Chapter 2
63. In most cases, which of the following receives the highest percentage of a firm's promotional budget? A. Commercials. B. Sales force. C. Human resources. D. Public relations. E. Print advertising.
A. Commercials.
78. Which term refers to the process of helping the customer achieve strategic goals through use of the seller's good and/or service? A. Consultative selling. B. Transactional selling. C. Aggressive selling. D. Telemarketing selling. E. One-time selling.
A. Consultative selling.
62. Which of the following statements about personal selling is true? A. It falls under the marketing mix category of promotion. B. It is the primary tool of non-personal communication. C. It involves giving free samples and coupons to potential buyers. D. It is the communication of information that is not paid for by the firm. E. It is divided into consumer and trade personal selling.
A. It falls under the marketing mix category of promotion.
49. Which of the following links customers and organizations? A. Marketing group. B. Top management. C. Production department. D. Human resources department. E. Staff-level employees.
A. Marketing group.
84. A supermarket chain was negotiating with a manufacturer of different types of meat grinders. Before the sale, the chain's management was impressed with the service they received from the salesperson. After the sale, however, when the blade on the frozen block grinder broke, it took them two weeks to locate the sales representative. Which of the following is illustrated in this example? A. Short-term ally. B. Relationship gap. C. Value-added benefit. D. Customer partnership. E. Consultative selling.
A. Short-term ally.
40. A bartering relationship, such as when Patricia agrees to take care of Timothy's horses and receives in return free riding lessons, is an example of: A. an exchange. B. top-to-top partnering. C. relational marketing. D. transactional partnering. E. consultative selling.
A. an exchange.
44. Businesses that have a selling orientation: A. emphasize the product over all other marketing mix elements. B. train salespeople to analyze customer wants and needs. C. emphasize long-term planning and globalization. D. identify customer wants before making products. E. pursue consumer satisfaction as a primary objective.
A. emphasize the product over all other marketing mix elements.
85. According to the text, the key to profitable company performance is: A. knowing and satisfying target customers with competitively superior products and service. B. relying on publicity to create product awareness and minimizing customer service. C. exhibiting a commitment by corporate leaders to curb the instincts of capitalism. D. realizing the good luck of having popular products in a non-recessional economy. E. relying on traditional methods of gathering information rather than technology.
A. knowing and satisfying target customers with competitively superior products and service.
55. The development of package design, trademarks, warranties, and service policies is associated with the _____ element of the marketing mix. A. product. B. presentation. C. price. D. place. E. promotion
A. product.
41. Before the Great Depression of the 1930s, companies were primarily focused on: A. production. B. bartering. C. customer service. D. relationship marketing. E. social responsibility.
A. production.
59. As a customer, a government is best described as an organization that: A. provides goods and services to households and firms. B. produces goods for profit and global redistribution. C. sells products at wholesale prices to other nations. D. promotes local and national businesses. E. manages the exchange process.
A. provides goods and services to households and firms.
90. The gift of cases of Cokes to families is one indication of how the Rome bottler provided a high level of _____ that led the citizens of Rome to become loyal Coke drinkers. A. service quality. B. empowerment. C. sales collaboration. D. post-sales service. E. quality control.
A. service quality.
54. When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons on how to safely enjoy jet skis. Neither the financing nor the lessons were included in the price of the Jet Ski; both are examples of: A. value-added benefits. B. bundling. C. profit maximization. D. privileges. E. add-on pricing.
A. value-added benefits. Salespeople have gone from selling goods, to selling goods, services, and ideas, to now selling goods, ideas, services, and value-added services. Value-added refers to benefits received that are not included in the purchase price of the individual goods, service, or idea.
45. A sales representative in the 1940s would most likely receive training from an employer on which of the following topics? A. Customer service. B. Product features. C. Market analysis. D. Sales presentations. E. Promotional techniques.
B. Product features.
36. According to the text, what are the two major functions of a business firm? A. Strategies and tactics. B. Production and marketing. C. Production and selling. D. Selling and marketing. E. Buying and selling.
B. Production and marketing.
69. _____ marketing is the creation of customer loyalty. A. Transaction. B. Relationship, C. Value-added. D. Continuous. E. Covenant.
B. Relationship,
60. _____ purchase products and then sell the products to organizations and/or individuals. A. Transactional intermediaries. B. Resellers. C. Value-added specialists. D. Manufacturers. E. End-users
B. Resellers.
82. As a long-term ally, the consultative salesperson: A. analyzes and develops diversification strategies for customers. B. coordinates information and resources for customer support activities. C. asks customers for confidential data before making purchase recommendations. D. recommends promotion techniques for the customer that will benefit both parties. E. helps customers carry out fact-finding missions within the customer's company.
