Marketing final study guide
10) Which of the following is true of a territorial sales force structure? A) It clearly defines each salesperson's job and establishes accountability. B) It benefits firms with many technological products requiring technically skilled salespeople. C) It is used by firms that organize their sales forces along customer or industry lines. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It differentiates the sales force solely on the basis of product expertise.
A
97) 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.
F
98) The Great Recession put heavy pressure on wholesalers to increase their operation costs and limit warehouse automation systems.
F
93) Zeal is a popular automobile brand, and its positioning statement is: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement? A) point of difference B) target audience C) brand name D) product category E) need
A
96) Inbound logistics involves managing the flow of products from an intermediary to a customer.
F
97) Brokers and agents usually take title to goods and perform various functions for retailers.
F
81) When Toyota announces a product recall on its Camry model due to a faulty igniter, they are using ________ to coordinate with dealers and car owners. A) reverse logistics B) outbound logistics C) inbound logistics D) inventory logistics E) disintermediation
A
83) Which of the following is true of logistics? A) Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices. B) The cost savings to a company and its customers due to improved logistics is typically nominal. C) Less than 5 percent of an average product's price is accounted for by shipping and transport. D) The cost of logistics is considerably less than advertising. E) Shaving off a small fraction of logistics costs has very little impact on savings.
A
84) A brand difference is said to be preemptive if ________. A) competitors cannot easily copy the difference B) buyers can afford to pay for the difference C) the difference can be introduced profitably D) the difference is communicable E) the difference is beneficial to customers
A
12) Which of the following statements is true of a product sales force structure? A) A product sales force structure is characterized by specialization along product lines. B) A product sales force structure is used when a company has only one product line. C) A product sales force structure requires every salesperson to be an expert in all the product categories of the company. D) A product sales force structure organizes the sales force along customer or industry lines. E) A product sales force structure uses a single sales force across different product lines.
A
15) Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store
A
19) ________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Specialty stores C) Convenience stores D) Designer shops E) Full-service retailers
A
2) Greentech is launching a line of miniature solar chargers for laptops, cellphones, and other electronic devices. The chargers are compact and affordable, and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech's new solar chargers? A) a front-page notice of the release of Greentech's solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental features C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize
A
20) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status segmentation B) usage rate segmentation C) benefit segmentation D) behavioral segmentation E) loyalty status segmentation
A
21) Lemony Inc. sells its popular bottled lemonade—the company's only product—in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales force structures has most likely been combined to form the complex sales force structure at Lemony Inc.? A) market and territorial B) market and customer C) product and territorial D) market and product E) geographical and product
A
22) Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company website. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict? A) a conflict between Performance Inc. and The Sneaker Store B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters C) a conflict between The Sneaker Store and Sports Discounters D) a conflict between Performance Inc. and Sports Discounters E) a conflict between Performance Inc. and Topnotch Manufacturers
A
24) Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation. A) intermarket B) income C) age and life-cycle D) occasions E) gender
A
26) When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. A) measurable B) accessible C) substantial D) actionable E) observable
A
26) Which of the following is most likely true of a sales force? A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.
