CH. 8-13

In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.

A) A company creates a forum where anyone can contribute new product ideas.

Which of the following statements is true of a product sales-force structure? A) A product sales-force structure is characterized by specialization along product lines. B) A product sales-force structure is used when a company has only one product line. C) A product sales-force structure requires every salesperson to be an expert in all the product categories of the company. D) A product sales-force structure organizes the sales force along customer or industry lines. E) A product sales-force structure uses a single sales force across different product lines.

A) A product sales-force structure is characterized by specialization along product lines.

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

A) Advertisers are increasingly shifting toward digital media.

________ refer to two or more outlets that are commonly owned and controlled. A) Corporate chains B) Factory stores C) Specialty stores D) Designer shops E) Warehouse clubs

A) Corporate chains

Which of the following is true of a territorial sales-force structure? A) It clearly defines each salesperson's job and establishes accountability. B) It benefits firms with many technological products requiring technically-skilled salespeople. C) It is used by firms that organize their sales forces along customer or industry lines. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It differentiates the sales force solely on the basis of product expertise.

A) It clearly defines each salesperson's job and establishes accountability.

What is the primary advantage of using television as an advertising medium? A) It involves a low cost per exposure. B) It supports a high degree of audience selectivity. C) It involves low absolute costs. D) It contains low ad clutter. E) It permits prominent exposure.

A) It involves a low cost per exposure.

Which statement is most likely true about the affordable method of setting an advertising budget? A) It typically overlooks how promotion affects sales. B) It always results in overspending on advertising. C) It is especially ideal for long-range market planning. D) It leads to an overly fixed annual promotion budget. E) It is most often used by firms with large advertising budgets.

A) It typically overlooks how promotion affects sales.

________ have filled the ultralow-price, high-volume gap by buying at less-than-regular wholesale prices and charging consumers less than retail. A) Off-price retailers B) Specialty stores C) Convenience stores D) Designer shops E) Full-service retailers

A) Off-price retailers

Which of the following is most likely true of a sales force? A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.

A) The performance difference between an average salesperson and a top salesperson is generally substantial.

Which of the following is most likely true about salespeople in a field sales force? A) They build relationships with customers by traveling to see them. B) They make most sales from their offices via media interactions. C) They provide administrative backup for outside salespeople. D) They rely on telemarketing efforts to gain leads and clients. E) They are prohibited to sell or service accounts directly.

A) They build relationships with customers by traveling to see them.

________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople. A) Trade shows B) Rebates C) Allowances D) Point-of-purchase promotions E) Sweepstakes

A) Trade shows

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise. A) Warehouse clubs B) Department stores C) Convenience stores D) Specialty stores E) Superstores

A) Warehouse clubs

________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A) Wholesaling B) Sole sourcing C) Franchising D) Crowdsourcing E) Showrooming

A) Wholesaling

Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement

A) a company placing its product in a movie scene

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest? A) a style B) a fashion C) a fad D) a trend E) a drift

A) a style

Which of the following costs is most likely associated with commercialization? A) building or renting a manufacturing facility B) paying groups of consumers for participating in crowdsourcing activities C) determining a product's planned price, distribution, and marketing budget D) developing a prototype of a product E) using simulated tests to measure market capacity

A) building or renting a manufacturing facility

Producers use marketing intermediaries because they ________. A) create greater efficiency in making goods available to target markets B) supply inexpensive raw materials for manufacturing products C) provide technical expertise for faster production D) monitor day-to-day activities during production E) form a part of the company's direct channel

A) create greater efficiency in making goods available to target markets

When an end user's problems and experiences define a new product, the approach is called ________. A) customer-centered new product development B) team-based new product development C) sequential product development D) supply/demand new product development E) systematic new product development

A) customer-centered new product development

A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years. A) decline B) growth C) maturity D) ideation E) analysis

A) decline

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analytics E) indirect procurement

A) direct marketing

AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________. A) event marketing program B) premium C) point-of-purchase promotion D) trade promotion E) price pack

A) event marketing program

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A) find new market segments for the brand B) improve the overall quality of the product C) reduce mass media advertising expenses D) offer improved services to new buyers E) conduct controlled test marketing activities

A) find new market segments for the brand

What is the last step in the selling process? A) follow-up B) closing C) handling objections D) presentation E) prospecting

A) follow-up

Rhonda recently entered into a contractual agreement with StellarCutz, a national chain of affordable, walk-in hair salons. Under the agreement, Rhonda uses the StellarCutz trade name and receives support from StellarCutz in terms of business methods and processes. Rhonda paid a start-up fee to StellarCutz and will pay annual licensing fees for the use of the StellarCutz brand. Which of the following best describes Rhonda's business? A) franchise B) factory outlet C) superstore D) acquisition E) joint agreement

A) franchise

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. A) growth B) decline C) maturity D) introduction E) commercialization

A) growth

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying? A) handling objections B) closing C) follow-up D) prospecting and qualifying E) preapproach

A) handling objections

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising

A) informative advertising

In which step of the selling process does a salesperson set call objectives? A) preapproach B) approach C) presentation D) qualifying E) prospecting

A) preapproach

Which consumer promotion tool involves selling two products for the price of one? A) price packs B) coupons C) rebates D) advertising specialties E) samples

A) price packs

In a just-in-time logistics system, ________. A) retailers carry small inventories of merchandise to last for only a few days B) retailers store products for long periods to avoid an interruption in supply C) producers supply products to resellers before customers place their orders D) producers that are geographically far from their retailers use an express-delivery system E) retailers incur high inventory-carrying and inventory-handling costs

A) retailers carry small inventories of merchandise to last for only a few days

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments. A) simulated test markets B) controlled test markets C) business analysis D) standard test markets E) concept development

A) simulated test markets

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

A) television

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis

A) test marketing

Reverse logistics refers to moving ________. A) unwanted, excess products from resellers to producers B) raw materials from suppliers to the factory C) excess materials from the factory to suppliers D) finished products from the factory to customers E) finished products from producers to resellers

A) unwanted, excess products from resellers to producers

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A) use aggressive sales promotions B) change features of the product C) improve product quality D) find new uses for the product E) explore new market segments

A) use aggressive sales promotions

________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Sole sourcing B) Retailing C) Manufacturing D) Procurement E) Warehousing

B

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market. A) A sequential product development process B) A product life cycle C) Business analysis D) Vendor analysis E) Portfolio analysis

B) A product life cycle

________ advertising would most likely result in advertising wars between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

B) Comparative

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

B) It involves high costs.

Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It is not a sales-directed form of communication. C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.

B) It is not a sales-directed form of communication.

