MKT Final

Which of the following is true of the supplier-buyer relationship? A. Powerful buyers negotiate lower prices from suppliers. B. Buyers usually do business with a single supplier to reduce their risk. C. Suppliers and buyers are inflexible with regard to purchase terms in negotiated contract buying. D. Close supplier-buyer relationships have the ability to drive down prices and spur innovation in ways that the competitive bidding process cannot match. E. Relationship-specific adaptations can be avoided when a buying organization chooses to outsource.

A. Powerful buyers negotiate lower prices from suppliers.

Which of the following statements is accurate regarding quantitative research? A. Quantitative research seeks structured responses that can be summarized in numbers. B. Quantitative research seeks responses that cannot be measured in numbers. C. A common method of quantitative research is the focus group interview. D. Quantitative research does not use multiple choice or fill-in-a-number questions. E. Quantitative research seeks in-depth, open-ended responses.

A. Quantitative research seeks structured responses that can be summarized in numbers.

Which of the following describes the relationship between needs and wants? A. Wants are preferences a person learns. B. Wants are the stimulus that encourages pursuit of needs. C. Needs are luxuries, while wants are necessities. D. Needs are easily influenced by marketers, while wants are impervious. E. Wants involve a person's physical well-being.

A. Wants are preferences a person learns.

Eva, a marketing researcher, wants to do in-depth research on business customers' experiences with the company's products. She is most likely to get what she wants if she uses A. a personal interview. B. secondary data. C. a mail survey. D. an online survey. E. the observation approach.

A. a personal interview.

In the context of the North American Industry Classification System (NAICS) codes, what is a three-digit industry? A. a subindustry of a two-digit industry B. an industry with larger sales volume than a two-digit industry C. an industry with lower number of employees than a four-digit industry D. a subindustry of a four-digit industry that has only three buying companies E. an industry that has only three intermediaries in its distribution channel

A. a subindustry of a two-digit industry

When consumers face a truly new concept, their previous experiences may be irrelevant. Such situations will most likely involve the A. adoption process. B. expectancy process. C. behavioral adjustment process. D. psychographic process. E. new product development process.

A. adoption process.

Negotiated contract buying A. allows for changes in purchase arrangements. B. occurs when buyers and sellers are inflexible about the specifications in the contract. C. gives buyers, but not sellers, the power to change the terms of contracts. D. requires the terms of a contract to be fixed, regardless of volatile business conditions. E. allows sellers to reduce product prices but not increase them.

A. allows for changes in purchase arrangements.

Manuel is a manager at a company that makes office furniture. After reviewing products that the company currently makes, he determines which ones are selling best and where gaps exist in the product line. Using this information, he draws up a list of features he would like to see included in new products and gives the list to the design team. In this case, Manuel is A. an influencer. B. a user. C. a buyer. D. a decider. E. a gatekeeper.

A. an influencer.

Which of the following is an example of a cost-oriented price setting approach? A. break-even analysis B. bid pricing C. negotiated pricing D. marginal analysis E. value in use pricing

A. break-even analysis

Which of the following is an economic need? A. convenience B. self-identification C. social welfare D. accessibility to reference groups E. self-actualization

A. convenience

What are the three steps in the business and organizational purchasing process? A. defining the problem, engaging in the decision-making process, managing the buyer-seller relationship B. understanding the unmet need, satisfying the need, selecting alternative products C. negotiating the terms of the sale, arranging for product or service delivery, reviewing the purchase D. defining the problem, understanding the problem, seeking solutions to the problem E. contacting a sales person, negotiating the sale, accepting product delivery

A. defining the problem, engaging in the decision-making process, managing the buyer-seller relationship

Prices are "administered" when A. firms consciously set their own prices. B. they fall below the "suggested list price." C. government regulators set prices. D. prices are set by bargaining between buyers and sellers. E. prices can change every time a customer asks for a price.

A. firms consciously set their own prices.

Among the many factors that influence purchasing decisions are _____, who control the flow of information within an organization. A. gatekeepers B. deciders C. influencers D. end users E. buyers

A. gatekeepers

A seller of software sends a direct mailer to dentists telling them about a medical office management software package. This is an example of a seller A. helping buyers realize that they have a problem. B. drafting a product requirement chart. C. using social media to drive consumer purchase. D. conducting a pilot test for the software. E. tracking the purchasing behavior of their clients.

A. helping buyers realize that they have a problem.

Average-cost pricing A. involves adding a "reasonable" markup to the average cost of a product. B. considers cost variations at different levels of output. C. focuses on the differences between fixed and variable costs. D. puts a great deal of emphasis on determining how sensitive consumer demand is at different price levels. E. relies on intuition to establish prices.

