MKTG 351 Final - Cousley
When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ________ is an integral part of the process. a) customer satisfaction b) employee satisfaction c) the best use of their marketing resources d) the marketing mix e) the marketing function
a) customer satisfaction
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
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.
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.
All of the following describe the demand for business products except a) elastic. b) derived. c) joint. d) inelastic. e) fluctuating.
a) elastic.
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
a) fixed
An unplanned buying behavior resulting from a powerful urge to buy something immediately is called a) impulse buying. b) habitual buying. c) compulsive response behavior. d) non-problem solving. e) cognitive dissonance.
a) impulse buying.
Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities. a) legal b) ethical c) economic d) philanthropic e) strategic
a) legal
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. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.
a) modification should make the product more consistent with customers' desires.
Advertising, personal selling, sales promotion, and public relations are called a) promotion mix ingredients. b) marketing mix components. c) characteristics of a product. d) advertising tools. e) nonpersonal communication.
a) promotion mix ingredients.
In contrast to extended problem solving, routinized response behavior requires a) careful deliberation before making a choice. b) less information about products. c) more time. d) considerable thought. e) more money.
b) less information about products.
When a new variety of Kashi whole-grain breakfast cereals is first introduced, consumers will most likely engage in______ when deciding whether or not to purchase this new product. a) extended problem solving b) limited problem solving c) situational solving behavior d) routinized response behavior e) automatic processing behavior
b) limited problem solving
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.
b) line extension.
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) oligopoly or monopolistic competition.
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.
b) orientation toward value.
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) partnership.
Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to a) approach. b) preapproach. c) make the presentation. d) prospect. e) overcome objections.
b) preapproach.
Marketing ethics a) refers to laws and regulations that govern marketing. b) refers to principles and standards that define acceptable conduct in marketing. c) maximizes an organization's positive impact and minimizes its negative impact on society. d) is most important for advertising agencies. e) applies well-defined rules for appropriate marketing behavior.
b) refers to principles and standards that define acceptable conduct in marketing.
Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a a) profit entity. b) strategic business unit. c) marketing program. d) small business. e) diversified corporation.
b) strategic business unit.
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
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) a price increase or decrease will not significantly change the demand for an item.
Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process. a) prospecting b) presentation c) approach d) preapproach e) closing
c) approach
Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as a) pioneer. b) competitive. c) comparative. d) defensive. e) selective.
c) comparative.
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.
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.
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital marketing. a) digital orientation b) digital media c) electronic marketing d) digital electronics e) electronic processing
c) electronic marketing
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) experimental.
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) exploratory
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.
A major disadvantage of personal selling is that it a) is not remembered as well by consumers as advertising messages are. b) cannot easily adjust the message to satisfy a customer's information needs. c) is very expensive per contact. d) does not provide immediate feedback. e) is not compatible with other promotional activities.
c) is very expensive per contact
A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's a) motivational structure. b) routinized response behavior. c) level of involvement. d) cognitive dissonance. e) evaluative criteria.
c) level of involvement.
The target audience for an advertising campaign is the a) information base on which to develop the campaign. b) geographic distribution of persons. c) people toward whom the advertisements are directed. d) overall goal of the advertising campaign. e) sales objective to be achieved by the campaign.
c) people toward whom the advertisements are directed.
Which of the following products would probably require extended problem solving before a purchase? a) Products purchased frequently b) Products to be purchased in the future c) Products that are purchased routinely d) Expensive products e) Products purchased as a result of social influences
d) Expensive products
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 product listed would most likely be purchased through routinized response behavior? a) Car b) Desk c) Shirt d) Soft drink e) Television set
d) Soft drink
The Common Market of the Southern Cone (MERCOSUR) includes countries from a) Africa. b) Asia. c) Central America. d) South America. e) the Pacific Islands.
d) South America.
In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a) Trade selling b) Missionary selling c) Relationship selling d) Team selling e) Technical selling
d) Team selling
What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product. b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d) 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. e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.
d) 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.
If the ads include both the Venza and the Ford Edge, they would be examples of a) institutional advertising. b) public relations. c) product advertising. d) comparative advertising. e) competitive advertising.
d) comparative advertising.
The last stage in the development of any advertising campaign is a) creating the advertising platform. b) developing the media plan. c) creating the advertising message. d) evaluating the effectiveness of advertising. e) defining the advertising objectives.
d) evaluating the effectiveness of advertising.