A
29) Which type of channel arrangement is a retailer like Home Depot likely to follow? A) administered VMS B) horizontal marketing system C) contractual VMS D) corporate vertical marketing system E) direct marketing system
A
33) Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? A) administered VMS B) corporate vertical marketing system C) indirect marketing system D) wholesaler franchise system E) horizontal marketing system
A
54) Harry Potts is a salesperson for a national pet food company. He meets Karen Sharp, a buyer for a large, specialty pet retailer, and speaks to her at length about the product categories and brands of pet food the retailer currently carries as well as future needs. At which step of the selling process is Harry Potts in the above scenario? A) approach B) preapproach C) qualifying D) prospecting E) closing
A
6) Food Galore is a regional chain of supermarkets in the Midwest. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Food Galore is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store
A
73) A toothpaste manufacturer that bands two products together, selling two for the price of one, is using which type of consumer promotion tool to build short-term sales? A) price packs B) coupons C) rebates D) advertising specialties E) samples
A
73) Retail convergence most likely leads to ________. A) reduced differentiation B) reduced competition C) increased sales D) increased profit margins E) reduced advertising costs
A
85) In a just-in-time logistics system, ________. A) retailers carry small inventories of merchandise to last for only a few days B) retailers store products for long periods to avoid an interruption in supply C) producers supply products to resellers before customers place their orders D) producers that are geographically far from their retailers use an express-delivery system E) retailers incur high inventory-carrying and inventory-handling costs
A
48) Salespeople need to know how to ________ leads, that is identifying good leads and screening out poor ones, at the beginning of the selling process. A) approach B) qualify C) consolidate D) generate E) manage
B
53) ________ advertising would most likely result in attack ads between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified
B
91) Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A) wholesaling broker B) merchant wholesaler C) agent wholesaler D) manufacturer's agent E) manufacturer's representative
B
1) Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses
B
11) Using ________, a company uses one or more levels of intermediaries to help bring its products to final buyers. Examples: most of the things you buy-everything from toothpaste to cameras to cars. A) retailer marketing systems B) indirect marketing channels C) wholesaler marketing channels D) direct marketing channels E) social media
B
14) GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales force structure. A) market B) product C) customer D) territorial E) complex
B
18) Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________. A) convenience stores B) discount stores C) full-service retailers D) designer shops E) specialty stores
B
20) Sleek Designs markets a wide range of kitchen cabinets, counter tops, and ceramic tile. Its salespeople are initially divided on the basis of their expertise in a product category. They're then further divided into teams addressing large home improvement retailers, kitchen and bath suppliers, and specialty home improvement stores. Which of the following sales force structures has most likely been combined to form this complex sales force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer
B
20) Which of the following is an example of a horizontal conflict in a distribution channel? A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective B) a Ford car dealer complaining that another Ford dealer is underpricing the same models C) a FedEx agent complaining that a DHL agent is cutting off his business D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments
B
21) Vertical conflicts in distribution channels are conflicts that occur between ________. A) same levels in the same channel B) different levels of the same channel C) same levels of different channels D) different levels of different channels E) retailers and customers
B
23) Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center
B
26) A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________. A) factory outlet mall B) retailer cooperative C) corporate chain D) warehouse club E) voluntary chain
B
26) Which of the following is most likely a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.
B
35) Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. A) intermediation B) disintermediation C) vertical marketing systems D) horizontal marketing systems E) corporate vertical marketing systems
B
40) Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of ________. A) digital retailing B) omni-channel retailing C) web-based retailing D) in-store ordering with a mobile device E) social media
B
90) Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? A) more-for-the-same B) more-for-less C) same-for-less D) more-for-more E) less-for-much-less
B
55) Which of the following is true of an intensive distribution strategy? A) It gives sole rights to select dealers in a given area. B) It strives to make products available where and when consumers want them. C) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. D) Compared with other distribution strategies, it provides the best support for dealers of luxury products. E) It discards traditional intermediaries and uses direct marketing to reach customers.
B
56) Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays.
B
58) The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________. A) niche marketing B) micromarketing C) segmented marketing D) global marketing E) undifferentiated marketing
B
59) A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) pop-up store B) shopping center C) warehouse D) category killer E) convenience store
B
60) According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales
B
68) A TV ad promoting how an ordinary person's life has changed due to considerable weight loss is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy
B
68) Which of the following statements is true of consumer promotions? A) Their primary objective is to persuade resellers to carry a brand. B) They include a wide range of tools like samples, coupons, and refunds. C) They include the use of display allowances. D) They are primarily used to generate business leads and reward customers. E) They include the use of conventions and trade shows.
B
74) Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.