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It is too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

B) It only provides one-way communication with customers.

Which of the following is true of an intensive distribution strategy? A) It gives sole rights to select dealers in a given area. B) It strives to make products available where and when consumers want them. C) Compared with other distribution strategies, it uses the least number of intermediaries to sell products. D) Compared with other distribution strategies, it provides the best support for dealers of luxury products. E) It discards traditional intermediaries and uses direct marketing to reach customers.

B) It strives to make products available where and when consumers want them.

________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products. A) Sales promotions B) Sales quotas C) Display allowances D) Time-and-duty analyses E) Sales reports

B) Sales quotas or time-and-duty analyses

Which of the following is an example of a horizontal conflict in a distribution channel? A) a Nike shoe dealer complaining that the shoes provided to the dealer are defective B) a Ford car dealer complaining that another Ford dealer is underpricing the same models C) a FedEx agent complaining that a DHL agent is cutting off his business D) a Walmart executive complaining to a Pepsi executive for not replenishing stocks on time E) a Gucci executive complaining to Gucci's suppliers of delays in shipping consignments

B) a Ford car dealer complaining that another Ford dealer is underpricing the same models

A product concept is ________. A) the most promising product idea that develops at the brainstorming stage B) a detailed version of a product idea stated in meaningful consumer terms C) the way consumers perceive an actual or potential product D) a detailed strategy to promote the launch of a new product E) a product idea that is generated through crowdsourcing

B) a detailed version of a product idea stated in meaningful consumer terms

In which of the following situations is a producer guaranteed full control over product sales? A) a corporate marketing channel B) a direct marketing channel C) a contractual distribution channel D) a horizontal marketing system E) an administered marketing system

B) a direct marketing channel

Which of the following is most likely an example of a business promotion tool? A) a free DVD for customers who purchase a new television at a retail store B) a trade fair showcasing a new audio system developed by an electronics firm C) a sweepstakes program inviting customers to enter for the chance to win a new car D) a toaster being sold at half its list price for any buyer who purchases a food processor E) a display allowance for retailers who feature a manufacturer's product in a favorable manner

B) a trade fair showcasing a new audio system developed by an electronics firm

The aim of ________ is to make ads so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

B) advertainment

A ________ brings buyers and sellers together and assists in negotiations. A) distributor B) broker C) retailer D) manufacturer E) supplier

B) broker

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A) marketing strategy development B) crowdsourcing C) concept development D) business analysis E) test marketing

B) crowdsourcing

Vertical conflicts in distribution channels are conflicts that occur between ________. A) same levels in the same channel B) different levels of the same channel C) same levels of different channels D) different levels of different channels E) retailers and customers

B) different levels of the same channel

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets. What kind of marketing strategy has Bateman Gray adopted with its car dealers? A) direct marketing B) exclusive dealing C) disintermediation D) horizontal integration E) vertical integration

B) exclusive dealing

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order? A) closing B) follow-up C) handling objections D) presentation E) prospecting

B) follow-up

The new product development process usually starts with ________. A) idea screening B) idea generation C) concept development D) concept testing E) market strategy development

B) idea generation

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis

B) idea screening

Allstocks.com is an online retailer that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices. Allstocks then charges customers less than retail. Allstocks is an example of a(n) ________. A) specialty retailer B) independent off-price retailer C) departmental retailer D) full-service retailer E) category killer

B) independent off-price retailer

Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

B) informative

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A) product development B) introduction C) growth D) maturity E) adoption

B) introduction

According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A) relocating to low-rent, low-tax areas B) investing in information technology systems C) eliminating the need for brokers and agents D) increasing customer service responsibilities E) reducing promotional and personal selling activities

B) investing in information technology systems

In a logistics system, minimizing distribution costs most likely involves ________. A) flexible assortments B) large shipping lots C) rapid delivery D) large inventories E) liberal return policies

B) large shipping lots

A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, dining establishments, and a movie theater. A) regional shopping center B) lifestyle center C) community shopping center D) power center E) warehouse club

B) lifestyle center

C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________. A) corporate broker branches B) manufacturers' offices C) value-retail centers D) warehouse clubs E) factory outlet malls

B) manufacturers' offices

In a sequential new product development process, concept testing is most likely to be followed by ________. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing

B) marketing strategy development

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A) introduction B) maturity C) growth D) decline E) incubation

B) maturity

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A) wholesaling broker B) merchant wholesaler C) agent wholesaler D) manufacturer's agent E) manufacturer's representative

B) merchant wholesaler

Which of the following types of promotion tools requires the most interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B) personal selling

Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure. A) market B) product C) customer D) territorial E) complex

B) product

In a sequential new product development process, once a product or service passes the business test, it moves into ________. A) concept development B) product development C) test marketing D) strategy development E) commercialization

B) product development

What is the first step in the selling process? A) approach B) prospecting C) demonstration D) handling objections E) sales presentation

B) prospecting

In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

B) sales promotion

Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case? A) rebates B) samples C) coupons D) advertising specialties E) price packs

B) samples

Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) bulk breaking B) selling and promoting C) buying and assortment building D) warehousing E) risk bearing

B) selling and promoting

A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) pop-up store B) shopping center C) warehouse D) category killer E) convenience store

B) shopping center

Which of the following is an example of narrowcasting using advertisements? A) running an ad for a new line of cars on cable TV B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) showing video game ads at a college football game E) uploading movie ads on Web sites like YouTube

B) showing ads for diapers to would-be mothers in hospitals

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

B) testimonial evidence

Under ________, a customer shares real-time data on sales and current inventory levels with a supplier, and the supplier then takes full responsibility for managing inventories and deliveries. A) periodic inventory systems B) vendor-managed inventory systems C) selective-trading inventory systems D) manual inventory replenishment systems E) customer-managed inventory systems

B) vendor-managed inventory systems

Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.

C) A slowdown occurs in sales growth.

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

C) Advertising

________ represent buyers or sellers on a more permanent basis than brokers. A) Distributors B) Franchisees C) Agents D) Retailers E) Manufacturers

C) Agents

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

C) Consumers rely less on marketer-supplied information than in the past.

________ are certificates that save buyers money while they purchase specified products. A) Price packs B) Samples C) Coupons D) Point-of-purchase promotions E) Premiums

C) Coupons

________ distribution is a product distribution strategy that involves stocking a product in as many outlets as possible. A) Selective B) Exclusive C) Intensive D) Exponential E) Comprehensive

C) Intensive

Which of the following statements is most likely true of team selling? A) It is used most often when the group of target customers is small and homogeneous. B) It consists of experts from a single area of the selling firm such as marketing or finance. C) It can unearth problems and provide solutions that no individual salesperson could. D) It is most often implemented when products are simple and distribution costs are low. E) It simplifies the process of evaluating the individual contributions of sales team members.

