Quiz 21: Managing the Marketing Mix: Product, Price, Place and Promotion
Business
Q 1Q 1
When consumers calculate the value of a product, they look at the benefits and then subtract the cost.
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True False
True
Q 2Q 2
To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.
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True False
True
Q 3Q 3
Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.
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True False
False
Q 4Q 4
Fast-food organizations must constantly monitor all sources of information for new-product ideas.
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True False
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Q 6Q 6
From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.
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True False
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Q 8Q 8
The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.
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True False
Q 9Q 9
Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.
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True False
Q 10Q 10
Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.
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True False
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True False
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True False
Q 13Q 13
In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.
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True False
Q 14Q 14
A firm's product line refers to all of the different geographic markets in which it sells the same good or service.
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True False
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True False
Q 16Q 16
A product line is a group of products that are physically similar or are intended for a similar market.
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True False
Q 17Q 17
The several product lines that a company offers for sale make up that organization's product mix.
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True False
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True False
Q 19Q 19
In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.
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Q 20Q 20
Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.
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True False
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True False
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True False
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Q 24Q 24
One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.
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True False
Q 25Q 25
One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.
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True False
Q 26Q 26
More than any other component of a total product offer, technology has reduced the importance of packaging.
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True False
Q 27Q 27
Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.
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True False
Q 28Q 28
While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.
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True False
Q 29Q 29
While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.
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True False
Q 30Q 30
The exclusive goal companies expect of packaging is to protect the product from damage in transit.
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True False
Q 31Q 31
In recent years, the packaging of products has been given a greater role in product promotion.
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True False
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Q 33Q 33
Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor's Bread Company.
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True False
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True False
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True False
Q 36Q 36
The concepts of product lines and product mixes apply to marketers of products and services.
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True False
Q 37Q 37
The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.
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True False
Q 38Q 38
As a result of increased advertising and well-trained salespeople, packaging is less important than in the past.
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True False
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True False
Q 40Q 40
While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.
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True False
Q 41Q 41
A traditional McDonald's and a McCafe are examples of the McDonald's Corporation product mix.
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True False
Q 42Q 42
At Isuzu's Appliance Store, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.
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True False
Q 43Q 43
Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.
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True False
Q 44Q 44
Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.
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True False
Q 45Q 45
Since Kazam Cleaners offers home and office cleaning services no different from competitors, the company cannot utilize a product differentiation strategy.
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True False
Q 46Q 46
Mystic Beverages, a producer of soft drinks, wants to differentiate its products from those of other soft drink providers. To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.
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True False
Q 47Q 47
Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.
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True False
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True False
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True False
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True False
Q 51Q 51
A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.
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True False
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True False
Q 53Q 53
Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.
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True False
Q 54Q 54
Event sponsorship like the Tostito's Fiesta Bowl football game helps improve brand awareness.
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True False
Q 55Q 55
Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.
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True False
Q 56Q 56
Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.
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True False
Q 57Q 57
Federal legislation requires that the brand name of a product clearly identify the manufacturer of that product.
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True False
Q 58Q 58
Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.
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True False
Q 59Q 59
According to the box Reaching Beyond Our Borders, brand names must hold great meaning or customers will not acknowledge them.
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True False
Q 60Q 60
Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.
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True False
Q 61Q 61
The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.
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True False
Q 62Q 62
While the time in each stage may vary, all products progress through each stage of the product life cycle.
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True False
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True False
Q 64Q 64
While some products remain in the introductory stage of the product life cycle for years, other products may go through the entire cycle in a few months.
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True False
Q 65Q 65
Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.
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True False
Q 66Q 66
Successful firms maintain consistency in their marketing mix strategies throughout the product life cycle.
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True False
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True False
Q 68Q 68
While the product life cycle is a good theory, it's not important for marketers to recognize what life cycle stage a product is in.
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True False
Q 69Q 69
Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.
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True False
Q 70Q 70
Some goods have a product life cycle that is completed in a shorter amount of time than other goods.
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True False
Q 71Q 71
After several years as a brand manager for an established product, Pete has taken a job with a microbrewery. He is responsible for managing the marketing mix for a new product introduction. In his new job, Pete will find that while the products may be at different stages of the product life cycle, the marketing strategies will be essentially the same.
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True False
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True False
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True False
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True False
Q 75Q 75
In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.
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True False
Q 76Q 76
Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.
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True False
Q 77Q 77
Successful firms coordinate pricing objective strategies with decisions regarding product design, packaging, branding, distribution, and promotion.
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True False
Q 78Q 78
Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.
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True False
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True False
Q 80Q 80
Target costing adds a profit margin to estimated cost of production to determine the optimal price.
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True False
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True False
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True False
Q 83Q 83
The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.
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True False
Q 84Q 84
In the long run, the cost of production and the length of the firm's supply chain determine the price of a product.
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True False
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True False
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True False
Q 87Q 87
Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.
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True False
Q 88Q 88
The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.
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True False
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True False
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True False
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Q 93Q 93
A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.
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True False
Q 94Q 94
A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.
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True False
Q 95Q 95
Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.
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True False
Q 96Q 96
A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.
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True False
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True False
Q 98Q 98
Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.
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True False
Q 99Q 99
The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.
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True False
Q 100Q 100
Despite the fact that microeconomic theory places a great deal of emphasis on price, marketers often try to find ways to compete on product attributes other than price.
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True False
Q 101Q 101
For most firms, price competition is the most important way to gain a competitive advantage over rivals.
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True False
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True False
Q 103Q 103
One way firms can gain a competitive advantage without relying on low prices is by developing close, friendly relationships with their customers.
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True False
Q 104Q 104
The pricing objectives of a firm should be set independently of the other elements of their marketing mix.
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True False
Q 105Q 105
Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.
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True False
Q 106Q 106
Rather than having frequent special sales, Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time. Walt's pricing strategy is known as everyday low prices (EDLP).
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True False
Q 107Q 107
Carlotta owns and manages the Carlite Car Wash. She charges $8 per car wash. Her fixed costs are $600 per month, while her variable costs per car wash amount to $2. Carlotta must wash 60 cars to break even.
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True False
Q 108Q 108
Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.
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True False
Q 109Q 109
Pattie Bunz operates the Zestee Burgers restaurant. The cost of pickles, onions, buns, catsup, and meat patties would all be considered variable costs for her type of business.
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True False
Q 110Q 110
Miranda is a marketing manager for a large manufacturer. Her boss has asked her to evaluate a new-product idea. One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.
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True False
Q 111Q 111
Webster Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Webster's approach to pricing is a classic example of the skimming strategy.
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True False
Q 112Q 112
Admiral Motors is the dominant firm in the auto market. When Admiral announces an increase in the prices of its automobiles, Chord and Frysler, the smaller firms in the market usually quickly announce similar price increases for their own cars. This situation is an example of demand-oriented pricing.