B
75) According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) eliminating the need for brokers and agents D) increasing customer service responsibilities E) reducing promotional and personal selling activities
B
79) Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. A) image B) people C) services D) product E) channel
B
81) Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) bulk breaking B) selling and promoting C) buying and assortment building D) warehousing E) risk bearing
B
82) In a logistics system, minimizing distribution costs most likely involves ________. A) flexible assortments B) large shipping lots C) rapid delivery D) large inventories E) liberal return policies
B
83) Which of the following is most likely an example of a business promotion tool? A) a free DVD for customers who purchase a new television at a retail store B) a trade fair showcasing a new audio system developed by an electronics firm C) a sweepstakes program inviting customers to enter for the chance to win a new car D) a toaster being sold at half its list price for any buyer who purchases a food processor E) a display allowance for retailers who feature a manufacturer's product in a favorable manner
B
84) Which of the following is a difference between storage warehouses and distribution centers? A) Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products. B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them. C) Storage warehouses are always owned by a producer, while distribution centers are rented. D) Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods. E) Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses.
B
86) When compared to merchant wholesalers, brokers and agents ________. A) perform more extensive functions B) do not take title to goods C) deal only in services and not products D) do not engage in any negotiation of wholesale deals E) rarely specialize in one product category or customer type
B
87) Solutions Inc. negotiates the sale of materials between lumberyards and commercial construction companies, receiving a 15 percent commission on all transactions. Solutions Inc. is considered a ________. A) distributor B) broker C) retailer D) manufacturer E) supplier
B
88) The full positioning of a brand is referred to as the ________. A) differentiated strategy B) concentrated strategy C) unique selling proposition D) value proposition E) undifferentiated strategy
B
89) C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________. A) corporate broker branches B) manufacturers' offices C) value-retail centers D) warehouse clubs E) factory outlet malls
B
9) A company that sells only one product line to one industry with customers in many locations would typically use a ________. A) product sales force structure B) territorial sales force structure C) market sales force structure D) customer sales force structure E) complex sales force structure
B
23) Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars—one for commercial and regular consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? A) a conflict between Jupiter Steel and Greystone Motors B) a conflict between Jupiter Steel and Greystone dealers C) a conflict between two Greystone Motors car dealerships D) a conflict between a Greystone Motors car dealership and a racing team E) a conflict between Greystone Motors and its car dealerships
C
92) Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries. A) periodic inventory systems B) vendor-managed inventory systems C) selective-trading inventory systems D) manual inventory replenishment systems E) customer-managed inventory systems
B
13) ________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics. A) Geographic B) Demographic C) Psychographic D) Behavioral E) User status
C
16) In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales force structure B) service sales force structure C) market sales force structure D) territorial sales force structure E) product sales force structure
C
16) Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle center E) supermarket
C
19) The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation. A) age and life-cycle B) user status C) benefit D) demographic E) geographic
C
22) Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. A) demographic variables B) geographic regions C) multiple segmentation bases D) behavioral variables E) psychographic segmentation bases
C
24) Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.
C
62) Power centers are characterized by the ________. A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation
C
25) Which of the following statements is most likely true of team selling? A) It is used most often when the group of target customers is small and homogeneous. B) It consists of experts from a single area of the selling firm such as marketing or finance. C) It can unearth problems and provide solutions that no individual salesperson could. D) It is most often implemented when products are simple and distribution costs are low. E) It simplifies the process of evaluating the individual contributions of sales team members.
C
28) Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative
C
28) More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system. A) corporate vertical B) horizontal C) contractual VMS D) administered VMS E) direct
C
30) Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________. A) administered VMS B) horizontal manufacturing marketing system C) manufacturer-sponsored retailer franchise system D) manufacturer-sponsored wholesaler franchise system E) direct marketing system
C
34) Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing
C
4) Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and market targeting B) positioning, market segmentation, mass marketing, and market targeting C) market segmentation, market targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
C
44) Omni-channel retailing includes all of the following except ________. A) cross-shopping on mobile devices B) integrating available shopping channels C) boosting online selling options D) omitting digital selling options E) increasing in-store shopping channels
C
49) A market segment is less attractive when ________. A) there are few aggressive competitors in the segment B) it is difficult for new entrants to enter the segment C) it contains powerful suppliers who can control prices D) substitute products are unavailable in the segment E) buyers in the market segment have weak bargaining powers
C
5) Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores
C
50) Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort to build long-term profitable relationships. Karen Rogers is engaging in which step of the selling process? A) demonstration B) preapproach C) prospecting D) approach E) presentation
C
54) Producers of convenience products and common raw materials typically seek ________ distribution—a strategy in which they stock their products in as many outlets as possible. A) selective B) exclusive C) intensive D) exponential E) comprehensive
C
54) The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy. A) decreased production B) increased demand C) increased costs D) decreased prices E) increased profits
C
57) The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing
C
58) Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing. A) category killer B) discount C) high-low D) everyday low E) predatory
C
59) In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales
C
60) Which of the following is true about local marketing? A) It does not cater to individual stores. B) It does not support evolving technologies. C) It increases manufacturing costs. D) It increases economies of scale. E) It reduces logistical issues.
