Exam 3 Online Quiz Questions (18e)
C
"Product" means: A) all the services needed with a physical good. B) a physical good with all its related services. C) the need-satisfying offering of a firm. D) all of a firm's producing and distribution activities. E) a well-packaged item with a well-advertised brand name.
B
A "good" retail strategy planner knows that: A) it's a mistake to try to develop a strategy that isn't equally appealing to all social class groups. B) the failure rate among beginning retailers is quite high. C) emotional needs are more important than economic needs in choosing a retailer. D) All of the above are true. E) None of the above is true.
B
A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses. A) public B) private C) general merchandise D) commodity
D
A company with a large product assortment might: A) have many product lines with little selection in each. B) have a single product line. C) have many individual products. D) All of the above are true. E) Only A and C are true.
E
A disadvantage of direct-to-customer channels is that they: A) are not suitable when the number of transactions is small or when orders are large. B) are illegal in business and organizational markets. C) make it more difficult to serve buyers who want to lease rather than buy products. D) require the producer to coordinate with many retailers. E) None of the above is a disadvantage.
E
A new product idea is more likely to move quickly through the early stages of the product life cycle when: A) the product is easy to use. B) the product is compatible with the values and experiences of target customers. C) the product can be given a trial. D) the product's advantages are easy to communicate. E) All of the above are correct.
A
A producer is most likely to use a "selling agent" if: A) he lacks marketing know-how and working capital. B) he produces a broad product line. C) he mainly needs aggressive selling. D) his target customers are concentrated in a small geographic area. E) he sells a technical product that needs a lot of follow-up service.
C
A supply chain: A) is part of a broader network of relationships called a channel of distribution. B) is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain. C) requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts. D) focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs. E) concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.
D
A typical problem for limited-line retailers is that: A) it is almost impossible for them to satisfy any particular target markets better than other types of retailers. B) their marketing strategy usually relies only on low price. C) they usually cannot carry enough items in a line for any customers to find what they want. D) many of the items they carry are slow moving. E) All of the above are problems.
D
About what percentage of the cost of health care supplies in the U.S. are a result of logistics? A) 15 percent B) 20 percent C) 25 percent D) 33 percent E) 40 percent
C
According to the FTC, for a producer to call a product "new," the product: A) must be no more than two months old. B) must have achieved brand insistence. C) must be entirely new or changed in a functionally significant or substantial respect. D) must have been changed in some way during the last year. E) None of the above is a correct answer.
D
Compared to a warehouse, a DISTRIBUTION CENTER is: A) designed to provide more efficient use of storage space. B) concerned with eliminating the need for bulk-breaking. C) designed to eliminate all storage. D) set up to speed the flow of products toward the consumer. E) a storage facility used by several intermediaries--to share costs.
B
Dealer brands, compared to manufacturer brands, usually offer wholesalers and retailers: A) less risk. B) higher gross margins. C) faster turnover at reduced selling costs. D) products which are presold to target customers. E) more prestige.
A
Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products--earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a: A) manufacturers' agent. B) rack jobber. C) broker. D) truck wholesaler. E) selling agent.
E
Distribution agreements which limit sales by customer or territory: A) are always illegal. B) may be legal if they are vertical agreements between producers and intermediaries. C) are definitely illegal if they are horizontal agreements among competing producers or intermediaries. D) are definitely illegal if they are vertical agreements between producers and intermediaries. E) Both B and C are true.
E
Every morning, Sycamore Dairy picks up milk which farmers have "milked" that morning. The dairy processes the milk and separates the cream from the milk. Some of the cream is made into butter and packaged in various sizes. The milk and remaining cream are blended into various products, sealed in pint, quart and half-gallon containers, and delivered to supermarkets in the quantities and assortments they want. The dairy is providing what regrouping activity? A) Assorting B) Accumulating C) Sorting D) Bulk-breaking E) All of the above.
B
From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution? A) Intermediaries' price-cutting may be reduced. B) Intermediaries' facilities will be more convenient for customers. C) Intermediaries can be required to carry larger stocks. D) More aggressive selling can be expected from intermediaries. E) Better service can be required from intermediaries.