A. involves adding a "reasonable" markup to the average cost of a product.

Loraine is a marketing manager responsible for a line of five different dishwasher models. The line includes a basic dishwasher, several models with progressively more and better features, and a high-end model with a fashionable appearance and several unique features. Loraine should use ________ pricing when setting the prices for these refrigerators. A. market-oriented full-line B. complementary product C.product-bundle D. demand-backward E. firm-oriented full-line

A. market-oriented full-line

A research proposal A. may include information about costs, what data will be collected, and how long the process will take. B. should be written by the marketing manager, not the researcher, since the manager knows what needs to be done. C. should be conducted before the situational analysis. D. is a plan developed during the problem definition stage of research. E. usually cannot provide much information about how data will be collected, since it is hard to tell until the research is started.

A. may include information about costs, what data will be collected, and how long the process will take.

The process that falls between buying for a new need and making a routine repurchase, where some review of the buying situation is done, though not as much as in new-task buying, is referred to as the A. modified rebuy. B. straight rebuy. C. first-time buying. D. direct rebuy. E. one-time purchase.

A. modified rebuy.

A major timber exporting firm meets with competing timber exporters where they agree to not sell below certain prices. These exporting firms are engaging in A. price fixing. B. phony price listing. C. high penetration pricing. D. predatory pricing. E. dumping.

A. price fixing.

Most firms use ______, who may specialize by product area in large companies, to help cut costs and coordinate relationships with suppliers. A. purchasing managers B. salespeople C. product managers D. customer liasons E. advertising specialists

A. purchasing managers

Which of the following see themselves as purchasing agents for their target customers? A. retail buyers B. advertisers C. gatekeepers D. opinion leaders E. category captains

A. retail buyers

Just-in-time-delivery is important for customers because A. storing too much inventory is expensive. B. inventory is difficult to keep track of. C. manufacturers are usually unable to supply more than the currently needed materials. D. most industries require the freshest supplies. E. most supply purchases are spur-of-the-moment and require instant delivery.

A. storing too much inventory is expensive.

Which of the following do new-task buying, modified rebuys, and straight rebuys have in common? A. the ability to meet needs B. the time required C. the level of multiple buying influence D. the level of supplier review E. the information needed

A. the ability to meet needs

The statement, "Of course people will buy our product—each of its features offers better value than the competition," most closely reflects which consumer behavior concept? A. the economic-buyer theory B. competitive advantage C. reference groups D. the hierarchy of needs theory E. psychographics

A. the economic-buyer theory

With respect to markups and turnovers, a marketing manager should be aware that A. the stockturn rate varies according to the industry and the product involved. B. a low stockturn rate decreases inventory carrying costs. C. high markups always mean big profits, even if sales are low. D. speeding up turnover often decreases profits because the firm's operating costs are a function of time and the volume of goods sold. E. a high stockturn rate ties up working capital.

A. the stockturn rate varies according to the industry and the product involved.

Which of the following situations would most likely involve negotiated contract buying? A. when the buyer knows approximately what they want, but lacks certain details B. when the buyer wants to lock in a low price for the term of the contract C. when the buyer plans on making a single, simple purchase from a seller D. when the buyer is unaware that a problem exists and needs to be fixed E. when the seller wants to receive the same price, even if competition lowers the market price for its goods

A. when the buyer knows approximately what they want, but lacks certain details

Which of the following statements is true of a cumulative quantity discount? A. A cumulative quantity discount ties a seller to a buyer after one purchase. B. A cumulative quantity discount encourages a customer to consolidate buying from a single supplier. C. A cumulative quantity discount tends to discourage repeat buying as it increases a customer's cost for additional purchases. D. A cumulative quantity discount decreases as the amount purchased increases. E. A cumulative quantity discount applies only to individual orders.

B. A cumulative quantity discount encourages a customer to consolidate buying from a single supplier.

Which of the following statements about geographic pricing policies is true? A. Zone pricing reduces the wide variation in delivered prices that results from an F.O.B. shipping point pricing policy. B. All of these statements about geographic pricing policies are true. C. F.O.B. shipping point pricing simplifies the seller's pricing—but it may narrow the market. D. Uniform delivered pricing is more practical when transportation costs are relatively low. D. Freight-absorption pricing may increase the size of market territories.

B. All of these statements about geographic pricing policies are true.

Which of the following is true of the various demand-oriented approaches for setting prices? A. Bait pricing is the process of setting high prices to lure those customers who are interested in buying expensive models or brands. B. Demand-backward pricing starts with a price consumers are willing to pay and then figures out what a producer can charge. C. Prestige pricing is the process of setting low prices to attract more target customers. D. Price lining is a highly complex pricing strategy for both salespeople and customers. E. Psychological pricing involves setting prices that end in certain numbers.

B. Demand-backward pricing starts with a price consumers are willing to pay and then figures out what a producer can charge.

Which of the following marketing trends has gained momentum within the domestic market of the United States as a result of immigration? A. Marketers hire opinion leaders to promote brands over social media. B. Marketers create multiple marketing mixes to sell to different ethnic groups. C. Marketers identify lifestyle dimensions (psychographics) to better classify the lifestyle needs of target markets. D. Marketers research the consumer decision process to understand how consumers make purchase decisions. E. Marketers routinely develop universal taglines for all ads.