C
60) Which of the following statements is true of shopping centers? A) Most shopping centers function at the regional level rather than at the neighborhood level. B) Shopping centers typically contain only those stores that target a niche market segment of high income groups. C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience stores or department stores. E) Shopping centers are huge superstores that offer a deep assortment of a particular product line.
C
67) Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement
C
69) Crest toothpaste has used a ________ style of advertising to convince buyers that Crest is better than other brands at fighting cavities. A) testimonial evidence B) technical expertise C) scientific evidence D) mood or image E) fantasy
C
7) Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) full-service retailer D) supermarket E) convenience store
C
73) Which of the following is a disadvantage of using digital, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls content and ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.
C
76) Wisconsin Cheddar has introduced an aged jalapeno cheddar. Displays are set up at various retail cheese stores in the state and patrons are offered free samples as well as $2 off coupons. Which promotion tool is Wisconsin Cheddar most likely using? A) rebates B) price packs C) point-of-purchase promotions D) coupons E) advertising specialties
C
79) Moving products and materials from suppliers to the factory is known as ________ logistics. A) outbound B) reverse C) inbound D) downstream E) inventory
C
82) Which of the following is true of perceptual positioning maps? A) They are used by marketers to divide a market into smaller groups with distinct characteristics. B) They are used by marketers to identify supplier and retailer perceptions of a product. C) They are used to analyze consumer perceptions of a brand relative to competing products. D) They are used to divide buyers into groups based on their perceived income and age. E) They are used to plot the geographic segments that a company needs to target.
C
9) Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the website to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? A) public relations B) personal selling C) direct marketing D) crowdsourcing E) retailing
C
90) As with other types of marketers, a primary goal in wholesaling is to ________. A) match competitors' strategies B) establish a greater number of locations C) build value-adding customer relationships D) hold prices constant E) maintain the status quo
C
11) One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. A) create smaller segments B) create more easily accessible segments C) do not involve stereotypes D) are easier to measure than other variables E) involve fewer attributes to consider
D
12) A(n) ________ is considered a marketing intermediary. A) customer B) producer C) manufacturer D) wholesaler E) advertiser
D
56) Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________. A) everyday low pricing B) predatory pricing C) self-service retailing D) experiential retailing E) franchising
D
13) Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker
D
14) The USA Cotton Growers Cooperative sells unfinished cotton to The Weaving Experts who refine the raw material for sale to The Sheet Factory. It's then used in the manufacturing process of 300, 400, and 500 thread count bed sheet sets. The Sheet Factory distributes their products through a number of wholesalers, including Linen Traders. Linen Traders then resells the bed sheet sets to retailer Bedding Plus who markets the products to consumers. Which of the following represents a marketing intermediary transaction? A) only Linen Traders B) only Bedding Plus C) only The Weaving Experts D) Linen Traders selling to Bedding Plus E) The Weaving Experts selling to Linen Traders
D
15) Which of the following examples represents a product sales force structure? A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers. C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices. D) Carlton Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range. E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.
