Intro to Marketing Quiz Questions
True
A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
False
A convenience store is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods.
False
A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
True
A horizontal marketing system can develop between a company and its competitor.
True
A market is a segment of potential consumers who share a common need or want.
True
A new product must have the required functional features and also convey the intended psychological characteristics.
True
A product has 5 distinctive price levels ranging from $799 to $9500. This is an illustration of price steps
True
According to research, nearly 60 percent of shoppers research product information on their smartphone while shopping.
False
Adoption is the decision by an individual to try the product.
True
Advertising's goal is to help move consumers through the buying process.
False
An administered VMS integrates successive stages of production and distribution under single ownership.
True
An innovation management system collects, reviews, evaluates, and manages new product ideas.
True
An off-price retailer buys and sells at lower wholesale prices.
False
Business buying is done by newly trained purchasing agents who are learning how to buy better.
True
Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery.
False
Captive product pricing refers to setting prices across an entire product line
True
Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who use them.
True
Chosen symbols, characters, and other image elements are communicated through advertising that conveys the company's or brand's personality.
False
Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.
False
Companies today are moving away from target marketing and toward mass marketing.
False
Customer equity is a measure of the past value of a company's customer base.
True
Customer involvement has a positive effect on the new product development process and product success.
False
Customer relationship management software is used for selecting, managing, and motivating individual channel members and evaluating their performance over time.
True
Demographic factors are the most popular bases for segmenting customer groups.
True
Digital and social media marketing involves using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers.
True
Digital marketing through online, mobile, and social media provides a sense of brand engagement and community.
True
Direct marketing is the longest distribution channel between a producer and consumer.
True
Direct-response television (DRTV) marketing takes one of two major forms: direct-response television advertising and interactive TV (iTV) advertising.
True
Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.
True
During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.
False
Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors
False
Freight absorption pricing is used for market skimming and holding on to monopolistic markets
False
Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.
False
Horizontal conflict occurs among firms at different levels of the channel.
True
If marketers know what evaluative processes go on, they can take steps to influence the buyer's decision.
True
In a multichannel distribution system, a single firm sets up two or more marketing channels to reach one or more customer segments.
False
In a pull strategy, the producer promotes the product to channel members who in turn promote it to final consumers.
False
In advertising media selection, frequency describes the qualitative value of message exposure through a given medium.
False
In an administered VMS, the producer assumes the leadership position in a distribution channel by default.
True
In an automated warehouse, orders are fed directly from the retailer's information system into the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled.
False
In any medium, the relevance of advertising content to an audience is less important than how many people the advertisement reaches.
False
In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships.
False
Inbound logistics involves managing the flow of products from an intermediary to a customer.
False
Intermediaries play a minimal role in matching supply and demand.
False
Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.
True
John Deere's sales force working with Lowe's, Home Depot, independent dealers, and other channel members to promote their products to final consumers is an example of a push promotion strategy.
True
Lagging adopters are tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.
True
Learning describes changes in an individual's behavior arising from experience.
False
Lobbying refers to a PR department maintaining relationships with shareholders and others in the financial community.
False
Manufacturers relay customer concerns about company products and actions back inside to those who can handle them.
True
Many companies motivate their salespeople by setting sales quotas.
False
Market offerings are limited to physical products.
False
Mass marketing is the optimal promotion tool for building personal and long-lasting relationships with customers.
Truw
Merchant wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.
True
Most salespeople spend much of their time maintaining existing accounts and building long-term customer relationships.
True
Native advertising refers to advertising or other brand-produced online content that looks in form and function like the other natural content surrounding it on a Web or social media platform.
True
New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.
True
Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.
True
Order getters typically participate in creative selling, social selling, and relationship building.
False
Price reductions from rebates are given to consumers at the point of sale.
False
Pricing strategies usually remain the same as a product passes through its life cycle
False
Product development usually costs the least among all the steps of the new product development process.
True
Product, price, place, and promotion make up the elements of a firm's marketing mix.
False
Prospecting is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.
False
Reference group influence on consumer buying behavior does not vary across products and brands.
True
Sales force automation systems enable salespeople to profile prospects, forecast sales, and prepare expense reports.
False
Sales promotion does not need to be coordinated with other promotion mix elements within the overall IMC program.
False
Selective distribution is a strategy in which producers of convenience goods stock their products in as many outlets as possible.
True
Sellers are prohibited from using predatory pricing
True
Standardization helps a company develop a consistent worldwide image, and lowers the product design, manufacturing, and marketing costs.
True
Subcultures are groups of people with shared value systems based on common life experiences and situations.
True
Supplier development refers to systematically developing networks of supplier-partners to ensure a dependable supply of the products and materials.
True
Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.
True
The aim of advertainment is to make ads and brand content so entertaining or so useful that people want to watch them.
False
The buying center consists of key decision makers from both the buying organization and the supplier.
False
The demand curve shows the number of units the market will buy in a given time period at a similar price
True
The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.
False
The full positioning of a brand is called the unique selling proposition.
False
The goal of any logistics system should be to maximize sales, not profits.
True
The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.
False
The product concept is a customer-centered, sense-and-respond philosophy.
True
The retailer's product assortment should be distinguishable and also match target shoppers' expectations.
True
The rise of megaretailers has shifted the balance of power between retailers and producers. Since megaretailers have access to numerous consumers, they have significant power when dealing with manufacturers.
True
Traditional mass media still make up a majority of today's media mixes.
True
Training online instead of on-site can cut travel and other training costs, and it takes up less of a salesperson's selling time.
If consumers perceive less value relative to competing products, a company should attempt to change customer perceptions to justify a higher price
True
True
Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.
False
Under the innovative management system approach, one company department works individually to complete its stage of the process before passing the new product along to the next department and stage.
True
Using a customer sales force structure, a company organizes its sales force along customer or industry lines required.
False
Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.
True
Warehouse clubs appeal not only to low-income consumers seeking bargains on bare-bones products but to customers shopping for a wide range of goods, from necessities to extravagances.
True
When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.
True
When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main products price to make it more competitive
False
When backed by buying power, wants become needs.
False
When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia.
True
Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.
True
With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries.
In monopolistic competition, the market is dominated by one seller
false