A
Having a competitive price is likely to: A) be more important for a homogeneous shopping product than for a specialty product. B) be more important for a heterogeneous shopping product than for a homogeneous shopping product. C) be more important for an emergency product than for a staple. D) keep a product from falling into the "unsought" product class. E) None of the above is true.
B
If a brand consistently delivers on a promise that purchasers consider important, those purchasers are likely to develop a _______ for the brand. A) disliking B) trust C) demand D) mistrust E) tolerance
D
If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is: A) a routine product. B) a specialty product. C) a homogeneous shopping product. D) a staple product. E) a casual product.
E
If members of the target market for an Apple iPad do not initially recognize the brand name, but compelling advertising results in more members remembering the brand, we say the Apple iPad has achieved: A) brand rejection. B) brand preference. C) brand nonrecognition. D) brand insistence. E) brand recognition.
E
In Europe, auto manufacturers are required by law to allow owners of their brands to give the cars back to the manufacturers at the end of their useful life. The manufacturers must then recycle and reuse at least 85 percent of any vehicle made after 2004. This is an example of a(n): A) Integration law B) Horizontal law C) Contractual law D) Vertical law E) Take back law
D
In which of the following situations is the new product entering the MARKET INTRODUCTION stage of the product life cycle? A) Porsche just introduced a new luxury sport-ute to compete against sport-utes made by others. B) Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. C) Home Depot (a home improvement chain) just introduced its own dealer brand of paint. D) Apple just introduced a computer operating system that is so "user-friendly" it responds to spoken commands. E) All of the above.
B
Many people like to drive motorcycles. But motorcycles have a high death rate in even minor accidents. These motorcycles should probably be thought of as: A) desirable products. B) pleasing products. C) salutary products. D) deficient products. E) There is not enough information to tell.
D
Most catalog retailers, like Macy's and L.L. Bean, now use a multichannel approach but when they mail catalogs to potential customers' homes, they are using ___________ retailing. A) online B) virtual C) door-to-door D) direct-mail E) e-commerce
A
Nonrecognition of the brand name of a firm's product is likely to be LEAST important for: A) Coal B) Photographic film C) Lubricating oils for machinery D) Cold tablets E) Replacement auto repair parts
B
PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of young adults to suggest brand names for the proposed product. This is an example of: A) empowerment. B) concept testing. C) market testing. D) TQM. E) EDI.
D
Regarding product life cycles, good marketing managers know that: A) any new brand must start off in the market introduction stage. B) any product modification results in a new product life cycle. C) product life cycles cannot be extended. D) a firm's product can be withdrawn before its related product life cycle is over. E) All of the above are true.
A
Regarding railroads: A) full carload rates are lower than less-than-carload rates. B) rail shipments usually move much faster than truck shipments. C) they transport the same products in less-than-carload lots faster than full carload shipments. D) they handle products only if they are shipped in full carload lots. E) All of the above are true.
D
Regarding retail sales in the U.S., it is true that: A) less than 8 percent of all retail sales are made by smaller stores--those with sales less than $1 million a year. B) almost 70 percent of all retail sales are made by the largest stores--those with sales over $5 million a year. C) corporate chains account for about 50 percent of retail sales. D) All of the above are true. E) None of the above is true.
B
Regarding supermarkets, which of the following is NOT true? A) They introduced self-service to reduce their costs. B) After-tax profits are very good--averaging 10 to 15 percent of sales. C) The newer ones carry 47,000 product items. D) They average about $17 million a year in sales. E) They got their start as an experiment during the Depression.
A
Regarding the demand for business products: A) Demand for business products is derived from the demand for final consumer products. B) The demand facing most individual firms is fairly inelastic. C) Industry demand is generally highly elastic. D) All of the above. E) None of the above.