B. coordinates information and resources for customer support activities.
64. The text defines _____ as "personal communication of information to unselfishly persuade a prospective customer to buy something that satisfies an individual's needs." A. promotion. B. personal selling. C. publicity. D. sales promotion. E. advertising.
B. personal selling.
89. The Coke bottlers in Rome most likely instructed the firm's sales force to use: A. transactional marketing. B. relationship marketing. C. loyalty exchanges. D. distribution licensing. E. transformational selling.
B. relationship marketing.
43. Roy loves cooking and recently quit his job as an engineer to open a restaurant in a small, rural town. Roy serves the most exquisite cuisine in an elegant atmosphere. Nevertheless, sales have been so slow that Roy may have to close the restaurant. Roy's only competitor is a very successful café that serves your choice of one meat, three vegetables, and dessert cooked "country style" with tea or coffee for under $6.00 per person. Roy's business is most likely struggling because Roy has a _____ orientation. A. customer. B. selling. C. marketing. D. production. E. promotion.
B. selling.
53. Which of the following statements about products, goods, and services is true? A. Products are a bundle of purely intangible attributes. B. Services are tangible products. C. Goods are physical objects that can be purchased. D. Salespeople never or rarely sell services. E. Products only refer to physical objects.
C. Goods are physical objects that can be purchased.
38. _____ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A. Consumerism. B. Profit maximization. C. Marketing. D. Salesmanship. E. Professional selling.
C. Marketing.
83. How are modern day salespeople different from those in the past? A. Modern day salespeople are required to be increasingly product-oriented. B. In the past, most salespeople focused time on building the relationship gap. C. Modern day salespeople can improve sales and service performance with technology. D. In the past, most salespeople strived to build long-term relationships with key customers. E. Global competition is pushing modern salespeople to be persuasive peddlers to maximize profit.
C. Modern day salespeople can improve sales and service performance with technology.
65. When Ford Motor Company pays to use nonpersonal communication to present information to potential buyers, it is using which promotional activity? A. Multilevel marketing. B. Personal selling. C. Publicity. D. Direct selling. E. Advertising.
C. Publicity.
79. In the role of team leader, the consultative salesperson: A. can be called a "lone ranger." B. encourages business that is not in the customer's long-term interest. C. brings together all the organization's resources for the customer. D. expects customers to provide all the confidential information before making purchase recommendations. E. considers his/her job complete once the sale is over.
C. brings together all the organization's resources for the customer.
50. The main role of marketing in an organization is to: A. use revenues to create new products. B. manage financial resources to meet legal requirements. C. generate sales so the company can stay in business. D. serve as a conduit between the firm and its stakeholders. E. identify and correct quality control issues.
C. generate sales so the company can stay in business.
58. Customers fall into one of three groups. They are: A. individuals, households, and other businesses. B. stakeholders, governments, and nonprofit groups. C. households, firms, and governments. D. retailers, wholesalers, and consumers. E. governments, stakeholders, and manufacturers.
C. households, firms, and governments.
74. When Stuart sold a computer network to a Fortune 500 company, he often called on the company's purchasing department to see if employees were satisfied with the network and to see if the company had any need for an upgrade or additional software. This is an example of: A. transformational selling. B. aggressive selling. C. relationship selling. D. transaction selling. E. sales promotion.
C. relationship selling.
47. The major thrust of the marketing concept is to: A. sell the product at a low cost to customers. B. satisfy customers, no matter what the costs. C. satisfy customer wants, while still making a profit. D. distribute products more equitably. E. maximize stakeholder relationships.
C. satisfy customer wants, while still making a profit.
77. Through use of ________, marketers can determine the customers with whom they wish to build a partnering relationship. A. the principle of unbundling. B. benefit maximization. C. the 80/20 principle. D. value-driven marketing. E. the iceberg principle.
C. the 80/20 principle.
Coca-ColaFor decades, people in Rome, Georgia, drank more Coca-Cola per capita than anywhere else in the world. That success has been attributed to the Barron family who were the local bottlers for Coke products. The Barrons believe that their success was due to customer loyalty. Through most of the twentieth century, the bottler cultivated small retailers and worked hard, selling Coke from stores to schools to doorsteps. The personal service is remembered by people who grew up in Rome. When someone passed away, the Coke salesperson would leave a couple of cases on the deceased's family's front porch. 86. Because the Rome Coke bottler stressed the wants of the buyers, it is obvious that it was a supporter of: A. team selling. B. social responsibility. . C. the marketing concept. D. the production concept. E. non-consumer marketing.
C. the marketing concept.
71. Which of the following is a unique benefit of personal selling? A. Highlighting product features. B. Achieving high sales at minimal costs. C. Explaining credit terms to potential customers. D. Customizing presentations to match customer needs. E. Reaching mass audiences quickly and cost effectively
D. Customizing presentations to match customer needs.
52. Which of the following statements is most likely true? A. Products are tangible but not intangible. B. Products contain many value-added features. C. Salespeople sell goods and services but not products. D. Product is a term that refers to both goods and services. E. Three general types of products exist: consumer, industrial, and global.