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True False
Q 113Q 113
Budd's Floral Shoppe is located in a large town that has several other florists. The owner, Rose Budd, is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock-bottom prices.
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True False
Q 114Q 114
Community Catering Services, Inc., advertises that they are the "friendliest caterers in town." Their prices are no lower than the rates charged by competing caterers, but they put a lot of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price-cutting.
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True False
Q 115Q 115
Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.
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True False
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True False
Q 117Q 117
Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.
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True False
Q 118Q 118
A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.
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True False
Q 119Q 119
Brokers are marketing intermediaries that do not take title to the goods they help distribute.
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True False
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True False
Q 121Q 121
Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.
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True False
Q 122Q 122
Agents are marketing intermediaries who take title to the goods they distribute and provide credit to customers who need it.
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True False
Q 123Q 123
Manufacturers are usually able to perform marketing functions, such as transporting, advertising, and storing, faster and more cheaply than marketing intermediaries.
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True False
Q 124Q 124
One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.
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True False
Q 125Q 125
Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.
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True False
Q 126Q 126
Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.
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True False
Q 127Q 127
The activities performed by most marketing intermediaries are not essential to the marketing process.
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True False
Q 128Q 128
The best way to reduce the cost of goods is to eliminate marketing intermediaries from the distribution channel.
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True False
Q 129Q 129
Marketing intermediaries have survived because they have been able to perform marketing functions more efficiently and effectively than a manufacturer or consumer could perform these functions.
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True False
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True False
Q 131Q 131
Most marketing intermediaries have survived in the past because consumers were unaware of how much these companies add to the cost of distributing goods.
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True False
Q 132Q 132
An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer.
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True False
Q 133Q 133
Marketing intermediaries must charge a price for the functions they perform. Thus, a surefire way to reduce distribution costs is to eliminate marketing intermediaries from the channel of distribution.
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True False
Q 134Q 134
Jessica Talmadge is a real estate agent who brings together the buyers and sellers of houses and commercial property. Jessica helps the parties negotiate the terms and conditions of real estate sales, but she does not take title to the property, provide credit, or assume any risks associated with the exchanges she helps negotiate. Because Jessica provides only limited services, she is not a true marketing intermediary.
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True False
Q 135Q 135
Sav-U-More Grocery Store sells a wide range of foods and household supplies to households in Miller's Creek, a suburb of a large city. The store advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low-price approach means that Sav-U-More is a classic example of a merchant wholesaler.
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True False
Q 136Q 136
Although HelpUSell brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any of the goods being traded. HelpUSell would be classified as an agent or broker.
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True False
Q 137Q 137
Currently, Halperin Electrical sells directly to thousands of industrial customers. Halperin could reduce the number of exchange relationships by including wholesalers in its channel of distribution.
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True False
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True False
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True False
Q 140Q 140
The sale of goods to a business purchasing the items for resale is a wholesale transaction.
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True False
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True False
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True False
Q 143Q 143
The two main types of merchant wholesalers are storage wholesalers and distribution wholesalers.
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True False
Q 144Q 144
The main difference between agents and brokers is that agents perform a wide array of marketing functions while brokers only negotiate exchanges between buyers and sellers.
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True False
Q 145Q 145
A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.
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True False
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True False
Q 147Q 147
Discount stores, department stores, supermarkets, and specialty stores are all among the major types of retail stores.
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True False
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True False
Q 149Q 149
Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.
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True False
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Q 151Q 151
A category killer is an extremely successful product that kills the sales of other products in its category in a retail store.
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True False
Q 152Q 152
Specialty stores use a wide variety of products in one product category as their key competitive tool.
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True False
Q 153Q 153
Category killer stores tend to compete mainly on the basis of carrying a wide array of products, superior service, and low prices.
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True False
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True False
Q 155Q 155
Discount stores and department stores sell different brands of products that are usually priced about the same.
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True False
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True False
Q 157Q 157
Candy, gum, cigarettes, and popular magazines are usually distributed using a selective distribution strategy.
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True False
Q 158Q 158
A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distributive strategy.
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True False
Q 159Q 159
Producers of shopping goods such as furniture, appliances, and clothing usually rely on an exclusive distribution strategy.
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True False
Q 160Q 160
An advantage of a selective distribution strategy is that consumers are able to find a popular product at a wide variety of retailers.
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True False
Q 161Q 161
Retailers that participate in an exclusive distribution strategy will have a strong incentive to carry a large inventory of the good and provide exceptional service to customers.
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True False
Q 162Q 162
Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world.
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True False
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True False
Q 164Q 164
Some websites are trying to improve their service by providing assistance from a real person.
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True False
Q 165Q 165
A large number of traditional retailers have developed websites in recent years, giving customers a choice of shopping techniques.
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True False
Q 166Q 166
Traditional retailers that have begun using the Internet to supplement their physical stores are finding that it not only provides a new way to sell goods, it also requires a new system to distribute goods.
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True False
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True False
Q 168Q 168
Vending machines are used primarily to sell goods where consumers have little interest in convenience.
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True False
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True False
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True False
Q 171Q 171
Direct selling is a distribution strategy that makes extensive use of the Internet and telephone.
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True False
Q 172Q 172
Because so many people work outside the home and aren't at home during the day, companies that use direct selling are sponsoring parties at workplaces to sell their products.
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True False
Q 173Q 173
Direct marketing involves having a salesperson visit the customer's home or place of business.
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True False
Q 174Q 174
A major advantage of direct marketing is that it is a very convenient way for consumers to shop.
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True False
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True False
Q 176Q 176
The entire collection of organizations that move goods and services from the source of raw materials to the final consumer is referred to as the supply chain.
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True False
Q 177Q 177
A broker can expect to earn a fixed amount of profit for her efforts regardless of the dollar value of the contract she negotiated.
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True False
Q 178Q 178
In order to succeed in today's tough economic times all retailers must compete with low prices.
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True False
Q 179Q 179
The main difference between selective distribution and exclusive distribution is the number and type of market segments the firm chooses. In a selective strategy, a variety of profitable niche markets are selected, while in an exclusive strategy one specific market segment is targeted, and all others are excluded.
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True False
Q 180Q 180
In the battle between electronic retailers and traditional brick and mortar retailers, the electronic retailers seem to have all of the advantages needed to emerge as the clear winners.
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True False
Q 181Q 181
Many firms that want to use an intensive distribution strategy would find vending machines an attractive method of selling their goods.
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True False
Q 182Q 182
Direct selling has all but disappeared as a major form of nonstore retailing because the trend toward two-income households means fewer opportunities for selling in the home.
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True False
Q 183Q 183
An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work.
