market. E) focus group.

D

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a. distribution. b. tangible elements. c. management expectations. d. price. e. customer expectations.

D

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a. distribution. b. tangible elements. c. management expectations. d. price. e. customer expectations.

D

Computer software that aids marketing managers in decision making by helping them anticipate the effect of certain decisions is known as a a) database. b) marketing research system. c) marketing information system. d) marketing decision support system. e) single-source system.

D

Corporate executives often prefer marketing research findings to be put into a report a) full of statistical analysis with details on methods employed by the researchers. b) examining the ethical implications of implementing results from the research report. c) that exposes no deficiencies or limitations of the research process. d) that is clear, short, and simply expressed. e) expressing the views and beliefs of top management about the research problem.

D

Data that are observed or collected directly from respondents are called a) direct samples. b) secondary data. c) stratified data. d) primary data. e) firsthand information.

D

Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to? a) Producers b) Governments c) Retailers d) Consumers e) Institutions

D

If Procter & Gamble, the maker of Dawn dishwashing liquid, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through a) focus groups. b) mail surveys. c) personal interviews. d) observation. e) mall intercepts.

D

If Weight Watchers is interested in collecting information about Americans' perceptions of dieting programs, and the company believes that significant regional differences may exist, the best type of sampling would be a) random. b) quota. c) population. d) stratified. e) nonquota.

D

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a. deliver on these promises and risk financial losses and the success of the company. b. promise less than they can actually deliver and keep customers away. c. make the appearance of their facilities consistent with their promises to customers. d. promise too much and cause customer expectations beyond what they can deliver. e. make the quality of their services too tangible in the eyes of the customer.

D

In business markets, individuals or groups purchase products for one of three purposes. These purposes are a) resale, wholesale, and direct use. b) wholesale, direct use, and use in producing other products. c) resale, wholesale, and use in producing other products. d) resale, direct use in producing other products, and use in general daily operations. e) use in general daily operations, wholesale, and resale.

D

In which of the following sampling designs do all members of a population have an equal chance of being selected? a) Stratified b) Nonprobability c) Quota d) Random e) Judgment

D

Individual influencing factors refer to a) relationships among those in the firm's buying center. b) uncontrollable environmental forces. c) the power an individual controls in the buying center. d) personal characteristics of individuals in the buying center. e) activities of suppliers.

D

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason's difficulty in expanding his practice involves the aspect of service called a. slotting. b. perishability. c. credence. d. inseparability. e. heterogeneity.

D

Kashi's testing of the Crunchy Wheat promotion is an example of a) the collection of secondary data. b) information feedback. c) an exploratory study. d) a descriptive study. e) defining and locating problems.

D

Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means a. because the concert is not tangible, customers will have a difficult time judging its quality in advance. b. the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c. a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d. that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e. that each concert is different and customers will miss a unique experience if they are not present at the concert.

D

Marketing researchers typically favor ___________ because they are extremely flexible. a) mail surveys b) direct observation c) experiments d) personal interviews e) telephone surveys

D

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ___________ market. a) consumer b) producer c) government d) reseller e) wholesaler

D

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a) how many different suppliers they use b) how many parts can fail c) controlling when shipments will arrive d) the percentage of defects allowed e) how long the parts should last

D

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ___________ market. a) producer b) consumer c) reseller d) institutional e) government

D

Pointing out any deficiencies and the possible reasons for them should be done in the _______ step of the marketing research process. a) interpreting research findings b) collecting data c) defining the issue or problem d) reporting research findings e) designing the research project

D

Research designed to verify insights through an objective procedure to help marketers to choose between several alternatives is called a) primary. b) secondary. c) exploratory. d) conclusive. e) hypothetical.

D

Safeway Supermarkets recently placed an order with the Kahn Corporation. Safeway has ordered these same products before under the same terms of sale. What type of purchase does this situation represent? a) New-task b) Repetitive c) Institutional d) Straight rebuy e) Modified rebuy

D

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service? a. Intangibility b. Inseparability c. Perishability d. Heterogeneity e. Marketability

D

Secondary data cannot be obtained from a) trade journals. b) the government. c) international sources. d) surveys. e) computerized literature retrieval databases.

D

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a. perishability. b. heterogeneity. c. inseparability. d. intangibility. e. customer contact.

D

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a. perishability. b. heterogeneity. c. inseparability. d. intangibility. e. customer contact.

D

Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees. a. intangibility b. perishability c. inseparability d. heterogeneity e. tangibility

D

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a. labor-intensiveness. b. orientation toward value. c. homogeneity. d. heterogeneity. e. specialization.

D

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a. labor-intensiveness. b. orientation toward value. c. homogeneity. d. heterogeneity. e. specialization.

D

Spam and privacy are both issues of concern related to a) personal interview surveys. b) telephone surveys. c) shopping mall intercept interviews. d) e-mail surveys. e) online experimentation.

D

Subscription services from firms such as ACNielsen provide marketing researchers with a good source of ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary

D

Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services. a. heterogeneity b. unpredictability c. inseparability d. intangibility e. perishability

D

The Gap wants to target an older crowd in order to increase its market share so it surveys men and women from ages 40 to 60 about how often and for what type of activities they wear casual clothing. This is an example of a) reliability. b) exploratory research. c) probability sampling. d) descriptive research. e) experimental research.

D

The definition of marketing implies that ______ should receive benefits from exchange relationships. A) only customers B) only businesses C) company management D) both customers and businesses E) only the most important customers

D

The fact the services cannot be inventoried and then sold at a later date is called a. intangibility. b. heterogeneity. c. inseparability. d. perishability. e. nonstorability.

D

The final step in the marketing research process is a) interpreting research findings. b) making sure the marketing research was conducted in an ethical manner. c) putting the results into a written document that is technical and written in formal language. d) reporting the research findings. e) deciding what the next research project should investigate.

D

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a) The government will request bids from all companies on its qualified bidder list. b) It will contact whatever company made the last jets and have them develop the new ones. c) Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d) The government will select a few firms and enter into negotiations with them until the contract is awarded. e) The contract will go to the first company that submits a reasonable bid for the desired jets.

D

The growth of business services is largely attributed to a. increases in incomes and living standards. b. decreases in the consumption of products. c. increases in governmental expenditures. d. increases in the complexity and competitiveness of business environments. e. increases in population.

D

The growth of business services is largely attributed to a. increases in incomes and living standards. b. decreases in the consumption of products. c. increases in governmental expenditures. d. increases in the complexity and competitiveness of business environments. e. increases in population.

D

The real value of marketing research to the organization can best be measured by a) its immediate impact on profits. b) the amount of time spent. c) how much it costs. d) improvements in the ability to make decisions. e) the increase in sales volume or market share.

D

The student senate at your university has been asked to give input on the purchase of new computers for campus computer labs. In this instance, the student senate would be acting as a(n) ______. a) buyer. b) gatekeeper. c) user. d) influencer. e) decider.

D

The two levels of expectations that consumers generally have about services are a. acceptable and unacceptable. b. desired and undesired. c. reliable and unreliable. d. acceptable and desired. e. tolerable and desired.

D

The two levels of expectations that consumers generally have about services are a. acceptable and unacceptable. b. desired and undesired. c. reliable and unreliable. d. acceptable and desired. e. tolerable and desired.

D

The use of marketing research is a) limited strictly to large corporations. b) limited to for-profit businesses of all sizes. c) controlled by the federal government. d) widespread throughout business and nonprofit organizations. e) carefully monitored by each state's trade agencies.

D

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a. credibility. b. experience within industry. c. responsibility. d. employee empathy. e. product knowledge.

D

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and a. credibility. b. experience within industry. c. responsibility. d. employee empathy. e. product knowledge.

D

There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? a) Environmental b) Organizational c) Interpersonal d) Demographic e) Individual

D

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a _________ purchase. a) straight rebuy b) reciprocal c) delayed d) new-task e) modified rebuy

D

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a. inseparability. b. intangibility. c. customer contact. d. off-peak demand. e. heterogeneity.

D

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand. a) joint b) inelastic c) consumer d) fluctuating e) derived

D

Which of the following is the least flexible survey method? a) Telephone surveys b) Focus-group interviews c) Personal interview surveys d) Mail surveys e) Observation

D

Which of the following products is most likely to be purchased on the basis of contract negotiation? a) Eggs b) Office supplies c) Used cars d) A custom-made bulldozer e) Wheat

D

Which of the following would be considered an institutional buyer? a) The University of Illinois b) The Environmental Protection Agency c) Apple Computers d) The United Way e) City of Greenville

D

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? a) Mexico b) Canada c) United States d) Japan e) All but one NAFTA country

D

Which step in the marketing research process involves the use of data analysis and statistical techniques to help draw conclusions? a) Locating and defining problems or research issues b) Developing hypotheses c) Collecting data d) Interpreting research findings e) Reporting research findings

D

Which type of business market tends to have the most complex buying procedures? a) Reseller b) Institutional c) Retailer d) Government e) Producer

D

Who judges service quality? a. Employees b. The company c. Independent raters d. Customers e. Marketers

D

Nordstrom's, Macy's and JC Penney's are considered?

Department stores

Retailer that generally accepts lower margins than traditional retailers in excange for higher sales volume

Department stores

Store has areas for men's apparel women's apparel, housewares, cosmetics and jewelry and competes on the basis of service

Department stores

These retailers compete mainly on the basis of customer services

Department stores

Which of the following services falls closest to the middle of the tangibility continuum?

Dinner at the Olive Garden

2 categories of competition

Direct (take customers away) and Indirect (anything else)

Self-service, general merchandise stores such as Kmart, Walmart, Target are known as?

Discount stores

e

Dividing the percentage change in quantity demanded by the percentage change in price gives the a) prestige demand curve. b) breakeven point. c) marginal cost curve. d) price sensitivity curve. e) price elasticity of demand.

what top ten service complaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Employees unwilling to make any extra effort to help

Dont ask

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a) that he's absolutely right, the government doesn't deal with small businesses. b) although the government will deal with small businesses, he will never make a profit off a government contract. c) that any government, federal, state, or local would laugh at the size of his business. d) the government rarely considers new suppliers when making purchasing decisions. e) the government buys products from all sizes of business, but there is some red tape.

E

A representative product taken from a lot or batch, evaluated, and purchased refers to a) homogeneous selection. b) description. c) trust. d) negotiated inspection. e) sampling.

E

A valid study a) portrays the population being studied. b) results in a causal relationship between the independent and dependent variables. c) uses random sampling. d) verifies expected results. e) measures what it is supposed to.

E

Nick Arnold's Auto Towing Service would best be described as a(n) ____ product.

unsought

AOL Time Warner uses its sales reports broken down by geographic regions as part of its marketing research to determine which markets are most rapidly adopting high-speed Internet connections. In this example, AOL Time Warner is using a) internal sampling. b) internal primary data. c) external secondary data. d) external primary data. e) internal secondary data.

E

All of the following are elements of the inseparability characteristic of services except that a. consumers are involved in production. b. centralized mass production is difficult. c. consumption and production are simultaneous. d. many services cannot be performed without the customer being present. e. services are easy to standardize and control.

E

All of the following are steps in the marketing research process except a) collecting data. b) interpreting research findings. c) designing the research project. d) reporting research findings. e) understanding your customer.

E

American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate a. the success of its business. b. the intangibility of its service. c. the tastes of its management. d. the inseparability of its agents and customers. e. the quality of its services.

E

An online survey conducted before students could register for their fall semester classes asked, "Do you think online professor evaluation forms would be better than paper and pencil forms administered during class?" This is an example of a(n) ______ question. a) close-ended b) short answer c) multiple-choice d) open-ended e) dichotomous

E

An organization that decides to buy all of a certain part from the same company is using a) single-supplier purchasing. b) multiple sourcing. c) same vendor analysis. d) straight rebuy. e) sole sourcing.

E

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase. a) new-task b) repetitive c) straight rebuy d) repetitive order e) modified rebuy

E

Behavior Scan, a research company, provides information on household demographics, television viewing habits, and purchases tracked with Hotline cards. This is a) a marketing information system. b) a business software database. c) online information. d) U.S. Census data. e) single-source data.

E

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in a) Sales & Marketing Management. b) an SIC listing. c) the Census of Business. d) the Census of Manufacturers. e) Standard & Poor's Register.

E

Colin developed a research design to aid his investigation. This design included a questionnaire that attempted to measure "outdoor activity preferences"; however, Colin's MBA professor said that the questionnaire measured not "outdoor activity preferences" but something else. The professor was questioning the research design's a) reliability. b) significance. c) truthfulness. d) corroboration. e) validity.

E

Compared to a mail survey, telephone surveys have a) lower response rates. b) a slower response time. c) invalid results. d) fewer expenses. e) higher response rates.

E

Consumers look closely at service quality when comparing competing services because a. they perceive all services to be essentially the same. b. they typically have very few services from which to select. c. all services are priced about the same. d. quality is the only relevant service characteristic. e. services are very difficult to evaluate.

E

Demand for business products is also known as ______ demand. a) derived b) corporate c) business buying d) manufacturing e) industrial

E

Distribution for nonprofit organizations is a. unimportant because physical movement does not take place. b. not an important decision. c. coordinated by middlemen. d. inefficient rather than efficient. e. typically characterized by short channels.

E

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering? a. Tangibility b. Intangibility c. Perishability d. Inseparability e. Heterogeneity

E

If Georgia-Pacific seeks information about trends in housing starts around the country and uses U.S. Department of Commerce reports to get this information, it is using ___________ data. a) causal b) exploratory c) primary d) laboratory e) secondary

E

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct a) exploratory research. b) hypothesis development. c) survey research. d) stratified sampling. e) experimental research.

E

If the University Bookstore wanted to understand the textbook and school supplies needs on the campus of the University of Michigan, the population of study would be a) the faculty and staff of the University of Michigan. b) all college-aged adults in the state of Michigan. c) all the people who live in Ann Arbor and surrounding areas. d) undergraduate students at the University of Michigan. e) all students, faculty, supporters, and staff of the University of Michigan.

E

In ___________ sampling, there is no way to calculate the likelihood that a specific element of the population being studied will be chosen. a) population b) random c) stratified d) probability e) nonprobability

E

In what type of sampling does every element have a known chance of being selected for study? a) Quota b) Stratified c) Random d) Nonprobability e) Probability

E

In which type of sampling design is the final choice of respondents left up to the interviewer? a) Stratified b) Random c) Cluster d) Area e) Quota

E

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets. a) consumer b) institutional c) producer d) government e) reseller

E

Institutional markets are a) intermediaries who resell goods to make a profit. b) federal and state government units. c) state or local government units. d) consumers who buy products for their own use. e) organizations that seek nonbusiness goals.

E

Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a. specifications. b. desired responsiveness. c. perceptions of quality. d. service acceptance. e. zone of tolerance.

E

Jack and Amy are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's a. specifications. b. desired responsiveness. c. perceptions of quality. d. service acceptance. e. zone of tolerance.

E

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as a. partnerships. b. repeated customer contact. c. inseparable clientele. d. long-term customers. e. client-based relationships.

E

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as a. partnerships. b. repeated customer contact. c. inseparable clientele. d. long-term customers. e. client-based relationships.

E

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called a. search qualities. b. performance attributes. c. experience qualities. d. immeasurable attributes. e. credence qualities.

E

Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called a. search qualities. b. performance attributes. c. experience qualities. d. immeasurable attributes. e. credence qualities.

E

Marketing information systems and marketing research have changed rapidly because customers and companies around the world have been linked by a) the computer. b) the super database. c) the Interactive network. d) electronic online services. e) evolving telecommunications.

E

Problem location and definition is the first step toward finding a solution to a marketing problem or launching a research study. The first sign of a problem a) involves an informed guess or assumption about a certain set of circumstances. b) is usually accompanied by a cost/benefit analysis. c) most often comes in the form of customer complaints. d) is often mentioned in secondary data reports, such as trade journals. e) is typically a departure from some normal function, such as a failure to attain objectives.

E

Quota sampling is most commonly used in a) descriptive research. b) population research. c) surveys. d) collecting primary data. e) exploratory studies.

E

Research that allows marketers to make causal inferences about relationships is called a) variable research. b) relationality. c) exploratory research. d) linkage research. e) experimental research.

E

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a. Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b. This type of advertising makes insurance more tangible to the customer. c. Safe wants to reassure customers that they provide the highest level of service quality available. d. Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e. For some services, customers look for the low-cost provider, which is what Safe claims to be.

E

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a. Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b. This type of advertising makes insurance more tangible to the customer. c. Safe wants to reassure customers that they provide the highest level of service quality available. d. Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e. For some services, customers look for the low-cost provider, which is what Safe claims to be.

E

Service industries account for ____ of the gross domestic product of most developed nations. a. more than half b. a small portion c. approximately 25 percent d. nearly all e. nearly three-quarters

E

Service industries account for ____ of the gross domestic product of most developed nations. a. more than half b. a small portion c. approximately 25 percent d. nearly all e. nearly three-quarters

E

The National Do-Not-Call list affects the ability of marketing researchers to use a) mail surveys. b) sampling. c) personal interview surveys. d) in-home interviews. e) telephone surveys.

E

The following are all guidelines for questionnaire construction that support ethical marketing research except to a) allow the interviewer to introduce him/herself by name. b) indicate that this is a marketing research project. c) explain that no sales will be involved. d) state the likely duration of the interview. e) keep the name of the research company confidential.

E

The group of people within a business who are involved in making business buying decisions is referred to as a) the new-task team. b) negotiators. c) purchasing agents. d) deciders. e) the buying center.

E

The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a. service relationship b. professional marketer c. high-contact service d. heterogeneous service e. client-based relationship

E

The marketing channels for services are usually a. complex and multifaceted. b. characterized by two to three intermediaries. c. dependent on the geographical location of the consumer. d. determined by the customer. e. direct from provider to customer.

E

The marketing channels for services are usually a. complex and multifaceted. b. characterized by two to three intermediaries. c. dependent on the geographical location of the consumer. d. determined by the customer. e. direct from provider to customer.

E

The more ____ involved with delivering a service, the greater the degree of heterogeneity. a. mechanical efforts b. phone contact c. perishability d. tangibility e. human labor

E

The more ____ involved with delivering a service, the greater the degree of heterogeneity. a. mechanical efforts b. phone contact c. perishability d. tangibility e. human labor

E

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a) make a presentation appointment with the state. b) quote prices to the purchasing department. c) advertise in the capital city. d) negotiate with the state. e) secure a slot on the list of qualified bidders.

E

The third stage in the business buying decision process is to a) evaluate product specifications to solve the problem. b) evaluate products relative to specifications. c) select and order the most appropriate product. d) evaluate product and supplier performance. e) search for products and suppliers.

E

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called a) descriptions. b) product features. c) criterion. d) purchase requests. e) specifications.

E

What are the three primary ways that marketers deliver services? a. Over the phone, online, or in-person b. Continuously, periodically, or on demand c. At the customer's home, in-person, or by telecommunications d. Through service centers, delivery vehicles, or the mail e. Service facilities, customer's home, or from a distance

E

What are the three primary ways that marketers deliver services? a. Over the phone, online, or in-person b. Continuously, periodically, or on demand c. At the customer's home, in-person, or by telecommunications d. Through service centers, delivery vehicles, or the mail e. Service facilities, customer's home, or from a distance

E

What is a primary difference between business and consumer buyers? a) Consumer buyers require more product information than business buyers. b) Business purchases are made by one individual whereas families make consumer purchases together. c) Repeat sales are more common with consumer buyers than business buyers. d) Consumers primarily buy inexpensive items; businesses only buy expensive items. e) Business buyers generally make larger orders than consumer buyers.