D. Product is a term that refers to both goods and services.
66. _____ involves activities or materials used to create sales for goods and services, such as coupons and sales contests. A. Direct selling. B. Public relations. C. Customer service. D. Sales promotion. E. Advertising.
D. Sales promotion.
51. The four main elements of the marketing mix are: A. product, packaging, people, and price. B. price, process, prestige, and product. C. promotion, product, prestige, and price. D. product, price, place, and promotion. E. place, production, packaging, and promotion.
D. product, price, place, and promotion.
42. The headline of an advertisement for a 1930s automobile manufacturer read, "We know what our customers want! They want our new luxury sedan!" You can infer from reading this headline that the manufacturer had a(n) _____ orientation. A. customer. B. environmental. C. marketing. D. production. E. promotion.
D. production.
88. In Rome, the Coke salesperson was an important member of the _____ element of the marketing mix. A. price. B. production. C. product. D. promotion. E. distribution.
D. promotion.
37. You are giving a tour of businesses to several classical musicians from China. One of the Chinese in the tour group has asked you to define the purpose of business. How should you answer this question? A. Produce goods and then wait for consumers to buy them. B. Encourage consumers to buy products they may not want. C. Speed up changes in the economic environment. D. Create large profit-oriented organizations. E. Increase the general well-being of people by selling goods and services.
E. Increase the general well-being of people by selling goods and services.
56. Ford is offering customers $1,000 cash back if they purchase a Ford Focus in the month of December. Which component of the marketing mix is most likely illustrated by Ford's tactic? A. Destination. B. Presentation. C. Product. D. Distribution. E. Price.
E. Price.
68. Which marketing mix activity is being used when the salesperson participates in a trade show or uses telemarketing? A. Pricing. B. Distribution. C. Direct sales. D. Product. E. Promotion.
E. Promotion.
80. _____ are composed of multifunctional specialists who ensure that their organizations convey their needs to the seller and evaluate the accuracy of the supplier's recommendations. A. Buying teams. B. Focus groups. C. Executive juries. D. Customer advisors. E. Selling teams.
E. Selling teams
39. Which of the following statements about transactions and exchanges is most likely true? A. Service-oriented businesses have exchanges but no transactions. B. Marketing-oriented businesses have transactions but no exchanges. C. The completion of an exchange is unrelated to the occurrence of a transaction. D. Once a transaction has occurred, the exchange is complete. E. The terms "transaction" and "exchange" can be used as synonyms.
E. The terms "transaction" and "exchange" can be used as synonyms.
76. Which type of selling would most likely be used when a firm sells low-priced products to customers who are geographically dispersed? A. Benefit selling. B. Relationship selling. C. Partnering. D. Team-based. E. Transaction selling
E. Transaction selling
87. In Rome, the small retailers that sold Coke products were an important part of the _____ element of the marketing mix. A. price. B. production. C. product. D. promotion. E. distribution.
E. distribution.
70. Relationship marketing is based on the idea that: A. important customers need continuous attention. B. a salesperson can never really know too many people. C. the burden of quality rests with the seller of the product. D. a salesperson is only as successful as the product being sold. E. friends and referrals are the key to long-term sales performance.
E. friends and referrals are the key to long-term sales performance.
48. In order for a firm to realize the full benefits of the marketing concept, that philosophy must be translated into action. This means marketing activities must be fully coordinated, well managed, and: A. the mission statement must be time-sensitive. B. management must have a sales volume orientation. C. the company must rely on short-term strategic windows. D. the chief marketing executive must be given a key role in company planning. E. marketing goals must be customer-oriented, nonspecific, flexible, and quantitative.
E. marketing goals must be customer-oriented, nonspecific, flexible, and quantitative.
67. The goal of an organization when creating its _____ is to create the right product, at the right price, at the right time, with the right promotional effort. A. sales promotion. B. mission statement. C. operational plan. D. vision statement. E. marketing mix.
E. marketing mix.
57. The marketing manager of NevaFlat Tire Company must make the firm's products available to customers in convenient locations. This activity is associated with the _____ element of the marketing mix. A. facility. B. availability. C. direction. D. distribution. E. promotion.
E. promotion
61. The appearance of actor Sarah Jessica Parker in commercials for The Gap, a retail store, is an example of the use of the _____ element of the marketing mix. A. sales presentation. B. personal selling. C. product. D. profit. E. promotion.