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True False
Q 184Q 184
Merrill helps growers of fresh fruits and vegetables negotiate sales to food processing companies. However, once he has helped negotiate the transaction, he does not maintain a long-term relationship with the growers. Merrill is an example of an agent in this market.
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True False
Q 185Q 185
Words 4 Hire is a nationwide chain of stores that offers such a huge selection of paperback and hardback books at such competitive prices that small local bookstores have a hard time competing with them. Words 4 Hire is best classified as a discount store.
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True False
Q 186Q 186
Saul-Mart is the name of a new chain of discount stores. A major part of Saul-Mart's competitive strategy is likely to be based on keeping its prices lower than those of other types of retailers.
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True False
Q 187Q 187
Soundworthy Stereo is a producer of high-quality speakers. The company sells its products through a few preferred retailers in any geographic area. Soundworthy uses a selective distribution strategy.
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True False
Q 188Q 188
The Newsville City Press is a daily newspaper serving a city with a population of just over 200,000. The publishers have placed vending machines for their paper throughout Newsville and its suburbs. They also sell their papers at most of the supermarkets, convenience stores, bookstores, and drug stores in the area. The Newsville City Press uses an intensive distribution strategy.
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True False
Q 189Q 189
The owners of the TriCities Mall recently renovated the mall's interior. Much of the interior of the mall was made to look like scenes from famous movies. The mall also hired employees to dress like characters from these movies. There are many types of shops in the mall, including six different jewelers; however, only one jeweler carries the very expensive Romex brand of watch that appeals to customers who are looking for status in their jewelry. Romex is practicing exclusive distribution by placing its brand in only one store in a given area.
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True False
Q 190Q 190
Fancy Feet sells high-quality socks and stockings by sending catalogs to customers and offering them a toll-free telephone number so that they can call in their orders 24 hours a day any day of the year. Fancy Feet uses telemarketing.
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True False
Q 191Q 191
Lazee Ladd Furniture obtains materials from several suppliers and uses these materials to produce its goods. It relies on several marketing intermediaries to help it distribute the furniture. Together, Lazee Ladd, its suppliers, and the marketing intermediaries are all part of a supply chain.
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True False
Q 192Q 192
A firm's promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.
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True False
Q 193Q 193
Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image.
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True False
Q 194Q 194
Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategy.
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True False
Q 195Q 195
Depending upon the promotional campaign, advertising may include paid and nonpaid forms of nonpersonal communication.
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True False
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True False
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True False
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Q 200Q 200
Magazine advertising's main strengths are high visibility, repeat exposures, and basically very low cost.
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Q 202Q 202
Radio advertising has certain shortcomings but offers businesses an opportunity to reach a specific target market.
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True False
Q 203Q 203
When it comes to reaching global markets, evidence supports the conclusion that the "one size fits all" approach to promotional mix design is best.
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True False
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Q 205Q 205
The primary emphasis of advertising today is to move from a regional approach in global markets to a total globalist approach.
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Q 206Q 206
When advertising in global markets it is important to remember that brand names and promotional campaigns can often be translated into a local language differently from what the marketer has attempted to say.
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True False
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True False
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True False
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Q 210Q 210
The average cost of a single sales call to a potential B2B buyer is expensive, costing as much as $500.
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Q 212Q 212
As one of the tools included in a firm's promotion mix, public relations is intended to earn public understanding and acceptance.
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True False
Q 213Q 213
To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders, and other corporate stakeholders.
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True False
Q 214Q 214
Using effective public relations involves establishing a dialogue with customers so that information can be exchanged and trust can be developed.
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True False
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Q 216Q 216
Unlike other promotional tools, such as advertising and personal selling, publicity is free.
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Q 217Q 217
Compared to effective comparative advertising, publicity is generally considered less believable.
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Q 218Q 218
One fact that marketers must keep in mind is that publicity can be either positive or negative.
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Q 219Q 219
Compared to advertising, publicity offers a firm greater control over when and how often the message is communicated.
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Q 220Q 220
Publicity works and is often used only if the media finds the information interesting or newsworthy.
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True False
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Q 222Q 222
Advertising reaches a national audience more effectively than it communicates with a local market.
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True False
Q 223Q 223
Mailing ads to nearby residents helps grocery stores reach their target market with information about special sales. This represents direct mail advertising.
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True False
Q 224Q 224
Magazines such as People, Sports Illustrated, and Bloomberg Businessweek pay for much of the cost of producing their publications by selling advertising space in the magazines.
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True False
Q 225Q 225
Informing consumers about goods and services represents advertising's only benefit to society.
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True False
Q 226Q 226
It is important to design promotional efforts specifically for individual countries or cultures and also with great care, at risk of the brand's not being appealing in the targeted market. For example, a Japanese company tried to use English words to name a popular drink and called it Pocari Sweat.
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True False
Q 227Q 227
According to the Making Ethical Decisions box, celebrities can earn thousands by tweeting their love for specific products and tag them #ad.
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True False
Q 228Q 228
In evaluating personal selling it is safe to conclude that it represents a form of individualized advertising.
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True False
Q 229Q 229
Businesses always welcome publicity because it presents the name of the firm and its products to the public for free.
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True False
Q 230Q 230
Marla has developed a new advertising message for one of her firm's new products. She has sent copies of the ad to all of the salespeople in the firm and asked them to stress the benefits mentioned in the ad when they call on their customers. Finally, the ad includes a free sample coupon to encourage people to try this new product. She is attempting to create one positive, unified brand image for the new product. Marla is practicing brand communication.
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True False
Q 231Q 231
Phil's activities as a salesperson for Marquette Publishing are part of Marquette's promotion mix.
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True False
Q 232Q 232
After adopting integrated marketing communication, Madison Furniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets.
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True False
Q 233Q 233
Businesses pay for product placement to have their products displayed in a TV episode of The Big Bang Theory or a feature movie.
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True False
Q 234Q 234
Anita enjoys her job as a salesperson for a store that sells high-quality entertainment systems. As an effective salesperson, Anita is expected to help her customers resolve any doubts they might have before the sale, and follow up to ensure that the customer is satisfied after the sale.
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True False
Q 235Q 235
Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson for a retail store selling top-quality electronics goods. While Bob is likely to be successful using follow-up after the sale, Sally should avoid this approach.
Free
True False
Q 236Q 236
After her sales presentation, Whitney asks her customers what color they prefer and if they would like to pay by credit card. She hopes that these questions will help the sales process move beyond the customer's questions and objections. With limited time, Whitney is utilizing a trial close to help finalize the sale more quickly.
Free
True False
Q 237Q 237
As customers walk into Phat Pat's clothing store, they are greeted by a salesperson who asks the question, "May I help you?" Studies indicate that this is an effective opening in the B2C sales process.