C) It can unearth problems and provide solutions that no individual salesperson could.

Which of the following is true of a direct marketing channel? A) It increases the number of channel transactions. B) It enables retailers to reach many customers. C) It does not use any intermediaries. D) It gives limited distribution control to producers. E) It creates a complex distribution channel.

C) It does not use any intermediaries.

Which of the following is a disadvantage of standardization of advertising messages? A) It gives rise to higher advertising costs. B) It complicates the advertising process. C) It is less responsive to local market needs. D) It tends to suffer from poor coordination. E) It gives rise to inconsistent messages.

C) It is less responsive to local market needs.

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.

C) It is the most expensive promotional tool for companies to utilize.

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. A) Research and development channels B) Upstream channels C) Marketing channels D) Raw materials suppliers E) Backward integration chains

C) Marketing channels

Which of the following statements is true of shopping centers? A) Most shopping centers function at the regional level rather than at the neighborhood level. B) Shopping centers typically contain only those stores that target a niche market segment of high income groups. C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. D) Shopping centers usually contain exclusive brands and specialty stores rather than convenience stores or department stores. E) Shopping centers are huge superstores that offer a deep assortment of a particular product line.

C) Shopping centers are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A) Market strategy development B) Concept testing C) Test marketing D) Concept development E) Business analysis

C) Test marketing

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing

C) business analysis

A(n) ________ marketing system is a marketing system in which independent firms at different levels of production and distribution join together through binding agreements. A) corporate vertical B) horizontal C) contractual vertical D) administered vertical E) direct

C) contractual vertical

Which type of channel arrangement does a franchise organization most likely follow? A) administered vertical marketing system B) horizontal marketing system C) contractual vertical marketing system D) corporate vertical marketing system E) direct marketing system

C) contractual vertical marketing system

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization

C) controlled test markets

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________. A) stabilization B) rebranding C) decline D) progression E) segmentation

C) decline

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing

C) direct marketing

The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola? A) horizontal price fixing B) disintermediation C) exclusive dealing D) selective distribution E) horizontal integration

C) exclusive dealing

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________. A) form B) fashion C) fad D) style E) drift

C) fad

PinWheel, a renowned electronics company, has an arrangement with SoundBite, an audio equipment retailer. Through the agreement, Soundbite is to promote and sell PinWheel's audio electronics and give PinWheel products better shelf space than competitors' products. The agreement also requires that SoundBite sell additional non-audio PinWheel products at all SoundBite stores. Which term best describes PinWheel's strategy? A) horizontal price fixing B) horizontal integration C) full-line forcing D) direct marketing E) disintermediation

C) full-line forcing

Flax is a chain of stores that carries several product lines including clothing, home furnishings, and household appliances. Each line is operated as a separate department, and employees are available to assist and advise customers in every phase of the shopping process. Flax is most likely a ________. A) self-service retailer B) category killer C) full-service retailer D) supermarket E) pop-up store

C) full-service retailer

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n) ________. A) administered vertical marketing system B) horizontal manufacturing marketing system C) manufacturer-sponsored retailer franchise system D) manufacturer-sponsored wholesaler franchise system E) direct marketing system

C) manufacturer-sponsored retailer franchise system

If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure. A) undifferentiated B) product C) market D) territorial E) demographic

C) market

In which of the following structures does a company organize its sales force along client or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure

C) market sales-force structure

When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition. A) production B) decline C) maturity D) test marketing E) conception

C) maturity

Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________. A) have low volume and low markups B) charge low prices constantly C) offer numerous sales or discounts D) compete on the basis of price rather than product or service quality E) use predatory pricing to eliminate competition

C) offer numerous sales or discounts

The use of both rail and trucks for transporting goods is called ________. A) trainshipping B) fishybacking C) piggybacking D) airtrucking E) autoracking

C) piggybacking

The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit goals C) planned price D) target market E) planned value proposition

C) planned price

Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using? A) rebates B) price packs C) point-of-purchase promotions D) coupons E) advertising specialties

C) point-of-purchase promotions

A ________ is the way consumers perceive an actual or potential product. A) product audit B) product feature C) product image D) product framework E) product concept

C) product image

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising

C) product placement

In which step of the selling process does a salesperson or company identify qualified potential customers? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C) prospecting

Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C) prospecting

Power centers are characterized by the ________. A) lack of an anchor store B) sale of exclusive brands only C) provision of individual entrances to each store D) provision for nonretail activities, such as playgrounds E) absence of any pricing strategies for differentiation

C) provision of individual entrances to each store

A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image. A) personal selling B) sales promotion C) public relations D) direct marketing E) advertising

C) public relations

Which term refers to the fixed amount in a salesperson's compensation? A) bonus B) commission C) salary D) incentive E) profit-sharing plan

C) salary

Which of the following is an impact of the Great Recession on retailing trends? A) economic shift toward higher prices B) lower costs for retailers C) tighter consumer spending patterns D) longer retail life cycles E) prohibition on new retail forms

C) tighter consumer spending patterns

Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers? A) buying and assortment building B) financing C) transportation D) risk bearing E) warehousing

C) transportation

Which of the following is most efficient for short hauls of high-value merchandise and is highly flexible in its routing and time schedules? A) water carriers B) pipeline C) trucks D) air carriers E) railroads

C) trucks

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers? A) showrooming B) assortment building C) warehousing D) financing E) transporting

C) warehousing

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker

D) Abundon

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories. A) Inclusive B) Horizontal C) Intensive D) Exclusive E) Vertical

D) Exclusive

Which of the following statements is most likely true about the product life cycle? A) Throughout the product introduction stage, sales are zero. B) The growth stage is the longest stage of the product life cycle. C) Profits are nonexistent in the growth stage. D) Growth is a period of rapid market acceptance and increasing profits. E) Maturity is the period when sales fall off but profits continue to rise.

D) Growth is a period of rapid market acceptance and increasing profits.

________ advertising is used heavily when introducing a new product category. A) Reminder B) Comparative C) Personal D) Informative E) Persuasive

D) Informative

________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full-service and limited-service. A) Brokers B) Retailers C) Agent wholesalers D) Merchant wholesalers E) Manufacturers' agents

D) Merchant wholesalers

Which of the following is an advantage of exclusive dealing between a seller and a dealer? A) The seller gains more shelf power compared to competitors' products. B) The seller can avoid using any intermediary and sell the product directly to customers. C) Customers get more loyal and dependable outlets. D) The dealer obtains a steady source of supply and more support from the seller. E) The dealer can freely choose what products to sell without any interference from the seller.