B. Marketers create multiple marketing mixes to sell to different ethnic groups.

Which of the following statements about marketing information systems is true? A. Marketing information systems are used to gather, access, and analyze data from internal sources such as financial reports, spreadsheets, and e-mails, and not external sources. B. Marketing information systems can handle big data—or data sets too large and complex to work with typical database management tools. C. Computerized marketing information systems do not provide a continual flow of information, which makes it difficult to access timely information. D. The value of decision support systems is limited because managers cannot use them while they are actually making their decisions. E. All of these statements about marketing information systems are true.

B. Marketing information systems can handle big data—or data sets too large and complex to work with typical database management tools.

Which of the following statements about ethnic groups in the United States is false? A. The birthrates of Hispanics, African Americans, and Asian Americans are all higher than that of whites. B. The people within an ethnic group are homogeneous. C. The median ages of Hispanics, African Americans, and Asian Americans are all lower than that of whites. D. Asian Americans have the highest median family income. E. Hispanics are the largest ethnic group.

B. The people within an ethnic group are homogeneous.

Which of the following is a major problem with questionnaires? A. They are often very expensive. B. They often have a poor response rate. C. They are often inconvenient for respondents. D. They only deliver qualitative data. E. They cannot be used to gather large amounts of data.

B. They often have a poor response rate.

Which of the following best describes a drive? A. needs that are more basic than wants B. a strong stimulus that encourages action to reduce a need C. needs that are learned during a person's life D. an individual's self-view and relationship with others E. a basic force that converts wants to needs

B. a strong stimulus that encourages action to reduce a need

Small companies A. do not use marketing information systems. B. depend on their salespeople or managers to conduct marketing research. C. typically call in specialized marketing consultants and marketing research organizations to take charge of a whole project. D. do not have a need for marketing research. E. typically have a separate marketing research department to plan and manage research projects.

B. depend on their salespeople or managers to conduct marketing research.

With regard to bid pricing, a marketing manager should be aware that A. the customer is always required to accept the lowest bid. B. it is a big problem to estimate all the costs, including the variable and fixed costs that apply to a particular job. C. All of these alternatives are correct. D. the same overhead charges and profit rates usually apply to all bids. E. since it costs very little to submit a bid, most firms try to bid for as many jobs as possible.

B. it is a big problem to estimate all the costs, including the variable and fixed costs that apply to a particular job.

The best pricing tool marketers have for looking at costs and revenue (demand) at the same time is A. average-cost pricing. B. marginal analysis. C. break-even analysis. D. bid pricing. E. markup pricing.

B. marginal analysis.

Drive-thru windows are popular offerings at fast food franchises because they appeal to consumers' A. social needs. B. need for convenience. C. safety needs. D. need for self-actualization. E. esteem needs.

B. need for convenience.

The stockturn rate is the A. rate at which the stock value of an organization fluctuates over a year. B. number of times the average inventory is sold in a year. C. time taken for a single batch of inventory to be sold. D. ratio between the number of items in stock to the number of items sold. E. quantity of a company's stock that is returned to an investor.

B. number of times the average inventory is sold in a year.

Holly's Candle Shop sells scented candles. The shop offers hundreds of different types of candles, but they are all priced at either $10, $8, or $6. In this case, Holly's Candle Shop appears to be using A. odd-even pricing. B. price lining. C. price negotiating. D. leader pricing. E. penetration pricing.

B. price lining.

Nora is the marketing manager for a pharmaceutical firm that has just been approved to sell a unique new drug that cures the common cold. Nora decides to set a low price, reasoning that if the price is too high then many potential customers will be unable to unwilling to purchase the drug. Which pricing objective is most likely to be guiding Nora's decision? A. meeting competition B. profit maximization C. status-quo D. target return E. market share

B. profit maximization

The price that a consumer expects to pay for a product is known as its A. bait price. B. reference price. C. negotiated price. D. break-even price. E. bid price.

B. reference price.

Which type of consumer problem solving is typically used when a consumer already has a large amount of experience in how to meet a specific need and does not require additional information? A. rational problem solving B. routinized response behavior C. unthinking problem solving D. limited problem solving E. extensive problem solving

B. routinized response behavior

Aster Co. has introduced a new product and set the price to help achieve "the 10% share we need to be in the game." This is an example of a A. status quo objective. B. sales-oriented objective. C. profit-oriented objective. D. target return objective. E. profit maximization objective.

B. sales-oriented objective.

Which of the following terms refers to the process of screening out or modifying ideas, messages, and information that conflict with previously learned attitudes and beliefs? A. selective retention B. selective perception C. selective exposure D. selective cognition E. selective dissonance

B. selective perception

When a firm follows a value pricing policy, it attempts to A. match the prices set by its competitors but compete on a nonprice basis. B. set a fair price level for a marketing mix that provides superior customer value. C. establish itself as the lowest-price business in its market. D. maximize profits for the firm on each sale, even at the cost of market share. E. charge every customer the same prices, regardless of where they make their purchases.