Free
True False
Q 238Q 238
As a manager for a firm that produces a variety of recreational equipment and sporting goods, Kevin is convinced that his firm markets the safest, highest-quality equipment in the entire industry. Recent studies from the Consumer Product Safety Commission support his position. Kevin feels that the best way to create an image of high-quality, safe products is to develop an extensive advertising campaign. Kevin realizes that publicity lacks the credibility that advertising can generate.
Free
True False
Q 239Q 239
Maryland Chemical demands complete control over any message communicated to the public regarding their products. The most efficient element of the promotion mix to achieve their desired control is publicity.
Free
True False
Q 240Q 240
Sales promotion involves the long-term strategies firms use to enhance their image by listening to the public.
Free
True False
Free
True False
Free
True False
Q 243Q 243
Internal sales promotion programs are targeted to reach the firm's internal auditors as well as external customers.
Free
True False
Q 244Q 244
Internal sales promotion efforts include training for salespeople and participation at trade shows where salespeople can meet potential customers.
Free
True False
Q 245Q 245
Internal sales promotion efforts target salespeople and employees that handle customer complaints.
Free
True False
Q 246Q 246
The use of coupons and sales contests represent internal public relations and sampling activities.
Free
True False
Q 247Q 247
The most effective sales promotion programs target customers, rather than employees and marketing intermediaries.
Free
True False
Q 248Q 248
It's just as important to generate employee enthusiasm about a product as it is to attract potential customers.
Free
True False
Q 249Q 249
Sampling represents a quick and effective way to demonstrate a product's superiority at the time when consumers are making a purchase decision.
Free
True False
Q 250Q 250
Anything that encourages people to talk favorably about an organization may be effective word-of-mouth promotion.
Free
True False
Q 251Q 251
Viral marketing describes everything from paying people to say positive things online to schemes where consumers get commissions for directing friends to specific websites.
Free
True False
Q 252Q 252
The popularity of the Internet has severely reduced the importance and effectiveness of word-of-mouth promotion.
Free
True False
Free
True False
Q 254Q 254
Any word-of-mouth promotion that puts a company's product in the public's attention is good promotion.
Free
True False
Q 255Q 255
Personal selling provides the most efficient element of the promotion mix for a firm attempting to reach a large, homogeneous group of consumers.
Free
True False
Q 256Q 256
In evaluating the promotion mix, it's fair to say that large organizations are best reached through personal selling.
Free
True False
Q 257Q 257
A pull strategy utilizes consumer demand for a product to motivate retailers and wholesalers to actively market the product.
Free
True False
Q 258Q 258
Push strategies target consumers with sales promotion and heavy discounting that are designed to create a strong demand for the product.
Free
True False
Q 259Q 259
The objective of a push promotional strategy is to move a product through a distribution channel by offering incentives to wholesalers and retailers to stock and sell the merchandise.
Free
True False
Q 260Q 260
Effective sales promotion efforts focus exclusively on external audiences such as dealers and consumers, since they ultimately decide the fate of a product.
Free
True False
Q 261Q 261
Sales promotion efforts such as trade shows aimed at distributors and dealers are intended to generate their enthusiasm for a firm's products.
Free
True False
Q 262Q 262
While word of mouth represents an effective promotional tool, the need for face-to-face communication limits its usefulness.
Free
True False
Q 263Q 263
To execute an effective promotional strategy, firms are required to choose between a push strategy and a pull strategy.
Free
True False
Q 264Q 264
According to the Adapting to Change box, companies can always control what is said about them online.
Free
True False
Q 265Q 265
As a salesperson for an electrical contractor, Greg is included as part of the target audience for sales promotions from his own company.
Free
True False
Q 266Q 266
Motivated by the disrespectful treatment he received at a department store, Karnell shared his bad experience on Yelp. He encouraged others to follow his lead and not patronize that store. Karnell's statements represent negative word of mouth.
Free
True False
Q 267Q 267
MuscleUp promotes its liquid protein drink directly to consumers through television ads, infomercials, and newspaper coupons. The company is making use of a push strategy to reach their customers.
Free
True False
Q 268Q 268
Nordic Track utilizes newspaper and TV ads designed to motivate potential buyers to seek out their product. This represents a push promotional strategy.
Free
True False
Q 269Q 269
Advertising the newest Hunger Games movie during Saturday Night Live on TV is an example of a pull strategy being used by the film's producers.
Free
True False
Q 270Q 270
When consumers calculate the value of a product, they:
A) subtract the cost of production from the market price.
B) eliminate all nontangible elements that might affect their perception of the product.
C) look at the benefits the product provides then subtract the cost.
D) identify the variable and the fixed components of the product's benefits.
Free
Multiple Choice
Q 271Q 271
Whether a consumer thinks a product provides the best value depends upon:
A) the actual product benefits.
B) the consumer's perceptions.
C) the global situation.
D) the laws covering the product's manufacture.
Free
Multiple Choice
Q 272Q 272
Restaurants, like other businesses, often find that the best way to succeed in the market is to:
A) listen to customers and adapt products to their needs.
B) create a product for which they could charge an exceptionally high price.
C) create a winning combination of advertising and personal selling for all of the stores in the chain.
D) open more stores in a single year than other food-service operators.
Free
Multiple Choice
Q 273Q 273
The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:
A) total product offer.
B) product mix.
C) product differentiation.
D) product package.
Free
Multiple Choice
Q 274Q 274
When people consider purchasing a good, they:
A) are responding to the market forces of supply and demand.
B) are most influenced by the price of the product or service.
C) will not consider goods that require them to make a special effort to purchase.
D) may evaluate and compare a variety of factors.
Free
Multiple Choice
Q 275Q 275
Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?
A) product matrix
B) product line
C) product mix
D) total product offer
Free
Multiple Choice
Q 276Q 276
The combination of product lines offered by a manufacturer is called the firm's:
A) product matrix.
B) product mix.
C) total product offer.
D) product portfolio.
Free
Multiple Choice
Q 277Q 277
The purpose of __________ is to create real or perceived product differences.
A) niche marketing
B) product differentiation
C) product mixing
D) target marketing
Free
Multiple Choice
Q 278Q 278
For small businesses, product differentiation:
A) is more difficult than it is for larger firms because of the high cost of product research and development.
B) usually concentrates on the pricing component of the total product offer.
C) can be an important strategy to gain market share.
D) is less important than it is for big firms with multiple product lines.
Free
Multiple Choice
Q 279Q 279
_________ is an important part of the total product offer for a product.
A) Consumer income
B) Management style
C) Employee personality
D) Packaging
Free
Multiple Choice
Q 280Q 280
Today, packaging is:
A) the least important component of the marketing mix.
B) assuming an increasingly important role in the promotion of products.