D) The dealer obtains a steady source of supply and more support from the seller.

Which of the following is true about trends in wholesaling? A) New laws prevent wholesalers from having their own retailing operations. B) Value-added customer relationships have been replaced by control systems. C) Merchant wholesalers are decreasing in number and relevance. D) The demand for lower prices and higher quality has increased. E) Bulk breaking is increasingly popular and necessary.

D) The demand for lower prices and higher quality has increased.

Which of the following statements is true of salespeople? A) They do not work with wholesalers and retailers. B) They are employed mostly in click-only companies. C) They do not represent the customers to the company. D) They represent a company to its customers by communicating and selling. E) They represent a new class of professionals who have emerged as part of the steep rise in retailing.

D) They represent a company to its customers by communicating and selling.

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

D) informative

Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising

D) merging advertising with entertainment

Outbound logistics refers to moving ________. A) unwanted, excess products from resellers to producers B) raw materials from suppliers to the factory C) excess materials from the factory to suppliers D) products from the factory to resellers E) broken, damaged products from customers to producers

D) products from the factory to resellers

A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe

D) pull

Some products that have entered the decline stage can be cycled back to the growth stage through ________. A) concept testing B) test marketing C) sole sourcing D) repositioning E) data mining

D) repositioning

The first part of a marketing strategy statement describes the ________ of a new product. A) planned price B) marketing budget C) marketing mix strategy D) target market E) planned long-run sales

D) target market

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

D) team-based

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. A) consumer B) point-of-purchase C) sales-force D) trade E) business

D) trade

A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A) manufacturing chain B) distribution center C) marketing intermediary D) value delivery network E) disintermediation system

D) value delivery network

Which of the following is a type of off-price retailer? A) specialty store B) full-service retailer C) discount store D) warehouse club E) supermarket

D) warehouse club

Which of the following is a characteristic of an inside sales force? A) It travels to make sales calls on customers in the field. B) It receives administrative backup from outside sales forces. C) It cannot sell or service accounts directly. D) It eliminates the need to have an outside sales force. E) It conducts business from an office via telephone.

E) It conducts business from an office via telephone.

Which of the following is true of an exclusive dealing arrangement between a producer and a dealer? A) It prohibits the producer from selling outside the dealer's territory. B) It prevents the producer from using any other dealer to sell its products regardless of geographical area. C) It gives the producer's products more shelf power compared to a competitor's products being sold by the dealer. D) It can be considered illegal if it increases competition substantially. E) It does not allow other producers to sell to that dealer.

E) It does not allow other producers to sell to that dealer.

Which of the following is true about the introduction stage of a new product? A) Profits are typically high. B) Promotion spending is relatively low. C) Less money is needed to attract distributors. D) Companies tend to avoid basic versions of the product. E) Sales growth tends to be slow.

E) Sales growth tends to be slow.

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and power of one or a few dominant channel members. A) direct B) contractual vertical C) horizontal D) corporate vertical E) administered vertical

E) administered vertical

Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A) buying and assortment building B) selling and promoting C) risk bearing services D) market information services E) management services and advice

E) management services and advice

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method

E) percentage-of-sales method

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling

E) personal selling

What is the primary goal of trade promotions? A) boosting long-term relationships with final buyers B) motivating salespeople to attend trade shows C) generating qualified business leads and contacts D) rewarding customers for frequent purchases E) persuading resellers to carry a brand

E) persuading resellers to carry a brand

The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

E) persuasive

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call? A) approach B) follow-up C) demonstration D) handling objections E) preapproach

E) preapproach

A company's external sources of new product ideas include its ________. A) managers B) salespeople C) engineers D) manufacturing staff E) suppliers

E) suppliers

A firm that uses direct marketing would most likely sell its products through ________. A) one marketing intermediary B) big box retailers C) large wholesalers D) multiple intermediaries E) the company Web site

E) the company Web site

Department stores are most likely characterized by ________. A) narrow product lines B) specialty goods and services C) predatory pricing strategies D) deep assortments of luxury brands E) wide varieties of product lines

E) wide varieties of product lines

11) Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

a

12) ________ costs are also known as overhead. A) Fixed B) Variable C) Target D) Capital E) Payroll

a

2) ________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

a

53) Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

a

16) ________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

b

19) Which of the following is an external factor that affects pricing decisions? A) the marketing mix B) competition C) top management D) marketing objectives E) marketing strategy

b

23) Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

b

Which of the following statements is true of consumer promotions? A) Their primary objective is to persuade resellers to carry a brand. B) They include a wide range of tools like samples, coupons, and refunds. C) They include the use of display allowances. D) They are primarily used to generate business leads and reward customers. E) They include the use of conventions and trade shows.

b) They include a wide range of tools like samples, coupons, and refunds

1) ________ refers to the amount of money charged for a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

c

24) Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

c

26) When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

c

45) When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

d

A ________ sales-force structure combines several types of sales force organizations. A) market B) simple C) product D) territorial E) complex

E) complex

Which of the following is true of a conventional distribution channel? A) It has each channel member acting as a separate business unit trying to maximize its own profits. B) It consists of producers selling their products directly to customers without the use of intermediaries. C) It has one channel member owning the other channel members. D) It is a distribution channel where a producer is owner of all the other channel members. E) It has all members of the channel working together as a single organization.

A) It has each channel member acting as a separate business unit trying to maximize its own profits.

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

A) They are more targeted, social, and engaging.

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra? A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed" B) a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car E) a buyers-only lottery where Electra buyers have a chance of winning a prize

A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have? A) administered vertical marketing system B) corporate vertical marketing system C) indirect marketing system D) wholesaler franchise system E) horizontal marketing system

A) administered vertical marketing system

Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario? A) approach B) preapproach C) qualifying D) prospecting E) closing

A) approach

Which term refers to a tool used by managers to supervise their salespeople? A) call plan B) sales quota C) sales contest D) bonus plan E) straight commission

A) call plan

Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) category killer B) convenience store C) factory outlet D) department store E) independent store

A) category killer

A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping center B) warehouse club C) superstore D) neighborhood shopping center E) regional shopping mall

A) community shopping center

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. A) concept testing B) concept development C) test marketing D) marketing strategy development E) crowdsourcing

A) concept testing

For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________. A) disintermediation B) intensive distribution C) brokering D) franchising E) selective distribution

A) disintermediation

A ________ is highly automated and designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. A) distribution center B) storage warehouse C) cold storage unit D) controlled-atmosphere unit E) storage silo