B. set a fair price level for a marketing mix that provides superior customer value.

Cellphones with unique new technology are usually released in the market at a high price since there is no immediate competition for the product. Gradually, the prices are reduced to capture more customers and to compete with competitors who copy the new technology. This type of pricing strategy is known as a _____ policy. A. temporary price B. skimming price C. value-based price D. penetration price E. one-price

B. skimming price

Dissonance is A. the ability to fulfill a need without conscious thought. B. tension caused by uncertainty about the correctness of a decision. C. a type of cue. D. a form of laziness commonly observed among high-income consumers. E. a type of positive reinforcement.

B. tension caused by uncertainty about the correctness of a decision.

What is the purpose of ISO 9000? A. to ensure that customers get the best possible price from suppliers without needing to haggle B. to free customers from needing to conduct an in-depth investigation into a supplier while ensuring the supplier uses effective quality checks C. to help customers define the problem, describe the need, specify the product, and pair them with a supplier who can supply the product with a minimum of negotiation D. to allow customers and suppliers to enter into contracts with escape clauses that may be exercised when market conditions change to the point where further business represents a significant loss for one or both parties E. to create a comprehensive database of suppliers that allows customers to search by product, price, availability, and delivery time

B. to free customers from needing to conduct an in-depth investigation into a supplier while ensuring the supplier uses effective quality checks

Mukesh is the marketing manager for a line of laundry products sold throughout the country. While there are many customers who are willing to pay the list price for his products, he wants to attract additional customers as well. What strategy would be most effective for Mukesh? A. employing everday low pricing B. using coupons and rebates C. using sale prices D. offering an advertising allowance E. offering quantity discounts

B. using coupons and rebates

Which of the following statements is true about how firms use markups to set prices? A. A markup should not be set close to a firm's gross margin. B. A markup is always based on cost, and never on the selling price. C. A markup is usually expressed as a percentage, rather than a dollar amount. D. A high markup will lead to high profits. E. A unique markup needs to be set for each product a firm is selling.

C. A markup is usually expressed as a percentage, rather than a dollar amount.

Which of the following statements is true of average-cost pricing? A. Average-cost pricing always takes into consideration competitors' costs and prices. B. It is possible to compute average cost without a quantity estimate. C. Average-cost pricing works well if the firm actually sells the quantity it used to calculate the average-cost price. D. In a typical situation, the average cost per unit increases as the quantity produced increases. E. The average cost approach considers cost variations at different levels of output.

C. Average-cost pricing works well if the firm actually sells the quantity it used to calculate the average-cost price.

Which of the following is not a reason why close relationships between suppliers and organizational buyers have become common? A. Business customers can expect greater service from close partners. B. Closely tied firms often share tasks at lower total cost. C. Buyer-seller partnerships encourage frequent competitive bidding to keep prices low. D. Buyers and sellers can work together to achieve both mutual and individual objectives. E. Collaboration enables two partners to perform many functions that would be impossible if they were each working separately.

C. Buyer-seller partnerships encourage frequent competitive bidding to keep prices low.

Which of the following statements about bidding for government business is true? A. Government buying needs are hard to identify and they are the smallest customer group in the United States. B. Government buyers avoid using competitive bids since they must purchase at a previously set price. C. Government buyers must often accept the lowest bid that meets the specifications. D. The biggest job of government buyers is to locate enough potential suppliers so the bidding procedure works effectively. E. All of these statements about bidding for government business are true.

C. Government buyers must often accept the lowest bid that meets the specifications.

Which of the following statements about social class is not true? A. In the United States, the social class system is less rigid than in most other countries. B. The various classes tend to spend, save, and borrow money differently. C. In the United States, the system for measuring social class is based solely on a person's income. D. The various classes tend to have different attitudes and beliefs. E. People with the same income level may be in different social classes.

C. In the United States, the system for measuring social class is based solely on a person's income.

Which of the following is a disadvantage of a rigid one-price policy? A. It makes it difficult to maintain goodwill with customers. B. It makes pricing more difficult. C. It allows competitors to undercut one's price. D. It involves a great deal of difficulty in locating target customers. E. It involves conflicts in channels.

C. It allows competitors to undercut one's price.

Which of the following displays up-to-the-minute marketing data in an easy-to-read format that managers can use to monitor business activity and respond quickly to problems? A. a data catalogue B. a marketing model C. a marketing dashboard D. a consumer panel E. a data warehouse

C. a marketing dashboard

An attitude is A. the result of the reduction in drive. B. a reliable indication of intention to buy. C. a person's point of view toward something. D. easily changed. E. the same as opinion and belief.

C. a person's point of view toward something.

A buying center refers to A. a marketplace that has more buyers than sellers. B. all the customers present at an auction bid. C. all the people who participate in or influence a purchase. D. a marketplace where buyers have no bargaining power. E. all the salespeople who participate in promoting a product or service.