A
Regarding the idea generation stage of the new-product development process, which of the following is TRUE? A) Business firms often get new product ideas from competitors. B) It is best to focus on only a few good ideas at this stage. C) Studying customers' ideas is not very helpful, since they tend to focus on minor technical changes in existing products. D) Most companies don't need a special procedure for seeking new product ideas because so many ideas are coming from so many different sources. E) None of the above is true.
A
Regarding wholesaling, which of the following is (are) true? A) Merchant wholesalers have higher sales than agent wholesalers, but their costs (as a percent of sales) are over three times as high. B) There are many more manufacturers' sales branches than merchant wholesalers. C) Manufacturers' sales branches have higher costs than agent wholesalers and account for a smaller percentage of total sales. D) Good marketing managers select the type of wholesaler with the lowest cost when planning channels of distribution. E) All of the above are true.
E
Strategy "Place" decisions would NOT include: A) type of physical distribution facilities. B) type of channel of distribution. C) degree of market exposure desired. D) distribution customer service level. E) how to train wholesalers' salespeople.
C
The "total cost approach" to physical distribution management: A) seeks to eliminate the storing function. B) seeks to minimize the cost of transportation. C) might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs. D) ignores inventory carrying costs. E) All of the above.
A
The new-product development process discussed in the text: A) is based on the idea that a firm should eliminate potentially unprofitable product ideas as early as possible. B) seeks to take as many ideas to market as possible, hoping to find a breakthrough opportunity. C) relies solely on test marketing to decide whether to drop an idea or take it to market. D) is especially important since it increases the number of new product ideas that get to the commercialization stage. E) None of the above is true.
E
The transporting function adds value by: A) making products available where they're needed. B) helping achieve economies of scale in production. C) making products available when they're needed. D) Both A and C. E) All of the above.
A
To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as: A) management contracting. B) a joint venture. C) exporting. D) licensing. E) direct investment.
E
Total quality management: A) requires that everyone in the organization be concerned with improving quality. B) means more than just using statistical controls to reduce manufacturing defects. C) views the cost of lost customers as an important result of quality problems. D) applies to service producers as well as manufacturers. E) all of the above are correct.
B
When Procter & Gamble introduces a new type of shampoo into one market in Kansas City to determine how many units of it can be sold over a nine-month period, this is an example of: A) product liability. B) market testing. C) concept testing. D) TQM. E) JIT.
A
When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of: A) Containerization B) Truck C) Pipeline D) Rail E) Piggyback
B
When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of: A) Vertical integration B) Sorting C) Bulk-breaking D) Assorting E) Licensing
B
When planning physical distribution, the marketing manager should: A) set the customer service level so that every customer can get the product exactly when he wants it. B) minimize the cost of distribution for a given customer service level. C) minimize the cost of transportation. D) maximize the speed of delivery. E) make use of a distribution center.
D
When the manager of a Radio Shack electronics store decides to offer a store credit card (Radio Shack VISA), this is a decision about: A) Product B) Place C) Promotion D) Price
B
Which of the following best illustrates adjusting "discrepancies of assortment?" A) General Motors makes Hummer for one product-market and Chevrolet for another product-market. B) A hardware store sells all the hardware items wanted by most people. C) Over 309 million U.S. consumers are served by around 351,000 manufacturers. D) RCA sold more than 2,000,000 TVs last year. E) Three firms produce over 60 percent of all the DVD players sold in the United States.
B
Which of the following is typically the lowest risk approach for moving into international markets: A) licensing B) exporting C) joint venturing D) direct investment E) management contracting
A
Which of the following statements about the Lanham Act is TRUE: A) It spells out what kinds of brand names can be protected. B) Registration under the Lanham Act only applies to licensed brands. C) The Lanham Act makes registration of a brand name mandatory. D) Registering under the Lanham Act does not help protect a trademark to be used in foreign markets. E) All of the above are true statements.
C
Which of the following transportation modes is "best" at handling a variety of goods? A) Truck B) Rail C) Water D) Air E) Pipeline
E
Which of the following wholesalers own (take title to) the products they sell? A) Selling agents B) Combination export managers C) Brokers D) Manufacturers' agents E) None of the above.