MKTG 330 Final

If a retailer orders a quantity of merchandise to be delivered to his store in Albuquerque and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

F.O.B. factory

A company wanting to maximize profits from its new product would use product-line pricing.

False

A monopoly exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products.

False

A news story about a product is an example of sales promotion.

False

A problem of digital marketing evaluations is that there are no methods to capture the metrics that indicate the outcomes of strategies.

False

A quota is the suspension, by a government, of trade in a particular product.

False

An individual's after-tax income is called his or her discretionary income, which is used for spending and/or saving.

False

Component parts usually need to be processed significantly before they are used in production.

False

Credit increases future buying power.

False

If groundbreaking products and processes can be protected through patents, a company is less likely to market them and make the benefits of its research available to competitors.

False

By law, manufacturers must be identified on the labels of private brands.

False

Secondary data are data collected from inside the organization; primary data are those collected from outside the organization.

False

Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product specification stage of the buying decision process.

False

Survey and observation are considered secondary data collection techniques.

False

The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.

False

The role played by attitudes toward price in the overall evaluation of the marketing mix is a minor concern in identifying the target market.

False

Wholesalers do not engage in selling to reseller, government, or institutional users.

False

​Stars are profitable products that usually generate more cash than is required to maintain share.

False

In a period of economic recovery, the best marketing strategy for UPS would be characterized by which of the following features?

Flexibility

Zoe is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?

Location

Greenwashing is what type of marketing ethics issue? ​

Promotion related

United Arab Emirates currently limits the number of Michael Kors bags that can be imported during a one-year period, since Michael Kors bags are made in New York, USA. This is an example of a(n)

Quota

Which of the following is most judgmental?

Quota sampling

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

True

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing.

cost-plus

One of the most important benefits of e-marketing is the ability of marketers and

customers to share information.

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of

depth of product mix

Companies that sell products with high profit margins are more likely to use _______. Companies selling products whose sales are directly related to product availability will most likely use _______.

exclusive distribution; intensive distribution

To have some of its cereals highlighted in an advertisement mailed out by Kroger grocery stores, Kellogg agreed to pay a portion of Kroger's costs associated with the advertising mailer. Kellogg's payment is designed to

facilitate reseller support

The consumer buying decision process involves _______ stages. The first stage is ____________, and the last stage is _____________.

five; problem recognition; postpurchase evaluation

The two main reasons for criticism of promotional activities are that promotion

has some flaws, and it pervades our daily lives

Henry's little brother Christopher joined the Boy Scouts recently. Henry notices that in addition to wearing the Boy Scout uniform, Christopher has been better about keeping his everyday clothes neat and clean, has been searching online for camping gear, and has become interested in "green" products. Henry believes that the Boy Scouts are now a reference group for Christopher because he

has taken on many of the values, attitudes, or behaviors of group members.

You are considering hiring an outside consultant to help you improve your services business. You believe your most pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you need to work on this very important issue. Based on this, you should be looking for a consultant who has experience in dealing with the _______________ issue related to services.​

heterogeneity

As a result of the escalating use of digital media, some of the marketer's control over dispensing product information has been placed

in the hands of the consumer

If Florida Gas and Electric increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

inelastic.

Within the buying center, ____ are technical personnel who develop product specifications and evaluate alternatives, while _____ actually choose the products.

influencers; deciders

One of the guaranteed constants in the global business environment is

instability

The first phase of international marketing research recommended by experts should

involve a detailed search for and analysis of secondary data.

The marketing concept

is a management philosophy that affects all organizational activities.

In marketing, family packaging means

making all of a company's or product line's packaging look similar.

In a meeting with key personnel, Intel's president speaks to the firm's managers about social responsibility in business today. He suggests that the key to being socially responsible is to

monitor changes and trends in society's values.

Marketing research is a process designed to gather information

not currently available to decision makers.

A car dealership is altering how it determines its advertising appropriation. It is moving from an approach where it sets its budget based on projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. It is switching from the _____ approach to the _____ approach.

percentage-of-sales; objective-and-task

Home Depot recently issued a product recall for its Seasons ceiling fans, which are sold in the lighting and ceiling fan section of the store. Evidently, the blades can detach from the unit, causing them to fall, which presents an impact hazard. Through its recall efforts, Home Depot is taking proactive steps to remove the ceiling fans from its stores as well as to assist customers who purchased the product in obtaining a repair kit. Where possible, Home Depot is contacting known purchasers of the ceiling fans directly. This is an example of a(n) ____________-related ethical issue.

product

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

relationship marketing.

​When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.

reposition

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a

retailer

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

status quo

C.J. Foods, a pet food maker, purchased Lortscher Animal Nutrition, Inc. (LANI), a miller and ingredient supplier, and now operates this division as a separate profit center within the firm. In this example, LANI is a(n) ____ unit of C.J. Foods.

strategic business

Customers always interpret a higher price to mean higher quality.