C. all the people who participate in or influence a purchase.

Retailers create holiday-themed displays and promotions to stimulate consumer purchases during gift-giving holidays like Christmas and Mother's Day. Such marketers recognize that A. most purchase situations require the same marketing mix. B. economic needs influence the buyer decision process more than social needs. C. characteristics of the purchase situation influence consumer behavior. D. people buy only when there is an unmet need. E. consumers use a low involvement decision-making process when making most purchases.

C. characteristics of the purchase situation influence consumer behavior.

The most difficult step in the marketing research process is A. collecting data. B. observing. C. defining the problem. D. analyzing the situation. E. interpreting the data.

C. defining the problem.

Frisky Flights is a regional airline based in El Paso. Frisky uses a computer system to set prices for its tickets. The price for any given flight changes over time based on demand for that and other similar flights, the predicted weather, and other factors. This is an example of A. price cutting. B. skimming. C. dynamic pricing. D. competition meeting. E. profit maximization.

C. dynamic pricing.

Secondary data refers to A. data that cannot be accessed via the Internet. B. data that is more accurate and reliable than primary data. C. information that has been collected or published already. D. information specifically collected to solve a current problem. E. data that is rarely available and is expensive to retrieve.

C. information that has been collected or published already.

When a product moves through several levels within a channel between being produced and its final sale at retail to a consumer, the price that the consumer pays is likely the result of a(n) A. standard markup. B. break-even analysis. C. markup chain. D. auction. E. stockturn rate.

C. markup chain.

What type of pricing is particularly common in situations where the marketing mix is adjusted for each customer? A. psychological pricing B. product-bundle pricing C. negotiated pricing D. leader pricing E. prestige pricing

C. negotiated pricing

A(n) _____ policy tries to sell the whole market at one low price and is typically used when a firm expects strong competition very soon after introduction. A. introductory price dealing B. temporary pricing C. penetration pricing D. value-based pricing E. skimming pricing

C. penetration pricing

In comparison to the buying pattern of final consumers, the purchasing behavior of organizational buyers is A. strictly based on emotional appeals. B. never influenced by noneconomic factors. C. primarily influenced by economic needs like quality and reliability. D. even less predictable. E. dependent on advertising appeals.

C. primarily influenced by economic needs like quality and reliability.

Shonda is using open-ended questions to interview people from her company's target market in order to find out, in-depth, about their feelings about a new product. Shonda is conducting ______ research. A. secondary B. tertiary C. qualitative D. quantitative E. fixed response

C. qualitative

Which of the following occurs when a response satisfies a drive, strengthening the relationship between the cue and the response? A. stimuli B. retention C. reinforcement D. habit E. association

C. reinforcement

Luis refuses to shop at big box stores, preferring to do his shopping locally. He reads in the paper that one of these stores will be having a major sale next week, but when his sister asks him later if he wants to go to the sale, he has completely forgotten about it. What is Luis experiencing? A. selective perception B. selective exposure C. selective retention D. selective cognition E. selective dissonance

C. selective retention

OneGlow personal care products' advertising states "Makes others want to be you!" The statement best appeals to consumers' A. convenience needs. B. economic needs. C. social needs. D. physiological needs. E. safety needs.

C. social needs.

When conducting surveys, researchers A. collect information about everyone in a population. B. can expect sample results to exactly match those of the larger population. C. study only a sample of the population they are interested in. D. study anyone they can, regardless of whether they are part of the target population. E. hand select each person to be surveyed.

C. study only a sample of the population they are interested in.

In a competitive bid, A. the terms of sale are offered by a buyer after product specifications are posted by the seller. B. if different suppliers' quality, dependability, and delivery schedules all meet the buyer's specifications, the buyer will select the high-price bid. C. the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer. D. long-term suppliers of a firm compete to do business with the firm to increase flexibility and spur innovation. E. as the number of suppliers competing for the business increases, the ability to drive down prices or provide beneficial terms of sale is lost.

C. the terms of sale are offered by the supplier in response to the purchase specifications posted by a buyer.

Lucy is conducting market research to gauge home owners' interest levels in different types of imported rugs. However, because this is a somewhat specialized topic, she is worried that respondents may not know enough to tell the types apart, meaning they may indicate that they like Bokhara rugs best when they really prefer Khotan rugs. In other words, Lucy is concerned about the ______ of her results, or the extent to which her data measures what it is intended to measure. A. viewpoint B. hidden purpose C. validity D. interval E. decision support

C. validity

Which of the following consumer statements does not suggest the rationale of an "economic buyer"? A. "My new Lexus ES is very dependable." B. "I bought the Toro electric lawnmower because it doesn't use gasoline, lowering its operating costs." C. "I prefer the convenience of booking my air tickets online." D. "If I had that new Louis Vuitton handbag, others would know that I have arrived." E. "I want to buy a Honda Civic because of its excellent gas mileage."