D
17) Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales force structure. A) product B) team-based C) territorial D) market E) complex
D
2) Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables. A) geographic B) psychographic C) universal D) demographic E) behavioral
D
2) The concept of ________ lends even more importance to the salesperson's customer-relationship-building abilities. A) sales force territory B) sales promotion C) sales force management D) salesperson-owned loyalty E) sales force structure
D
28) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
D
31) Luccia's is a restaurant based in Illinois that exclusively sells Italian food. Luccia's sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Luccia's brand name. Which kind of channel arrangement does Luccia's most likely have with Clover Trading? A) a horizontal marketing system B) a direct marketing system C) an administered VMS D) a contractual VMS E) a corporate vertical marketing system
D
31) Weekly or monthly work plans used by management to get information about salespeople are referred to as ________. A) sales quotas B) ROI plans C) call objectives D) sales reports E) call plans
D
32) Salespeople write up their completed activities in a(n) ________. A) sales quota report B) profit-sharing plan C) call plan D) call report E) expense report
D
33) A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical professionals in their respective geographic territories. This is an example of a ________ strategy. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe
D
34) A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A) corporate vertical marketing system B) contractual VMS C) direct marketing system D) horizontal marketing system E) administered VMS
D
37) Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? A) direct distribution system B) horizontal marketing system C) corporate vertical franchise system D) multichannel distribution system E) administered VMS
D
4) Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience
D
49) "Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months" is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive
D
54) Retailers must decide on three major product variables: product assortment, services mix, and ________. A) store location B) store layout C) self-service offerings D) store atmosphere E) store ambience
D
56) A successful niche marketing strategy relies on a firm's ________. A) availability of services B) product positioning C) superior products D) knowledge of customer needs E) affordable pricing
D
6) ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television
D
61) Global Insurance sells health and life insurance policies to Fortune 500 companies for its employees. The company's salespeople regularly contact decision makers to ensure that the necessary paperwork has been filed and that contracts are executed. Updates are also provided regularly about premium changes for health insurance. Which of the following steps of the selling process does this scenario depict? A) approach B) presentation C) closing D) follow-up E) preapproach
D
61) Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising
D
67) A freestanding insert in the Sunday newspaper for a local restaurant that contains a $5 off coupon for any meal over $20 is an example of a promotion targeted at ________. A) government buyers B) salespeople C) business customers D) final buyers E) retailers and wholesalers
D
67) Which of the following is an advantage of exclusive dealing between a seller and a dealer? A) The seller gains more shelf power compared to competitors' products. B) The seller can avoid using any intermediary and sell the product directly to customers. C) Customers get more loyal and dependable outlets. D) The seller's distinctive position is reinforced through customer service and the dealer obtains steady support from the seller. E) The dealer can freely choose what products to sell without any interference from the seller.
D
8) Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting
D
80) Outbound logistics refers to moving ________. A) unwanted, excess products from resellers to producers B) raw materials from suppliers to the factory C) excess materials from the factory to suppliers D) products from the factory to resellers and ultimately to customers E) broken, damaged products from customers to producers
D
13) Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales force structure. A) customer B) product C) complex D) distributor E) territorial
E
13) Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.
E
16) Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called? A) user status B) usage rate C) benefit D) behavioral E) psychographic
E
19) Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales force structure. A) market B) simple C) product D) territorial E) complex
E
2) The authors suggest that the term "supply chain" may be too limited because it takes a "make-and-sell" view of the business. They believe the term ________ is more appropriate because it suggests a "sense-and-respond" view of the market. A) "upstream chain" B) "downstream chain" C) "market chain" D) "production chain" E) "demand chain"
E
2) ________ focuses the entire marketing process-from product and brand development to logistics, promotion, and merchandising-toward turning shoppers into buyers as they move along toward the point of sale. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing
E
26) Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.
E
29) What is the purpose of a sales manager using a time-and-duty analysis? A) compensating salespeople B) prospecting customers C) recruiting salespeople D) forming sales teams E) supervising salespeople
E
29) Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season
E
32) In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual VMS C) horizontal D) corporate vertical E) administered VMS
E
36) Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers - The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system. A) direct B) administered VMS C) corporate vertical D) contractual VMS E) horizontal
E
52) The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive
E
53) The salesperson should know how to meet and greet the buyer and get the relationship off to a good start in which step of the selling process? A) prospecting B) preapproach C) presentation D) qualifying E) approach
E
55) Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts - occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true? A) Posco fails to differentiate itself from Campbell through the services mix. B) Posco's product assortment helps differentiate it from Campbell. C) Both Campbell and Posco fail to identify the needs and wants of target markets. D) Campbell has not been able to differentiate itself on the basis of product assortment. E) Posco better utilizes the services mix to differentiate itself from Campbell.
