Marketing Final Guide
22. Swedish company Asko, which prides itself on manufacturing and marketing some of the best-built and most prestigious appliances in the world, would probably use which competition-oriented pricing approach? A. customary pricing B. above-market pricing C. loss-leader pricing D. at-market pricing E. penetration pricing
B
13. Some singers record a great song that shoots to the top of the charts. The singers then go on tour and have sold-out concerts everywhere they appear. Just as quickly (particularly if they are unable to follow their first hit song with a second one), they are singing in half-filled concert halls, then smaller clubs, and eventually no one wants to hear them perform. Such "one-hit wonder" singers are best categorized as being __________ products (or services). A. fad B. low-learning C. fashion D. generalized E. high-learning
A
14. When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and well-informed began buying them. While those buyers were relatively few in number, marketers such as IBM and Compaq were encouraged because other, less adventuresome consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were A. early adopters. B. early majority. C. innovators. D. product leaders. E. diffusion leaders.
A
16. Calculate a firm's profit using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000. A. $10,000 B. $50,000 C. $110,000 D. $150,000 E. cannot be determined with the information provided
A
19. The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $589.99, $869.99, etc. American Furniture Warehouse uses A. odd-even pricing. B. dynamic pricing. C. price lining. D. bundle pricing. E. product-line pricing.
A
32. Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is A. a retailer-sponsored cooperative. B. a consortium system. C. an administrative system. D. a conglomerate system. E. a contractual horizontal marketing system.
A
34. Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering? A. full service B. limited service C. self-service D. restricted service E. functional service
A
38. When Sears places a multiple-page booklet in the local newspaper about its President's Day sale, it is using which element of the promotional mix? A. advertising B. sales promotion C. publicity D. personal selling E. direct marketing
A
46. The owner of a nail shop that operates in a local strip mall told her daughter, "Well, after budgeting for all of our expenses for next year, we still have about $7,500 remaining for emergencies. Let's budget 20 percent of that amount for advertising." What budgeting technique is the retailer most likely using? A. all-you-can-afford budgeting B. percentage of sales budgeting C. competitive parity budgeting D. objective and task budgeting E. linear forecast budgeting
A
48. John Whitaker works for American Greetings. His job description includes the following responsibilities: (1) stock and arrange point-of-purchase displays of present customers—60 percent of his workweek and (2) receive orders from customers and complete the transactions—40 percent of his workweek. Whitaker is primarily engaged in which type of selling? A. outside order taking B. relationship selling C. inside order taking D. outside order getting E. missionary sales
A
9. Figure 10-1 represents the stages of the product life cycle. What does the portion of the curve labeled A represent? A. introduction B. maturity C. growth D. stability E. decline
A
25. When Hunter went to the hardware store looking for gloves to wear while refinishing a table, he bought one pair because that was all he needed. But when the hardware store purchased the gloves, it purchased a case containing 100 pairs of identical gloves. Which logistical function did the hardware store perform for Hunter and its other customers? A. marketing B. buying C. sorting D. assorting E. risk-taking
B
26. Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These categories reflect characteristics of the wood and are related to its suggested uses. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries? A. grading B. sorting C. risk-taking D. marketing E. assorting
B
3. An iMac personal computer from Apple can be classified according to all of the following categories except which? A. a business product B. a nondurable good C. a B2B product D. a durable good E. a consumer product
B
41. When you redeem a 50-cents-off coupon for Crest toothpaste at your local supermarket, you are being influenced primarily by which promotional element? A. advertising B. sales promotion C. public relations D. publicity E. personal selling
B
42. A new prescription drug on the market helps reduce common allergy symptoms. Ads for the medicine in magazines and in medical journals would be primarily used to A. remind customers that such a product exists. B. increase the level of customer awareness and interest for the product .C. differentiate the product from all other allergy medications. D. support a product penetration pricing strategy. E. help in harvesting the product.
B
44. Many prescription drugs such as Lipitor have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors. The manufacturers of these drugs are using __________ strategy. A. an integrated B. a pull C. a push D. an inertia E. an exclusive
B
45. Ann's young son suffers from allergies and complains about his watery eyes and drowsiness. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Martha StewartLiving magazine, she planned to ask his doctor about this product on her son's next visit. Ann is at which stage in the hierarchy of effects? A. She is the trial stage and will move to the interest stage soon. B. She has moved quickly from the awareness stage to the interest stage. C. She was in the consumer development stage and will more than likely move to the transition stage. D. She is in the evaluation stage and will move to the interest stage soon. E. She was in the interest stage and then moved quickly to the diffusion stage.