C) exclusively intended to protect the product from damage.
D) the most expensive component of the production process.
Free
Multiple Choice
Q 281Q 281
In marketing today, packaging carries the added responsibility of:
A) promotion and sales.
B) minimizing product liability.
C) gaining access to international markets.
D) keeping product costs down.
Free
Multiple Choice
Q 282Q 282
The __________ on packages were intended to improve inventory control for businesses.
A) stars and stripes
B) UPCs
C) lightweight adhesives
D) Unit Standard Inventory bars
Free
Multiple Choice
Q 283Q 283
The best product development strategy for most firms is to:
A) develop a small number of products that achieve market success and stick with them, because constantly changing old products (or introducing new ones) can confuse and frustrate customers.
B) maintain one product line while adding regularly to that product line over time to sustain customer interest.
C) constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
D) focus on the actual product or service and don't worry too much about factors such as image, price, and service.
Free
Multiple Choice
Q 284Q 284
When consumers decide to purchase a particular product, they:
A) will search for the retailer that offers the lowest price.
B) consider the total collection of benefits that the product offers.
C) base their decision on a brand name nearly all of the time.
D) initially evaluate the product's package.
Free
Multiple Choice
Q 285Q 285
The Spotlight on Small Business box showed us that as time passes, marketing plans should be reevaluated and:
A) successful products need a complete redesign.
B) no product changes should occur.
C) product lines should be abandoned.
D) product mixes expanded.
Free
Multiple Choice
Q 286Q 286
Successful product differentiation:
A) of consumer goods is determined exclusively by price.
B) can be based on either real or perceived differences in products.
C) is prohibited if it restricts price competition and market access.
D) is less important due to the growth of the Internet.
Free
Multiple Choice
Q 287Q 287
Which of the following would a firm most likely use to differentiate its product?
A) financial differences
B) increased production
C) elaborate packaging
D) manual warehousing
Free
Multiple Choice
Q 288Q 288
The trend away from personal salespeople to self-service in many retail outlets has caused firms to:
A) reduce their advertising promotional budgets.
B) rely more on personal sales efforts.
C) place a greater promotional importance on packaging.
D) decrease expenditures on interactive Web pages.
Free
Multiple Choice
Q 289Q 289
Attracting attention, describing contents, explaining benefits and identifying the uses of a product are all functions of:
A) target marketing.
B) UPCs.
C) packaging.
D) market segmentation.
Free
Multiple Choice
Q 290Q 290
Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.
A) proformatting
B) bartering
C) bundling
D) trademarketing
Free
Multiple Choice
Q 291Q 291
LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.
A) total product offer
B) product line
C) competitive environment
D) marginal utility package
Free
Multiple Choice
Q 292Q 292
Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests suggest that the candy itself, while quite good, isn't much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors, but sales continue to grow. This success indicates that:
A) consumers always behave in an irrational manner.
B) there is more to the total product offer than the physical product.
C) consumers seldom consider price when making a buying decision for goods such as chocolate.
D) chocolate is best classified as a convenience good.
Free
Multiple Choice
Q 293Q 293
In evaluating colleges, students and parents are likely to judge a school:
A) strictly on the basis of major curriculums offered.
B) based on the tuition.
C) by the collection of benefits offered by the school.
D) on the anticipated rate of return on their tuition investment.
Free
Multiple Choice
Q 294Q 294
John needed transportation. Now that his new marketing job was on the horizon, it was time to go shopping. New was probably going to be out of the question. As he reviewed his options, he listed the kinds of things he wanted in a vehicle: the ability to carry some large things; a comfortable back seat for his two dogs; 4-wheel drive for snow and ice; and economical on gas. Marketers know that today's consumers:
A) are educated and very savvy and are looking for features and not benefits.
B) are willing to pay just about any price if they find the features they want.
C) look for the best value (benefits outweigh the cost).
D) are always economically sensitive, first.
Free
Multiple Choice
Q 295Q 295
Borden, Inc., makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden's:
A) product line.
B) product mix.
C) product differentiation.
D) product life cycle.
Free
Multiple Choice
Q 296Q 296
The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's __________ in bar soaps.
A) product mix
B) product concentration
C) product store
D) product line
Free
Multiple Choice
Q 297Q 297
The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coke's:
A) product line.
B) product mix.
C) product position.
D) product collection.
Free
Multiple Choice
Q 298Q 298
"I Can't Believe That It's Medicine" is an advertising slogan for a new antacid. The manufacturer claims that their antacid works faster and tastes better than any competing brand. These claims are part of the firm's strategy to achieve:
A) deceptive marketing recognition.
B) the creation of knockoff products.
C) new-product development.
D) product differentiation.
Free
Multiple Choice
Q 299Q 299
As restaurant chains that specialize in Mexican cuisine, Fernando's and Carmelita's offer similar items on their menus. However, Fernando's restaurants are positioned in the market as elegant establishments with high prices. Carmelita's restaurants, on the other hand, are located in middle-class neighborhoods, with a casual atmosphere that welcomes families with young children. The prices at Carmelita's are in the moderate range. When evaluating the marketing strategies used by these restaurants, we can conclude that:
A) both practice product mix effectiveness.
B) they utilize product differentiation.
C) Fernando's has chosen a shopping good strategy.
D) their target markets differ, with one intended to appeal to the industrial market, and the other designed to attract the consumer market.
Free
Multiple Choice
Q 300Q 300
Comet Computer Company will make a splash with psychedelic laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Comet currently offers. This effort is an example of using ______________ to differentiate a product as new.
A) packaging
B) incremental coloring
C) incremental channeling
D) brand extension
Free
Multiple Choice
Q 301Q 301
The evaluation of packaging as a marketing function indicates that:
A) the package is less important as the Internet provides consumers with easily obtained information.
B) packaging carries more of the promotional burden of the product.
C) consumers are influenced less by packaging.
D) the primary purpose of packaging is to limit the product liability of businesses.
Free
Multiple Choice
Q 302Q 302
Which of the following statements about packaging is the most accurate?
A) Changes in packaging can improve the product itself and open up large new markets.
B) Packaging is the least critical element of a firm's promotional strategy.
C) Technology has had a very limited role in improving packaging.
D) Packaging has avoided federal regulations.
Free
Multiple Choice
Q 303Q 303
Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?
A) The importance of packaging has diminished as the use of the Internet has grown.
B) While packaging plays an important role in marketing goods, it is not relevant to the marketing of services.
C) Effective packaging eliminates the potential of product liability suits.
D) The importance of packaging is greater now than ever.
Free
Multiple Choice
Q 304Q 304
A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.
A) trademark
B) brand
C) logo
D) copyright
Free
Multiple Choice
Q 305Q 305
A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:
A) private brand.