E

What should marketers do to promote the consistency and reliability of their services most effectively? a. Limit the number of employees in their organization b. Train employees and develop standard procedures for dealing with customers c. Encourage employees to be creative in solving customer issues and complaints d. Perform as much of the service as possible before the customer arrives e. Require employees to be shining, happy people all day long

E

When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire? a) Resale b) Wholesale c) Customer d) Consumer e) Business

E

When marketing researchers consider sampling techniques, they are preparing to collect ___________ data. a) census b) statistical c) internal secondary d) external secondary e) primary

E

When marketing researchers try to manipulate an independent variable and measure the resulting changes in a dependent variable, they are engaging in a) surveys. b) secondary data gathering. c) interviews. d) observation. e) experimentation.

E

When the researchers compared the average sales of Crunchy Wheat for the group that saw the promotion with the average sales for the group that did not see the promotion, in which stage of the marketing research process were they? a) Defining and locating problems b) Reporting research findings c) Developing hypotheses d) Collecting data e) Interpreting research findings

E

Which of the following factors have contributed the least to the growth of services in the U.S. economy? a. Increased interest in travel and entertainment b. Increased number of women in the workforce c. Increased proportion of older people in the United States d. Increased interest of Americans in fitness and recreation e. Increased number of high-tech goods

E

Which of the following factors have contributed the least to the growth of services in the U.S. economy? a. Increased interest in travel and entertainment b. Increased number of women in the workforce c. Increased proportion of older people in the United States d. Increased interest of Americans in fitness and recreation e. Increased number of high-tech goods

E

Which of the following is the best example of a high-contact service? a. Appliance repair b. Newspaper delivery c. Dog training d. Interior decorating e. Plastic surgery

E

Which of the following service providers are most likely to use demand-based pricing? a. Dentists b. Lawyers c. Doctors d. Hair stylists e. Cruise ships

E

Which of the following statements about business buying is false? a) Business marketers prefer not to sell to customers who place small orders. b) Business marketers must often sell their products in large quantities to make profits. c) Most business purchases are made by committee. d) Business purchases are usually made on the basis of contracts. e) Orders in business markets tend to be smaller than those placed in consumer markets.

E

Which of the following statements about conducting marketing research internationally is false? a) The marketing research process may need to be modified to allow for regional differences. b) A detailed search for and analysis of secondary data can help researchers gain a greater understanding of a particular marketing environment and pinpoint issues that must be taken into account in gathering primary research data. c) Primary data gathering may have a greater chance of success if the firm employs local researchers who better understand how to approach potential respondents and can do so in their own language. d) Specific differences among countries can have a profound influence in data gathering. e) Specific differences among countries have no affect on data gathering or the marketing research process.

E

Which of the following survey methods has the potential to offer quick response at a lower cost than traditional mail and telephone surveys? a) Total population surveys b) In-home (door-to-door) interviews c) Focus-group interviews d) Personal interview surveys e) Online surveys

E

_____ that are either accepted or rejected become the primary conclusions of a marketing research study. a) Descriptions b) Issues c) Primary data d) Samples e) Hypotheses

E

______ buy products from manufacturers and then resell the products to other firms in the distribution system. a) Retailers b) Producers c) Distributors d) Warehouses e) Wholesalers

E

The focal point of all marketing activities is A) Products B) The marketing mix C) profits D) sales E) customers

E) customers

E

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic

The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.

FALSE

To manage products effectively, the product manager must be independent of other departments.

FALSE

A runout approach to product deletion lets the product decline without changing the marketing strategy.

FALSE

Concept testing gives reliable feedback, but at a relatively high cost

FALSE

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

FALSE

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

FALSE

F New-product development does not include planning for advertising

FALSE

F The phase-out approach to product deletion exploits any strengths left in the product.

FALSE

Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development

FALSE

Functional modifications make an existing product more durable.

FALSE

Line extensions are less common than other new products because line extensions are more expensive and more risky.

FALSE

New products are classified solely as innovations that have never been sold by any organization

FALSE

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

FALSE

Product managers are most useful in the development of new products.

FALSE

Product support services are important mainly for products that are mechanical in nature.

FALSE

Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.

FALSE

Quality modifications never seek to reduce product quality

FALSE

By locating in the same general vicinity as other car dealerships, Hartfield Honda can?

Facilitate comparison shopping

Julianne is planning her upcoming wedding later this year. She has made a list of all the expenses that will be required for the wedding she has planned. Which of the following is not one of the service products associated with Julianne's wedding?

Flowers for the church

a

For most consumers, there is an assumed relationship between a) price and quality. b) value and cost. c) internal and external reference prices. d) value and price consciousness. e) prestige prices and value.

e

For most firms in the United States, demand curves are a) upward sloping. b) completely horizontal. c) completely vertical. d) c-shaped. e) downward sloping.

b

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. a) inelastic b) inverse c) positive d) unknown e) elastic

e

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ___________ product. a) reverse-demand b) inferior c) standard d) secondary-demand e) prestige

Supermarkets, discount stores, and hypermarkets can all be classified as?

General merchandise retailers

Type of retailer that offers a variety of product lines taht are stocked in depth.

General merchandise retailers

a

Generally, customers are most likely to rely on the price-quality association when a) they cannot judge the quality of the product for themselves. b) the product is a well-known brand. c) customers can judge the product's quality for themselves. d) the product is purchased through the use of the Internet. e) products are being purchased from well-established retailers that are familiar to customers.

What can be tangible or intangible?

Goods, services and ideas which are the product

If you can get a whopper, and go to an optical shop for contacts without leaving the store in which you've been shopping, this is most likely a?

Hypermarket

What is the primary distinction between superstores and hypermarkets?

Hypermarkets are larger and have more types of products than superstores.

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct Select one: a. exploratory research. b. hypothesis development. c. survey research. d. experimental research. e. stratified sampling.

Hypothesis development

what top ten service complaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Powerless employees who lack the authority to solve the problem.

I just work here

A(n) ____ is a concept, philosophy, or image

Idea

When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development?

Idea generation

c

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be a) steady. b) inelastic. c) elastic. d) prestige. e) marginal.

d

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where a) total costs and total revenues are equal. b) marginal revenue is at its highest level. c) marginal revenue exceeds marginal cost. d) marginal revenue equals marginal cost. e) demand is most elastic.

D

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

e

If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.

a

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount. a) quantity b) cash c) seasonal d) trade e) complementary

e

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then a) its marginal costs are falling. b) average total cost is at its maximum. c) average total costs are rising. d) demand is elastic. e) average total cost is at its lowest level.

c

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen? a) The quantity demanded would immediately fall. b) The quantity demanded would always increase. c) Above some price level, the quantity demanded would begin to decrease. d) The demand curve for the product would always shift to the right. e) The demand curve for the product would always shift to the left.

a

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a) quantity demanded goes down. b) demand remains constant. c) quantity demanded increases. d) demand increases. e) breakeven increases.

D

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.

d

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is a) 2. b) 1/2. c) -1/2. d) -2. e) 4.

a

If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing a) price discrimination. b) price-consciousness. c) functional discounting. d) price competition. e) price fixing.

B

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.

d

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur a) more fixed costs. b) higher average fixed costs. c) fewer variable costs. d) a marginal cost. e) higher average variable costs.

a

If a product has an inelastic demand and the manufacturer raises its price, a) total revenue will increase. b) quantity demanded will decrease. c) the demand schedule will shift. d) the demand will become more inelastic. e) total revenue will decrease.

b

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price. a) F.O.B. destination b) F.O.B. factory c) transfer d) postage-stamp e) base-point

b

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point? a) 500 units b) 2,000 units c) 1,200 units d) 300 units e) 3,000 units

e

If the terms of a business exchange are 2/10 net 30, this means that the transaction a) involves a cumulative discount if paid in 30 days. b) involves a noncumulative discount. c) offers a discount if the buyer lives within a ten-mile radius. d) price does not include the cost of freight. e) involves a cash discount if paid within ten days.

b

In conducting an assessment of her accounting firm, Pauline Santana discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Mary's profits would equal a) a loss of $20,000. b) a loss of $32,000. c) $28,000. d) $40,000. e) $222,000.

B

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

c

In the long run, the J. F. Smucker Company must view ___________ as the absolute lowest price for its Jif brand peanut butter. a) a 10 percent return on investment b) product development costs c) total costs d) advertising expenditures e) Nestlé's prices

A

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?

Inseparability

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?

Installations

B

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators

What does the demand curve for a prestige product look like?

It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.

What happens if a customer comes back more than once?

It is a 100% return

Marketing management

It is process of planning, organizing, implementing and controlling marketing activities to facilitate exchanges affecting and efficiently

b

Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is a) cash. b) noncumulative. c) seasonal. d) trade. e) cumulative.

d

Laura Spangler, of North Central Novelties, reduces the price of games sold to Robertson's Entertainment by 10 percent to allow for expenses associated with Robertson's promoting the games to consumers. This is an example of a ___________ discount. a) quantity b) cash c) seasonal d) trade e) complementary

Mission statement

Long term vision of what an organization wants to become

DOG

Low declining market-subordinate market share

CASH COW

Low growth-dominate market share

e

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $50.00. Our Price $29.99." This is an example of the use of a) internal referencing. b) cumulative discounts. c) seasonal discounts. d) base-point pricing. e) an external reference price.

Mission

Main thing we run decisions through (COMPASS)

C

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA

a

Marginal analysis involves examining a) what happens to a firm's costs and revenues when production is changed by one unit. b) the extra revenue produced by the sale of one more product. c) the extra cost incurred by the production of one more unit. d) the difference between marginal revenue and total revenue. e) the difference between marginal cost and total cost.

d

Marketers generally view _____ as the minimum price a product can be sold for. a) fixed costs b) variable costs c) profits d) costs e) moderate losses

c

Marketers have no flexibility in setting prices under conditions of a) a monopoly. b) an oligopoly. c) perfect competition. d) monopolistic competition. e) no competition.

True or False

Marketing activities take place in a dynamic environment?

a

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units. a) 1,167 b) 1,000 c) 1,750 d) 2,500 e) 700

C

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these GROUPS are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

A

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education

b

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's a) average revenue. b) marginal revenue. c) price elasticity. d) average variable revenue. e) average total cost.

A

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

b

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because a) they want to avoid new competitors entering their market. b) they want to avoid government regulations on their pricing. c) they try to satisfy the demands of value-conscious consumers. d) firms can increase market share more rapidly this way. e) customers will discontinue use of these products if prices rise.

Specialty stores offer_______ than department stores.

More sales expertise and better selections

E

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

If you perceive that there are four possible ways which a procedure can go wrong and circumvent these, then a fifth way, unprepared for, will promptly develop is?

Murphys Sixth law

Type of shopping center usually consists of several small convenience and specialty stores?

Neighborhood

Deep discounts, few customer services, and central checkouts. Buy manufacturers seconds, overruns, returns, and off-season production runs at below wholesale prices and resell them.

Off-price retailers

b

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

c

One advantage of nonprice competition is that a) a firm can react quickly to competitive efforts. b) market share becomes less important. c) a firm can build customer loyalty. d) marketing efforts are completely eliminated. e) pricing is no longer a factor.

A

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix

D

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

Marketing strategy

Plan of action for identifying and analyzing a target market in developing a marketing mix to meet the needs of that market. (Does not have to be in writing)

A

Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic

E

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

e

Premium-priced products are usually marketed through a) complex marketing channels. b) intensive or selective distribution. c) exclusive or intensive distribution. d) exclusive distribution only. e) selective or exclusive distribution.

e

Price is a) money paid in a transaction. b) not important to buyers. c) of limited interest to sellers. d) the most inflexible marketing mix decision variable. e) the value that is exchanged for products in a marketing transaction.

d

Price is a key element in the marketing mix because it relates directly to a) the size of the sales force. b) the speed of an exchange. c) quality controls. d) the generation of total revenue. e) brand image.

Environmental scanning

Process of COLLECTING and GATHERING INFORMATION

Whats Marketing?

Process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying relationships with customers in a dynamic environment.

Strategic planning

Process of establishing an organizational mission and formulating goals, corporate strategies, marketing objectives, marketing strategy and a marketing plan

B

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

D

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

d

Provisions of the Robinson-Patman Act, as well as those of the ___________, limit the use of price differentials. a) Simpson-Marshall Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Sherman Antitrust Act

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Quality

Be prepared to do the job right the first time, be prepared to do it VERY right the second

Recovery

e

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as a) base-point pricing. b) freight absorption pricing. c) price zoning. d) location pricing. e) geographic pricing.

E

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)

Retailer

Wal-mart, Macy's, Nordstrom's, and Toys "R" Us are examples of?

Retailers

Direct selling, direct marketing, vending machines are examples of

Retailing

Transactions in which the buyer intends to consumer the product through personal, faimly, or household use.

Retailing

e

Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Rob should have been certain that the order terms were a) F.O.B. origin. b) F.O.B. factory. c) C.O.D. d) 2/10, n/30. e) F.O.B. destination.

d

Roberts Electronics calculates that if it produces 15 radar detectors, its costs are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this instance, $90 is the firm's ___________ cost. a) average b) fixed c) variable d) marginal e) average variable

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Robinson-Patman Act

BCG Classification (Boston consultant group matrix)

STAR-CASH COW-DOG-QUESTION MARK

e

Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in a) non-price competition. b) demand-based pricing. c) prestige pricing. d) price differentiation. e) price competition.

Marketing Concept

Satisfy customers, focus what your customers want, if they're satisfied it is all part of building the relationship

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

Screening

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

Screening

E

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

b

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing a) product competition. b) nonprice competition. c) brand differentiation. d) price competition. e) competitor differentiation.

B

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

Gap clothing stores sell primarily what type of products?

Shopping

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.

Shopping

Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Go Anywhere Airlines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

Shopping

These include outlet malls, lifestyle, strip mals and shopping malls.

Shopping centers

Consumer products are purchased becasue of ?

Social influences

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a ?

Speciality retailer

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

TRUE

Jack needs a potted plant, salmon, motor oil, bread, milk and bday cake. Which store should Jack go to get all these supplies?

Supermarket

Large, self service stores that carry a complete line of food products and some nonfood products are called?

Supermarkets

This offers the widest product mixes and deepest product lines?

Superregional shopping centers

A large retailer selling food and most routinely purchased consumer products is a?

Superstore

Laura goes to Walmart and buys some clothing, a DVD and all the groceries she needs for her family. What type of retailer is this particular Wal-mart?

Superstore

Kroger, Safeway, and publix are considered to be?

Superstores

Which type of retail outlet can have up to 200,000 sq ft?

Superstores

Test marketing is a sample launching of the entire marketing mix.

TRUE

e

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should a) charge a price based on their cost. b) charge prices consistent with their existing ties. c) discount the ties. d) negotiate the price with individual tie shoppers. e) use price symbolically.

a

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ___________ point. a) breakeven b) marginal revenue less than marginal cost c) profit margin d) competitive price e) profit maximizing

d

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called a) zone pricing. b) base-point pricing. c) business-unit pricing. d) transfer pricing. e) price discrimination.

e

Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called _______ pricing. a) zone b) actual full cost c) standard full cost d) cost plus investment e) market-based cost

B

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.

T/F The education a student gets is an example of the intangibility of services.

T

A brand manager is a type of product manager

TRUE

A venture team has the authority to execute plans for the development of products

TRUE

An important question in the business analysis stage of new-product development is, "Will this product meet our profit goal?"

TRUE

Automobile makers rely heavily on aesthetic modifications.

TRUE

Brand and product managers operate cross-functionally

TRUE

Business analysis provides a tentative sketch of a product's profitability

TRUE

Consistency of product quality means giving consumers the quality they expect every time they purchase a product.

TRUE

Designing a product that customers perceive as different from competing products is an example of product differentiation.

TRUE

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

TRUE

Estimates of sales are an important component of business analysis.

TRUE

Functional modifications help an organization achieve and maintain a progressive image.

TRUE

Functional modifications usually require that the product be redesigned.

TRUE

How a pair of jeans looks, regardless of the price, is an example of styling.

TRUE

If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.

TRUE

Many of the so-called new products that are launched each year are in fact line extensions.

TRUE

Product managers can be responsible for a single product, a product line, or several products.

TRUE

Relatively few product ideas are put into the product development stage.

TRUE

a

Temporary price reductions through sales, rebates, and special discounts are often used to a) raise cash quickly. b) decrease costs. c) increase profitability. d) run off the competition. e) create a value image.

c

The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland? a) $45 b) $50 c) $30 d) $25 e) $40

a

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____________ discounts. a) trade b) cumulative c) noncumulative d) push e) intermediary

B

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

a

The ___________ prohibits price fixing among firms in an industry. a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Robinson-Patman Act e) Clayton Act

A

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

E

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.

c

The amount of profit a channel member expects depends on a) the amount of discounts for large orders provided by the producers. b) the number of channel support activities provided by the producers. c) what the intermediary could earn if it were handling a competing product instead. d) the type of distribution channels involved. e) the amount of effort required to carry the product.

C

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

a

The degree to which the price of a product enhances a customer's satisfaction with the purchase experience and with the product after the purchase is part of their a) response. b) reference. c) interpretation. d) price satisfaction. e) price-consciousness.

C

The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage

e

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods? a) Price differentiation b) Base-point pricing c) Freight absorption pricing d) Transfer pricing e) Zone pricing

D

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

C

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

D

The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.

C

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.

Market Share

The percentage of a market that actually buys a specific product from a particular company

a

The perception of price depends on a a) product's actual price and consumers' expectations regarding price. b) consumer's analysis of competitive prices. c) consumer's reference price. d) consumer's expectation of price. e) product's actual price in comparison with the manufacturer's suggested price.

b

The point at which the costs of producing a product equal the revenue earned from selling the product is a) elasticity of demand. b) the breakeven point. c) variable costs. d) price elasticity. e) the sum of fixed and variable costs.

B

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

A

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

E

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.

B

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

C

The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.

E

The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.

E

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.

d

The tuition and fees each student paid for this semester of college are both terms for a) expenses. b) charges. c) bills. d) price. e) exchange valuations.

c

The type of prices most likely to appear in advertising is a) prestige. b) future. c) bargain. d) internal reference. e) cost-plus.

c

The types of prices that appear least often in ads are ___________ prices. a) reference b) discount c) premium d) comparison e) sale

C

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

Which of the following statements about the undifferentiated targeting strategy is false?

The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

Why are line extensions more common than new products?

They are less expensive and lower-risk.

Core Competency

Thing that firm does well "strength" which SOMETIMES gives us an advantage over competition

D

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.

e

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe a) a penalty. b) $53.90. c) $56.10. d) $58.30. e) $55.00.

c

To determine the breakeven point in units, divide the fixed costs by a) total costs. b) variable costs time price. c) price minus variable costs. d) price per unit. e) total revenue minus fixed costs.

E

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

a

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low price strategy. One of the negative side effects of making this pricing decision is a) a negative impact on consumers' perceptions of quality. b) competitive matching. c) a high return on investment level affecting tax balances owed. d) poor survival chances. e) higher developmental costs.

c

To maintain market share and revenue in an increasingly price-sensitive market, companies have focused on quality, used labor-saving technologies, and used efficient manufacturing processes. These tactics have provided gains in productivity that have translated into ___________ for the consumer. a) higher costs for the company and higher prices b) higher costs for the company and lower prices c) lower costs for the company and lower prices d) lower costs for the company and higher prices e) no change in the costs for either the company or

A

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

Matt's gf tells him she wants a cashmere sweater for Xmas. Matt decides to go to a store that provides the best possible selection of sweaters. His best choice would be to shop at a?

Traditional speciality

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers.

what are the three essential components of building a service quality information system?

Transactional surverys total market surveys employee surveys

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?

Traveler's Insurance umbrella

Which of the following countries was the world's first service economy?

United States

E

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

A widely used system for classifying individuals on the basis of lifestyle is

VALS

B

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target

Large-scale, members-only, retailer that combines cash and carry wholesaling w/ discount retailing?

Warehouse club

Retailers that sell only to members and feature discount retailing combined with cash and carry wholesaling is called?