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.
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a) product modifications. b) functional modifications. c) aesthetic modifications. d) line extensions. e) product lining.
d) line extensions.
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a) prospecting. b) preapproach. c) approach. d) making the presentation. e) overcoming objections.
d) making the presentation.
The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) monopolistic competition. b) oligopoly. c) pure competition. d) monopoly. e) noncompetition.
d) monopoly.
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) oligopolies, monopolies, monopolistic competition, and pure competition.
A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility. a) ethical b) legal c) cost d) philanthropic e) economic
d) philanthropic
Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterize a) enduring involvement. b) extended problem solving. c) selective exposure. d) situational involvement. e) selective retention.
d) situational involvement.
Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called a) strengths. b) market strategies. c) market niches. d) threats. e) opportunities.
e) opportunities
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.
e) price elasticity of demand.
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.
A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during a) prospecting. b) the approach. c) presentation preparation. d) overcoming objections. e) the preapproach.
e) the preapproach.
The exchange rates of several European countries are linked together to a common currency, the a) lira. b) euro. c) dollar. d) peso. e) ropea.
b) euro.
The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as a) OPEC. b) APEC. c) MERCOSUR. d) NAFTA. e) the Common Market.
c) MERCOSUR.
Which of the following purchases would most likely require a consumer to use extended problem solving? a) Audio equipment b) Shaving cream c) Cereal d) Kitchen napkins e) Gasoline
a) Audio equipment
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
Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces? a) Proactive b) Competitive c) Reactive d) Inactive e) Controllable
a) Proactive
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) Sherman Antitrust Act
Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade? a) The World Trade Organization b) The North American Free Trade Agreement c) The Latin American Free Trade Agreement d) The European Union Free Trade Agreement e) The General Agreement on Tariffs and Trade
a) The World Trade Organization
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) reactive
The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to a) attempt to make large payments or bribes to influence policy decisions of foreign governments. b) offer foreign businesses any type of incentive for purchasing their company's products and services. c) change their ethical standards when dealing with foreign firms. d) give even small tips or gifts in countries where such gifts are customary business practices. e) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.
a) attempt to make large payments or bribes to influence policy decisions of foreign governments.
An advertising platform is the a) basic issue or selling point that an advertiser wishes to include in an advertising campaign. b) objective of the advertising campaign, stated in precise and measurable terms. c) form in which the basic issues of the campaign should be presented. d) broad objectives of the advertising campaign. e) consumer advertising research conducted.
a) basic issue or selling point that an advertiser wishes to include in an advertising campaign.
Advertising campaign objectives that are aimed at making customers' attitudes more favorable are stated in ________ terms. a) communication b) sales c) demand d) market e) survey
a) communication
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
For customers, value is a function of the product's a) quality attributes. b) price. c) price and durability. d) quality and functional attributes. e) quality relative to the quality of competing brands.
a) quality attributes.
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) reliable.
Stacy is going to the store to buy a gallon of milk. She will most likely use ___________ in her consumer decision-making process. a) routinized response behavior b) limited problem solving c) extended problem solving d) perceptual scanning e) evaluation of alternatives
a) routinized response behavior
While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as a) routinized response behavior. b) extended problem solving. c) limited problem solving. d) situational perception. e) enduring involvement.
a) routinized response behavior.
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.
Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of a) social responsibility. b) corporate benevolence. c) green marketing. d) legal responsibility. e) economic responsibility.
a) social responsibility.
Another name for the European Union is a) the Common Market. b) the European Market. c) the Euro. d) NAFTA. e) AECO.
a) the Common Market.
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.
a) total revenue will increase
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
The _____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a) proposal b) closing c) overcoming objections d) approach e) trial
b) closing
Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling? a) Convincing prospects to buy b) Finding prospects c) Keeping customers satisfied d) Making the presentation e) Following up the sale
b) Finding prospects
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) Giorgio perfume
Kellogg's is introducing a new bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of problem solving? a) Routinized response behavior b) Limited problem solving c) Extended problem solving d) Impulse buying e) Extensive response behavior
b) Limited problem solving
Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany
b) United States
The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be a) an oligopoly. b) a monopoly. c) involved in monopolistic competition. d) involved in perfect competition. e) involved in a perfect oligopoly.
b) a monopoly.