B) promotional mark.
C) dealer brand.
D) trademark.
Free
Multiple Choice
Q 306Q 306
Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.
A) equity
B) identification
C) positioning
D) ownership
Free
Multiple Choice
Q 307Q 307
The degree to which customers are satisfied and are committed to future purchases of a desired brand is called:
A) brand awareness.
B) brand relations.
C) brand loyalty.
D) brand intensity.
Free
Multiple Choice
Free
Multiple Choice
Q 309Q 309
Which of the following refers to how quickly or easily a given brand name comes to mind when a product category is mentioned?
A) brand equity
B) brand loyalty
C) brand awareness
D) brand insistence
Free
Multiple Choice
Q 310Q 310
A ________ has direct responsibility for all the elements of the marketing mix for one brand or product line.
A) channel specialist
B) brand manager
C) product engineer
D) brand specialist
Free
Multiple Choice
Q 311Q 311
One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.
A) brand equity teams
B) equity specialists
C) product consultants
D) brand management teams
Free
Multiple Choice
Q 312Q 312
One of the reasons why companies create the position of brand manager is to:
A) have greater control over new-product development and promotion.
B) cut expenses associated with the marketing of products.
C) limit the amount of market research expenses products require.
D) identify and prosecute firms that violate trademark protection.
Free
Multiple Choice
Q 313Q 313
The job performed by brand managers:
A) is mainly concerned with the promotion of the entire product mix of their firm.
B) involves broad responsibilities for the marketing of a specific brand or product line.
C) is likely to become less important in firms that utilize the Internet.
D) focuses more on the pricing and promotion of established goods than on the development of new products.
Free
Multiple Choice
Q 314Q 314
The Reaching Beyond Our Borders box titled "Playing the Name Game" explains:
A) the importance of reality TV, and the various TV programs that have become international phenomena.
B) the procedure a business goes through to register its domain name.
C) how the positive appeal of a name can go a long way.
D) how it is important for businesses to play a name game with their customers. A company should produce a product and give it a different name in each country where it is sold.
Free
Multiple Choice
Q 315Q 315
Folgers's ____________ allows customers to easily identify this product from other coffee products.
A) patent
B) trade symbol
C) brand name
D) brand equity
Free
Multiple Choice
Q 316Q 316
The Pillsbury Doughboy is an example of a:
A) patent.
B) trademark.
C) private brand.
D) generic label.
Free
Multiple Choice
Q 317Q 317
Anheuser-Busch/In Bev Company, Inc., has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.
A) licensing agreement
B) brand name
C) copyright
D) trademark
Free
Multiple Choice
Q 318Q 318
SneezeNoMore markets a group of similar products for people suffering from the common cold. The products in this line are sold under the brand name SneezeNoMore. The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep. As an employee of SneezeNoMore, Jill is responsible for the marketing mix for the company's products. She is also involved in any major decisions concerning the development of new products that will be included in this product line. Jill serves as a(n):
A) brand manager.
B) market mix specialist.
C) target market manager.
D) product line specialist.
Free
Multiple Choice
Q 319Q 319
As a manager at Excitement Foods, Mark is responsible for the firm's Kool'nKreamy brand of ice cream. Recently, he approved a proposal to test market new ice cream flavors. He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign. Mark appears to be a:
A) product development manger.
B) target market manager.
C) brand manager.
D) commercialization manager.
Free
Multiple Choice
Q 320Q 320
The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.
A) product life cycle
B) marketing template
C) market stages model
D) commercialization time line
Free
Multiple Choice
Free
Multiple Choice
Q 322Q 322
The stages of the product life cycle are:
A) production, inventory, exchange, usage, and disposal.
B) conception, testing, production, commercialization, and obsolescence.
C) introduction, growth, maturity, and decline.
D) opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence.
Free
Multiple Choice
Q 323Q 323
The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:
A) growth-share matrix.
B) developmental life span analysis.
C) product life cycle.
D) product market progression index.
Free
Multiple Choice
Q 324Q 324
According to the product life cycle model, sales are expected to peak in the _________ stage.
A) introduction
B) maturity
C) growth
D) commercialization
Free
Multiple Choice
Q 325Q 325
According to the product life cycle model, profits tend to:
A) remain relatively constant until the decline stage, when they begin to drop.
B) reach a peak near the end of the maturity stage.
C) rise rapidly during the market preference stage.
D) peak before sales reach their highest level.
Free
Multiple Choice
Q 326Q 326
The product life cycle model helps marketers realize that:
A) consumers are always ready to try a new product if it is priced correctly.
B) different stages in the life cycle call for different marketing strategies.
C) sales and profit levels can be forecasted accurately.
D) careful product screening will increase profits over the life of a product.
Free
Multiple Choice
Q 327Q 327
Which of the following is a stage in the product life cycle?
A) commercialization
B) decline
C) peak
D) acceptance
Free
Multiple Choice
Q 328Q 328
As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires:
A) a different marketing strategy.
B) a consistent application of fundamental marketing practices.
C) an increase in the amount spent on advertising.
D) more emphasis on personal selling.
Free
Multiple Choice
Q 329Q 329
When reviewing the product life cycle model, it is important to remember that:
A) although all products go through each stage of the life cycle, the time frame can vary considerably from one product to another.
B) it is a theoretical model that may not be followed by all products.
C) the maturity stage accounts for the fastest growth in sales.
D) companies earn their largest profits in the introduction stage.
Free
Multiple Choice
Q 330Q 330
Once a good or service nears the end of its product life cycle, the firm recognizes that:
A) it is impossible to revert to an earlier stage of the model.
B) it can return to an earlier stage through creative marketing.
C) it will enjoy relatively high profits.
D) marketing dollars spent now will provide little benefit.
Free
Multiple Choice
Q 331Q 331
With a looming recession in front of him, department store owner Cooper Collins decided to make a gutsy move with his high-end Eastpointe stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?
A) Eastpointe recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits.
B) Eastpointe stores recognized several markets that it could reach with its upscale clothing lines.
C) Eastpointe positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position.
D) Eastpointe knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.
Free
Multiple Choice
Q 332Q 332
Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?
A) DVD players
B) Welch's grape jelly
C) HDTV
D) Camel cigarettes
Free
Multiple Choice
Q 333Q 333
Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, mobile phones are in what stage of the product life cycle in the U.S.?
A) introduction
B) growth
C) maturity
D) decline
Free
Multiple Choice
Q 334Q 334
Sales levels of Armstrong mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Armstrong's market lead. Based on this information, Armstrong mountain bikes are in which stage of the product life cycle?
A) introduction
B) growth
C) maturity
D) decline
Free
Multiple Choice
Q 335Q 335
Which of the following is a popular pricing objective?