D. "If I had that new Louis Vuitton handbag, others would know that I have arrived."

Some producers give _____ to retailers to pass on to the retailers' salesclerks in return for aggressively selling particular items or lines. A. brokerage commissions B. cash discounts C. advertising allowances D. "push money" allowances E. cumulative discounts

D. "push money" allowances

Which of the following statements is true of a one-price policy? A. A one-price policy makes it difficult to maintain goodwill among customers. B. A one-price policy involves offering different prices to customers who purchase products under the same conditions and in the same quantities. C. Firms in the United States do not use a one-price policy. D. A one-price policy makes pricing easier. E. It is always beneficial for marketing managers to adopt a rigid one-price policy.

D. A one-price policy makes pricing easier.

Which of the following statements is true of international marketing research? A. Local research firms are more likely to make mistakes based on misunderstanding the customs, language, or circumstances of the customers they study. B. It is much easier for a firm to gather accurate information from foreign countries for the purpose of marketing research. C. Small firms entering overseas markets for the first time find it more disadvantageous than advantageous to work with local marketing research firms. D. If a firm is doing similar research projects in different markets around the world, a manager should establish some basic guidelines at the outset. E. Large multinational research firms are ineffective in most international markets.

D. If a firm is doing similar research projects in different markets around the world, a manager should establish some basic guidelines at the outset.

Which of the following explains why firms may incur losses with average-cost pricing? A. In most cases, the average cost of two different products is never the same. B. The average-cost pricing model requires high levels of expenditure on market demand forecasting. C. The total number of units that are manufactured is a poor indicator of a firm's average cost. D. The average-cost approach does not consider how costs change as output changes. E. The average-cost price is always set such that the number of products sold is higher than expected.

D. The average-cost approach does not consider how costs change as output changes.

Which of the following is true of opinion leaders? A. They are from the highest social class. B. They are seen as important by firms but are ignored by consumers. C. They are of little concern to marketing managers. D. They can influence what products and brands people buy. E. They are wealthier and better educated than other consumers.

D. They can influence what products and brands people buy.

Which of the following is a common mistake marketing managers tend to make during the first step of the marketing research process? A. They conduct research instead of merely relying on intuition. B. They tend to narrow down research objectives. C. They deny that a problem exists even when there is one. D. They confuse problems with symptoms. E. They question if they know enough about a market before proceeding with their plans and strategies.

D. They confuse problems with symptoms.

Consumer psychologists argue that A. connecting with others is an example of a personal need. B. all consumers satisfy needs in the same order. C. the desire for a better world is an example of a social need. D. a particular good or service might satisfy different levels of needs at the same time. E. all of these alternatives are correct.

D. a particular good or service might satisfy different levels of needs at the same time.

What are targeted white papers? A. website pages that appear blank but contain hidden code that raises a company's online search ranking B. extensive, blank order forms used by first-time buyers C. recommendations written by buyers who have engaged in business with an organization D. authoritative reports that address important industry issues and provide solutions E. websites assembled by industry governing boards with the purpose of educating the public about a product class

D. authoritative reports that address important industry issues and provide solutions

What are the steps of the adoption process used by consumers when faced with a new concept? A. purchase decision, postpurchase evaluation, problem solving, trial B. awareness, problem solving, purchase decision, post-purchase evaluation, dissonance C. awareness, purchase decision, evaluation, dissonance, interest D. awareness, interest, evaluation, trial, decision, confirmation E. problem solving, purchase decision, post-purchase evaluation, need awareness

D. awareness, interest, evaluation, trial, decision, confirmation

Some firms sell computer printers at a relatively low suggested retail price and sell the ink cartridges required to run the printers at a relatively high price. This form of pricing is called A. full-line pricing. B. product-bundle pricing. C. psychological pricing. D. complementary product pricing. E. bid pricing.

D. complementary product pricing.

A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks he knows what the problem is and carefully analyzes secondary data to verify his assumption. His next step should be to A. conduct an experiment. B. develop a hypothesis and predict the future behavior of sales. C. quickly initiate corrective action before sales drop any further. D. conduct informal discussions with outsiders to check his assumption. E. develop a formal research project to gather primary data.

D. conduct informal discussions with outsiders to check his assumption.

Which of the following factors is most likely to impact the effective price of products sold across national borders? A. skimming B. value pricing C. trade discounts D. exchange rates E. price fixing

D. exchange rates

Which of the following options is a type of sales oriented objective? A. profit maximization B. target return C. nonprice competition D. market share E. meeting competition

D. market share

In contrast to manufacturers, producers of services A. are more geographically concentrated. B. have stagnant domestic and international growth. C. are much larger in size. D. need to be closer to customers. E. are only growing in the United States.