Warehouse clubs

Retail facilities located in big, low-cost buidlings with large on-premise inventories and minimal services are called?

Warehouse showrooms

Environmental analysists

We ASSESS and INTERPRET the info from environmental scanning

c

What a price means or what it communicates to customers is called a) reference. b) response. c) interpretation. d) internalization. e) signaling.

c

What assumption does breakeven analysis make that limits its overall usefulness? a) It focuses on how to achieve a price objective. b) It assumes a company wants to gain a certain market share. c) It relies on demand for a product being inelastic. d) It focuses only on competitive factors and not costs. e) It assumes demand is elastic for the product.

d

What do all of the following have in common: tuition, fee, premium, retainer, dues? a) They all must be paid in cash. b) They are forms of exchange similar to, but not identical with, money. c) They are forms of exchange similar to, but not identical with, barter. d) They are different terms for the concept of price. e) They have nothing in common.

c

What does the demand curve for a prestige product look like? a) It is a straight line where the quantity sold continues to increase as the price of each product increases. b) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales. c) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases. d) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price. e) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.

c

What equation shows organizations the relationship between price and profit? a) Total Variable Costs + Total Fixed Costs = Sales - Profit b) Price = Profit per Item × Number of Units Sold c) (Price × Quantity Sold) - Total Costs = Profits d) (Price - Profits) × Total Costs = Sales e) Total Costs = (Price × Quantity Sold) - Profits

e

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling? a) Quantity b) Cash c) Geographic d) Service e) Trade

c

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs. a) base-point b) zone c) transfer d) uniform geographic e) matrix

E

When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.

a

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.

e

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on a) internal reference prices. b) symbol prices. c) high value products. d) discounted reference prices. e) external reference prices.

d

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

E

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.

c

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

c

When marginal cost is equal to marginal revenue, the firm should a) produce more to increase profits. b) produce less to decrease total costs. c) stop producing additional units to maximize profits. d) provide discounts to encourage purchases. e) intensify distribution to increase sales.

d

When marketers at Consolidated Mustard Company tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Consolidated conclude? a) Consolidated did poor market demand research. b) Consolidated has an elastic product. c) Consolidated has an inelastic product. d) Consolidated mustard is a prestige good. e) Consolidated mustard has a normal demand curve.

a

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using a) price competition. b) nonprice competition. c) comparative pricing strategies. d) demand-based pricing. e) supply-based pricing.

A

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

The amount of money received through wages, rents, investments, pensions, and subsidies is called a) income. b) wealth. c) discretionary income. d) prosperity. e) credit.

a

d

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

B

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

D

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

e

Which factor is least likely to affect pricing decisions? a) Competitive prices b) Legal and regulatory issues c) Organizational and marketing objectives d) Customers' interpretation and response e) Shifting stock values

e

Which of the following acts does not directly affect pricing decisions? a) Sherman Antitrust Act b) Federal Trade Commission Act c) Wheeler-Lea Act d) Clayton Act e) Simpson-Marshall Act

D

Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics

c

Which of the following is most likely to be a fixed cost? a) Component parts b) Raw materials c) Rent d) Electricity e) Transportation

e

Which of the following is most likely to have an inelastic demand curve? a) Automobile b) Vacation c) Nonelective surgery d) Recreational vehicle e) Computer

D

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

e

Which of the following is not a discount provided to business customers? a) Trade b) Cumulative c) Cash d) Seasonal e) Differentiated

c

Which of the following is not a major factor for firms making price decisions? a) Costs b) Competition c) Previous sales d) Channel member expectations e) Legal and regulatory issues

a

Which of the following is not a method used to determine transfer prices? a) Discounted standard cost b) Actual full cost c) Standard full cost d) Cost plus investment e) Market-based cost

B

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

D

Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics

B

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

b

Which of the following is the most flexible variable in the marketing mix? a) Product b) Price c) Advertising d) Personal selling e) Distribution

D

Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances

b

Which of the following products is most likely to have an inverted C-shaped demand curve? a) Levi jeans b) Giorgio perfume c) Maxwell House coffee d) Pillsbury cake mix e) Ford Taurus

b

Which of the following products is most likely to involve personal selling? a) Blenders b) Riding lawn mowers c) Fresh peaches d) Picture frames e) Footballs

b

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers? a) Sherman Antitrust Act b) Robinson-Patman Act c) Lanham Trademark Act d) Federal Trade Commission Act e) Wheeler-Lea Act

D

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods

a

Which of the following statements about nonprice competition is false? a) Companies that use nonprice competition do not need to keep track of their competitor's prices. b) A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition. c) A firm using nonprice competition can build loyalty to both its company and its products. d) When using nonprice competition, a company should promote the distinguishing characteristics of its brand. e) Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.

d

Which of the following statements about price elasticity is false? a) Steak is an example of a product that has an elastic demand for most people, because when price goes up quantity demanded goes down proportionally more. b) Elasticity of demand is the relative responsiveness of a change in quantity demanded to changes in price. c) If marketers can determine price elasticity, then setting prices at optimum levels is much easier. d) When price is raised on a product that has an inelastic demand, then total revenue will decrease. e) A product like electricity has an inelastic demand.

d

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

B

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

What 2 questions does the mission statement answer?

Who are our customers and what is our core competency?

c

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources.

What is the primary distinction between a line extension and a product modification?

With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.

Marketing Plan

Written document

51. Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product. a) component parts b) accessory parts c) raw materials d) process materials e) MRO supplies

a

53. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n) a) component part. b) specialty item. c) accessory equipment. d) raw material. e) process material.

a

B

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations

c

___________ consumers are concerned about both the price and the quality aspects of a product. a) Price-conscious b) Prestige-sensitive c) Value-conscious d) Price-conscious and prestige-sensitive e) Quality-conscious

102. As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

a

111. When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is a) poor timing. b) the company's failure to match product offerings to customer needs. c) ineffective branding. d) design problems. e) overestimation of market size.

a

17. According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange.

a

22. Which of the following is always used to determine the classification of a good? a) Buyer's intent for using the product b) Amount of shopping required by the buyer to obtain the product c) Price of the product d) Specific product features e) Industry competitors

a

25. Energizer batteries would be classified as which type of product? a) Convenience b) Shopping c) Specialty d) Unsought e) Industrial service

a

27. Dannon Yogurt represents what type of product for most consumers? a) Convenience b) Business c) Shopping d) Specialty e) Durable

a

28. Convenience products are a) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. b) frequently purchased items for which buyers are willing to exert considerable effort. c) frequently purchased items that are found in certain retail outlets. d) items that are expensive but are easy to purchase. e) items that require some purchase planning and for which the buyer often will not accept substitutes.

a

29. Which of the following statements does not apply to convenience goods? a) Consumers are brand loyal to convenience products and are not likely to substitute other brands. b) Convenience products require minimal shopping effort. c) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. d) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. e) Colas, gasoline, and bread are good examples of convenience goods.

a

30. Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products. a) shopping b) specialty c) service d) convenience e) unsought

a

31. Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product? a) Shopping b) Convenience c) Specialty d) Unsought e) Industrial

a

45. An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product? a) Business b) Process materials c) Raw material d) Convenience e) Consumer

a

47. Large tools and machines used in a production process for a considerable length of time are classified as a) installations. b) accessory equipment. c) component parts. d) raw materials. e) MRO supplies.

a

60. A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

a

64. One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix a) width. b) depth. c) length. d) volume. e) dimension.

a

70. Which of the following is the most typical example of a new product introduction? a) Pringles sold in snack-sized containers b) A brand-new nut discovered in Africa c) A car that uses no oil or gasoline d) Shoes that literally make you run faster e) A device that cools your car while parked outside

a

76. During the growth stage of the product life cycle, marketers must a) fortify the product position. b) move to exclusive distribution. c) raise the price. d) increase promotion as a percentage of sales. e) introduce private brands.

a

79. Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? a) Lowering prices after developmental costs have been recovered b) Raising promotion expenditures as a percentage of total sales c) Moving from intensive to selective distribution d) Raising prices to encourage competitors to enter the market e) Reducing the number of product models in the product line

a

80. When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline

a

85. A common business objective of the ___________ stage of the product life cycle is to generate cash flow. a) maturity b) growth c) introduction d) market reduction e) decline

a

88. A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline

a

89. Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? a) Maturity b) Growth c) Introduction d) Market reduction e) Decline

a

90. A company wanting to maintain market share during the maturity stage requires moderate to large a) advertising expenditures. b) distribution expenditures. c) production expenditures. d) price increases. e) packaging modifications.

a

94. During the decline stage of the product life cycle, a) sales rapidly decrease. b) market share is maintained. c) competition is at a peak. d) profits begin to fall. e) profits peak and then begin to decline.

a

99. A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called a) harvesting. b) investing. c) realigning. d) divesting. e) mixing.

a

Approximately what percentage of civilian workers in the United States performs marketing activities? a) 25 to 33 percent b) 81 to 92 percent c) 42 to 50 percent

a

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. a) prosperity b) depression c) recovery d) succession e) recession

a

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ______ marketing tool. a) promotional b) distributional c) pricing d) targeting e) production

a

During which stage of the business cycle is unemployment low and total income relatively high? a) prosperity b) depression c) recovery d) succession e) recession

a

For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a) one-half b)one-fifth c) one-third

a

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

a

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a) demographics. b) cultural values. c) income levels. d) consumerism. e) subcultures.

a

Marketers primarily focus their environmental analysis on ____ competitors. a) Brand b) Generic c) Total budget d) Product e) Monopolistic

a

Marketers use the term "___________" to describe establishing long-term, mutually satisfying buyer-seller relationships. a) relationship marketing b) customer service c) marketing management d) exchange e) utility

a

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal

a

Marketing activities are a) used by all sizes of organizations including for-profit, nonprofit, and government agencies. b) limited to use by larger for-profit and nonprofit organizations. c) implemented only to increase profits for the organization and to expand the scope of its customer base. d) used by all types and sizes of businesses but are not used by nonprofit organizations.

a

Procompetitive laws are those designed to a) preserve competition. b) protect the consumer. c) ensure product safety. d) reduce competition. e) limit business lobbying of government officials.

a

The Better Business Bureau is probably the best-known a) nongovernmental regulatory group. b) state-operated enforcement agency. c) national evaluator of advertisements. d) federal regulatory group. e) self-regulatory unit operating at the national level.

a

The forces of the marketing environment include a) political, legal and regulatory, sociocultural, technological, economic, and competitive. b) sociocultural, legal, regulatory, economic, and competitive. c) legal, regulatory, political, and sociocultural. d) competitive and noncompetitive forces that affect most lifestyles. e) fairly static components.

a

The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they a) affect a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix. b) dictate that changes be made to the existing marketing mix despite any negative reactions from customers. c) make most new products obsolete very quickly so that research and development must continually develop new products.

a

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) noncompetition

a

To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis. b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting

a

What type of competitive structure exists when a firm produces a product that has no close substitutes? a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) Mixed competition

a

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a) oligopoly b) monopoly c) pure competition d) mixed competition e) monopolistic competition

a

When Burger King offers 99-cent Whoppers to increase store traffic, it is altering which aspect of the marketing mix? a) Price b) Promotion c) Distribution d) Product e) Target market

a

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

a

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a) Consumer Product Safety Commission b) Children's Online Protection Act c) Food and Drug Administration d) Environmental Protection Agency e) National Advertising Review Board

a

Which of the following best describes the acceptance of the marketing concept by American organizations? a) The marketing concept has yet to be fully accepted by all organizations. b) All organizations fully utilize the marketing concept to run their businesses. c) Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept.

a

Which of the following companies is the best example of a service marketer? a)fedex b) sony c)abercrombie

a

Which of the following firms would be most likely to have a monopoly for its competitive environment? a) TimeWarner Cable TV b) Mitchell Trucking c) Continental Airlines d) Rogers Plumbing e) Chemlawn Lawn Care

a

Which one of the following statements by a company president best reflects the marketing concept? a) We have organized our business to make certain that customers get what they want. b) We believe that the marketing department must organize to sell what we produce. c) We have organized an aggressive sales force in our company to promote our products.

a

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

a

Which of the following service providers are most likely to bundle-price their services? a) Cable television companies b) Retail stores c) Airlines d) Theaters e) Doctors

a Cable television companies

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features? a) Heterogeneity b) Intangibility c) Perishability d) Inseparability e) Homogeneity

a Heterogeneity

A light bulb can be all of the following except

a consumer product if it is used to light the office of the board of directors.

The necessary interaction between service provider and customer that allows a service to be delivered is called a) customer contact. b) service exchange. c) marketing. d) relationship marketing. e) service contact.

a customer contact

value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

perfectly inelastic

a demand relationship in which any change of price brings about no quantity demanded adjustment (is equal to zero)

perfectly elastic

a demand relationship in which any change of quantity demanded brings about no price adjustment (is infinite)

elastic

a demand relationship in which the rate of change of quantity demanded is greater than the rate of change of price

inelastic

a demand relationship in which the rate of change of quantity demanded is less than the rate of change of price

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by a) emphasizing tangible cues in promoting the service. b) using word association. c) personalizing the selling of the service. d) utilizing publicity techniques to enhance the service.

a emphasizing tangible cues in promoting the service

One advantage of nonprice competition is that

a firm can build customer loyalty

If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use Select one: a. a focus-group interview. b. observation. c. an on-site computer interview. d. a shopping mall intercept interview. e. a telephone survey.

a focus-group interview

Greg chooses to have his equipment stored in a location away from the main part of town so that he can have large parking lot and an outdoor range for customers to test out his merchandise. Greg's store is?

a free-standing structure

a product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services. a) heterogeneity b) customer contact aspect c) intangibility d) inseparability e) perishability

a heterogeneity

The heterogeneity characteristic of services provides marketers with tremendous opportunity to a) customize their services to meet unique individual needs. b) hold down the cost of providing services to customers. c) create standardized packages that will appeal to many customers. d) offer the same service as all of their competitors. e) develop relationship marketing with their customers.

a hold down the cost of providing services to customers.

Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services. a) intangibility b) perishability c) tangibility d) inseparability e) heterogeneity

a intangibility

Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services. a) intangibility b) perishability c) heterogeneity d) inseparability e) customer service

a intangibility

In marketing research, a sample is best described as Select one: a. all the elements, units, or individuals of interest to researchers for a specific study. b. a group that shares a common attribute within a population. c. a small portion of a product offered to customers to try a new product. d. a small group that is a part of a larger group. e. a limited number of units chosen to represent the characteristics of a total population.

a limited number of units chosen to represent the characteristics of a total population

The marketing concept is

a management philosphy

elasticity

a measure of how responsive the quantity demanded by consumers or the quantity supplied by producers is to change in the equilibrium price or some other economic factor.

elasticity of demand

a measure of sensitivity of quantity demanded to changes in the price of the product (responsiveness of the quantity demanded to a change in the price of the price)

income elasticity

a measure of the sensitivity of quantity demanded to changes in consumers income

cross-price elasticity

a measure of the sensitivity of quantity demanded to changes in the price of another product, usually a substitute or complementary good

elasticity of supply

a measure of the sensitivity of the qaunity supplied to changes in the price of the product

Any service provider that offers time-sensitive services receives most of its revenue during a) peak demand. b) heavy use time. c) the off-season. d) preferred demand. e) customer contact time

a peak demand

Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as a) peak demand. b) preferred demand. c) off-peak demand. d) high-contact time. e) high intensity time.

a peak demand

Demand-based pricing most closely relates to the _____ of services. a) perishability b) intangibility c) heterogeneity d) customer contact aspect e) inseparability

a perishability

Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services. a) perishability b) intangibility c) heterogeneity d) inseparability e) homogeneity

a perishability

marketing concept

a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allowed the organization to achieve its goals

good

a physical product that you can touch is a

The continuum of tangibility goes from _____ on one end to _____ on the other end. a) service-dominant products; good-dominant products b) pure products; pure services c) rational products; irrational products d) mostly service goods; mostly product goods e) easy to see; not easy to see

a pure products; pure services

elasticity coefficicent

a quantitative measure of the degree of responsiveness for a product in a market equal to the rate of change of quantity demanded (or supplied) divided by the rate of change of the other variable such as price of the product and so forth.

target market

a specific group of customers on whom a company focuses its marketing efforts

Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.

a towing services

66. What is a primary difference between an industrial distributor and a manufacturers' agent? a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

a) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a) a market test. b) regression analysis. c) trend analysis. d) a survey. e) the Delphi technique.

a) a market test.

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.

a) expert forecasting survey.

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education

a) Demographic

175. If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying contacts d) Refusal to deal e) Restricted sales territories

a) Exclusive dealing

164. Which of the following organizations consolidates shipments from several firms into more efficient lot sizes? a) Freight forwarder b) Forwarding agency c) Transporter d) Special transportation company e) Intermodal shipping company

a) Freight forwarder

161. ___________ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. a) Intermodal transportation b) Physical distribution c) Containerized movement d) Efficient transportation e) Freight forwarding

a) Intermodal transportation

32. What links producers to consumers through the purchase and reselling of products or contractual agreements? a) Marketing intermediaries b) Distributors c) Suppliers d) Middle marketers e) Marketing channels

a) Marketing intermediaries

70. Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of a) a strategic channel alliance. b) exclusive distribution. c) dual distribution. d) horizontal channel integration. e) channel leadership.

a) a strategic channel alliance.

98. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ______ exists. a) a vertical marketing system b) horizontal channel integration c) channel power d) channel cooperation e) extensive distribution

a) a vertical marketing system

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used? a) Positioning to avoid competition b) Head-to-head competition c) Parallel positioning d) Segmented positioning e) Counter positioning

a) Positioning to avoid competition

155. Which mode of transportation hauls more freight than any other? a) Railroads b) Waterways c) Pipelines d) Trucks e) Airways

a) Railroads

Who provides the environment in which exchanges with ultimate consumers occur? a) Retailers b) Wholesalers c) Catalogers d) Telemarketers e) Producers

a) Retailers

Which type of retail outlet can have up to 200,000 square feet? a) Superstores b) Supermarkets c) Discount stores d) Department stores e) Category killers

a) Superstores

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method? a) Time series analysis bExecutive judgment c) Surveys d) Regression analysis e) Market tests

a) Time series analysis

154. Which major mode of freight transportation provides the most flexible schedules and routes? a) Trucks b) Waterways c) Airways d) Pipelines e) Railroads

a) Trucks

A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.

a) VALS.

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets

105. In an administered vertical marketing system (VMS), interorganizational relationships are a) achieved by informal coordination. b) formalized through contracts. c) combined under the ownership of a single organization. d) guided by legal agreements. e) achieved by clearly defining the obligations and rights of all channel members.

a) achieved by informal coordination.

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.

a) behavioristic variables.

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential. a) breakdown b) recessionary c) buildup d) pyramid e) dimensional

a) breakdown

150. A public warehouse is a a) business that leases storage space and related facilities for distribution to other firms. b) large, centralized warehouse that focuses on moving rather than storing goods. c) company that provides a complete array of logistical services for businesses. d) company-operated facility for storing and shipping products. e) warehouse used to store the personal property of many different customers.

a) business that leases storage space and related facilities for distribution to other firms.

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

a) buying power.

93. Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of a) channel conflict caused by inefficient communication between channel members. b) open communication among the channel members. c) methods of channel coordination designed to reduce ambiguity. d) negotiating territorial issues among regional distributors of a product. e) allowing one member of the channel to take the role of channel captain.

a) channel conflict caused by inefficient communication between channel members.

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore most likely using a(n) _____ targeting strategy. a) concentrated b) differentiated c) exclusive d) focused e) undifferentiated

a) concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

a) concentrated or differentiated targeting

94. When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ___________ between Dole and these wholesalers. a) conflict b) cooperation c) leadership d) integration e) flows

a) conflict

107. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ___________ vertical marketing system. a) contractual b) administered c) corporate d) negotiated e) institutional

a) contractual

Compared with other types of retailers, department stores compete mainly on the basis of a) customer services. b) low prices. c) a very deep assortment of a few specific products. d) high sales volume. e) catalog sales.

a) customer services.