A) distribution center

Lemony Inc. sells its popular bottled lemonade-the company's only product-in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.? A) market and territorial B) market and customer C) product and territorial D) market and product E) geographical and product

A) market and territorial

Selective distribution is a strategy in which ________. A) more than one but fewer than all willing intermediaries are used by a seller B) products are stocked in as many outlets as possible by a seller C) products are not sold through intermediaries but directly to customers from producers D) all willing intermediaries are given rights to sell a product E) common household goods are preferred over luxury products by intermediaries

A) more than one but fewer than all willing intermediaries are used by a seller

The third part of a marketing strategy statement describes the ________ of a new product. A) profit goals B) distribution C) marketing budget D) planned value proposition E) target market

A) profit goals

In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail? A) rebate B) coupon C) sample D) premium E) price pack

A) rebate

Retail convergence most likely leads to ________. A) reduced differentiation B) reduced competition C) increased sales D) increased profit margins E) reduced advertising costs

A) reduced differentiation

How have social media tools most likely affected personal selling? A) reducing the use of person-to-person selling efforts B) increasing the costs of selling products and services C) changing the basic fundamentals of interpersonal selling D) increasing the number of product reports given to customers E) slowing the sales force response rate to customers' problems

A) reducing the use of person-to-person selling efforts

Which of the following is most likely a difference between advertising and sales promotions? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions are.

B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.

________ refer to retailers that sell standard merchandise at lower prices by accepting lower margins and selling higher volume. A) Convenience stores B) Discount stores C) Full-service retailers D) Designer shops E) Specialty stores

B) Discount stores

Which of the following is true of direct marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.

B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

________ distribution gives producers good market coverage with more control and less cost than does intensive distribution. A) Vertical B) Selective C) Horizontal D) Comprehensive E) Inclusive

B) Selective

Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays.

B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.

Which of the following is a difference between storage warehouses and distribution centers? A) Storage warehouses are used to store agricultural products, while distribution centers are used to store nonagricultural products. B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them. C) Storage warehouses are always owned by a producer, while distribution centers are rented. D) Storage warehouses are more likely to use newer, computer-controlled systems, while distribution centers generally use outdated materials-handling methods. E) Storage warehouses are exclusively used by government agencies, while distribution centers are exclusively used by private businesses.

B) Storage warehouses store goods for moderate to long periods, while distribution centers are used to move goods rather than just store them.

Which of the following would be considered an upstream partner in a company's supply chain? A) a firm that resells a finished product and shares the net sales with the producer B) a firm that provides technical expertise in the production of a product C) a firm that markets a product to consumers through social media D) a firm that buys products at wholesale cost from the company E) a firm that exclusively markets a product to other businesses

B) a firm that provides technical expertise in the production of a product

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration

B) a push strategy

An innovation management system would most likely be used by ________. A) managers to update details about customer information B) brand managers to collect, review, and evaluate new product ideas C) suppliers to access inventory information D) product managers to track logistics of a new product E) human resource managers to update information on employee incentives

B) brand managers to collect, review, and evaluate new product ideas

A(n) ________ marketing system combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership. A) contractual vertical B) corporate vertical C) administered vertical D) horizontal E) direct

B) corporate vertical

Jones & Company, a major retail chain across the United States, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. Jones & Company is best described as a ________. A) supermarket B) department store C) specialty store D) pop-up store E) category killer

B) department store

When compared to merchant wholesalers, brokers and agents ________. A) perform greater functions B) do not take title to goods C) deal only in services and not products D) do not engage in any negotiation of wholesale deals E) rarely specialize in one product category or customer type

B) do not take title to goods

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A) category killer B) factory outlet C) specialty store D) superstore E) warehouse club

B) factory outlet

Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) category killer B) factory outlet C) specialty store D) superstore E) power center

B) factory outlet

TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case? A) administered vertical marketing system B) horizontal marketing system C) direct marketing system D) contractual vertical marketing system E) corporate vertical marketing system

B) horizontal marketing system

Which of the following steps of the new product development process would most likely use an R-W-W framework? A) idea generation B) idea screening C) concept testing D) test marketing E) commercialization

B) idea screening

Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together? A) horizontal marketing system B) multichannel distribution system C) administered vertical marketing system D) contractual vertical marketing system E) corporate vertical marketing system

B) multichannel distribution system

Specialty stores are characterized by ________. A) the sale of convenience and staple items B) narrow product lines with deep assortments C) a wide range of products and categories D) low prices on a wide range of goods E) routinely purchased food products and services

B) narrow product lines with deep assortments

According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales

B) objective-and-task

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) antitrust laws D) product warranties E) product liability

B) patent laws

Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B) personal selling

Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer

B) product and market

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise

B) slice of life

Which type of retailer typically carries deep product assortments of narrow product lines? A) self-service retailers B) specialty stores C) warehouse clubs D) discount stores E) factory outlets

B) specialty stores

A company that sells only one product line to one industry with customers in many locations would typically use a ________. A) product sales-force structure B) territorial sales-force structure C) market sales-force structure D) customer sales-force structure E) complex sales-force structure

B) territorial sales-force structure

Which of the following conditions increases the chances of a retailer opting to be categorized as a self-service retailer? A) when consumers need warranty information about shopping goods B) when customers are willing to conduct their own locate-compare-select process C) when the store offers luxury products at highly affordable prices D) when customers are looking for a narrow product line with a deep assortment E) when the store has been converted into a designer shop from a department store

B) when customers are willing to conduct their own locate-compare-select process

________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives. A) Vendor analysis B) Portfolio analysis C) Business analysis D) SWOT analysis E) Concept analysis

C) Business analysis

________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its products. A) Horizontal price fixing B) Horizontal integration C) Full-line forcing D) Direct marketing E) Disintermediation

C) Full-line forcing

Which of the following is true of the product life cycle (PLC)? A) All products generally go through all five stages of the PLC. B) All products pass through the stages of PLC in the same order. C) It is generally difficult to forecast the sales level at each PLC stage. D) The PLC concept can be applied to styles but not to fashions and fads. E) Product forms have longer life cycles than product classes.

C) It is generally difficult to forecast the sales level at each PLC stage.

In which step of the selling process does a salesperson most likely meet a customer for the first time? A) prospecting B) preapproach C) presentation D) qualifying E) approach

E) approach

Jacob Kendler works in a wholesale business which specializes in industrial goods needed in automobile industries. Jacob's job involves locating and contacting potential buyers and sellers and facilitating the negotiation process. Which of the following, if true, would strengthen the argument that Jacob works as an agent and not as a merchant wholesaler? A) Jacob runs an independently-owned business. B) Jacob is an employee of an organization producing automobiles. C) Jacob represents his company but is not liable for any damaged or low-quality goods. D) Jacob works in a highly specialized market and does not venture into other product categories. E) Jacob provides a full set of services ranging from locating sellers to delivering goods.