A) increasing sales
B) increasing brand awareness
C) fixing prices among competitors
D) achieving less market share
Free
Multiple Choice
Q 336Q 336
Pricing is:
A) one of the 4 Ps of the marketing mix.
B) considered to be a part of promotion.
C) normally a government-regulated variable.
D) totally based on the cost of products.
Free
Multiple Choice
Q 337Q 337
Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.
A) tariffs
B) costs
C) market share
D) quotas
Free
Multiple Choice
Q 338Q 338
__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.
A) Price discrimination
B) Price leadership
C) Target costing
D) Cost-based pricing
Free
Multiple Choice
Q 339Q 339
A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.
A) skimming
B) penetration
C) target costing
D) price leadership
Free
Multiple Choice
Q 340Q 340
__________ is the process used to determine the profitability of a product at various levels of sales.
A) Cost-based pricing
B) Break-even analysis
C) Demand-based pricing
D) Competition-based pricing
Free
Multiple Choice
Q 341Q 341
Costs incurred regardless of the number of units of a product that are produced or sold are called:
A) mixed costs.
B) controllable costs.
C) fixed costs.
D) variable costs.
Free
Multiple Choice
Q 342Q 342
_______ costs are those costs that increase as the level of production increases.
A) Fixed
B) Mixed
C) Variable
D) Uncontrollable
Free
Multiple Choice
Q 343Q 343
The number of units of a product that must be sold for total revenue to equal total costs is called the:
A) equilibrium volume.
B) balanced quantity.
C) contribution margin.
D) break-even point.
Free
Multiple Choice
Q 344Q 344
At the break-even point:
A) profits are maximized.
B) variable costs are equal to total fixed costs.
C) target profit is achieved.
D) total revenue is equal to total cost.
Free
Multiple Choice
Q 345Q 345
Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?
A) penetration strategy
B) odd-even pricing strategy
C) skimming strategy
D) price lining strategy
Free
Multiple Choice
Q 346Q 346
_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.
A) High-low pricing
B) Everyday low pricing (EDLP)
C) Bundling
D) Psychological pricing
Free
Multiple Choice
Q 347Q 347
A skimming pricing strategy:
A) allows low-income households the ability to purchase a particular good or service.
B) drives competitors out of business in order to achieve a monopoly position in the market.
C) creates a "common man" image to reach a larger market.
D) establishes a high price in order to earn the highest possible profit while there is little competition.
Free
Multiple Choice
Q 348Q 348
The _________ pricing strategy maintains low prices and avoids the use of special sales.
A) everyday low pricing (EDLP)
B) cost-based
C) target-based
D) skimming
Free
Multiple Choice
Q 349Q 349
Department stores often use _________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.
A) penetration
B) bundling
C) strategic
D) high-low
Free
Multiple Choice
Q 350Q 350
Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:
A) penetration
B) bundling
C) skimming
D) cost-based
Free
Multiple Choice
Q 351Q 351
A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:
A) market fixing.
B) price penetration.
C) price leadership.
D) primary pricing.
Free
Multiple Choice
Q 352Q 352
Which of the following strategies establishes a price based on the actions of rival firms?
A) competition-based pricing
B) cost-based pricing
C) demand collection system
D) bundling
Free
Multiple Choice
Q 353Q 353
The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents:
A) competition-based pricing.
B) cost-based pricing.
C) target orientation.
D) demand-oriented pricing.
Free
Multiple Choice
Q 354Q 354
Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer websites.
A) nonprice competition
B) relationship branding
C) niche marketing
D) break-even segmentation
Free
Multiple Choice
Q 355Q 355
One way a small firm can succeed against larger competitors is to:
A) determine their break-even point price.
B) add value to their product offering.
C) eliminate the fringe benefits offered to frequent customers.
D) use break-even segmentation.
Free
Multiple Choice
Q 356Q 356
One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:
A) consumers aren't concerned about prices.
B) these methods have no impact on the cost of production.
C) nonprice differences are tax deductible.
D) relatively similar products can be enhanced.
Free
Multiple Choice
Q 357Q 357
As firms develop their marketing mix, it is important to remember that:
A) prices must be linked directly to the cost of production.
B) instincts and past history are the best guides in determining price.
C) regardless of the strategy used, prices ultimately reflect the forces of supply and demand.
D) firms are often restricted in creating pricing strategies by relevant government rules and guidelines.
Free
Multiple Choice
Q 358Q 358
The cost of raw materials used to produce a good or service represent the firm's ________ costs.
A) fixed
B) variable
C) mixed
D) uncontrollable
Free
Multiple Choice
Q 359Q 359
The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called:
A) cost-based pricing.
B) target costing.
C) penetration pricing.
D) skimming pricing.
Free
Multiple Choice
Q 360Q 360
The formula for break-even analysis includes which of the following components?
A) depreciation
B) forecasted sales
C) forecasted cash requirements
D) variable cost per unit of output
Free
Multiple Choice
Q 361Q 361
The rent a firm pays each month for office space is an example of a(n):
A) fixed cost.
B) variable cost.
C) mixed cost.
D) uncontrollable cost.
Free
Multiple Choice
Q 362Q 362
Which of the following is a potential problem with a high-low pricing strategy?
A) It confuses and frustrates customers.
B) It places too much emphasis on nonprice competition.
C) It teaches customers to wait for sales, and therefore reduces profits.
D) It is difficult to implement.
Free
Multiple Choice
Q 363Q 363
Shopping online allows customers to compare prices of many goods and services. This technology will likely:
A) cause businesses to increase their focus on nonprice aspects of their promotional message.
B) bring about more emphasis on demand-oriented pricing.
C) diminish in importance as quickly as other fads.
D) focus government attention on the collusive pricing practices of firms in specific industries.
Free
Multiple Choice
Q 364Q 364
Many products are promoted by emphasizing their key benefits, rather than setting the price lower than that of competitive goods. This emphasis on the product's benefits illustrates a(n) _______ strategy.
A) penetration
B) nonprice competition
C) industry leader
D) bundled package
Free
Multiple Choice
Q 365Q 365
Which of the following statements about nonprice competition is most accurate?
A) While still important, nonprice competition is becoming less critical as a result of the Internet.
B) Marketers often rely on nonprice differences in their competitive strategy to enhance a relatively homogeneous product.
C) Nonprice competition is much more important to large firms than it is to small firms.
D) As microeconomic theory suggests, firms have found that nonprice competition plays a secondary role that supplements the more important competition based on price.
Free
Multiple Choice
Q 366Q 366
American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy.
A) price skimming
B) price leadership
C) market pricing
D) price discrimination
Free
Multiple Choice
Q 367Q 367
Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to:
A) achieve a target profit.
B) reduce the break-even quantity.