B
47. A Levi's ad features the introduction of the company's new Levi's 501 CT jeans. What type of product advertisement is this ad? A. reminder B. pioneering C. reinforcement D. comparative E. competitive
B
8. Equipment-based services do not have the marketing concern of inconsistency because __________ have been removed from the delivery of the service. A. risk and product liability B. people C. learning requirements D. automations E. accessories
B
11. Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used __________ pricing strategy to help recover its research and development costs. A. a penetration B. a cost-plus C. a skimming D. a target ROI E. an above-market
C
17. Several factors indicate that a penetration pricing policy would most likely be effective when introducing a new product, including situations in which A. lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost. B. the high initial price will not attract competitors. C. customers interpret the high price as signifying high quality. D. enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable. E. many segments of the market are price-sensitive.
C
2. Intangible items such as theater performances, legal advice, or music streaming that an organization provides to consumers are referred to as A. production goods. B. support products. C. services. D. goods. E. benefits.
C
31. Albertsons Grocery Store accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with __________ utility. A. time B. place C. possession D. form E. public
C
50. Alice Faulkner is a professional salesperson. She earns her living by selling advertising for TheNewYorkTimes newspaper. In addition to selling advertising to her regular accounts, Faulkner is responsible for generating new advertising accounts for the newspaper. In order to fulfill her responsibilities, Faulkner works hard to make sure the potential customers she sells to are qualified prospects. How can Faulkner know if the prospects she is selling to are in fact qualified prospects? A. Qualified prospects have heard of and now have an interest in buying advertising in the newspaper. B. Qualified prospects are part of an industry that buys advertising in the newspaper. C. Qualified prospects have a need for the advertising, can afford to buy it, and have the authority to make the purchase decision. D. Qualified prospects will participate in the decision to buy the advertising as part of a cross-functional team. E. Qualified prospects read the newspaper daily and recognize that it is a good advertising medium.
C
7. Which of the following best illustrates the concept of derived demand? A. The number of retail stores in a downtown area decreases even though demand for retail goods increases. B. An increase in the number of new, single-family homes results from a spike in the gross national product. C. A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. D. A heat wave results in an increased demand for air conditioners. E. Honda reducing its car prices causes GM to do the same.
C
1. Food products and fuel would be classified as: A. services .B. perishable goods. C. durable goods. D. nondurable goods. E. disposable goods.
D
12. Which of the following is an example of a product in the maturity stage of the product life cycle? A. pocket video cameras B. driverless vehicles C. 3D HDTVs D. carbonated soft drinks E. tablet devices
D
21. Creative Quilts Studio sells hundreds of colors and types of fabric and thread. To price its inventory, the owners add 50 percent to the cost of each bolt of fabric and every spool of thread. What is this pricing approach called? A. target return-on-sales pricing B. flexible pricing C. cost-plus pricing D. standard markup pricing E. customary pricing
D
24. Several artists in Charleston, South Carolina, participate in an art fair to sell their paintings. Each has a booth in downtown Charleston for two weekends in May so tourists and art lovers can look at their paintings and buy the ones they like. Each artist works in his or her own booth or hires help. In terms of the marketing channel, the booths at the art fair would be considered A. ultimate consumers. B. agents .C. wholesalers. D. retailers. E. distributors.
D
29. Ford uses __________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions. A. a service-sponsored producer franchise system B. a service-sponsored retail franchise system C. a manufacturer-sponsored wholesale franchise system D. a manufacturer-sponsored retail franchise system E. an administered vertical marketing system
D
30. Bentley Motors makes one of the world's most prestigious automobile brands, targeting the ultra-luxury segment. Which type of market coverage does Bentley most likely use? A. intensive distribution B. extensive distribution C. selective distribution D. exclusive distribution E. private label distribution
D
33. Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer? A. limited-service B. full-service C. customized-service D. self-service E. restricted-service
D
36. To promote its theme parks to groups, Disney uses advertising, direct marketing, Internet promotion, and sales promotions with other companies such as McDonald's. In other words, Disney uses IMC, which stands for A. integrated marketing cooperation. B. interactive media convergence. C. infrastructure of market customization. D. integrated marketing communications. E. integrated media convergence.