False

Direct consumers of a nonprofit organization's products are called general publics.

False

From a cultural perspective, countries that are members of the European Union tend to act as a single entity.

False

If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising.

False

Materials handling is important in efficient warehouse operations but has little to do with customers' ultimate satisfaction with a product.

False

Nonprice competition does not permit unique product features, higher product quality, and customer service.

False

Salespeople's perception of brand advertising is negatively related to their effort and performance.

False

Which of the following states what is to be accomplished through marketing strategies?

Marketing objectives

Which of the following best defines the interest stage in the product adoption process?

The buyer seeks information and is receptive to learning about the product.

Which of the following statements applies to media planning?

The message content affects the types of media used for an advertising campaign.

An on-site computer interview is a variation of the shopping mall intercept interview.

True

Buzz marketing is an attempt to incite publicity and public excitement surrounding a product through a creative

True

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

True

In general, corporate executives prefer research reports that are short, clear, and simply expressed.

True

Marketers may try to change consumers' attitudes toward a product if they feel that a significant number of consumers have strong negative attitudes toward it.

True

Marketers spend more on sales promotion than on advertising, and sales promotion appears to be a fastergrowing area than advertising.

True

Procter & Gamble has a wider product mix than does Baskin Robbins.

True

Procurement involves the processes to obtain resources to create value through sourcing, purchasing, and recycling, including materials and information.

True

Product advertising is often used to stimulate demand directly.

True

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between the organizations and its stakeholders.

True

Radio copy should consist of short, familiar terms

True

Retailers purchase products and resell them to final consumers.

True

Selecting a convenient location is important to the distribution of a nonprofit service.

True

Statistical interpretation focuses on what is typical or what deviates from the average.

True

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

True

​Basic and extended warranties can reduce risk, a major customer cost.

True

​Marketing costs consume about one-half of a buyer's dollar.

True

​Marketing planning and implementation are inextricably linked in successful businesses.

True

​The marketing concept is a management philosophy, not a second definition of marketing.

True

Which of the following countries has the highest GDP?

United States

Advertising agencies typically receive

a 15% commission paid by the media from which it makes purchases

Kent works in the public relations department of his company. He sends a news release about a new product offering to several newspapers and television stations. Kent knows from past experience that even when the media use his news releases, they often release the information at inopportune times. They will also sometimes cut out what Kevin believes are the most important points to make the news fit. However, Kent accepts these disadvantages because free publicity offers the advantage of

credibility

Third Eye Research, a marketing communications and strategy consulting firm, is assisting a client to understand the effects of promotional offers on consumer purchases. Its consultants propose the company consider offering three different versions of a coupon that would be mailed to purchasers. The value of the coupon would be manipulated, and the company could track the return of the coupon and how much money was spent by the purchaser. Third Eye suggests three different versions of the coupon: $1, $3, and $5. The client would select three groups of consumers to receive the coupon offer and a random process would be utilized to determine which coupon offer a consumer would receive. The research will provide important insights about consumer purchasing habits and which coupon offer would lead to the highest level of sales and coupon redemption. This is an example of ______________ research.

experimental

When consumers research products online and then go to an actual store to make their purchase, the practice is known as

webrooming

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?​

​Avoiding competition positioning

​The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also

​achieve the organization's goals.

A factor that affects willingness to spend is general economic conditions.

True

A feature article is longer than a news release and is written for a particular publication.

True

Ads for beauty products often suggest that purchasing these products will bring love, helping to fulfill one's social needs.

True

Although marketers may attempt to influence what a consumer learns, their attempts are seldom fully successful.

True

Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites.

True

An embargo occurs when a government suspends trade with a particular country.

True

Shortly after moving into their new home, Elizabeth and Philip Jennings purchase and install smoke detectors and an alarm system. The Jennings are concerned about fulfilling their need for

safety

_____________ is a paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media

Advertising

Which one of the following best characterizes a marketing information system (MIS)?

An MIS provides a continuous flow of information about such things as distribution costs, prices, sales, and advertising expenses.

Suhail is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Suhail is using which type of consumer decision-making process?

Extended decision making

Which of the following statements is false?

Social responsibility and marketing ethics are the same thing and can be used interchangeably.

Miles, sales manager for Enterprise Lumber, tells Julian, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs?

Stockout

The verbal portion of an advertisement, including headlines, body, and signature, is called the

copy

Durable goods such as appliances generally reach their target markets through ____; goods such as automobile tires generally reach their target markets through _____.

selective distribution; selective distribution

Premium-priced products are usually marketed through

selective or exclusive distribution.