D. need to be closer to customers.

Laila enjoys purchasing items from a thrift shop run by the local animal shelter because knowing her money goes to help support the shelter makes her feel good about herself. This activity fulfills a ______ need. A. safety B. social C. physiological D. personal E. commercial

D. personal

When Royal Blue Airlines began flying between Los Angeles and San Francisco, the airline offered individual travel agents a bonus of $5 each time they sold a Royal Blue ticket on the route. Royal Blue appears to be using a _____ allowance to encourage retail travel agents to promote its flights over the competition. A. functional B. trade-in C. seasonal D. push money E. stocking

D. push money

A(n) ________ is intended to reassure retailers or other intermediaries that they will make some profit on a new product even if consumers do not buy it, and thereby convince them to carry it. A. coupon policy B. trade policy C. cash discount D. stocking allowance E. trade-in allowance

D. stocking allowance

Firms operating in monopolistic competition implies that A. it is foolish to offer products above the market price. B. it is better to be a price follower. C. there are no price choices in most markets. D. there are pricing options. E. value pricing has no advantage.

D. there are pricing options.

Which of the following statements is true of rebates? A. Rebates are always redeemed. B. A rebate is a reduction in the price one pays for a product at the time of purchase. C. Rebates are small—they don't exceed $500. D. Rebates are only used on higher-priced items. E. A rebate is a refund paid to a consumer after a purchase.

E. A rebate is a refund paid to a consumer after a purchase.

Which of the following is true of the Foreign Corrupt Practices Act? A. It prohibits U.S. firms from paying bribes to foreign officials. B. It levies stiff penalties against people who pay bribes. C. It applies to foreign firms or individuals who accept payments while in the United States. D. It was amended to allow small grease money payments if they are customary in a country. E. All of these alternatives are correct.

E. All of these alternatives are correct.

Which of the following may be a business or organizational customer? A. a producer of goods and services B. a retailer C. a wholesaler D. a federal government agency E. All of these examples may be business and organizational customers.

E. All of these examples may be business and organizational customers.

Which of the following statements is true of ethnographic research? A. Ethnography does not involve long-term observation. B. When conducting ethnographic research, subjects are always made aware of the fact that their behavior is being recorded. C. Ethnographic research requires that subjects answer surveys. D. Ethnography has its roots in sociology. E. Ethnography involves studying customers in their homes or at work.

E. Ethnography involves studying customers in their homes or at work.

Which of the following statements is true of a focus group? A. The people who participate in a focus group are always representative of the broader target market. B. Focus groups must be conducted in-person and never online. C. A focus group involves interviewing 15 to 20 people, one after the other, in an informal setting. D. It is very easy to measure the results of a focus group interview objectively. E. In a focus group, an interviewer seeks group interaction to stimulate thinking and get immediate reactions.

E. In a focus group, an interviewer seeks group interaction to stimulate thinking and get immediate reactions.

Which of the following is true of marginal analysis? A. Marginal analysis does not consider how costs, revenue, and profit change at different prices. B. Marginal analysis is a cost-oriented approach. C. Marginal analysis focuses on finding the least profitable price rather than getting an estimate of how profit might vary across a range of relevant prices. D. Marginal analysis considers only costs, not demand. E. Marginal analysis focuses on the price that earns the highest profit, but a slight miss does not mean failure because demand estimates do not have to be completely accurate.

E. Marginal analysis focuses on the price that earns the highest profit, but a slight miss does not mean failure because demand estimates do not have to be completely accurate.

The amount of money that is charged for "something" of value, or _____, is one of the four major strategy decision variables that a marketing manager controls. A. Promotion B. Profit C. Product D. Place E. Price

E. Price

Which of the following is true of manufacturers? A. All manufacturers share the same buying needs. B. Most manufacturers, both small and large, have formal buyers who purchase raw materials. C. Manufacturers are typically concentrated in rural areas. D. Most manufacturers are quite large with more than 1,000 employees. E. There are far fewer manufacturers than final consumers.

E. There are far fewer manufacturers than final consumers.

A market research online community is best defined as A. an online group of marketers who share secondary data with each other to reduce expenses. B. a group of researchers who use online message boards to compare research techniques. C. researchers who use the Internet to conduct both quantitative and qualitative research. D. an industry-specific network of marketers who work together to analyze market research. E. a group of people who share a common interest and use the Internet to participate in ongoing research.

E. a group of people who share a common interest and use the Internet to participate in ongoing research.

A producer of sports equipment offers its retailers a 2 percent price reduction on all purchases if the dealer advertises its products locally. In this scenario, the producer is using a(n) A. push money allowance. B. trade-in allowance. C. stocking allowance. D. prize money allowance. E. advertising allowance.

E. advertising allowance.

When using randomly selected samples, researchers determine the likely accuracy of the sample by analyzing it with regard to the ______, or the range on either side of an estimate that is likely to hold the true value for the population. A. secondary value B. quantitative spread C. sampling confidence D. validity measure E. confidence interval

E. confidence interval

Databases are stored in ______ so that they are available when needed. A. data dashboards B. data mines C. data matrices D. data sources E. data warehouses

E. data warehouses

Burger Cult (BC) Inc. offers its popular BC barbecue sandwich for only a few weeks each year. The promotion is intended to create a special event, build excitement, and increase the _____ of consumers who have come to crave the sandwich. A. value B. trust C. attitude D. utility E. drive

E. drive

In the United States, selling the same product to different buyers at different prices is A. illegal under all circumstances. B. legal in most industries. C. legal in some states but illegal in others. D. illegal without prior permission from the FTC. E. illegal if it injures competition.