D
37. The marketing manager from a heavy-equipment manufacturer in Dallas, Texas, was attending an international trade show in Japan. There were many prospective customers from different countries who seemed interested in the firm's product. However, they had difficulty following the manager's explanations of product features due to his heavy Texas drawl. In this case, the accent would be considered A. an encoding error. B. a decoding error. C. culture shock. D. noise. E. distortion.
D
39. When a representative for Pampered Chef cooking utensils invites friends to her home and spends 30 minutes demonstrating the superiority of the Pampered Chef products, she is engaging in A. primary sales. B. sales promotion. C. public relations. D. personal selling. E. coercive selling.
D
40. A small agrichemical laboratory with a very small marketing budget develops a seed that produces grass that grows two inches high and no higher. Which promotional element should it use to communicate its discovery? A. advertising B. personal selling C. sales promotion D. publicity E. missionary sales
D
5. You decide to buy a new car. You talk to friends about it, research mechanical specifications in ConsumerReports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? A. specialty product B. unsought product C. discretionary product D. shopping product E. convenience product
D
28. When Dell Computer sells made-to-order PCs to customers online via its website, it is an example of which type of marketing channel? A. indirect channel B. strategic channel alliance C. consumer channel D. dual distributive channel E. direct channel
E
6. You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall? A. convenience products B. shopping products C. unsought products D. specialty products E. discretionary products
D
10. The GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS tracking of the wearer. This product is being marketed as an inexpensive solution for caregivers whose charges are prone to wandering, like those with Alzheimer's or autism. When the insoles were first made available to consumers, what was the marketing objective for the company at that early stage of the product life cycle?A. stress differentiation from other saving products B. maintain brand loyalty C. allow users to spend time doing other things D. create awareness and stimulate trial E. target a whole new group of consumers
E
15. Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality and therefore __________ to consumers .A. acceptable cost B. perceptual investment C. barter potential D. return on investment E. value
E
18. A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing more than $1.5 million in 2013. This is an example of a __________ strategy. A. penetration pricing B. target pricing C. bundle pricing D. loss-leader pricing E. prestige pricing
E
20. If you were to buy one peach tree and one apple tree from the Stark Bros. fruit trees and landscaping catalog in two separate orders, you would pay a total of $109.99. However, if you order the peach and apple tree together in the same order, you pay only $89.99 each. When selling the two trees together for a reduced price, what pricing strategy does Stark Bros. employ? A. product-line pricing B. prestige pricing C. price lining D. discount pricing E. bundle pricing
E
23. Jaffar Tabrizi is the owner of Tabrizi Oriental Rugs located in Toronto, Canada. He shops the world over, handpicks, and orders beautiful, authentic handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi.com website. In terms of the marketing channel, Jaffar is acting as A. a consumer. B. an agent. C. a wholesaler. D. a brokerage firm. E. a middleman.
E
27. A textile artist can buy fabric, thread, and batting, create an heirloom quilt, and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall. By designing the quilts and kiosk with aesthetic value, the artist creates __________ utility. A. application B. possession C. time D. place E. form
E
35. Nike offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the __________ that Nike offers to its customers through its own stores or other retailers such as Foot Locker. A. product items B. depth of product line C. breadth of product line D. versatility of product family E. variety of product mix
E
4. Which of the following is the best example of a convenience product? A. Kindle Fire B. Lexus LS 460 luxury automobile C. flight on United Airlines D. Roget'sThesaurus E. Hidden Valley Ranch salad dressing
E
43. Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determine what promotional strategy should be employed with its flagship product. It has determined that search engine software is in the growth stage of its product life cycle. Which of the following options should it employ? A. devote 40 percent of the promotional budget to a sales promotion that supplies the public with demonstration CDs to prove the merits of its software B. spend 30 percent of the budget in the effort to generate publicity for its software C. use the majority of its promotional budget on advertising that focuses on brand differences D. use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth E. encourage its tech support staff to emphasize the superiority of its software and its after-sale support
E
49. TransWave International is a company that markets patented electronic sensors as an early warning device for locating potential problems with buried pipelines. TransWave sends an environmental expert, a safety engineer, a legal representative to explain new regulations enacted by the U.S. Office of Pipeline Safety, and an experienced pipeline expert when it meets with a prospect. This is an example of how TransWave uses A. partnership selling. B. order getting. C. functional selling. D. sales engineering. E. team selling.
E