The ability of a marketer to identify customers before they make a purchase is called a) connectivity. b) addressability. c) interactivity. d) accessibility. e) control.
b) addressability.
According to the Boston Consulting Group, marketers may classify their products as all of the following except a) dogs. b) cash contributors. c) question marks. d) stars. e) cash cows.
b) cash contributors.
The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as a) dogs. b) cash cows. c) stars. d) cash contributors. e) question marks.
b) cash cows.
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) inelastic
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 World Trade Organization accomplishes all of the following except a) educating companies about international trade rules. b) lending money to businesses interested in developing international markets. c) serving as a forum for trade negotiations. d) helping settle trade disputes. e) providing legal ground rules for international commerce.
b) lending money to businesses interested in developing international markets.
Bundle pricing may be perceived to be of value by customers because a) they always pay a lower price per item than they would have if they bought each item separately. b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money. c) the companies selling the products can sell them at a lower price because their costs of packaging are lower. d) they are purchasing complementary products, which is convenient for them. e) they can purchase items that are consumed frequently in larger quantities.
b) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.
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.
b) variable costs.
Which of the following characteristics distinguish online media from traditional marketing? a) Experience, networking, and personal contact b) Social networking, personal contacts, control, and salesmanship c) Addressability, interactivity, accessibility, connectivity, and control d) Environment, responsiveness, customization, and affordability e) Dynamic responsiveness, control, friendliness, and attention-getting
c) Addressability, interactivity, accessibility, connectivity, and control
Which of the following lists forms of competitive advertising? a) Pioneer, comparative, reminder b) Reminder, repetitive, reinforcement c) Comparative, reminder, reinforcement d) Institutional, product, comparative e) Product, pioneer, reminder
c) Comparative, reminder, reinforcement
Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of problem-solving process is she using? a) Selective b) Intensive c) Extended d) Shopping e) Routinized
c) Extended
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) Fraud and antitrust violations
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) It forms a curve where the greatest quantity sold comes at a medium price and the quantities fall as the price increases or decreases.
Which of the following statements about social responsibility is correct? a) Social responsibility dimensions do not include philanthropic concerns. b) Social responsibility does not deal with the total effect of all marketing decisions on society. c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. d) Social responsibility dimensions do not include economic concerns. e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.
c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
Creating a favorable impression and developing rapport with prospective customers is a critical part of the ______ step of personal selling. a) following up b) making the presentation c) approach d) prospecting e) preapproach
c) approach
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.
c) elastic.
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
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.
c) stop producing additional units to maximize profits.
An analysis of ___________ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets. a) opportunities and threats b) market opportunities c) strengths and weaknesses d) activities and responsibilities e) organizational resources
c) strengths and weaknesses
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) validity.
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? a) Establishing marketing objectives b) Coordinating marketing activities c) Organizing marketing functions d) Developing a marketing strategy e) Planning marketing activities
d) Developing a marketing strategy
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
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
If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Wheeler-Lea Act. b) Clayton Act. c) Robinson-Patman Act. d) Sherman Antitrust Act. e) Celler-Kefauver Act.
d) Sherman Antitrust Act.
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
d) marginal
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 concert.
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 actions is illegal? a) Political officials influencing how much a government agency purchases and from whom. b) Corporate contributions to candidates. c) Corporate contributions to elected officials. d) Political officials helping businesses secure foreign markets. e) Paying political officials not to enforce a particular law.
e) Paying political officials not to enforce a particular law.
Which of the following is not true of NAFTA? a) The agreement has a long adjustment phase-in time period. b) Increased competition should lead to a more efficient market. c) It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere. d) It is controversial. e) Business licensing requirements have been increased.
e) Business licensing requirements have been increased.
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) Increased number of high-tech goods
After the advertising budget is determined, the next step in creating an advertising campaign is a) creating the advertising message. b) creating the advertising platform. c) evaluating the advertising objectives. d) executing the campaign. e) developing the media plan.
e) developing the media plan.
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) experimentation.
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.
e) inelastic.
Personal selling goals include finding prospects, convincing prospects to buy, and a) monitoring new products being developed. b) being aware of competitors' sales activities. c) seeking one-sale customers. d) avoiding repeat transactions. e) keeping customers satisfied.
e) keeping customers satisfied.