E
56) Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard? A) prospecting B) qualifying C) follow-up D) handling objections E) presentation and demonstration
E
58) Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method
E
64) Developing separate marketing plans for separate segments requires very little marketing research or channel management.
F
65) Micromarketing includes global marketing and standardized marketing.
F
6) Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida? A) facilitate the production of products without direct customer feedback B) help a company develop a direct channel selling system C) buy small quantities of products from producers and break them down into narrow assortments for customers D) increase the amount of work that must be done by producers and consumers E) transform the assortments of products made by producers into the assortments wanted by consumers
E
61) At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers. A) differentiated marketing B) multi-segmented marketing C) local marketing D) mass marketing E) individual marketing
E
74) Cracker Jack, an American brand snack of caramel-coated popcorn and peanuts, has been in existence since 1896. The brand became popularized due to its free prize inside every box. Which of the following promotion tools does this exemplify? A) rebate B) coupon C) price pack D) sample E) premium
E
80) Which of the following is a promotion tool used for trade promotions? A) sweepstakes B) price packs C) conventions D) rebates E) allowances
E
81) Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________. A) price pack B) rebate C) sample D) allowance E) discount
E
84) Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A) buying and assortment building B) selling and promoting C) risk bearing services D) market information services E) management services and advice
E
86) Which of the following is true of RFID or "smart tag" technology? A) "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. B) "Smart tag" technology can de-automate the entire supply chain. C) The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. D) Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.
E
94) JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario? A) the shift toward self-service retailing B) the decline of superstores and megastores C) the decline of the voluntary chain distribution method D) the rise of franchise organizations and joint partnerships E) the blurring of distinctions between retailers and wholesalers
E
15) Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers.
F
34) A franchise organization is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
F
35) Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.
F
35) In a pull strategy, the producer promotes the product to channel members who in turn promote it to final consumers.
F
38) The goal of supervision is to encourage salespeople to "work hard" and energetically toward sales force goals.
F
39) A compensation plan with a larger base-salary component and a smaller commission component is most effective for driving salespersons to acquire new businesses.
F
40) Historically, conventional distribution channels have provided channel leadership and have had the power to assign roles and manage conflict.
F
40) Paid media refers to promotional channels owned and controlled by the company, including company websites, corporate blogs, owned social media pages, proprietary brand communities, sales forces, and events.
F
42) An administered VMS integrates successive stages of production and distribution under single ownership.
F
44) In an administered VMS, the producer assumes the leadership position in a distribution channel by default.
F
47) According to research, nearly 60 percent of shoppers research product information on their smartphone while shopping.
F
50) According to the author, creating a digital-friendly store, high-powered website, and extensive social media presence constitutes good omni-channel retailing.
F
63) Prospecting is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.
F
66) Pricing decisions of specialty stores are typically based on low markups on a high volume of products.
F
67) 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.
F
75) Full-line forcing is considered an illegal arrangement that violates the Clayton Act.
F
79) A promotion strategy consists of two major elements: creating advertising messages and selecting advertising media.
F
87) Consumer promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.
F
91) Price reductions from rebates are given to consumers at the point of sale.
F
92) Price packs are goods offered either free or at low cost as an incentive to buy a product, such as toys included with Disney DVDs.
F
3) Order getters typically participate in creative selling, social selling, and relationship building.
T
34) Not all companies that use income segmentation target the affluent.
T
40) 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.
T
41) Business marketers use variables such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics.
T
45) A horizontal marketing system can develop between a company and its competitor.
T
61) Companies should state their marketing channel objectives in terms of targeted levels of customer service.
T
69) 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.
T
72) Many companies are now installing integrated high-tech partnership relationship management (PRM) systems to coordinate their whole-channel marketing efforts.
T
85) Sales promotion levels represent over half of marketing spending,
T
99) 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.
T