C) Jacob represents his company but is not liable for any damaged or low-quality goods.

Which of the following is a disadvantage of using social media tools for selling? A) Social media tools have transformed the fundamentals of selling. B) Social media tools tend to make sales forces less efficient. C) Social media tools can intimidate low-tech sales people or clients. D) Social media tools make it difficult to spot buying trends. E) Social media tools increase the time taken to solve customer problems.

C) Social media tools can intimidate low-tech sales people or clients.

Which of the following is a disadvantage of using online, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.

C) The audience controls ad exposure.

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict? A) a conflict between Jupiter Steel and Greystone Motors B) a conflict between Jupiter Steel and Greystone dealers C) a conflict between two Greystone Motors car dealerships D) a conflict between a Greystone Motors car dealership and a racing team E) a conflict between Greystone Motors and its car dealerships

C) a conflict between two Greystone Motors car dealerships

A convenience store ________. A) markets to segments comprised mostly of white-collar workers B) stocks narrow product lines that have wide, deep assortments C) carries a limited line of high-turnover goods for consumer self-service D) involves high operation costs due to full-service customer assistance E) is a multi-channel food and discount retailer that targets niche markets

C) carries a limited line of high-turnover goods for consumer self-service

Pawz is a larger retailer that specializes in pet products and services such as pet food, accessories, grooming, toys, and medical treatment. Pawz also has animals available for adoption at all of its many stores located across the nation. Pawz is most likely an example of a ________. A) convenience store B) pop-up store C) category killer D) lifestyle center E) supermarket

C) category killer

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers

C) change the packaging of the toy

In which of the following steps of the selling process does a salesperson ask a buyer for an order? A) preapproach B) qualifying C) closing D) prospecting E) approach

C) closing

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct marketing D) retailing E) merchandising

C) direct marketing

Which contractual system is distinguished by the fact that it is normally based on some unique product or service? A) voluntary chain B) retailer cooperative C) franchise D) corporate chain E) warehouse club

C) franchise

McPherson's, an ice cream retailer, recently entered into an agreement that allows independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration. Which type of contractual retail association is described in the above example? A) corporate chain B) voluntary chain C) franchise organization D) independent retailer E) retailer cooperative

C) franchise organization

Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) full-service retailer D) supermarket E) convenience store

C) full-service retailer

Which types of stores are characterized by specialty goods for which customers need assistance and higher operating costs that are passed along to customers as higher prices? A) self-service stores B) convenience stores C) full-service stores D) discount stores E) off-price stores

C) full-service stores

The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Toby's typically charge higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing

C) high-low pricing

In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics. A) outbound B) reverse l C) inbound D) downstream E) inventory

C) inbound

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

C) pull

What is most likely the first major marketing decision that a retailer must take? A) positioning B) targeting C) segmentation D) differentiation E) promoting

C) segmentation

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

C) sequential

GameStop, a video game retailer, offers a deep assortment of video games and video game consoles. GameStop is best described as a(n) ________. A) department store B) supermarket C) specialty store D) discount store E) off-price retailer

C) specialty store

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach. A) intradepartmental new product development B) sequential new product development C) team-based new product development D) simulated test market E) controlled test market

C) team-based new product development

If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development

C) test marketing

In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales

C) the amount spent by similar companies in the same industry

Fads are characterized by their ________. A) enduring nature that spans several generations B) low rates of adoption by consumers C) unusually high sales and rapid decline D) basic and distinctive modes of expression that seldom become unpopular E) non-attainment of the last two stages of the product life cycle

C) unusually high sales and rapid decline

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

C) using an animated character or mascot to represent a product in an advertisement

A company launching a new product must first decide ________. A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising

C) when to launch the product

Which of the following examples represents a product sales-force structure? A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers. C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices. D) Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range. E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.

D) Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.

Which statement is most likely true about idea generation in the new product development process? A) Idea generation is most effective when it occurs after idea screening. B) Most companies set a limit for the number of ideas generated to simplify the process. C) Intrapreneurial programs enable customers to contribute to the idea generation process. D) Idea generation is usually followed by procedures that reduce the total number of ideas. E) A company can either develop ideas through internal or external sources but not through both.

D) Idea generation is usually followed by procedures that reduce the total number of ideas.

What is the primary disadvantage of outdoor advertising? A) It provides low flexibility. B) It permits low repeat exposure. C) It provides poor positional selectivity. D) It provides little audience selectivity. E) It has high message competition

D) It provides little audience selectivity.

Which of the following is a disadvantage of a team-based approach to new product development? A) It lengthens the time required to get the right products to market. B) It involves the use of a rigid, sequential product development approach. C) A bottleneck at one place can seriously hinder the entire project. D) Organizational confusion and tension are likely to affect the process. E) The process is highly ineffective for products with short life cycles.

D) Organizational confusion and tension are likely to affect the process.

In a sequential new product development process, which of the following is true of the product development step? A) Product development is usually followed by a business analysis of the product. B) Product development involves introducing a product into realistic market settings. C) Product development avoids testing products on actual customers due to liability concerns. D) Product development is usually followed by test marketing. E) Product development helps top management review profit projections.

D) Product development is usually followed by test marketing.

________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified

D) Reminder

Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department store has a narrow product line with a deep assortment. C) The largest type of retail outlet is a supermarket. D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. E) A feature common to all types of retail stores is the use of the everyday low pricing strategy.

D) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed.

Which of the following is an advantage of a territorial sales-force structure? A) The sale of multiple product lines to more than one industry is facilitated. B) Each salesperson is assigned to multiple geographical areas. C) Several types of sales-force structures are combined. D) Travel expenses are relatively small. E) The sales force specializes across different product lines.

D) Travel expenses are relatively small.

Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading? A) a horizontal marketing system B) a direct marketing system C) an administered vertical marketing system D) a contractual vertical marketing system E) a corporate vertical marketing system

D) a contractual vertical marketing system

Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted? A) an administered marketing system B) a contractual marketing system C) a horizontal marketing channel D) a direct marketing channel E) a vertical marketing channel

D) a direct marketing channel

Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its Web site D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial

D) a firm providing interesting information about a product to the news media

Wholesalers most likely discourage less-profitable customers by ________. A) increasing product promotions B) carrying exclusive product lines C) overseeing inventory control systems D) adding service charges to small purchase orders E) requiring smaller orders to lower transportation costs

D) adding service charges to small purchase orders

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using? A) coupons B) price packs C) samples D) advertising specialties E) rebates

D) advertising specialties

Which mode of transportation is best for carrying perishable goods to distant markets? A) railroads B) water carriers C) trucks D) air carriers E) pipelines

D) air carriers

Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________. A) price pack B) rebate C) sample D) allowance E) discount

D) allowance

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions? A) only Kiltmark B) only Stroos C) only Yellowstar Trading D) both Yellowstar Trading and Stroos E) both Stroos and Mintel Agro

D) both Yellowstar Trading and Stroos

Conventions, trade shows, and sales contests are types of ________. A) point-of-purchase promotions B) trade promotions C) advertising specialties D) business promotions E) premiums

D) business promotions

Salespeople write up their completed activities in a(n) ________. A) sales quota report B) profit-sharing plan C) call plan D) call report E) expense report

D) call report

Introducing a new product into the market is called ________. A) test marketing B) segmentation C) product development D) commercialization E) market penetration

D) commercialization

For a retailer to be able to differentiate from competitors and match target shoppers' expectations, the retailer's product assortment should most likely be ________. A) identical to the product assortment offered by competitors B) devoid of any blockbuster goods since they distract most consumers C) targeted at all consumers in the global market irrespective of local needs D) constituted by national brands on which the store holds exclusive rights E) devoid of any seconds, overstocks, and closeouts that damage the retailer's image

D) constituted by national brands on which the store holds exclusive rights

The team-based new product development approach saves times because departments work closely together in ________. A) divisional teams B) problem-solving teams C) self-managed groups D) cross-functional teams E) independent groups

D) cross-functional teams

Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a consistent message on the product to each brand contact E) sharing company forecasting details with shareholders

D) delivering a consistent message on the product to each brand contact

Which of the following creates the shortest distribution channel between a producer and a customer? A) retail marketing B) indirect marketing C) share marketing D) direct marketing E) wholesale marketing

D) direct marketing

Internal sources of new product ideas for a company include its ________. A) customers B) distributors C) suppliers D) employees E) competitors

D) employees

Venture Zone, a hiking and climbing equipment retailer, has a rock climbing wall inside the store so that consumers can test products prior to purchase. Venture Zone most likely differentiates itself from its competitors through ________. A) everyday low pricing B) predatory pricing C) self-service retailing D) experiential retailing E) franchising

D) experiential retailing

ABM Connect is one of the largest Internet service providers in India. The company's salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict? A) approach B) presentation C) closing D) follow-up E) preapproach

D) follow-up

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

D) holding a press conference to explain the remedial steps that ColaBlue has taken

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n) ________. A) corporate vertical marketing system B) contractual vertical marketing system C) direct marketing system D) horizontal marketing system E) administered vertical marketing system

D) horizontal marketing system

Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

D) integrated marketing communications

Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) limited-service E) convenience

D) limited-service

Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex

D) market

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? A) direct distribution system B) horizontal marketing system C) corporate vertical franchise system D) multichannel distribution system E) administered vertical marketing system

D) multichannel distribution system

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

D) personal selling

Carleese, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A) power centers B) franchises C) shopping centers D) pop-up stores E) category killers

D) pop-up stores

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) business analysis B) idea generation C) concept screening D) product development E) test marketing

D) product development

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification

D) product harvesting

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A) intradepartmental teams B) idea generation teams C) product audit committees D) product stewards E) listening officers

D) product stewards

Which of the following is a marketing intermediary? A) customers B) producers C) manufacturers D) retailers E) advertisers

D) retailers

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

D) sales promotion

Weekly or monthly work plans used by management to get information about salespeople are referred to as ________. A) sales quotas B) ROI plans C) call objectives D) sales reports E) call plans

D) sales reports

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

D) setting advertising objectives

The presentation stage of the selling process most likely involves ________. A) cold calling in the absence of potential leads B) fixing the final meeting with a customer to close a deal C) gathering information about an organization and its buyers D) showing how a company's products can solve a customer's problems E) requesting an order from the customer after handling any minor objections

D) showing how a company's products can solve a customer's problems

Which type of store is much larger than a regular supermarket and offers a large assortment of routinely purchased food products, nonfood items, and services? A) discount stores B) specialty stores C) factory outlets D) superstores E) off-price outlets

D) superstores

Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time? A) direct mailing B) telephone marketing C) door-to-door selling D) television advertising E) printed-catalog marketing

D) television advertising

________ refers to using point-of-purchase promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions. A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing

E

Which of the following is true of RFID or "smart tag" technology? A) "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. B) "Smart tag" technology can de-automate the entire supply chain. C) The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. D) Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.

E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.

Which of the following statements is most likely true about the new product development process? A) The first step in developing a new product involves determining any budgetary or distribution limitations. B) Most firms discourage employees from contributing new product ideas because of legal concerns. C) In most cases, concept testing is followed by concept development. D) A product concept should be developed for each idea before it goes through idea screening. E) Customers, competitors, and suppliers are major sources of new product ideas.

E) Customers, competitors, and suppliers are major sources of new product ideas.

Which of the following is true of a vertical marketing system? A) It is formed when two or more companies at one level join together to follow a new marketing opportunity. B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments. C) It does not give overall power to any one member in the channel. D) It has each channel member acting as a separate business unit trying to maximize its own profits. E) It has one channel member owning all the other channel members or has contracts with all other channel members.

E) It has one channel member owning all the other channel members or has contracts with all other channel members.

________ involves combining two or more systems of transportation to move products. A) Vertical transportation B) Disintermediation C) Just-in-time management D) Vertical integration E) Multimodal transportation

E) Multimodal transportation

Which of the following examples represents a territorial sales-force structure? A) Maxine Pharmaceuticals organizes its sales force based on each salesperson's expertise on specific drugs manufactured by the firm. B) Cherrie Boutique sells its products through a network of teams, each of which handles a specific product, but products are sold from only one location. C) Verra Designers operates from its landmark store in New York, and customers from around the world visit the store to buy original merchandise at steep prices. D) Milton's, a specialty liquor brewery, uses half of its sales force to cater to existing customers, and the rest to identify new customers. E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.

Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts-occasionally including expensive gadgets and jewelry. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true? A) Posco fails to differentiate itself from Campbell through the services mix. B) Posco's product assortment helps differentiate it from Campbell. C) Both Campbell and Posco fail to identify the needs and wants of target markets. D) Campbell has not been able to differentiate itself on the basis of product assortment. E) Posco better utilizes the services mix to differentiate itself from Campbell.

E) Posco better utilizes the services mix to differentiate itself from Campbell.