E. promotion.
72. Margaret is unhappy about her experience with All-Brand Appliance Store. When she purchased a new refrigerator on Monday, she explained that her old one had stopped functioning and that speedy delivery of the new one was vital because she was trying to keep her food fresh in an ice chest. It is late Thursday afternoon and her refrigerator has not yet arrived. Margaret is unhappy with All-Brand's: A. social responsibility. B. ethical ombudsmanship. C. marketing strategy. D. sales quotas. E. service quality.
E. service quality.
73. The marketing manager for a large furniture store has received numerous complaints about the store's delivery personnel. While the manager believes his delivery personnel do a good job because the deliveries are made quickly and generally at their scheduled time, customers find the delivery personnel rude. The marketing manager must deal with problems associated with: A. social responsibility. B. promotional integrity. C. marketing strategy. D. value-added pricing. E. service quality.
E. service quality.
46. Businesses that have a marketing orientation: A. are sales-volume oriented. B. emphasize the product over the other marketing mix elements. C. first make the product and then figure out how to sell it. D. emphasize long-term planning. E. stress the needs of sellers.
E. stress the needs of sellers.
75. When you visit a gift shop while on vacation, your purchase of a T-shirt would be an example of _____ selling. A. team. B. relationship. C. partnership. D. consultative. E. transaction.
E. transaction.
81. In the role of business consultant, the consultative salesperson: A. works alone to prepare a financial strategy for global clients. B. is a persuasive peddler focused on convincing customers to buy products. C. serves as a primary contact between the CEOs of the selling and buying firms. D. expects the customer to provide technical support and advice for all e-sales calls. E. uses internal and external resources to understand a customer's business and marketplace.
E. uses internal and external resources to understand a customer's business and marketplace.
10. The typical salesperson sells either goods or services, but not both.
FALSE
12. There are two types of products: consumer and industrial.
FALSE
15. "Government" is an organization that supplies goods and services to households and firms.
FALSE
16. Wholesalers are in the distribution channels exclusively for industrial products, whereas retailers deal with consumer products.
FALSE
19. The trend in relationship marketing today is away from creating customers for tomorrow to selling well to customers today.
FALSE
2. Before the Great Depression, few firms had either sales or marketing departments.
FALSE
24. Relationship marketing and the marketing concept both emphasize sales volume and product features.
FALSE
25. In transaction selling, the seller contacts customers after the purchase to determine if they are satisfied and have future needs.
FALSE
28. Today, the typical sales call focuses on a specific product and is tightly controlled by the salesperson.
FALSE
29. Companies that put partnering into practice find they increase conflicts of interest between themselves and their clients.
FALSE
32. Salespeople who fulfill the consultative role of long-term ally work to eliminate the relationship gap.
FALSE
33. Technology has advanced so rapidly that it has become a burden to sales managers and sales representatives in certain industries.
FALSE
34. Customers tend to become less price-sensitive when they become accustomed to dealing with a salesperson.
FALSE
6. The difference between the selling and marketing concepts is that in selling the emphasis is on customers' wants.
FALSE
7. A company practicing the marketing concept bends consumer demand to fit the company's supply.
FALSE
9. A firm's marketing mix consists of product, price, place, and performance.
FALSE
1. The purpose of business is to increase the general well-being of humankind through the sale of goods and services.
TRUE
11. A "product" is a bundle of tangible attributes, while intangible attributes are called a "service."
TRUE
13.The corporate marketing department determines each product's initial price.
TRUE
14. "Household" refers to a decision-making unit buying for personal use.
TRUE
17. The promotional element of the marketing mix is designed to increase company sales by communicating product information to potential customers.
TRUE
18. Firms typically spend more money on advertising and promotion than on the sales force.
TRUE
20. Relationship marketing is based on an idea that important customers need continuous attention.
TRUE
21. The main function of personal selling is to build relationships with customers.
TRUE
22. Virtually every product you see in any retail store was sold to it by a salesperson.
TRUE
23. Service quality is an objective assessment determined by customers who compare service levels with industry benchmarks.
TRUE
26. Transaction selling is practiced by firms producing low-profit, low-priced products.
TRUE
27. The goal of partnering is that the profits are shared by the buyer and seller, but the risk is borne by the buyer alone.
TRUE
3. A transaction is a trade of values between two parties.
TRUE
30. In the role of team leader, the salesperson coordinates all of the information, resources, and activities needed to support customers before, during, and after the sale.
TRUE
31. As a business consultant, the salesperson gives advice and service to the customer.
TRUE
35.Marketing's main customer contacts are buyers.
TRUE
4. Soon after World War II, most firms focused on training salespeople in effective selling techniques and developing products to meet the needs of customers.
TRUE
5. One of the fundamental beliefs of the marketing concept is that all company planning and operations should be customer oriented.
TRUE
8. Marketing helps generate sales by providing the quality of service customers expect.
TRUE