122. The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce a) cycle time. b) order processing. c) turn-around. d) shipping time. e) transportation.

a) cycle time.

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. a) demographic b) psychographic c) sociographic d) behavioristic e) geographic

a) demographic

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables. a) demographic b) psychographic c) geographic d) family life cycle e) product use

a) demographic

Nordstrom's, Macy's, and JC Penney's are all considered a) department stores. b) discount stores. c) off-price retailers. d) specialty retailers. e) category killers.

a) department stores.

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated

a) differentiated

Self-service, general merchandise stores such as Kmart are known as a) discount stores. b) warehouse showrooms. c) catalog showrooms. d) superstores. e) specialty retailers.

a) discount stores.

67. Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a) dual distribution. b) industrial distribution. c) strategic channel alliance. d) supply chain management. e) an unethical marketing channel.

a) dual distribution.

69. Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a) dual distribution. b) vertical integration. c) horizontal integration. d) tying agreements. e) exclusive dealing.

a) dual distribution.

By locating in the same general vicinity as other car dealerships, Hartfield Honda can a) facilitate comparison shopping. b) create form utility. c) facilitate wholesale exchanges. d) create possession utility. e) create exchange utility.

a) facilitate comparison shopping.

Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic

a) geographic

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

a) heterogeneous.

57. An independent business that takes title to products and carries inventories is a(n) a) industrial distributor. b) intermediary. c) agency. d) wholesaler. e) producer.

a) industrial distributor.

136. A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called a) just-in-time (JIT). b) time management. c) inventory minimization. d) economic order quantity. e) reorder point maximization.

a) just-in-time (JIT).

35. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a) long-term commitments. b) short-term commitments. c) easier to change than prices. d) easier to change than promotion. e) impossible to change.

a) long-term commitments.

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

a) market segments.

165. Freight transportation companies that offer several different shipment methods are called a) megacarriers. b) intermodal transporters. c) freight forwarders. d) shipping experts. e) superfreighters.

a) megacarriers.

114. If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using a) outsourcing. b) sole-sourcing. c) logistics. d) wholesaling. e) distribution services.

a) outsourcing.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix

a) perceptual map

37. Marketing channels create three types of utility for consumers including a) place, time, and possession. b) location, availability, and suitability. c) time, location, and promotion. d) retailer, wholesaler, and producer. e) position, possession, and place.

a) place, time, and possession.

54. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _________ channel. a) producer-to-business buyer b) producer-to-industrial-distributor-to-business buyer c) producer-to-agent-to-business buyer d) equipment e) consumer

a) producer-to-business buyer

A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.

a) regression analysis.

47. After direct-marketing, the next slightly longer marketing channel adds a(n) a) retailer. b) producer. c) wholesaler. d) agent. e) consumer.

a) retailer.

48. When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a a) retailer. b) wholesaler. c) broker. d) functional middleman. e) producer.

a) retailer.

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

a) segmentation.

80. Using only some of the available outlets to distribute a product is called a) selective distribution. b) intensive distribution. c) channel conflict. d) vertical channel integration. e) exclusive distribution.

a) selective distribution.

23. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called a) supply chain management. b) vertical channel integration. c) industrial management. d) industrial distribution. e) marketing management.

a) supply chain management.

28. Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of a) supply chain management. b) a vertical marketing system. c) a horizontal marketing system. d) channel conflict. e) dual distribution.

a) supply chain management.

124. Order processing is defined as a) the receipt and transmission of sales order information. b) the second stage in a physical distribution system. c) the four main tasks. d) the same as order handling. e) electronic processing of information.

a) the receipt and transmission of sales order information.

170. The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a) tighten its control over distribution of its products. b) discourage competition from other manufacturers. c) incorporate selective distribution. d) contain distribution costs. e) punish intermediaries for past behavior.

a) tighten its control over distribution of its products.

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

a) undifferentiated

Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will most likely use a(n) ___________ approach in defining a target market. a) undifferentiated b) differentiated c) product strategy d) cost-benefit e) demographic

a) undifferentiated

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ___________ strategy. a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous

a) undifferentiated

141. Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ___________ if they want easier movement of items between internal destinations in the warehouse. a) unit loading b) piggybacking c) containerization d) inventory management e) priority transportation

a) unit loading

118. The best way to reduce overall distribution costs is to a) use a total-cost approach to analyze and evaluate the entire system. b) minimize the costs associated with materials handling and transportation. c) reduce the number of distribution functions that are necessary. d) find the cheapest price for each function and use them to create the system. e) lower the service standards that the company has.

a) use a total-cost approach to analyze and evaluate the entire system.

An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called Select one: a. exclusive dealing. b. exclusive distribution. c. refusal to deal. d. a tying agreement. e. contractual VMS.

a.

Channel decisions are important to marketers mostly because Select one: a. they involve long-term commitments and affect customer accessibility. b. consumers value reasonable prices delivered through marketing channels. c. many businesses are marketing intermediaries. d. they are relatively flexible to change quickly. e. they dictate what promotional strategies companies should use.

a.

Eliminating a wholesaler from a marketing channel will Select one: a. not eliminate the functions performed by that wholesaler. b. eliminate the functions performed by that wholesaler. c. lead to lower costs but higher prices. d. reduce channel conflict. e. cut costs and lower prices.

a.

Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ________ with independent Goodyear dealers. Select one: a. conflict b. power c. leadership d. understanding e. communication

a.

market orientation

an organization-wide effort that includes researching customers' needs, generating marketing intelligence for use in the organization, being responsive to customers' ever-changing wants and needs, and disseminating marketing intelligence across departments within the organization

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be

an unsought good

Deciding to add gel insoles to its running shoes would be a change in the _____ element of the marketing mix for Nike. a)price b) good c) product d) promotion e) distribution

c

According to the text, a product is defined as

anything the customer receives in an exchange.

Decreasing sales, increasing expenses, or decreasing profits Select one: a. are important considerations in designing the research project. b. should be carefully considered before collecting data. c. usually have no effect on the marketing research process. d. are examples of symptoms that point to larger problems. e. are to be expected during the marketing research process.

are examples of symptoms that point to larger problems

When marketing research shows that a group of people does not desire a particular product, the people in that group

are not in the market for that product

production

as the industrial revolution came to the united states, most firms operated in what orientation?

Exterior and interior characteristics such as layout, displays, color and lighting are all elementsof a store's?

atmospherics

what top ten service compaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Impersonal, emotionless, no-eye-contact, going - through- the-motions, non-service.

automatic piliot

what are the 2 things that we think the NACS preforms well at

availability-selection friendly, knowledgable staff

100. When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as a) harvesting. b) divesting. c) investing. d) realigning. e) squashing.

b

108. An individual moves into the adoption stage of the adoption process at the point when he or she a) is self-motivated to get information about the product. b) begins using that specific product. c) seriously considers whether the product will satisfy his or her needs. d) experiences the product for the first time. e) becomes aware that the product exists.

b

110. The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products. a) non-adopters b) laggards c) innovators d) late adopters e) late majority

b

113. All of the following are reasons why new products fail except a) overestimated market size. b) followed a systematic plan. c) distributed insufficiently. d) had poor timing. e) promoted poorly.

b

16. MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets a) services. b) ideas. c) goods. d) tangible products. e) features.

b

18. To make intangible products more tangible or real to the consumer, marketers often a) use low prices on intangible goods. b) use symbols or cues to help symbolize product benefits. c) use external reference prices. d) use multiple channels of distribution. e) offer more support services with such products.

b

21. Products are classified as being business or consumer products according to the a) goals of the organization. b) buyer's intended use of the product. c) seller's intended use of the product. d) location of use. e) types of outlets from which they are purchased.

b

26. Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products. a) shopping b) convenience c) industrial d) specialty e) unsought

b

32. Gap clothing stores sell primarily what type of products? a) Convenience b) Shopping c) Unsought d) Nondurable e) Specialty

b

34. Buyers do not compare alternatives when shopping for ______ products. a) convenience b) specialty c) shopping d) unique e) unsought

b

40. Nick Arnold's Auto Towing Service would best be described as a(n) __________ product. a) convenience b) unsought c) specialty d) durable e) shopping

b

43. Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a) Raw materials b) Installations c) Accessory equipment d) Component parts e) Process materials

b

63. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix a) width. b) depth. c) length. d) volume. e) life cycle.

b

72. An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle? a) Introduction b) Growth c) Stabilization d) Expansion e) Decline

b

73. In which stage of the product life cycle do profits begin to decrease? a) Introduction b) Growth c) Maturity d) Decline e) Recovery

b

74. Which stage of the product life cycle begins when a business reaches the breakeven point with the product? a) Maturity b) Growth c) Introduction d) Market testing e) Decline

b

77. Aggressive pricing is typical during the ___________ stage of the product life cycle. a) decline b) growth c) introduction d) plateau e) stabilization

b

78. Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market testing e) decline

b

95. The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage. a) maturity b) decline c) growth d) introduction e) reorganization

b

A change in the minimum drinking age in any given state illustrates a change in the ___________ for Miller Brewing. a) marketing mix b) marketing environment c) marketing concept d) marketing task e) product concept

b

A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ___________ that influence(s) the firm's strategy. a)operating situation b)marketing environment c)surroundings d)economic conditions e)trends

b

A marketing orientation is an organization-wide effort that includes all of the following activities except a) researching customers' needs. b) focusing on the marketing department only. c) generating marketing intelligence for use in the organization. d) being responsive to customers' ever-changing wants and needs. e) disseminating marketing intelligence across departments within the organization.

b

A physical product you can touch is a(n) a) service. b) good. c) idea.

b

Customer relationship management focuses on using ___________ about customers to create marketing strategies. a)internal communication b)information c)purchasing power insights d)marketing mix knowledge e)implementation knowledge

b

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Oligopolistic

b

Initiatives intended to improve an organization's positive impact on society and the natural environment are called a) environmental marketing b) green marketing c) socially-responsible marketing d) energy-conscious marketing

b

Long-term relationships with profitable customers is the key objective of a) personal selling. b) customer relationship management. c) production oriented firms. d) e-marketing. e) distribution channels.

b

Marketing knowledge and skills a) are not necessary for a nonprofit organization. b) enhance consumer awareness and help provide people with satisfying goods and services.

b

Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.

b

Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under the influence of alcohol. MADD primarily markets a)goods. b)ideas. c)services. d)political figures.

b

Rob Donaldson runs a successful wholesale business that sells equipment to restaurants throughout the Midwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a) which market he should target. b) the best way to distribute his products. c) how to effectively promote his business.

b

Technology assessment is a) measuring how much technology has been incorporated into an organization. b) trying to foresee the effects of new products and processes on the firm's operation and on society in general. c) assessing how much technology one wants to incorporate into a company in the future. d) judging how a firm's products affect society. e) weighing the cost of new technology to determine whether a firm can afford to use it.

b

Technology is a) the application of scientific knowledge to build products that customers desire. b) the application of knowledge and tools to solve problems and perform tasks more efficiently. c) applied sciences. d) one of the weakest marketing environment forces. e) the result of research performed primarily by universities.

b

The FTC can issue a cease-and-desist order, which is an injunction to a) report to the FTC immediately. b) stop doing whatever caused the complaint. c) appear before the courts. d) pay for damages caused by negligence of the firm. e) close down the firm until further notice.

b

The marketing concept affects a) just the marketing department. b) all organizational activities. c) only marketing and finance.

b

The marketing concept is a management philosophy that affects a) only marketing activities. b) all efforts of the organization. c) mainly the efforts of sales personnel. d) mainly customer relations. e) only business organizations.

b

The marketing concept is best defined as a) a second definition of marketing. b) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c) the performance of business activities that direct the flow of goods and services from producer to customer or user. d) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers.

b

The product variable of the marketing mix can include all of the following except a) creation of brand names. b) consumer perception of the product price. c) development of product packaging. d) warranty issues. e) repair services.

b

The two least common competitive structures at the opposite ends of the continuum are a) monopolies and oligopolies. b) pure competition and monopolies. c) monopolistic competition and monopolies. d) pure competition and no competition. e) oligopolies and pure competition.

b

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a) marketing synthesis. b) relationship marketing. c) a marketing orientation. d) the marketing concept. e)strategic marketing.

b

What national self-regulatory organization screens ads? a) Federal Advertising Review Division b) National Advertising Review Board c) Federal Communications Commission d) Consumer Federation of America

b

Which category of income are marketers most interested in? a) Wealth b) Disposable income c) Discretionary income d) Total income e) Extra income

b

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle? a) Honda Pilot b) Toyota's Highlander Hybrid c) Honda Civic Hybrid d) Taxi ride

b

______ is the degree to which an exchange helps achieve an organization's objectives. a) Controlling b) Effectiveness c) Success rate

b

_________ is the process of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. a) Internal control analysis b) Marketing control c) Market flow regulation d) Environmental market analysis

b

_________ of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit. a) Marketing control b) Implementation c) Organizing d) Planning e) Strategic planning

b

__________ competitors provide very different products that satisfy the same basic customer need. a) Brand b) Generic c) Total budget d) Product e) Marketing

b

Which of the following is most likely to be considered a business service? a) Housecleaning b) Consulting c) Haircutting d) Personal training e) Alaskan cruise

b Consulting

An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing? a) Bundled b) Demand-based c) Supply-based d) Upfront e) Customer-based

b Demand-based

Which of the following services falls closest to the middle of the tangibility continuum? a) College education b) Dinner at the Olive Garden c) A new Ford Escape d) A custom built yacht e) A trip to Brazil

b Dinner at the Olive Garden

Which of the following statements about customer contact in services marketing is false? a) Service employees are important in creating satisfied customers. b) High-contact services are less expensive to deliver because they are typically equipment-based. c) The main principle of customer contact is that satisfied employees lead to satisfied customers. d) Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. e) Employee training programs are an effective way to ensure good customer contact and reduce problems.

b High-contact services are less expensive to deliver because they are typically equipment-based

Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Homogeneity

b Inseparability

If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics? a) Perishability b) Inseparability c) Heterogeneity d) Intangibility e) Homogeneity

b Inseparability

What should marketers do to promote the consistency and reliability of their services most effectively? a) Limit the number of employees in their organization b) Train employees and develop standard procedures for dealing with customers c) Encourage employees to be creative in solving customer issues and complaints d) Perform as much of the service as possible before the customer arrives e) Require employees to be shining, happy people all day long

b Train employees and develop standard procedures for dealing with customers

Which of the following is a low-contact service? a) Childcare b) Website design c) Health care d) Manicure e) Legal services

b Website design

A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service. a) primary; secondary b) core; supplementary c) bundled; extra d) complementary; main e) major; minor

b core; supplementary

Production and consumption of services must simultaneously occur due to the _____ characteristic of services. a) intangibility b) heterogeneity c) customer contact d) perishability e) inseparability

b heterogeneity

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ___________ services. a) core b) supplementary c) bundled d) business e) complimentary

b supplementary

Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on a) functions performed. b) time. c) objectives accomplished. d) demand. e) combination pricing.

b time

Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business. a) service expectations b) word-of-mouth communication c) zones of tolerance d) customer perceptions e) experience qualities

b word-of-mouth communication

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

b) A large number of people or organizations

157. If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California? a) Pipeline b) Airways c) Waterways d) Truck e) Railroad

b) Airways

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes? a) Supermarkets b) Convenience stores c) Discount stores d) Department stores e) Specialty stores

b) Convenience stores

56. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels? a) Industrial distributor b) Direct distribution c) Retail d) Wholesaler-sponsored e) Producer

b) Direct distribution

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators

b) Executive judgment

What is the main problem with using a market test as a forecasting tool? a) Difficult to interpret b) Expensive c) Inaccurate d) Unacceptable to consumers e) Overused

b) Expensive

Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model? a) Religion b) Geographic location c) Income d) Political views e) Ethnicity

b) Geographic location

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations

b) Market segment profiles

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method? a) Time series analysis b) Market test c) Executive judgment d) Regression analysis e) Survey

b) Market test

52. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a) Producer, consumer b) Producer, wholesaler, retailer, consumer c) Producer, wholesaler, agent, retailer, consumer d) Producer, retailer, consumer e) Retailer, consumer

b) Producer, wholesaler, retailer, consumer

85. For which of the following products would exclusive distribution be most appropriate? a) Gasoline b) Rolls Royce automobile c) Washing machine d) Laundry detergent e) Moderately priced luggage

b) Rolls Royce automobile

Laura goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Wal-Mart? a) Supermarket b) Superstore c) Hypermarket d) Discount store e) Department store

b) Superstore

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

b) The geographic location of the company

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

b) They are difficult to measure.

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

b) Undifferentiated

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing? a) Warehouse showroom b) Warehouse club c) Catalog showroom d) Category killer e) Hypermarket

b) Warehouse club

146. What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a) Materials handling b) Warehousing c) Transportation d) Inventory management e) Order processing

b) Warehousing

159. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a) Pipelines b) Waterways c) Trucks d) Airways e) Railroads

b) Waterways

63. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a) When the firm wants specialized personnel to follow up the work of the sales force b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force c) When only one or two channels of distribution are available for products d) When the sales force is large and the marketer is thinking of cutting it down e) When customers are highly concentrated in one geographic area

b) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

b) allow experts to work separately to reach a consensus as to their forecasts.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target

b) business

88. Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a) intermediary. b) captain. c) allocator. d) terminator. e) price leader.

b) captain.

90. When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a) channel control. b) channel power. c) marketing leadership. d) a channel captain. e) distributive influence.

b) channel power.

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

b) choose the segments most in line with the firm's objectives and long-term growth.

143. Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8' × 8' × 40' boxes for shipping to decrease loss and damage. This method of materials handling is a) unit loading. b) containerization. c) freight forwarding. d) unitized shipping. e) bonded packaging.

b) containerization.

Marketing is the process of: A) promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. C) delivering a standard of living to a society. D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. E) focusing on customers' needs.

b) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

b) customers' needs for the product must be homogeneous.

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) a) off-price retailer. b) department store. c) discount store. d) superstore. e) supermarket.

b) department store.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

b) differentiated

30. A channel of distribution is defined as a group of individuals and organizations that a) consumes about one-half of every dollar spent on products in the United States. b) directs the flow of products from producers to customers. c) links producers to other marketing intermediaries. d) takes title to products and resells them. e) manages transportation and warehousing functions.

b) directs the flow of products from producers to customers.

Ollies' is a regional self-service retail store that sells name-brand electronics, tools, housewares, and sporting goods at low prices. Ollies' is an example of a a) department store. b) discount store. c) warehouse showroom. d) specialty store. e) superstore.

b) discount store.

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

b) divide a total market to enable a marketer to develop a more precise marketing mix.

Supermarkets, discount stores, and hypermarkets can all be classified as a) superstores. b) general merchandise retailers. c) department stores. d) specialty retailers. e) off-price retailers.

b) general merchandise retailers.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.

b) geodemographic segmentation.

120. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ___________ incurred for the positive effect of better customer service. a) lower response time b) higher warehousing costs c) higher transportation costs d) higher order processing costs e) higher performance levels

b) higher warehousing costs

After shopping in the same store for nearly two hours, Chelsea goes to Burger King for a Whopper, while Cynthia goes to the optical shop to see if her contacts are ready. They engage in these activities without leaving the store in which they have been shopping. They are most likely in a a) superstore. b) hypermarket. c) department store. d) general merchandise retailer. e) discount store.

b) hypermarket.

75. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ___________ distribution. a) horizontal b) intensive c) selective d) agent e) exclusive

b) intensive

77. Candy bars and chewing gum are most likely to be distributed through _____ and _____. a) selective distribution; multiple channels b) intensive; dual distribution c) strategic channel alliances; intensive d) exclusive; a single channel e) dual distribution; convenience channels

b) intensive; dual distribution

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

b) it allows a firm to specialize to meet specific customer needs.

Sixteen-year-old high school students do not form a market for alcoholic beverages because they a) lack sufficient buying power to form a market. b) lack the authority to purchase this type of product. c) do not want to purchase this type of product. d) do not have sufficient experience with this type of product. e) lack the money to purchase this type of product.

b) lack the authority to purchase this type of product.

86. Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ___________ in the distribution channel. a) conflict b) leadership c) dominance d) cooperation e) negotiation

b) leadership

33. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to a) link wholesalers to other wholesalers. b) link producers to other middlemen or to consumers. c) always sell products to wholesalers. d) not take title to products. e) always sell products to retailers.

b) link producers to other middlemen or to consumers.

133. The result of an inventory stockout is usually an increase in a) inventory costs. b) lost sales. c) net profit. d) customers. e) prices.

b) lost sales.

65. An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) a) sole intermediary. b) manufacturers' agent. c) producers' broker. d) industrial distributor. e) channel facilitator.

b) manufacturers' agent.

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's a) sales potential. b) market potential. c) target growth rate. d) sales forecast. e) sales objective.

b) market potential.

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable

b) market.

29. A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a a) free trade association b) marketing channel c) channel of suppliers d) production line-up e) chain of retailers

b) marketing channel

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.

b) motives.

41. Eliminating a wholesaler from a marketing channel will a) cut costs and lower prices. b) not eliminate the functions performed by that wholesaler. c) eliminate the functions performed by that wholesaler. d) lead to lower costs but higher prices. e) reduce channel conflict.

b) not eliminate the functions performed by that wholesaler.

126. By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on a) electronic data interchange. b) order entry. c) inventory management. d) order delivery. e) order handling.

b) order entry.

127. The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is a) warehousing. b) order handling. c) information processing. d) materials handling. e) order entry.

b) order handling.

89. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by a) wholesalers. b) producers. c) retailers. d) agents. e) brokers.

b) producers.

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

b) product positioning is the customer's absolute perception of a product's attributes.

138. All of the following are concepts used in a just-in-time inventory management system except a) supplies arrive just as they are needed. b) safety stock is kept to reduce stockouts. c) much waste is eliminated. d) purchases are made in small quantities. e) purchases are made frequently.

b) safety stock is kept to reduce stockouts.

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

b) sales of a new product hurts sales of the company's existing products.

72. Fragile products that require special handling are more likely to be distributed through a) longer channels. b) shorter channels. c) Channel D. d) Channel H. e) exclusive outlets.

b) shorter channels.

38. Possession utility is best described as a) products being available in places where the customers wish to purchase them. b) the customer having access to the product to use now or store and use later. c) having a company's products available when a customer needs them. d) being able to legally own a product despite restrictions on trade. e) getting the products to the consumers in as short of time as possible for ownership.

b) the customer having access to the product to use now or store and use later.

Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets

b) the purchase is always made by more than one individual

100. The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a) the consolidation of power. b) tightly controlled and bureaucratic management style. c) the ability to inhibit competitors. d) the sharing of responsibilities and information. e) increased bargaining power.

b) tightly controlled and bureaucratic management style.

36. Having products available when the customer wants them is called a) place utility. b) time utility. c) availability. d) possession utility. e) chronavailability.

b) time utility.

Retailing is best characterized as a) large organizations that carry wide and deep product mixes. b) transactions in which the buyer intends to consume the product through personal, family, or household use. c) arrangements whereby a supplier grants a dealer the right to sell its products. d) transactions in which the purchaser intends to use the product for resale or for business operations. e) exchanges that take place only in a store or service establishment.

b) transactions in which the buyer intends to consume the product through personal, family, or household use.

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is a) geographic location. b) type of organization. c) secondary product use. d) customer size. e) market potential.

b) type of organization.

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ___________ strategy. a) directed b) undifferentiated c) segmented d) differentiated e) product-use

b) undifferentiated

102. When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in a) channel repetition. b) vertical channel integration. c) channel conflict. d) horizontal channel integration. e) channel expansion.

b) vertical channel integration.

101. Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called a) horizontal. b) vertical. c) multilevel. d) retail. e) merchandising.

b) vertical.

A marketing channel is defined as a group of individuals and organizations that Select one: a. consumes about one-half of every dollar spent on products in the United States. b. directs the flow of products from producers to customers. c. links producers to other marketing intermediaries. d. manages transportation and warehousing functions. e. takes title to products and resells them.

b.

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using _________________ and Red Box is using ____________ . Select one: a. an Internet wholesaler; a retailer. b. a direct-marketing channel; a type of retailer. c. an Internet wholesaler; a slightly longer channel. d. a direct-marketing channel; an agent. e. a direct marketing channel; a slightly shorter channel.

b.

Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany

bUnited States

The oldest form of exchange trading of products is known as

barter

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation.

behavioristic

The division of a market according to what benefits consumers want from the product is called ______ segmentation.

benefit

There is some concern that marketing research has been used incorrectly by some firms. The major problem comes from __________ because the researcher wants to obtain favorable results. Select one: a. trying to be objective about views and opinions b. using an inappropriate sample c. employing large research firms, such as Gallup d. bias and distortion e. using in-house research departments

bias and distortion

fairness is particulary important for "_ _ " services

black box

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

breakdown

what top ten service compaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) a Careless, mistake-prone service. Service providers who do not show up as promised.

broken promise

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.

buildup

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets.

business

As the production manager of an engineering firm, you went out and bought a metal-cutting machine. What you have purchased can best be classified as a

business product.

Products are classified as being business or consumer products according to the

buyer's intended use of the product.

The ability to purchase a product is a function of

buying power

Using the breakdown approach to sales potential, estimates are made

by starting with general economic conditions

107. When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual? a) Interest b) Awareness c) Evaluation d) Trial e) Adoption

c

109. Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and a) late adopters. b) nonadopters. c) innovators. d) middle adopters. e) middle majority.

c

15. A(n) _____ is a concept, philosophy, or image. a) product b) good c) idea d) service e) issue

c

35. The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product. a) convenience b) shopping c) specialty d) unsought e) durable

c

36. A specialty product a) requires minimal effort to purchase. b) is purchased frequently. c) requires purchase planning, and the buyer will not accept substitutes. d) is generally less expensive than other items in the same product class. e) prompts the purchaser to make comparisons among alternatives.

c

37. David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product. a) shopping b) unique c) specialty d) historical e) unsought

c

39. When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as a) specialty products. b) installations. c) unsought products. d) shopping products. e) convenience products.

c

42. Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.

c

50. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product? a) Raw material b) Installations c) Accessory equipment d) Component part e) Process material

c

52. Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called a) raw materials. b) installations. c) accessory equipment. d) component parts. e) process materials.

c

57. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.

c

58. A product line is defined as a) products that can be designated as a unique offering among the organization's products. b) products that an organization makes available to consumers. c) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. d) a specific group of products that are offered to the market. e) products that are sold by the same firm or a division of a firm.

c

59. Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer. a) menus b) mixes c) lines d) life cycles e) ensembles

c

61. Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of a) width of product mix. b) product mix consistency. c) depth of product mix. d) a market mix. e) a promotion mix.

c

62. The depth of a product mix is measured by the average number of a) convenience products as compared with the number of specialty products. b) different product lines offered by the company. c) different products offered in each product line. d) specialty products as compared with the number of convenience products. e) product features that the company offers.

c

69. During the introduction stage of a successful product, profits are usually a) at their highest point. b) negative and decreasing. c) negative and increasing. d) positive and increasing. e) declining.

c

75. Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy? a) Decline b) Expansion c) Growth d) Introduction e) Stabilization

c

96. When are marketers least likely to change a product's design, style, or other attributes? a) Introduction b) Maturity c) Decline d) Growth e) Removal

c

98. What are a marketing manager's two options during the decline stage? a) Reintroduce the product to new markets or stop sales immediately b) Speed up the product's decline or increase advertising c) Attempt to postpone the decline or accept its inevitability d) Divesting the brand or reinvesting in the brand e) Accept the decline or phase the product out

c

According to the marketing concept, an organization should try to a) consider short-run objectives and cash flow needs before developing new products. b) define its business as "making a product." c) provide products that satisfy customers' needs and allow the organization to achieve its goals.

c

By offering credit and financing through its GMAC division, General Motors is trying to help consumers a) expand future buying power at the expense of current buying power. b) expand disposable income at the expense of discretionary income. c) expand current buying power at the expense of future buying power. d) expand both disposable income and wealth. e)decrease both disposable and discretionary income.

c

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a) environmental analysis. b) competitive forces. c) environmental scanning. d) procompetitive legislation. e) self-regulatory forces.

c

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

c

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors. a) generic b) product c) brand d) total budget e) monopolistic

c

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments. a) recession. b) prosperity. c) recovery. d) growth. e) depression.

c

Consumer protection legislation deals with all of the following legal concerns except a) consumer safety. b) sale of hazardous products. c) monopolistic practices. d) information disclosure. e) health claims on food packages.

c

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a) risk b) time c) monetary price d) effort

c

Developing the internal structure of a firm's marketing unit relates to which of the following marketing management activities? a) Marketing control b) Implementation c) Organizing d) Planning e) Managing

c

Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information. a) assessing; collecting b) assessing; interpreting c) collecting; assessing d) interpreting; observing e) gathering; observing

c

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

c

In general, which of the following competitive structures is an organization least likely to operate? a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

c

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Monopolistic

c

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

c

Making modifications to packaging or brand names involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution

c

Marketing management is defined as a process of a) providing products that satisfy customers' needs through a coordinated set of activities. b) facilitating satisfying exchanges between an organization and its customers. c) planning, organizing, implementing, and controlling marketing activities.

c

Price discrimination is prohibited by the ___________ Act. a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

c

The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure. a) monopolistic; oligopolistic b) oligopolistic; pure competition c) oligopolistic; monopolistic competition d) monopolistic competition; pure competition e) monopolistic; monopolistic competition

c

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in a) legislation. b) lobbying. c) self-regulation. d) environmental scanning. e) trade restraint.

c

The equation a buyer applies to assess a product's value is a) value = monetary price - customer benefits. b) value = customer costs - customer benefits. c) value = customer benefits - customer costs.

c

The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a) increase market share. b) increase sales. c) achieve the organization's goals. d) produce high-quality products. e) coordinate its activities to increase production.

c

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in a) product differentiation. b) monopolistic competition. c) technology assessment. d) distinctive promotional methods. e) innovative marketing.

c

When marketers define their target market, they establish a set of a) technologies. b) monopolies. c) competitors. d) government regulations. e) sociocultural forces.

c

Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing

c

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession? a) Stereo system b) Prestige c) Durability d) Leg room

c

Which of the following is essentially an uncontrollable factor in developing a marketing mix? a) Product adaptations b) Pricing strategies c) Government regulations d) Advertising campaigns e) Retail locations

c

Which of the following is not an example of the implementation of the marketing concept? a) jimmy deans b) mars candy c) burger king d) microsoft e) saab

c

Which of the following statements about marketing environment forces is not correct? A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. b) They may influence customers' reactions to a firm's marketing mix. c) They fluctuate slowly and thereby create threats to a firm's marketing mix. d) They can fluctuate quickly and dramatically.

c

______ refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges. a) Effectiveness b) Productivity c) Efficiency d) Objectivity e)Cost cutting

c

Which of the following is NOT a service product? a) Maroon 5 concert b) Flight on Southwest Airlines c) A 100 percent service satisfaction guarantee d) Overnight stay at Holiday Inn e) Dry cleaning of a suit

c A 100 percent service satisfaction guarantee

Which of the following service providers would typically call their customers "clients"? a) High school teachers b) Waiters c) Lawyers d) Dry cleaners e) Nurses

c Lawyers

The intangibility aspect of a service means that a) there is a lack of perceived quality compared to a tangible good. b) unused capacity cannot be stockpiled or inventoried for later use. c) consumers may have a problem evaluating service offerings. d) services are not produced at the same time they are consumed. e) services are not labor-intensive.

c consumers may have a problem evaluating service offerings.

By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in a) perishability. b) intangibility. c) customer contact. d) inseparability. e) customer service.

c customer contact

The level of interaction necessary between a customer and service provider in order to complete a service is called a) tangibility. b) client-based relationships. c) customer contact. d) consumer interaction. e) heterogeneity.

c customer contact

In general, differences between goods and services are determined by the a) degree of labor intensiveness. b) type of target market. c) degree of tangibility. d) type of provider. e) degree of consumer contact.

c degree of tangibility

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of a) time-based pricing. b) off-peak demand. c) demand-based pricing. d) time dependence pricing. e) bundled costing.

c demand-based pricing

Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to a) increase perceptions of service quality. b) elevate expectations. c) encourage word-of-mouth communication. d) standardize the service offering. e) increase advertising effectiveness.

c encourage word-of-mouth communication.

Services are usually provided through the application of _______ directed at people or objects. a) tangible and intangible products b) physical labor c) human or mechanical efforts d) ideas and other intangible efforts e) knowledge and technology

c human or mechanical efforts

A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services. a) tangibility b) perishability c) inseparability d) customer contact e) heterogeneity

c inseparability

Personal trainers cannot complete their work without their clients present because of the _______ feature of services. a) perishability b) intangibility c) inseparability d) heterogeneity e) tangibility

c inseparability

Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services. a) credence b) heterogeneity c) perishability d) search e) inseparability

c perishability

Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges? a) Inseparability b) Customer contact c) Perishability d) Heterogeneity e) Intangibility

c perishability

When service companies change high-contact services into low-contact services, the a) service becomes more expensive to deliver. b) quality of the service declines. c) service becomes less personalized. d) time required to deliver the service increases. e) service becomes less standardized.

c service becomes less personalized.

A service is usually offered as part of a bundled package of services with a core service and one or more ________ services. a) basic b) tangible c) supplementary d) auxiliary e) other core

c supplementary

In most service industries, customer-contact employees are a) valued as the most important employees in the organization. b) the best trained employees in the organization. c) the lowest-paid and least-trained employees. d) managers and other supervisory level employees. e) moderately paid personnel confined to strict dress codes.

c the lowest-paid and least-trained employees

In service marketing, the most important link to the customer is a) effective advertising. b) good word-of-mouth communication. c) well-trained contact employees. d) the tangible aspects of the service. e) exceptional service quality.

c well-trained contact employees.

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on a) news stories. b) a webpage. c) word of mouth. d) newspaper ads. e) television ads.

c word of mouth

135. What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30? a) 50 b) 150 c) 80 d) 200 e) 400

c) 80

168. In which of the following situations is dual distribution likely to be determined illegal? a) A manufacturer sells its product online and through independent and company-owned retail outlets. b) A manufacturer opens its own retail outlets across the country and sells its entire line of products. c) A producer uses company outlets to dominate independent retailers that carry its products. d) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. e) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

c) A producer uses company outlets to dominate independent retailers that carry its products.

50. The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a) Chewing gum b) Tobacco c) Automobiles d) Hardware e) Saltine crackers

c) Automobiles

26. Where do supply chains start? a) Raw materials b) Suppliers c) Customers d) Producers e) Retailers

c) Customers

. Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a) Concentrated b) Strategic c) Differentiated d) Undifferentiated e) Multisegmented

c) Differentiated

A retail strategy of managing groups of similar, often substitutable products produced by different manufacturers is called?

categy management

132. Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved? a) Order processing b) Materials handling c) Inventory management d) Transportation e) Warehousing

c) Inventory management

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA

c) Market density

71. Which of the following is least likely to be a factor affecting the selection of marketing channels? a) Customer characteristics b) Product attributes c) Product packaging d) Competition e) Environmental forces

c) Product packaging

59. Which of the following is most likely to be a product stocked by an industrial distributor? a) Tires b) Exercise equipment c) Screws d) Countertops e) Bananas

c) Screws

134. Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? a) Carrying b) Replenishment c) Stockout d) Safety stock e) Reorder

c) Stockout

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources

c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.

60. Which of the following describes a disadvantage of using industrial distributors? a) Industrial distributors possess considerable market information. b) Their marketing exchange relationships are very focused. c) They are unlikely to handle bulky items or items that are slow sellers. d) Industrial distributors sell specific brands aggressively. e) Industrial distributors acquire title to the products and take possession.

c) They are unlikely to handle bulky items or items that are slow sellers.

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis

c) Time series analysis

174. If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a) Exclusive dealing b) Dual distribution c) Tying agreement d) Refusal to deal e) Restricted sales territories

c) Tying agreement

44. Customers who purchase computer laptops from manufacturer websites are acquiring products through a) the most efficient channel of distribution. b) the most common type of marketing channel. c) a direct-marketing channel. d) a business-to-business channel of distribution. e) an indirect-marketing channel.

c) a direct-marketing channel.

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

c) a market segment.

64. Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ___________ to maintain contact with the firms using its products. a) wholesalers b) brokers c) agents d) merchants e) retailers

c) agents

62. A producer is not likely to receive _____ from an industrial distributor. a) selling activities in local markets b) market information about consumers c) aggressive promotion of its brand d) reduced capital requirements e) a reduced financial burden from customers

c) aggressive promotion of its brand

158. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ______ mode of transportation despite its expense. a) railroad b) pipeline c) airway d) truck e) waterway

c) airway

The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage

c) benefit

96. If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, _____ is likely to result. a) channel cooperation b) vertical channel integration c) channel conflict d) horizontal channel integration e) channel leadership.

c) channel conflict

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.

c) company sales potential.

A small self-service store that is open long hours and carries a narrow product assortment in convenient locations is best described as a a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.

c) convenience store.

All of the following are categories of common forecasting techniques for business except a) surveys. b) time series analysis. c) customer determined. d) executive judgment. e) market tests.

c) customer determined.

117. The main objective of physical distribution should be to a) decrease costs while increasing market coverage. b) increase service and market coverage. c) decrease costs while increasing service. d) increase market coverage and channel power. e) balance costs and market coverage.

c) decrease costs while increasing service.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

c) determining which segmentation variables to use.

Walmart and Target are both examples of a) department stores. b) category killers. c) discount stores. d) supermarkets. e) warehouse clubs.

c) discount stores.

In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e) the authority to buy the specific products.

c) discretionary income to purchase the product.

129. A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is a) web-based inventory management. b) just-in-time. c) electronic data interchange. d) universal product codes. e) activity based management.

c) electronic data interchange.

91. If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a) demonstrating sound channel leadership. b) insisting on exclusive exposure. c) exercising channel power. d) minimizing channel conflict. e) creating a coordinate system.

c) exercising channel power.

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through a) U.S. Census Bureau information. b) geographic segmentation variables. c) geodemographic segmentation. d) climate information. e) psychographic segmentation.

c) geodemographic segmentation.

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning. a) direct b) focused c) head-to-head d) avoidance e) parallel

c) head-to-head

110. To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called a) vertical. b) retail. c) horizontal. d) backward. e) forward.

c) horizontal.

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

c) identifying an appropriate targeting strategy.

58. Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ___________ in a distribution channel. a) direct distributor b) manufacturers' agent c) industrial distributor d) producers' agent e) wholesalers' agent

c) industrial distributor

76. Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use _____ distribution. a) selective b) extensive c) intensive d) exclusive e) demand-based

c) intensive

78. Sales are most likely to have a direct relationship to product availability for products that use _____ distribution. a) selective b) dual c) intensive d) extensive e) exclusive

c) intensive

131. Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called a) just-in-time. b) order processing. c) inventory management. d) merchandise stocking. e) logistical management.

c) inventory management.

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation. a) psychographic b) social class c) lifestyle d) personality e) family life cycle

c) lifestyle

Family life cycle is most typically based on a) income. b) geographic location. c) marital status and age of children. d) occupation. e) buying power.

c) marital status and age of children.

144. Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is a) warehousing. b) inventory management. c) materials handling. d) cycle time. e) containerization.

c) materials handling.

. Evaluating and making product positioning decisions is important for a) new products only. b) existing products only. c) new and existing products. d) product deletions only. e) new products and product deletions.

c) new and existing products.

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

c) people within the market have heterogeneous needs.

111. Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define a) wholesaling. b) retailing. c) physical distribution. d) channel management. e) drop shipping.

c) physical distribution.

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is a) geographic location. b) customer size. c) product use. d) customer importance. e) organization classification.

c) product use.

43. Without wholesalers and other intermediaries, a) most products would be much less expensive because fewer companies would be handling the product. b) products would be cheaper because the functions of intermediaries would be eliminated. c) products would likely be more expensive due to the use of less efficient channel members. d) products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e) many products would be more expensive because retailers would expect more profit.

c) products would likely be more expensive due to the use of less efficient channel members.

The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.

c) regression analysis.

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) a) wholesaler. b) shopping center. c) retailer. d) intermediary. e) producer.

c) retailer.

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's a) sales potential. b) market potential. c) sales forecast. d) market sales. e) selected market.

c) sales forecast.

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing

c) segmentation

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

c) starts with forecasts about demand for a specific product within a relatively small area.

Large, self-service stores that carry a complete line of food products and some nonfood products are called a) discount stores. b) superstores. c) supermarkets. d) department stores. e) warehouse clubs.

c) supermarkets.

171. Tying agreements occur when a a) producer distributes the same product through two or more different channels. b) manufacturer forbids an intermediary to carry products of competing manufacturers. c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. d) producer refuses to deal to channel members that seem unethical or illegitimate. e) manufacturer prohibits intermediaries from selling its products outside designated sales territories.

c) supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.

112. The notion of physical distribution is a) speed of delivery. b) used only by manufacturers. c) the movement of products from producers to end users. d) primarily the wholesaler's responsibility. e) an assessment of distribution costs.

c) the movement of products from producers to end users.

Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products.

c) they would not have the ability to purchase such products.

A retailer is an organization that purchases products for the purpose of reselling them to a) other retail organizations. b) the government. c) ultimate consumers. d) wholesalers. e) nonprofit organizations.

c) ultimate consumers.

When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used _____________ distribution. Select one: a. exclusive b. horizontal c. intensive d. selective e. agent

c.

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be

cannibalization

Business products are

classified according to their characteristics and intended uses.

Corporate executives often prefer marketing research findings to be put into a report Select one: a. expressing the views and beliefs of top management about the research problem. b. examining the ethical implications of implementing results from the research report. c. that exposes no deficiencies or limitations of the research process. d. that is clear, short, and simply expressed. e. full of statistical analysis with details on methods employed by the researchers.

clear, short, and simply expressed

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the

company sales potential

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy.

concentrated

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy.

concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy.

concentrated or differentiated

Which of the following products is most likely to have its market segment based on age? a) Bass shoes b) Lipton Iced Tea c) Bic pens d) Legos e) Carpet

d) Legos

The intangibility aspect of a service means that

consumers may have a problem evaluating service offerings.

Marketers generally view _____ as the minimum price a product can be sold for.

costs

marketing

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

product variable of the marketing mix

creation of brand names, development of product packaging, warranty issues, and repair services

fairness is defined by the

customer

what are the three outcomes of dissatisfaction?

customer complains and is statisfied with recovery, complains and is not satisfied, does not complain and remains unsatisfied.

monetary price

customer costs include anything the buyer must give up in order to obtain the benefits the product provides. the most obvious customer cost is risk, time, monetary price, effort, availability

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except

customer needs must be homogeneous

information

customer relationship management (CRM) begins its focus on customers with

101. Which of the following best defines the interest stage in the product adoption process? a) The buyer tries to find the product in a retail store. b) The buyer considers the benefits and determines whether to try the product. c) The buyer tries the product to determine its usefulness. d) The buyer seeks information and is receptive to learning about the product. e) The buyer uses objective sources to learn about the product.

d

103. Which of the following is not a stage in the buyer's product adoption process? a) Awareness b) Adoption c) Trial d) Exploration e) Interest

d

104. When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

d

105. When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process. a) awareness b) interest c) evaluation d) trial e) adoption

d

106. An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? a) Trial b) Adoption c) Interest d) Awareness e) Evaluation

d

19. Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible? a) McDonald's arches b) Mercedes Benz emblem c) Nike swoosh d) Traveler's Insurance umbrella e) Arrows on Wrigley gum packages

d

23. Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product? a) Price b) Selling organization c) Terms of the sale d) Buyer's intended use of the product e) Benefits the product provides

d

24. Which of the following is most likely to be considered a convenience good? a) A lamp b) A haircut c) Running shoes d) Gatorade e) Concert tickets purchased online

d

41. Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.

d

54. The intangible products that most organizations use in their operations are called a) component parts. b) MRO supplies. c) process ideas. d) business services. e) installations.

d

56. A product item is best described as a a) component of a marketing mix. b) particular brand. c) specific characteristic of a product. d) specific version of a product. e) unit of measure for the product.

d

65. What measure of the product mix involves the number of product lines a company offers? a) Quality b) Consistency c) Depth d) Width e) Size

d

66. The width of a product mix is measured by the number of product a) dimensions in the product line. b) features in each brand. c) items in the product line. d) lines a company offers. e) specialties a company offers.

d

67. The four major stages of a product life cycle include a) prosperity, recession, depression, and recovery. b) specialty, convenience, shopping, and unsought goods. c) decline, stabilization, exposure, and growth. d) introduction, growth, maturity, and decline. e) awareness, interest, trial, and adoption.

d

81. During the maturity stage a) product modifications are unnecessary. b) there is less emphasis on changing a product's price. c) marketing strategies are rarely altered. d) some competitors are forced out. e) limited advertising expenditures are required to maintain market share.

d

82. Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle. a) introduction b) decline c) growth d) maturity e) competitive

d

83. Which stage of the product life cycle is characterized by intense competition? a) Decline b) Plateau c) Introduction d) Maturity e) Stabilization

d

87. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle. a) introduction b) growth c) stabilization d) maturity e) decline

d

A person's buying power is a function of a) disposable income. b) past income, natural resources, and financial resources. c) wages, rents, and investments. d) income, wealth, and credit. e) discretionary income.

d

Consumerism is a a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b) social movement that is trying to encourage consumer satisfaction. c) social movement that is reorganizing the Council of Better Business Bureaus. d) diverse group of individuals and organizations attempting to protect the rights of consumers. e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.

d

Customer relationship management (CRM) begins its focus on customers with a) communication. b) product. c) distribution. d) information. e) promotion.

d

During the Industrial Revolution demand for manufactured goods was a)weak. b) nonexistent. c) declining. d) strong.

d

From the 1920s to the 1950s, demand for manufactured goods decreased, leading to the ______ orientation. a)production b) marketing c) revolutionary d) sales e)reduction

d

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about? a) Disposable income b) Wealth c) Buying power d) Discretionary income e) Savings income

d

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? a) Federal regulation b) State regulation c) City regulation d) Self-regulation e) Social regulation

d

In today's market environment, you might pay $15 for a CD by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a)$1.70 b) $3.40 c) $5.10 d) $7.50 e)$12.75

d

Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the a) police. b) Federal Trade Commission. c) Sherman Commission. d) Better Business Bureau. e) federal district court.

d

Marketers often speak of the "controllable" variables in the practice of marketing. Which of the following is not considered one of the controlled variables? a) Product b) Price c) Distribution d) Competition e) Promotion

d

Marketing managers strive to develop a marketing mix that A) minimizes marketing costs. b) matches what competitors are offering. c) best matches the abilities of the firm. d) matches the needs of the target market. e) generates the highest level sales.

d

Of all the federal regulatory units, the ____________ most heavily influences marketing activities. a) Food and Drug Administration (FDA) b) Federal Communications Commission (FCC) c) Environmental Protection Agency (EPA) d) Federal Trade Commission (FTC) e) Federal Power Commission (FPC)

d

Organizations that provide smoke-free environments or low-fat products are responding to changes in a) technology. b) the legal environment. c) demographics. d) cultural values. e) political forces.

d

The 1990 Nutritional Labeling and Education Act directly prohibits a) exaggerated claims made by health and fitness products. b) putting the words "cholesterol-free" on any food package. c) putting nutritional information on most food products. d) exaggerated health claims on food packages. e) the use of any health claim on food packaging.

d

The Internet has been used as a search engine to find information about a marketer's product or service by about ____ percent of adults in the U.S. a) 65 b) 78 c) 82 d) 91 e) 99

d

The accumulation of past income, natural resources, and financial resources is known as a) income b) collected income c) credit d) wealth e) savings

d

The best approach for a company to take when monitoring its competitors is a) watching for increases and decreases in competitors' prices and match them. b) analyzing all information that is readily available about competitors. c) sending employees to competitors' offices and factories to observe their actions. d) developing a system for gathering ongoing information about competitors. e) reading important business publications such as The Wall Street Journal.

d

The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange? a) Activities that are performed primarily by producers and manufacturers b) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy customer requirements c) Transfer of products in return for monetary considerations d) Provision or transfer of goods, services, or ideas in return for something of value

d

The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.

d

The marketing environment is best described as being a) composed of controllable variables. b) composed of variables independent of one another. c) an indirect influence on the performance of marketing activities. d) dynamic and changing. e) slow, with infrequent fluctuations.

d

The three basic forms that a product can take are a) markets, products, and images. b) goods, ideas, and intangibles. c) brands, services, and tangibles. d)services, ideas, and goods. e)ideas, services, and things.

d

Three primary methods of collecting information for environmental scanning are a) marketing research, company records, and advance orders. b) secondary sources, company records, and observation. c) executive knowledge, media, and marketing research. d) observation, secondary sources, and marketing research. e) company database, executive knowledge, and research.

d

What is the most important factor in distinguishing disposable income from income? a) Taxes b) Housing c) Employment levels d) Consumer spending e) Saving

d

When DataComp Corp., a producer of computer software, delayed the introduction of its new spreadsheet program to modify the package, its scheduled magazine advertisements announcing the new product needed to be revised. In this case, a change in the ___________ variable caused changes in the ___________ variable of the marketing mix. a) distribution; promotion b) distribution; product c) product; price d) product; promotion e) promotion; price

d

Which of the following agencies regulates marketing activities the most? a) Food and Drug Administration b) Federal Communications Commission c) Environmental Protection Agency d) Federal Trade Commission e) Federal Power Commission

d

Which of the following is most likely to be an idea marketer? a) Car salesperson b) Airline pilot c) Attorney d) Abuse counselor

d

Which of the following is not a reason that marketers try to maintain good relations with elected political officials? a) Political officials can influence how much a government agency purchases and from whom. b) Political officials can play key roles in helping organizations secure foreign markets. c) Political officials well disposed toward particular firms or industries are less likely to create or enforce laws and regulations unfavorable to these firms. d) Political officials can accept direct corporate campaign contributions. e) Political officials who believe that companies in a particular industry are making honest efforts to control pollution are unlikely to create and enforce highly restrictive pollution control laws over that industry.

d

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

d

Which of the following scenarios involves the distribution element of the marketing mix? a) Deciding whether or not a certain product should continue to be sold b) Determining whether an advertising message would be more effective on television or in magazines c) Choosing between a company jet or the airlines for executive travel d) Deciding whether or not to have retail outlets in addition to a website e) Developing a new warranty policy for an existing product

d

Which of the following statements about self-regulatory programs is false? a) Self-regulatory programs are usually less expensive than governmental regulatory programs. b) Self-regulatory programs' guidelines generally are more realistic and operational. c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d) Self-regulatory guidelines generally are stricter than governmental regulatory programs. e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.

d

Which of the following would not be a customer cost considered in determination of product value? a) Product's purchase price b) Time spent purchasing the product c) Effort spent purchasing the product d) Benefits received in the exchange for the products

d

Why are marketers interested in consumers' levels of disposable income? a) It accurately predicts future buying power. b) It increases current buying power. c) It is what is left after taxes and savings to buy luxuries with. d) It is a ready source of buying power. e) It is essential for forecasting future business trends.

d

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a) Brand b) Generic c) Total budget d) Product e) price

d

Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees. a) intangibility b) perishability c) inseparability d) heterogeneity e) tangibility

d Heterogeneity

The two levels of expectations that consumers generally have about services are a) acceptable and unacceptable. b) desired and undesired. c) reliable and unreliable. d) acceptable and desired. e) tolerable and desired.

d acceptable and desired

Any human or mechanical effort that adds value to a product is called a) a service. b) an intangible. c) overhead. d) customer service. e) service marketing.

d customer service

Client-based relationships are most likely to be developed by a) funeral directors. b) electricians. c) installers. d) doctors. e) brick layers

d doctors

The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service? a) Intangibility b) Inseparability c) Perishability d) Heterogeneity e) Marketability

d heterogeneity

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a) labor-intensiveness. b) orientation toward value. c) homogeneity. d) heterogeneity. e) specialization.

d heterogeneity.

Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim's difficulty in expanding his practice involves the aspect of service called a) slotting. b) perishability. c) credence. d) inseparability. e) heterogeneity.

d inseparability

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services. a) heterogeneity b) perishability c) customer contact d) intangibility e) inseparability

d intangibility

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of a) perishability. b) heterogeneity. c) inseparability. d) intangibility. e) customer contact.

d intangibility

Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services. a) heterogeneity b) unpredictability c) inseparability d) intangibility e) perishability

d intangibility

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a) inseparability. b) intangibility. c) customer contact. d) off-peak demand. e) heterogeneity.

d off-peak demand

According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________. a) sporting event; spectators b) concert; audience c) play; actors d) performance; audience e) presentation; spectators

d performance; audience

The fact the services cannot be inventoried and then sold at a later date is called a) intangibility. b) heterogeneity. c) inseparability. d) perishability. e) nonstorability.

d perishability.

Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and a) distribution. b) tangible elements. c) management expectations. d) price. e) customer expectations.

d price

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to a) deliver on these promises and risk financial losses and the success of the company. b) promise less than they can actually deliver and keep customers away. c) make the appearance of their facilities consistent with their promises to customers. d) promise too much and cause customer expectations beyond what they can deliver. e) make the quality of their services too tangible in the eyes of the customer.

d promise too much and cause customer expectations beyond what they can deliver.

Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means a) because the concert is not tangible, customers will have a difficult time judging its quality in advance. b) the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must be sold. c) a high level of interaction will exist between the customers and the musicians, which makes the customers' presence necessary. d) that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again. e) that each concert is different and customers will miss a unique experience if they are not present at the

d that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances

d) Diet Coke

151. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following? a) Sales office b) Public warehouse c) Field public warehouse d) Distribution center e) Bonded warehouse

d) Distribution center

83. Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product? a) Intensive b) Selective c) Targeted d) Exclusive e) Premier

d) Exclusive

Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using? a) Demographic b) Psychographic c) Life cycle d) Geographic e) Product use

d) Geographic

What is the primary distinction between superstores and hypermarkets? a) Superstores offer a wider variety of products than hypermarkets. b) Superstores offer low prices while hypermarkets have moderate to high prices. c) Hypermarkets have fewer departments but deeper product lines than superstores. d) Hypermarkets are larger and have more types of products than superstores. e) These two types of retailers carry very different types of products.

d) Hypermarkets are larger and have more types of products than superstores.

139. Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a) Increase safety stock b) Raise the reorder point c) Reduce customer service standard d) Increase order frequency e) Reduce estimates of inventory turnover rate

d) Increase order frequency

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods

d) Market tests

125. What are the three primary tasks of order processing? a) Order receipt, order delivery, order follow-up b) Order handling, inventory management, order delivery c) Materials handling, warehousing, order delivery d) Order handling, order entry, order delivery e) Order receipt, order checking, order delivery

d) Order handling, order entry, order delivery

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

d) Personality characteristics, motives, and lifestyles

53. Which of the following is the most commonly used channel for distributing business products? a) Producer, agents, industrial distributors, organizational buyers b) Producer, industrial distributors, organizational buyers c) Producer, agents, organizational buyers d) Producer, organizational buyers e) Industrial distributors, organizational buyers

d) Producer, organizational buyers

49. Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a) Producer, industrial distributors, retailers, consumers b) Producer, consumers c) Producer, wholesalers, retailers, consumers d) Producer, retailers, consumers e) Producer, agents, wholesalers, retailers, consumers

d) Producer, retailers, consumers

51. Nationally distributed consumer convenience products are most likely distributed through which of the following channels? a) Producer, consumers b) Producer, agents, wholesalers, retailers, consumers c) Producer, wholesalers, consumers d) Producer, wholesalers, retailers, consumers e) Producer, industrial distributor, wholesalers, retailers, consumers

d) Producer, wholesalers, retailers, consumers

Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics

d) Situational variables

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

152. What is the most expensive physical distribution function? a) Warehousing b) Order processing c) Inventory management d) Transportation e) Materials handling

d) Transportation

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

d) Undifferentiated

Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics

d) Usage rate

145. Which of the following physical distribution functions involves design and operation of facilities for storing goods? a) Order processing b) Materials handling c) Transportation d) Warehousing e) Inventory management

d) Warehousing

25. The supply chain includes a) producers, wholesalers, and retailers. b) suppliers, producers, intermediaries, and customers. c) suppliers and suppliers' suppliers. d) all entities that facilitate product distribution. e) buyers, seller, marketing intermediaries, and agents.

d) all entities that facilitate product distribution.

When marketing research shows that a group of people does not desire a particular product, the people in that group a) are a market. b) do not have the ability to purchase the product. c) do not have the authority to purchase the product. d) are not a market for the product. e) are a market but will not purchase the product.

d) are not a market for the product.

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of a) demographics. b) lifestyles. c) psychographics. d) behavior. e) personality characteristics.

d) behavior.

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.

d) cannibalization.

87. A single leader who controls and organizes a marketing channel is called a a) channel champion. b) distribution leader. c) marketing maverick. d) channel captain. e) lead distributor.

d) channel captain.

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's a) target growth rate. b) sales forecast. c) sales objective. d) company sales potential. e) market potential.

d) company sales potential.

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

d) concentrated

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

d) concentrated

162. Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through a) transit time. b) warehousing. c) packaging. d) containerization. e) lot sizes.

d) containerization.

108. The Wicks 'N Sticks candle and gift marketing organization has a(n) ___________ vertical marketing system arrangement with its franchised retail store operations. a) corporate b) administered c) negotiated d) contractual e) horizontal

d) contractual

92. Overall channel goals and individual channel member goals cannot be achieved together without a) conflict. b) captains. c) leadership. d) cooperation. e) tying agreements.

d) cooperation.

31. The driving force behind marketing channel decisions should be a) convenience. b) cost reduction. c) environmental concerns. d) customer satisfaction. e) quality.

d) customer satisfaction.

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred. a) superstores b) supermarkets c) specialty stores d) department stores e) category killers

d) department stores

45. Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as a) direct distribution. b) producer, retailer, consumer. c) telemarketing. d) direct-marketing. e) indirect marketing.

d) direct-marketing.

169. Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ___________ as a channel strategy. a) channel extension b) intermediary exclusion c) broker utilization d) dual distribution e) channel diversification

d) dual distribution

68. Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a) multiple channeling. b) strategic channel alliance. c) intensive distribution. d) dual distribution. e) market splitting.

d) dual distribution.

A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation.

d) family life cycle.

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on a) age. b) education. c) product use. d) gender. e) income.

d) gender.

147. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a a) flexible warehouse. b) dispatching center. c) distribution center. d) private warehouse. e) public warehouse.

d) private warehouse.

149. Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ___________ to its distribution network. a) distribution center b) private warehouse c) dispatching shipment system d) public warehouse e) materials handling system

d) public warehouse

Direct selling, direct marketing, and vending machines are all examples of a) producing. b) advertising. c) promoting. d) retailing. e) wholesaling.

d) retailing.

137. Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping a) short order lead times. b) just-in-time inventory. c) a controlled usage rate. d) safety stock. e) excessive inventory.

d) safety stock.

Which of the following products is most likely to be marketed, using an undifferentiated approach? a) bicycle b) computer c) notebook d) seasoning salt e) oscillating fan

d) seasoning salt

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to a) determine which segmentation variables to use. b) develop market segment profiles. c) identify the appropriate targeting strategy. d) select specific target markets. e) develop sales forecasts.

d) select specific target markets.

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

d) selecting specific target markets.

42. When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is a) fifteen. b) five. c) eighteen. d) six. e) twenty.

d) six.

Kroger, Safeway, and Publix are all considered a) superstores. b) groceries. c) department stores. d) supermarkets. e) food stores.

d) supermarkets.

106. In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless, a) decision making does not take into account the goals of the system. b) the channel members do not remain autonomous. c) the decision making is not coordinated. d) the channel members remain autonomous. e) the goals of the individual firms are not congruent with the goals of the system.

d) the channel members remain autonomous.

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

Estimating the cost of entering a market and focusing on a specific target segment is important because a) cost estimates are crucial to estimating sales potential accurately. b) higher costs will keep other potential competitors from entering that particular segment. c) customers are more likely to be attracted to marketers that invest heavily in the target segment. d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e) higher cost generally ensures long-term success.

d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

d) their purchasing decisions are always made by only one individual

Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power.

d) they do not have the need or desire for dog food.

The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.

d) time series analysis.

156. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ___________ as its transportation mode. a) railroads b) waterways c) pipelines d) trucks e) airways

d) trucks

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

d) undifferentiated

142. Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called a) warehousing. b) containerization. c) group storage. d) unit loading. e) mechanized handling.

d) unit loading.

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

d) use a positively viewed characteristic they assume much of their target market has or would like to have.

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.

d) use of product.

A single leader who controls and organizes a marketing channel is called a Select one: a. channel champion. b. lead distributor. c. distribution leader. d. channel captain. e. marketing maverick.

d.

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) Select one: a. producers' broker b. channel facilitator. c. sole intermidiary. d. manufacturers' agent. e. industrial distributor.

d.

Consumers receive the benefits of place utility when Select one: a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they make purchases with credit and debit cards. d. products are available in locations where consumers want to buy them. e. they can stock up on products they need but not use them right away.

d.

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be Select one: a. minimizing channel conflict. b. insisting on exclusive exposure. c. creating a coordinate system. d. exercising channel power. e. demonstrating sound channel leadership.

d.

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of Select one: a. horizontal channel integration. b. channel leadership. c. dual distribution. d. a strategic channel alliance. e. exclusive distribution.

d.

Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) _____________ channel. Select one: a. equipment b. producer-to-industrial distributor-to-business buyer c. consumer d. Producer-to-business buyer e. producer-to-agent-to-business buyer

d.

The result of an inventory stockout usually results in ______________ . Select one: a. a decrease in prices. b. an increase in loyal customers. c. an increase in inventory costs. d. an increase in lost sales. e. an increase in net profit.

d.

The supply chain includes Select one: a. suppliers, producers, intermediaries, and customers. b. suppliers and suppliers' suppliers. c. buyers, seller, marketing intermediaries, and agents. d. all entities that facilitate product distribution. e. producers, wholesalers, and retailers.

d.

Marketing research is best defined as Select one: a. the collecting of data from secondary sources and internal documents. b. an intuitive process for making decisions based on personal knowledge and experience to take advantage of market opportunities. c. a framework for the day-to-day management and structuring of information gathered by marketers. d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities. e. a continuous gathering of data for an organization, the systematic design, collection, to make marketing decisions take advantage of market opportunities.

d. the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of market opportunities.

Primary data are best described as the Select one: a. data that are necessary for a correct decision. b. data that are compiled for some other purpose other than the study in question. c. data that are collected inside and outside the organization for some purpose other than the current investigation. d. data that are observed, recorded, or collected directly from subjects. e. first batch of data collected for a specific study.

data that are observed, recorded, or collected directly from subjects.

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

deceptive pricing

product

deciding to add gel insoles to its running shoes would be a change in which of the following elements of the marking mix for nike? price, good, product, promotion, distribution

In general, differences between goods and services are determined by the

degree of tangibility.

A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a

demand curve

Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets.

demographic

Segmentation variables are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic.

Quality modifications are changes that relate to a product's

dependability and durability.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

determining segmentation variables

A survey question that requires a yes or no answer is called a Select one: a. 50-50 question. b. dichotomous question. c. bimodal question. d. qualifies. e. multiple-choice question.

dichotomous question

the depth of a product mix is measured by the average number of

different products offered in each product line

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents.

differentiated

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

differentiated

Great dervice ____ your business

differentiates

In order to be considered a market, people do not have to have

discretionary income to purchase the product

marketing mix

distribution, price, promotion, and product are all elements of this

The purpose of market segmentation is to

divide a total market to enable a marketer to develop a more precise marketing mix.

For most firms in the United States, demand curves are

downward sloping

112. Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of a) poor timing. b) the failure to match product offerings to customer needs. c) technical problems. d) overestimation of market size. e) ineffective branding.

e

114. The difference between absolute and relative product failure is a) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent. b) relative product failure loses money on its investment, whereas absolute product failure returns a small profit. c) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires. d) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution. e) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

e

20. A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors.

e

33. Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods. a) similar; more b) higher; fewer c) higher; more d) lower; more e) lower; fewer

e

38. As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product. a) convenience b) unsought c) disposable d) shopping e) specialty

e

44. As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a a) raw material. b) processed component. c) component part. d) service. e) business product.

e

46. Which of the following is not a business product? a) Oil to be refined into fuel b) Chips to be integrated into components for personal computers c) Paper, pens, and tape to be used in an office d) Marketing consulting services to aid a company in marketing a new product e) Calculators bought to help individuals complete their personal federal income tax forms

e

48. Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and a) production activities. b) service assistance. c) specialty industrial products. d) computer programming and operation services. e) MRO supplies.

e

49. Minerals, chemicals, timber, and agricultural products are considered a) process materials. b) accessory materials. c) MRO supplies. d) component parts. e) raw materials.

e

55. Products used directly in the production of a final product but are not easily identifiable are categorized as a) accessory products. b) component parts. c) MRO supplies. d) assembly components. e) process materials.

e

68. Sales start at zero and profits are negative during the ____ stage of the product life cycle. a) decline b) growth c) initial d) maturity e) introduction

e

84. When banks add new services during the maturity stage, the objective they are most likely trying to achieve is a) pruning items from the product line. b) generating cash flow. c) maintaining their market share. d) filling geographic gaps. e) increasing their share of the customer.

e

86. Sales usually start to decline during the __________ stage of the product life cycle. a) beginning of the termination b) end of the growth c) beginning of the decline d) beginning of the growth e) end of the maturity

e

91. The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle. a) decline b) evaluation c) growth d) introduction e) maturity

e

92. Cadillac recognized it needed to revitalize its brand and attract different market segments. These are indications that Cadillac's products were primarily in the ______ stage of the product life cycle. a) maturity b) growth c) introduction d) market testing e) decline

e

93. Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle. a) introduction b) growth c) maturity d) early e) decline

e

97. Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination. a) not yet developed b) growth c) introduction d) maturity e) decline

e

A systematic process of assessing opportunities and resources, determining marketing objectives, and developing a marketing strategy and plans for implementation and control describes which of the following marketing management activities? a)Strategic planning b) Marketing control c) Implementation d) Organizing e) Planning

e

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

e

As the Industrial Revolution came to the United States, most firms operated in a(n) ___________ orientation. a) marketing b) societal c) sales d) evolutionary e) production

e

Changing the hours of operation for a service business involves the _____ component of the marketing mix. a)price b) good c) product d) promotion e) distribution

e

Consumer confidence is at a low during periods of a) recession. b) prosperity. c) recovery. d) slowdown. e) depression.

e

In managing customer relationships, the three primary ways profits can be obtained are by a) acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers. b) enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers. c) extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers. d) eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers. e) enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

e

Issues of inventory levels and storage costs are both concerns relating to the _____ variable of the marketing mix. a)price b) good c) product d) promotion e) distribution

e

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

e

Mark goes to a vending machine, deposits $1.00, and receives a Sprite. Which one of the following aspects of the definition of marketing is illustrated here? a) Production conception b) Satisfaction of organizational goals c) Distribution of ideas d) Product planning e) Exchange

e

Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces. a) reactive b) inactive c) variable d) positive e) proactive

e

Marketing activities a) are aimed at persuading customers through advertising. b) involve mainly distribution and promotion decisions. c) and selling activities are basically the same. d) are important only when a firm is developing new products or entering new markets. e) help sell an organization's products and generate financial resources for the firm.

e

Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a) Profits for the seller b) A good bargain on the product for the buyer c) Reducing the seller's inventory d) One party having to compromise in the exchange e) Satisfaction for both the buyer and seller

e

One way for corporations to attempt to influence the political environment is through a) special benefits to employees. b) direct contributions to candidates. c) contributions to elected officials. d) contributions to political action committees. e) organizing political action committees.

e

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment? a) Sociocultural b) Technological c) Competitive d) Economic e) Political

e

The Church of the Latter Day Saints has used advertising for many years to market its a)goods. b)services. c)experiences. d)production. e)ideas.

e

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a)issue. b) experience. c)idea. d) good. e) service.

e

The element of the marketing mix used to increase awareness of a product or company is a)communication. b)product. c) price. d) distribution. e) promotion.

e

The marketing concept focuses on a) achieving the goals of top executives. b) creating maximum visibility for the firm. c) maximizing sales. d) maximizing market share. e) satisfying customers' needs in a way that helps to achieve organizational objectives.

e

The rapid adoption of the use of the Internet has resulted in rapid changes such as the increase of distance learning, changing social networks, and concerns such as copyright and privacy issues that the government is focusing on. These effects of technology are collectively known as a) reach. b) the self-sustaining nature. c) growth. d) technological advancement. e) dynamics.

e

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is a) reactive. b) proactive. c) inactive. d) active. e) variable.

e

Total buying power declines during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

e

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a)communication. b)product. c) price. d) distribution. e) promotion.

e

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment. a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

e

When using credit to make purchases, consumers are a) decreasing current buying power and increasing future buying power. b) increasing their present discretionary income to extend purchasing power. c) putting themselves at significant risk of financial disaster. d) forgoing the accumulation of wealth to increase current income. e) increasing current buying power at the expense of future buying power.

e

Which of the following best characterizes the forces of the marketing environment? a)The forces are relatively stable over time and are interrelated with one another. b)There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. c)The various forces ensure that the marketing environment will remain fairly certain in the future. d)These forces change dramatically over time, but a change in one force is unlikely to impact another force. e)The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

e

________ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a) Marketing orientation b) Monetary price c) Product assessment d) Price assessment e) Value

e

Which of the following service providers are most likely to use demand-based pricing? a) Dentists b) Lawyers c) Doctors d) Hair stylists e) Cruise ships

e Cruise ships

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? a) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider. b) This type of advertising makes insurance more tangible to the customer. c) Safe wants to reassure customers that they provide the highest level of service quality available. d) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers. e) For some services, customers look for the low-cost provider, which is what Safe claims to be.

e For some services, customers look for the low-cost provider, which is what Safe claims to be

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering? a) Tangibility b) Intangibility c) Perishability d) Inseparability e) Heterogeneity

e Heterogeneity

Which of the following is the best example of a high-contact service? a) Appliance repair b) Newspaper delivery c) Dog training d) Interior decorating e) Plastic surgery

e Plastic surgery

What are the three primary ways that marketers deliver services? a) Over the phone, online, or in-person b) Continuously, periodically, or on demand c) At the customer's home, in-person, or by telecommunications d) Through service centers, delivery vehicles, or the mail e) Service facilities, customer's home, or from a distance

e Service facilities, customer's home, or from a distance

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as a) partnerships. b) repeated customer contact. c) inseparable clientele. d) long-term customers. e) client-based relationships.

e client-based relationships.

The main characteristic of a ___________ is that customers are satisfied to the point that they use a service repeatedly over a period of time. a) service relationship b) professional marketer c) high-contact service d) heterogeneous service e) client-based relationship

e client-based relationships.

The marketing channels for services are usually a) complex and multifaceted. b) characterized by two to three intermediaries. c) dependent on the geographical location of the consumer. d) determined by the customer. e) direct from provider to customer.

e direct from provider to customer

The more __________ involved with delivering a service, the greater the degree of heterogeneity. a) mechanical efforts b) phone contact c) perishability d) tangibility e) human labor

e human labor

Service industries account for ____ of the gross domestic product of most developed nations. a) more than half b) a small portion c) approximately 25 percent d) nearly all e) nearly three-quarters

e nearly three-quarters

All of the following are elements of the inseparability characteristic of services except that a) consumers are involved in production. b) centralized mass production is difficult. c) consumption and production are simultaneous. d) many services cannot be performed without the customer being present. e) services are easy to standardize and control.

e services are easy to standardize and control.

Which of the following forecasting methods is least dependent on historical sales data? a) Regression analysis b) Trend analysis c) Time series analysis d) Cycle analysis e) A market test

e) A market test

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a) Department stores b) Traditional specialty retailers c) Warehouse showrooms d) Direct marketers e) Discount stores

e) Discount stores

82. Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate? a) Gasoline b) Jaguar automobiles c) Cigarettes d) Laundry detergent e) Panasonic stereos

e) Panasonic stereos

109. Select the greatest advantage of horizontal channel integration. a) The flexibility of the channel is decreased. b) The markets are more heterogeneous. c) The expanded number of units is coordinated. d) Efficiencies in advertising, marketing research, and purchasing are increased. e) Planning and research are increased to cope with increased competition.

e) Planning and research are increased to cope with increased competition.

140. What is the primary determinant in deciding how materials will be handled? a) Unit loading b) Containerization c) Customer preference d) Cost reduction e) Product characteristics

e) Product characteristics

163. What two modes of transportation are used when containers are shipped by piggyback? a) Railroads and airways b) Trucks and airways c) Pipelines and trucks d) Waterways and railroads e) Railroads and trucks

e) Railroads and trucks

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis

e) Regression analysis

A large retailer selling food and most routinely purchased consumer products is a a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore

e) Superstore

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

e) demographic, geographic, psychographic, and behavioristic.

61. Which of the following is an advantage of using an industrial distributor? a) These firms are easy to control because they work directly for the producers. b) Inventory holding costs are minimized because they can store inventory very cheaply. c) They are closer geographically to all of the producers' customers. d) They possess a high level of technical knowledge about their products. e) They help reduce a producer's financial burdens by extending credit to customers.

e) They help reduce a producer's financial burdens by extending credit to customers.

153. ___________ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a) Warehousing b) Containerization c) Distribution d) Materials handling e) Transportation

e) Transportation

104. When channel members are linked by legal agreements that specify each member's rights and responsibilities, _______ exists. a) horizontal channel integration b) an administered VMS c) a corporate VMS d) a channel captain e) a contractual VMS

e) a contractual VMS

When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.

e) a customer forecasting survey.

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at a) the sales force survey results. b) the results of sales forecasting. c) a market trend analysis. d) a market segmentation discrimination analysis. e) a market segment profile.

e) a market segment profile.

A general merchandise retailer offers a) a single product line that is stocked in depth. b) few product lines with deep assortments of these lines. c) few choices of a large variety of product lines. d) products through the Internet and catalogs only. e) a variety of product lines that are stocked in depth.

e) a variety of product lines that are stocked in depth.

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

e) allows a firm to develop a special marketing mix for a single market segment.

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic

e) behavioristic

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. a) multivariable b) use of product c) breakdown d) regression e) buildup

e) buildup

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

e) by starting with general economic conditions.

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy. a) undifferentiated b) differentiated targeting c) exclusive targeting d) heterogeneous e) concentrated targeting

e) concentrated targeting

95. Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ___________ with independent Goodyear dealers. a) understanding b) power c) leadership d) communication e) conflict

e) conflict

24. The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to a) work independently. b) avoid cooperation due to antitrust considerations. c) work with competitors and share information. d) increase competition among channel members. e) cooperate and accommodate one another's needs.

e) cooperate and accommodate one another's needs.

103. The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n) a) administered vertical marketing system. b) conventional marketing channel. c) channel network. d) contractual marketing channel. e) corporate vertical marketing system.

e) corporate vertical marketing system.

128. Order handling involves all of the following activities except that the a) credit department approves the purchase. b) order is transmitted to the warehouse. c) availability of product is verified. d) warehouse is instructed to fill the order. e) customer places a purchase order.

e) customer places a purchase order.

27. All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is a) shifting costs to suppliers. b) maximizing costs. c) maximizing technology implementation. d) cooperation with competitors. e) customer relationships.

e) customer relationships.

123. A goal of physical distribution is to reduce ______ or how long it takes to complete a process. a) time standards b) processing time c) production d) throughput measure e) cycle time

e) cycle time

121. An important goal of physical distribution is reducing the time it takes to complete a) inventory management. b) outsourcing evaluation. c) electronic data interchange. d) order processing. e) cycle time.

e) cycle time.

113. The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as a) illegal. b) logistics. c) warehousing. d) wholesaling. e) outsourcing.

e) outsourcing.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

e) developing market segment profiles.

46. Many producers selling on the Internet are using a) several intermediaries. b) complex marketing channels. c) Internet wholesalers, retailers, and agents. d) supply chain channels. e) direct-marketing channels.

e) direct-marketing channels.

167. Dual distribution is characterized as a) illegal under the Robinson-Patman Act. b) distribution channels that typically carry exclusive products, such as Rolex watches. c) marketing environments that are highly competitive. d) manufacturers that forbid an intermediary to carry products of competing producers. e) distribution of one manufacturer's product through two or more different channel structures.

e) distribution of one manufacturer's product through two or more different channel structures.

Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) do not have the authority to gamble.

e) do not have the authority to gamble.

172. An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called a) exclusive distribution. b) a tying agreement. c) refusal to deal. d) contractual VMS. e) exclusive dealing.

e) exclusive dealing.

173. Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called a) a tying contract. b) refusal to deal. c) a restricted sales territory. d) a restricted channel. e) exclusive dealing.

e) exclusive dealing.

84. Expensive, high-quality products that are purchased infrequently often reach consumers through a) selective distribution. b) highly-selective distribution. c) sole-source retailers. d) complex marketing channels. e) exclusive distribution.

e) exclusive distribution.

74. The three major levels of intensity at which a company can choose to distribute its products are _____ distribution. a) narrow, medium, and wide b) cooperative, conflicting, and integrated c) intensive, extensive, and exclusive d) selective, cooperative, and conflicting e) exclusive, selective, and intensive

e) exclusive, selective, and intensive

55. Organizational buyers are especially partial to direct marketing channels when a) they buy cheap materials in large quantities. b) they try a new product for the first time. c) they are filling an order for a very important customer. d) a modified rebuy type of decision is involved. e) expensive and/or complex equipment is involved.

e) expensive and/or complex equipment is involved.

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on a) income. b) ethnicity. c) taste. d) geographic considerations. e) family life cycle.

e) family life cycle.

Alpine Ski Shops U.S, is looking for new markets. Since their market is based mainly on access to snow, they would most likely use which base for segmentation? a) behavioristic b) demographic c) psychographic d) environmental e) geographic

e) geographic

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

e) heterogeneous

97. Vertical channel integration a) results in two or more different management teams for each member of the channel. b) is made possible when a large corporation divests itself of smaller subsidiaries. c) is a shift back to the conventional channel of distribution. d) combines institutions at the same level of operation. e) is made possible by purchasing the operations of a link in the channel.

e) is made possible by purchasing the operations of a link in the channel.