Which of the following is true of the growth stage of the product life cycle? A) New competitors avoid the market. B) Prices tend to increase significantly. C) Early adopters stop buying the product. D) Profits are nonexistent at this stage. E) Sales start climbing quickly.

E) Sales start climbing quickly.

________ are offers of a trial amount of a product. A) Cash refunds B) Price packs C) Rebates D) Coupons E) Samples

E) Samples

Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.

E) They are better equipped to find product and brand information on their own.

Which of the following is true of downstream channels in a company's supply chain? A) They provide their expertise in product design. B) They manufacture the products of the company. C) They supply raw materials and components to the company. D) They contribute financially to the company during production. E) They form an intermediary link between the company and its customers

E) They form an intermediary link between the company and its customers

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

E) a company sending an e-mail to a customer about a discount on a product during a holiday season

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict? A) a conflict between Orion Steel and Accline Cars B) a conflict between Orion Steel and Accline dealers C) a conflict between two Accline car dealers D) a conflict between Accline dealers and government entities E) a conflict between Accline Cars and its dealers

E) a conflict between Accline Cars and its dealers

Which of the following is a promotion tool used for trade promotions? A) sweepstakes B) price packs C) conventions D) rebates E) allowances

E) allowances

When a seller requires that only certain dealers carry its products, its strategy is known as ________. A) horizontal restraint of trade B) intensive distribution C) vertical distribution D) disintermediation E) exclusive distribution

E) exclusive distribution

GreatWords is a book retailer. Due to the increasing demand for audiobooks, the firm decides to sell audiobooks in its stores. GreatWords signs a deal with Carpem, a leading producer of educational audiobooks. According to the deal, GreatWords will sell only Carpem's audio titles in its stores, while Carpem will not sell its books through other retailer stores. GreatWords profits from Carpem's popularity while Carpem, in return, enjoys better sales. This is most likely an example of a(n) ________ marketing system. A) direct B) administered vertical C) corporate vertical D) contractual vertical E) horizontal

E) horizontal

Which of the following is an internal source of new product ideas for a company? A) trade magazines B) marketing research firms C) government agencies D) competitor's ads E) intrapreneurial programs

E) intrapreneurial programs

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

E) lifestyle

Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify? A) rebate B) coupon C) price pack D) sample E) premium

E) premium

Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard? A) prospecting B) qualifying C) follow-up D) handling objections E) presentation and demonstration

E) presentation and demonstration

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

E) public relations

Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances? A) air carriers B) water carriers C) pipelines D) trucks E) railroads

E) railroads

Sales promotions targeted at ________ are called trade promotions. A) government buyers B) salespeople C) business customers D) final buyers E) retailers and wholesalers

E) retailers and wholesalers

A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________. A) direct marketing B) public relations C) advertising D) personal selling E) sales promotion

E) sales promotion

Checking out products in traditional stores and purchasing them online is referred to as ________. A) warehousing B) wholesaling C) retailing D) franchising E) showrooming

E) showrooming

What is the purpose of a sales manager using a time-and-duty analysis? A) compensating salespeople B) prospecting customers C) recruiting salespeople D) forming sales teams E) supervising salespeople

E) supervising salespeople

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial

E) territorial

JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario? A) the shift toward self-service retailing B) the decline of superstores and megastores C) the decline of the voluntary chain distribution method D) the rise of franchise organizations and joint partnerships E) the blurring of distinctions between retailers and wholesalers

E) the blurring of distinctions between retailers and wholesalers

From the economic system's point of view, the role of marketing intermediaries is to ________. A) facilitate the production of products without direct customer feedback B) help a company develop a direct channel selling system C) buy small quantities of products from producers and break them down into narrow assortments for customers D) increase the amount of work that must be done by producers and consumers E) transform the assortments of products made by producers into the assortments wanted by consumers

E) transform the assortments of products made by producers into the assortments wanted by consumers

The difference between an inside sales force and an outside sales force is that an outside sales force ________. A) acquires more decision-maker contacts each day B) consists mostly of telemarketers and Internet sellers C) conducts business from headquarters via telephone D) spends less money to reach and support customers E) travels frequently to call on customers in the field

E) travels frequently to call on customers in the field

In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate. A) direct marketing system B) horizontal distribution channel C) lateral marketing system D) conventional distribution channel E) vertical marketing system

E) vertical marketing system

Which term refers to a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising? A) factory outlet mall B) retailer cooperative C) corporate chain D) warehouse club E) voluntary chain

E) voluntary chain

In which of the following cases is little or no test marketing most likely recommended for a new product? A) when the product requires a major investment B) when management is unsure of the projected demand for the product C) when the risks associated with introducing the product are high D) when management is unsure of the marketing program for the product E) when the costs of developing and introducing the product are low

E) when the costs of developing and introducing the product are low

21) In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

a

22) There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent? A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

a

25) The relationship between the price charged for a product and the resulting demand level can be shown in a ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

a

28) A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) market-skimming pricing B) target costing C) deceptive pricing D) market-penetration pricing E) predatory pricing

a

30) Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

a

4) Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value

a

5) ________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

a

50) When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

a

7) A value-based pricing strategy most likely begins with ________. A) assessing customer needs B) designing a stylish product C) evaluating the product's costs D) promoting the product's benefits E) setting a price based on perceived value

a

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? A) location-based pricing B) market-skimming pricing C) product-form pricing D) time-based pricing E) market-penetration pricing

a

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. A) product line B) optional-product C) by-product D) product bundle E) captive-product

a

Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs

a

13) Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll

b

29) The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

b

46) Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

b

48) ________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

b

9) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus

b

Combining several products and offering the collection at a reduced price is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

b

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________. A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount

b

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional

b

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________. A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing

b

Selling accessory products along with the main product is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

b

10) ________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

c

15) A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

c

20) Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing

c

3) Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

c

47) Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

c

52) Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

c

55) Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

c

6) Value-based pricing is the reverse process of ________ pricing. A) good-value B) target costing C) cost-based D) value-added E) competition-based

c

How do firms that use captive-product pricing make up for the low prices of their main products? A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.

c

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. A) time-based B) location-based C) customer-segment D) by-product E) product form

c

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.

c

14) ________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even

d

42) When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

d

Setting a price for products that must be used along with a main product is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

e

49) What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

d

54) Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

d

8) ________ pricing involves charging a constant low price with few or no temporary price discounts. A) High-low B) Target return C) Cost-plus D) Everyday low E) Market-skimming

d

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance

d

17) The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

e

18) Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

e

51) Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

e

Which of the following is an economic factor that affects the pricing decisions of a company? A) market-penetration practices B) top management decisions C) promotional activities D) reseller policies E) interest rates

e