E. illegal if it injures competition.

A situation analysis aids the marketing research process in all the following ways except that it A. aids marketing managers in assessing what information is currently available regarding the problem area. B. helps researchers figure out how to help the marketing managers. C. helps marketing managers educate themselves about unfamiliar situations. D. helps researchers gain knowledge about the marketing environment. E. interprets data and converts it to useful knowledge and business wisdom.

E. interprets data and converts it to useful knowledge and business wisdom.

The primary reason that many firms use average-cost pricing is that it A. is the most accurate method overall. B. is unlikely to result in losses if there is a mistake. C. does the best job of accounting for demand. D. accounts for variations in costs effectively. E. is easy to do.

E. is easy to do.

Marketers who primarily sell to museums and charities are focused on which of the following types of organizational customers? A. producers B. intermediaries C. limited liability organizations D. final consumers E. nonprofit organizations

E. nonprofit organizations

Marketing research helps managers make better marketing decisions because it A. focuses on accepting ideas before testing them. B. is completely based on intuition. C. is based on common sense and hunches. D. lets computers make the final decisions. E. offers objective information gathered using the scientific method.

E. offers objective information gathered using the scientific method.

Which of the following is a demand-oriented approach to pricing? A. fixed-cost pricing B. markup pricing C. average-cost pricing D. break-even analysis E. prestige pricing

E. prestige pricing

When interpreting data, a marketing manager should A. be satisfied with the sample used as long as it is large. B. leave it to the technical specialists to draw the correct conclusions. C. know that quantitative survey responses are valid, but qualitative research may not be valid. D. recognize that outliers are routinely wrong and should be ignored and discarded. E. realize that statistical summaries from a sample may not be precise for the whole population.

E. realize that statistical summaries from a sample may not be precise for the whole population.

Trying to find the most profitable price and quantity to produce A. requires average-cost pricing. B. is only sensible if demand estimates are exact. C. is easy once the average fixed cost is known. D. All of these alternatives are correct. E. requires an estimate of the firm's demand curve.

E. requires an estimate of the firm's demand curve.

For the experimental method to work, researchers must use two or more groups that are A. different in most ways. B. ethnically diverse. C. representative of different social classes. D. similar on the characteristic being tested. E. similar in most ways, except the characteristic being tested.

E. similar in most ways, except the characteristic being tested.

Meeting competition and nonprice competition are types of _____ pricing objectives. A. sales-oriented B. profit maximization C. target return-oriented D. profit-oriented E. status quo-oriented

E. status quo-oriented

A marketing manager for a large company sets a specific amount of profit as an objective, which is stated as a percentage of sales. The manager compares the performance of each division of the firm against this objective and drops those divisions that are not yielding the specified profit. Which of the following pricing objectives is the marketing manager using in this scenario? A. market share objective B. status quo objective C. sales growth objective D. sales-oriented objective E. target return objective

E. target return objective

Studying how ______ affects consumer behavior is helpful in understanding why middle-aged married couples with children are less likely to buy sports cars than young married couples without children. A. values B. social class C. ethnicity D. drives E. the family life cycle

E. the family life cycle

Which of the following best describes the factors that make up a purchase situation? A. the beliefs, attitudes, and opinions surrounding a purchase B. the location, innovation, and target market of a purchase C. the expected use, target market, and transportability of a purchase D. the price, newness, and availability of a purchase E. the purpose, time available, and location of a purchase

E. the purpose, time available, and location of a purchase

Customers tend to be more price-sensitive when A. someone else pays the bill or shares the cost. B. it is difficult to compare prices. C. the significance of the end benefits of the purchase is great. D. there are switching costs. E. they have substitute ways of meeting a need.

E. they have substitute ways of meeting a need.

The scientific method is important in marketing research because it A. forces the researcher to rely on intuition, thereby reducing the need to follow certain procedures. B. always specifies a marketing strategy that is bound to succeed. C. directly introduces products into the market without wasting time and money in running consumer tests. D. eliminates the need for managers to specify the information they need to gather. E. uses observations to develop hypotheses and then test them.

E. uses observations to develop hypotheses and then test them.

An equipment producer produces a new type of paint sprayer for automobile body-repair shops. The sprayer not only saves labor time on the actual painting, but also reduces the need for polishing after the painting is done. The producer considers the money that auto-body repair shops will save on labor and polishing if they buy its new sprayer and sets a price for it that makes it cheaper for them to buy and use the new sprayer than to continue with their existing equipment. Which of the following price setting approaches is the producer using in this scenario? A. odd-even pricing B. leader pricing C. negotiated pricing D. bid pricing E. value in use pricing

E. value in use pricing