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.

e) lifestyle.

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.

e) market potential.

73. When considering the best channel to use, all of the following are true with regard to larger firms except they a) can use an extensive product mix as a competitive tool. b) may be better able to negotiate better deals with vendors or other channel members. c) may have more distribution centers. d) may have the resources to develop their own sales force. e) may be better suited to serve customers in a particular region.

e) may be better suited to serve customers in a particular region.

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.

e) micromarketing.

130. Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about a) order entry. b) order completion. c) just-in-time. d) order handling. e) order delivery.

e) order delivery.

116. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using _____ for physical distribution for her business. a) producers b) wholesalers c) retailers d) selling agents e) outsourcing

e) outsourcing

The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.

e) personality, motives, and lifestyles.

160. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be a) waterways. b) airways. c) tanker trucks. d) railroads. e) pipelines.

e) pipelines.

148. When companies operate their own facilities for storing and shipping products, these facilities are known as a) distribution centers. b) product storehouses. c) public warehouses. d) megawarehouses. e) private warehouses.

e) private warehouses.

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

e) product's performance characteristics are not significantly different from those of competing brands.

39. Consumers receive the benefits of place utility when a) they have to travel excessively to obtain products they want. b) retailers remain open 24 hours a day. c) they can stock up on products they need but not use them right away. d) they make purchases with credit and debit cards. e) products are available in locations where consumers want to buy them.

e) products are available in locations where consumers want to buy them.

166. Using a freight forwarder usually a) is not economical for a small firm. b) increases transit time and shipping costs. c) increases transit time and sometimes lowers shipping costs. d) lowers shipping costs for a large firm. e) reduces transit time.

e) reduces transit time.

Wal-Mart, Macy's, Nordstrom's, and Toys "R" Us are examples of a) manufacturers. b) merchant wholesalers. c) end-users. d) agents. e) retailers.

e) retailers.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.

e) sales forecast.

Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.

e) segmentation variables.

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.

e) select specific target markets.

79. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ___________ distribution for the products. a) intensive b) exclusive c) horizontal d) priority e) selective

e) selective

81. Durable goods such as television sets and DVD players generally reach their target markets through a) intensive distribution. b) channel cooperation. c) direct marketing. d) exclusive distribution. e) selective distribution.

e) selective distribution.

Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.

e) single-variable segmentation.

Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n) a) convenience store. b) off-price retailer. c) specialty store. d) franchiser. e) supermarket.

e) supermarket.

Relying on executive judgment for forecasting may be adequate when a) levels of marketing efforts put forth by competitors vary considerably. b) recent events give the executive specific impressions of product demand. c) product demand is erratic. d) the executive conducts surveys. e) the executive has considerable experience and product demand is relatively stable.

e) the executive has considerable experience and product demand is relatively stable.

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a) salespeople are generally optimistic about the future and will provide excellent forecast targets. b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c) this tends to be the fastest way to determine a good sales forecast for the upcoming period. d) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

34. Channel decisions are important to marketers mostly because a) they are relatively flexible to change quickly. b) consumers value reasonable prices delivered through marketing channels. c) they dictate what promotional strategies companies should use. d) many businesses are marketing intermediaries. e) they involve long-term commitments and affect customer accessibility.

e) they involve long-term commitments and affect customer accessibility.

115. Physical distribution activities may be performed by a producer, wholesaler, retailer or a) not performed at all. b) the customer. c) investors in any of the previous three. d) solely through technology. e) they may be outsourced.

e) they may be outsourced.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is a) the regression method. b) customer forecasting. c) a market test. d) sales force forecasting. e) time series analysis.

e) time series analysis.

40. In a simple economy of five producers and five consumers, there would be ___________ transactions possible without an intermediary and _________ transactions possible with one intermediary. a) ten; twenty-five b) thirty; ten c) twenty-five; fifteen d) sixteen; eight e) twenty-five; ten

e) twenty-five; ten

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

119. According to the text, physical distribution cost tradeoffs enable firms to a) resolve pricing conflicts among channel partners. b) minimize risk during test marketing of new products. c) reduce costs of all distribution functions simultaneously. d) resolve pricing conflicts within industry sectors. e) utilize resources for greatest cost-effectiveness.

e) utilize resources for greatest cost-effectiveness.

99. Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of a) channel leadership. b) channel cooperation. c) channel conflict. d) horizontal channel integration. e) vertical channel integration.

e) vertical channel integration.

Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called a) hypermarkets. b) retail groups. c) warehouse showrooms. d) discount stores. e) warehouse clubs.

e) warehouse clubs.

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of Select one: a. vertical integration. b. horizontal integration. c. exclusive dealing. d. tying agreements. e. dual distribution.

e.

Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? Select one: a. Producer, consumer b. Producer, wholesaler, agent, retailer, consumer c. Producer, retailer, consumer d. Retailer, consumer e. Producer wholesaler, retailer, consumer

e.

Piggyback, fishyback, and birdyback are terms usually associated with gaining efficiency in shipping through Select one: a. warehousing. b. packaging. c. lot sizes. d. transit time. e. containerization.

e.

When Zappos, Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is called ___________. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel. Select one: a. warehousing. b. wholesaling. c. logistics. d. illegal. e. outsourcing.

e.

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is Select one: a. eighteen. b. twenty. c. five. d. fifteen. e. six.

e.

Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods

eIncreased number of high-tech goods

Which of the following products associated with weddings is most likely to be considered a service? a) Wedding cake b) Floral arrangements c) Bridal gown d) Reception hall e) String quartet music

eString quartet music

marketing knowledge and skills

enhance consumer awareness and help provide people with satisfying goods and services

relationship marketing

establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges

All of the following are major steps in developing new products except

evaluation of competitors' efforts.

___ is not a stage in the buyer's product adoption process

exploration

T F The five-step process usually used for target market selection includes identifying the appropriate targeting strategy, determining which segmentation variables to use, developing market segment profiles, evaluating relevant market segments, and deciding which targeting strategy to use.

f

T F The information yielded by market segment profiles usually is not very useful later in the marketing process.

f

T F The types of surveys used to forecast sales are customer, executive, and competitor surveys.

f

T F There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

f

T F Through market tests, a forecaster gains data regarding consumers' intended purchases.

f

A marketer that targets customers based on marital status and the presence and age of children is using

family life cycle

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on

family life cycle

one half

for most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

sales

from the 1920s to the 1950s, demand for manufactured goods decreased, leading to what orientation?

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour, this improvement would best be classified as a(n)

functional modification.

marketing unit

functions, products, regions, types of customers, or a combination of all four organizes what?

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on

gender

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through ______

geodemographic segmentation

Population density and city size are _______ variables used for market segmentation.

geographic

Value= What I __/ What I __

get/pay

inferior goods

goods with negative income elasticity

normal goods

goods with positive income elasticity

aggressive pricing is typical during the ___ stage of the product life cycle

growth

Adolescents are not considered part of the market for casinos because they

have little buying power

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning.

head to head

marketing activities

help sell an organization's products and general financial resources for the firm

Because of a service's ____, standardization and quality are difficult to control.

heterogeneity

H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?

heterogeneity

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?

heterogeneity

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

heterogeneity

Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees.

heterogeneity

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.

heterogeneity

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity.

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets.

heterogeneous

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be

heterogeneous

why is service leadership required?

high discretionary content of most service jobs

question mark

high growth market- low market share

Compared to a mail survey, telephone surveys have Select one: a. a slower response time, but less cost b. faster response time, but less cost c. fewer expenses overall d. lower response rates but higher validity e. higher response rates, but higher costs

higher response rates, but higher costs

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market.

homogeneous

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

human labor

Costco believes that most of its sales are to small businesses rather than consumers -- and that women are more likely to be making the purchasing decisions. This is an example of a(n) ___________ that Costco could test through marketing research. Select one: a. hypothesis b. conceptual error c. experimental question d. sampling error e. descriptive sample

hypothesis

The first step in the target market selection process is

identifying an appropriate target strategy

$1,000

if a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

The real value of marketing research to the organization can best be measured by Select one: a. its immediate impact on profits. b. the amount of time spent. c. how much it costs. d. improvements in the ability to make decisions. e. the increase in sales volume or market share.

improvements in the ability to make decisions

The growth of business services is largely attributed to a) increases in incomes and living standards. b) decreases in the consumption of products. c) increases in governmental expenditures. d) increases in the complexity and competitiveness of business environments. e) increases in population.

increases in the complexity and competitiveness of business environments.

green marketing

initiatives intended to improve an organization's positive impact on society and the natural environment

A genuinely new product, like the iPhone once was, offers

innovative benefits to consumers.

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

inseparability

Facilities, factories, and production lines with very large equipment are all classified as

installations.

A price developed in the consumer's mind through experience with the product is called a(n)

internal reference price

the four major stages of a product life cycle include

introduction, growth, maturity, decline

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

inverse

distribution

issues of inventory levels and storage costs are both concerns relating to which of the following variables of the marketing mix? distribution, product, exchange, price, promotion

Which of the following is not a requirement or characteristic of a market?

large number of people

All skill is in vain when an angel pees in the touchhole of your musket. is an example of?

law of divine intervention

fairness is not the same as

legality

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

lifestyle

An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a ?

lifestyle stopping center

what top ten service compaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) -Clueless employees who do not know the answers to customers' common questions.

light on, no one home

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

line extension.

____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

line extension.

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

line extensions.

the width of a product mix is measured by the number of product

lines a company offers

What is the least flexible retailing strategy issue?

location

Immediately after the breakeven point, a firm starts to

make profits

buying behavior

managing customer relationships requires identifying patterns of _________ and then using that information to focus on the most promising and profitable customers

Family life cycle is most typically based on

marital status and ages of children

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

market density

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the _____

market potential

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

market segment profiles

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

market segments

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

market test

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

market tests

competition

marketers often speak of the "controllable" variables in the practice of marketing. which of the following is not considered one of the controlled variables? product, price, distribution, competition, promotion

satisfaction for both the buyer and seller

marketing facilitates exchange relationships between buyers and sellers. what is marketing's intended outcome for this relationship?

matches the needs of the target market

marketing managers strive to develop a marking mix that

what top ten service complain is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Employees visit with each other or conduct personal business while the customer waits.

misplaced priorities

A study that is valid and reliable Select one: a. is difficult to produce without expert researchers. b. is expensive to implement and complete. c. measures subtle differences in the population being studied and produces almost identical results in repeated trials. d. is called a marketing research study. e. measures what it is supposed to measure and produces almost identical results in repeated trials.

measures what is supposed to measure and produces almost identical results in repeated trials

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of

micromarketing

a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets

micromarketing

For demographic purposes, a mail survey sent out by the American Cancer Society asks each respondent to identify their race by choosing among a list of possibilities. This common type of question is called a(n) ____________ question. Select one: a. open-ended b. categorized c. multiple choice d. dichotomous e. optional response

multiple choice

Service industries account for ____ of the gross domestic product of most developed nations.

nearly three-quarters

what are the 6 principles of recovery

never argue with a customer make it easy to complain resolve at the point of contact resolve quickly emphasize a fair solution repair the system

Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing

non-price competition

Rick is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.

not introducing new products

Cameras, counting machines, and scanners are used most often in Select one: a. surveys. b. experimentation. c. observation. d. field settings. e. secondary data gathering.

observation

A manufacturer's outlet mall is classified as?

off-price retailer

An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) __________ question. Select one: a. dichotomous b. multiple-choice c. force-sum-choice d. open-ended e. limited-choice

open-ended

A shopping center that contains stores owned by manufactures who make a special effort not to conflict with tradiitional retailers and consumers will drive a significan distance to save money to go to it is a?

outlet shopping center

when the bell rings, there had better be some supper is ___ principle

pavlovs

According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____.

performance; audience

The fact the services cannot be inventoried and then sold at a later date is called

perishability.

The three most commonly used psychographic segmentation variables are

personality, motives, lifestyles

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

product development.

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

product positioning

all is true except

product positioning is the customer's absolute perception of a product's attributes

Positioning a product to avoid competition may be best when the

product's performance characteristics are not significantly different from those of competing brands.

Reliability in service business means that customers are buying a?

promise

exchange

provision or transfer of goods, services, or ideas in return for something of value

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

pure goods

Because practically all marketers provide some services, ___________ typically do not exist in today's business environment. a) pure goods b) pure services c) customer services d) service products e) tangible-dominant products

pure goods

The customer defines service ___

quality

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)

quality modification.

Value - _+_+_/ _+_

quality, entertainment,intangibles/price,time

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a

radically new product.

Which sampling design gives every member of the population an equal chance of appearing in the sample? Select one: a. Quota b. Random c. Nonprobability d. Stratified e. Poll

random

what top ten complaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Assuming customers are stupid or cheaters and treating them harshly, or disrespectfully.

red alert

Functional modifications usually require that the product be

redesigned.

efficiency

refers to minimizing the resources an organization must spend to achieve a specific level of desired exchanges

A shopping center containg a macy's, marshal fields, jc penneys as well as dozens of specialty shops, restaurants and entertainment is most likely a ?

regional shopping center

A forecasting method that predicts sales based on relationships between past sales and other variables is called

regression analysis

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

regression analysis

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

service ___ is an attitude

reliability

what are the three table stakes for any business

reliability recovery fairness

A specialty product

requires purchase planning, and the buyer will not accept substitutes.

what are the two objectives of recovery

restore the customers confidence improve the service system

Identifying an dunserved or underserved market segment and serving it through a strategy that is distinguishe din the mind of the consumer is called

retail positioning

price discrimination

revenue maximizing behavior of a firm that faces two different markets with two different elasticities for its single product. The price discrimination charges a high price to the inelastic market and a low market, thereby increasing revenues in both markets above what would be earned with a single price.

Service reliability happens through the __ ___

right systems

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

sales forecast

In the context of marketing, cannibalization means

sales of a new product hurts sales of the company's existing products

during the decline stage of the product life cycle

sales rapidly decrease

The addition of unrelated products to a stores product mix, is which type of retail strategy?

scrambled merchandising

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables.

segmentation

The objective of sampling in marketing research is to Select one: a. provide data that can be used to test the hypotheses being investigated. b. control independent variables that might influence research results. c. ensure that measures in the study are reliable. d. select representative units from a total population. e. obtain responses from as many people as possible.

select representative units from a total population

The final step in the target market selection process is

selecting specific target markets

The continuum of tangibility goes from ____ on one end to ____ on the other end.

service-dominant products; good-dominant products

All of the following are elements of the inseparability characteristic of services except that

services are easy to standardize and control.

The ___________ prohibits price fixing among firms in an industry.

sherman antitrust act

products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called____ products

shopping

both customers and businesses

should receive benefits from exchange relationships according to the definition of marketing

The forces of the marketing environment include

social cultural, competitive, economic, political, legal irregulation, technological

During the maturity stage

some competitors are forced out

A Narrow product mix with a deep proudct line would most likely be carried by?

speciality retailers

Off-price retailers and category killers are both?

speciality retailers

As Beth and Rob search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ____ product.

specialty

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ____ product.

specialty

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product.

specialty

A functional and psychological picture in the consumer's mind of a retail store is called?

store image

what top ten service complaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Failing to communicate with customers who are anxious to hear how a service problem will be resolved.

suffereing in silence

T F A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.

t

T F A company sometimes defines a total market as its target market.

t

T F A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

t

T F A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

t

T F A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

t

T F A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

t

T F A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.

t

T F A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

t

T F A product can be repositioned by changing its image through promotional efforts directed at customers.

t

T F At times, after doing segmentation analysis, marketers in an organization decide not to enter any segments.

t

T F Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

t

T F Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

t

T F In a customer survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

t

T F Individuals' ability to buy depends on the amount of their buying power.

t

T F Lifestyle analysis focuses on people's activities, interests, and opinions

t

T F Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

t

T F Motives can be used to segment markets.

t

T F One condition for effective segmentation is that at least one segment must have substantial profit potential.

t

T F One limitation of the sales force survey technique is that salespeople often believe that their sales goals are determined by their sales estimates.

t

T F One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

t

T F One way marketers can segment business markets is according to their geographic location.

t

T F Perceptual maps are created by questioning a sample of customers about their perceptions of products, brands, or organizations, with respect to two or more dimensions.

t

T F Product position is customers' concept of a product's attributes relative to their concept of competitive brands.

t

T F Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

t

T F Surveys are sometimes used to forecast sales.

t

T F The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

t

T F The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

t

T F The size of the market potential places limits on the size of the company sales potential.

t

T F The sum of firms' marketing efforts equals industry marketing efforts

t

T F The term market density refers to the number of potential customers per unit of land area, such as per square mile.

t

T F The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

t

T F The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix.

t

T F When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

t

T F When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

t

Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of perishability, which means

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.

The major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively.

Services are usually provided through ____ directed at people or objects.

the application of human or mechanical efforts

service

the application of mechanical and human efforts to either people or objects to provide intangible benefits to customers

what top ten service complaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) Waiting to be served in lines made longer because some of the checkout lanes or service counters are closed.

the big wait

The point at which the costs of producing a product equal the revenue earned from selling the product is

the breakeven point

Product positioning refers to

the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

effectiveness

the degree to which an exchange helps achieve an organization's objectives

promotion

the element of the marketing mix used to increase awareness of a product or company

value=customer benefits-customer costs

the equation a buyer applies to assess a product's value

all organizational activities

the marketing concept affects (choose one) just the marketing department all organizational activities only marketing and finance only production and marketing few decisions in an organization

dynamic and changing

the marketing environment is best described as being

customer

the marketing mix is built around what?

achieve the organization's goals

the marking concept is a philosophy that states that an organization should try to satisfy customers' needs and also

At the breakeven point,

the money a company brings in from selling products equals the amount spent producing the products

implementation

the part of marketing plans that hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the marketing unit

the price charged for the product

the primary value that a marketer expects to receive from a customer in an exchange relationship

marketing control

the process of establishing performance standards, competing actual performance with established standards, and reducing the difference between desired and actual performance

In product modification, the first issue to consider is whether

the product is modifiable.

Which of these statements is not true about business markets?

the purchase is always made by more than one individual

services, ideas, and goods

the three basic forms that a product can take

Price is

the value that is exchanged for products in a marketing transaction.

Which of the following is not a characteristic of a consumer market?

their purchasing decisions are always made by only one individual

What do all of the following have in common: tuition, fee, premium, retainer, dues?

they are all different concepts of price

Which of the following is the biggest drawback to using psychographic variables?

they are hard to measur

Consumers that do not own dogs are not likely to be in the market for dog food because

they do not have a need for it

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy.

undifferentiated

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

time series analysis

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

The type of retail location that is commonly being preserved and revitalized in many cities is?

traditional business district

what top ten compaint is ( Red Alert, Lights on no one Home, Misplaced priorities, True lies, Broken Promises, Dont ask, Suffering in silence, I just work here, The big wait, Automatic pilot) blantant unfairness, such as selling unneeded service or purposley providing fake, low ball cost estimates

true lies

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case?

undifferentiated

Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a doctor. Jose is likely going to view solutions to his problem as

unsought products.

Which of the following is an example of a behavioristic segmentation variable?

usage rate

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on

use of product

marketing activities

used by all sizes of organizations including for-profit, nonprofit, and government agencies

Great service allows you to compete o ___ rather than price

value

what are the 4 things that you like least about NACS

value for money speed of checkout convinent hours used books-liberal buy back

Service delivery is subject to?

variability

what are the four qualites of service leadership

vision- focus belief in other (coach rather than boss) Love of the business Integrity

Marginal analysis involves examining

what happens to a firm's costs and revenues when production is changed by one unit.

government regulations

which of the following is essential an uncontrollable factor in developing a marketing mix? product adaptations, pricing strategies, government regulations, advertising campaigns, retail locations

abuse counselor

which of the following is most likely to be an idea marketer? car salesperson, airline pilot, attorney, abuse counselor, orthodontist