C) build traffic and increase the customer base.
D) create an upscale image.
Free
Multiple Choice
Q 368Q 368
Phil asks you to calculate the break-even point for his firm. You respond that you will need the following information:
A) the values for all assets and liabilities.
B) total fixed costs, selling price per unit, and variable costs per unit.
C) forecasted sales volume, operating expenses, and asset values.
D) sales revenue and total liabilities.
Free
Multiple Choice
Q 369Q 369
Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.
A) high-low pricing
B) penetration
C) bundling
D) skimming
Free
Multiple Choice
Q 370Q 370
Barker Brothers Pens utilizes a strategy of low-priced pens to attract customers and discourage competition. This represents a _______ strategy.
A) high-low
B) bundling
C) skimming
D) penetration
Free
Multiple Choice
Q 371Q 371
Derek's company was bidding on the construction of a new penguin display at a world-famous zoo. When putting together his bid, Derek began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. The result would be the cost of production. For example: If price to zoo = $6 million, and company profit margin = $2 million, the cost to produce cannot exceed $4 million. [$6 million - $2 million = $4 million.] The demand-based pricing strategy in this example is called ___________.
A) target costing
B) penetration pricing
C) cost-based pricing
D) volume pricing
Free
Multiple Choice
Q 372Q 372
In the fall semester, Alex noticed that the plastic cola bottles in the vending machines at his university had changed shape. Upon further investigation, he realized that each bottle contained 2 ounces less beverage than previous bottles, even though he paid the same price as last semester. The pricing objective of the beverage company is to:
A) increase profits by reducing the amount provided in each bottle.
B) build traffic at the vending machines by changing the shape of the bottle.
C) undercut the competition by changing the shape of the bottle.
D) increase market share by reducing the amount provided in each bottle.
Free
Multiple Choice
Q 373Q 373
What does a break-even point of 100 units mean to a firm?
A) The firm must sell 100 units to maximize its profits.
B) Fixed costs plus variable costs equals 100 units.
C) By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
D) If the firm sells 100 units, its total revenues will equal its total costs.
Free
Multiple Choice
Q 374Q 374
Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:
A) cost-based pricing strategy.
B) supply and demand formula.
C) demand-based pricing strategy.
D) price leadership pricing strategy.
Free
Multiple Choice
Q 375Q 375
Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited. Her fixed costs associated with adding the greeting cards would be $300. Variable costs per card are $1 each. The greeting cards will sell for $2 each. Helen's break-even point would occur at ________ cards sold.
A) 125
B) 150
C) 300
D) 600
Free
Multiple Choice
Q 376Q 376
Felicia wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $20 per unit, her fixed costs are $6,000, and the variable costs per unit are $15. What is her break-even point?
A) 300 units
B) 400 units
C) 1,200 units
D) 1,100 units
Free
Multiple Choice
Q 377Q 377
Angie owns a small company that markets high-quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie?
A) Keep costs as low as possible by offering a no-frills approach with little or no extra services.
B) Develop a skimming pricing strategy.
C) Utilize a high-low approach to pricing with a higher break-even point.
D) Focus on nonprice competition by offering better service with customers and work on building good customer relationships.
Free
Multiple Choice
Q 378Q 378
As a graphic artist, Nate has just finished producing a new calendar. His calendar cost him $1.00 for the shiny paper, $2.00 for the six color production, and $.25 for the plastic wire that holds it together at the top. The labor in developing the design was 4 hours of work at $50/hour, and labor is being added to the rest of the fixed costs of $400.00. At a price of $12.00 per calendar, how many calendars will Nate need to produce and sell in order to break even (cover all his costs, but not make a profit)?
A) 690 calendars
B) 25 calendars
C) 40 calendars
D) 69 calendars
Free
Multiple Choice
Q 379Q 379
Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to:
A) provide frequent travelers the added value of special fringe benefits.
B) cut costs and services in order to maintain profit margins.
C) reduce flights and in-flight services, and lay off employees.
D) determine the break-even price and charge slightly more than that.
Free
Multiple Choice
Q 380Q 380
Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:
A) directed marketers.
B) distributive specialists.
C) marketing intermediaries.
D) supplementary marketers.
Free
Multiple Choice
Q 381Q 381
A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.
A) channel of distribution
B) marketing network
C) input-output matrix
D) mode of distribution
Free
Multiple Choice
Q 382Q 382
A _________ is a marketing intermediary that sells products to other organizations.
A) wholesaler
B) retailer
C) disintermediary
D) jobber
Free
Multiple Choice
Q 383Q 383
A __________ is a marketing intermediary that sells to ultimate consumers.
A) channel captain
B) wholesaler
C) secondary marketer
D) retailer
Free
Multiple Choice
Q 384Q 384
A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.
A) agent
B) retailer
C) drop shipper
D) merchant wholesaler
Free
Multiple Choice
Q 385Q 385
Marketing intermediaries:
A) are unlikely to survive in a competitive global economy.
B) have survived because they can often perform marketing functions faster and at lower cost than producers.
C) create value, but this value is seldom great enough to justify the added cost they charge for their services.
D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.
Free
Multiple Choice
Q 386Q 386
Marketing intermediaries:
A) add value that exceeds the cost of their services.
B) add cost that exceeds the value they provide.
C) increase the number of exchange relationships in the channel.
D) complicate the distribution process.
Free
Multiple Choice
Q 387Q 387
Which of the following statements about channels of distribution is most accurate?
A) Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between.
B) Channels of distribution always include retailers, but they may or may not also include wholesalers.
C) The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be.
D) Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.
Free
Multiple Choice
Q 388Q 388
The primary difference between retailers and wholesalers is that:
A) retailers sell consumer goods, while wholesalers sell industrial goods.
B) retailers operate in local areas, while wholesalers operate over a wide geographic area.
C) retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.
D) retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more.
Free
Multiple Choice
Q 389Q 389
Which of the following statements about marketing intermediaries is true?
A) All channels of distribution must contain at least one marketing intermediary.
B) Marketing intermediaries and their functions can be eliminated.
C) Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.
D) The costs added to products by marketing intermediaries usually exceed the value they add to products.
Free
Multiple Choice
Q 390Q 390
Nina Corby owns a card shop in a small shopping center where she sells cards produced by a national company. Nina sells to final customers, so she is a:
A) merchant wholesaler.
B) retailer.
C) rack jobber.
D) channel captain.
Free
Multiple Choice
Q 391Q 391
Patrick Bolger is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Patrick uses will be part of his:
A) wheel of retailing.
B) market network.
C) channel of distribution.
D) franchise system.
Free
Multiple Choice
Q 392Q 392
Suppose that eight bakeries each tried to sell their products directly to seven supermarkets. The total number of exchange relationships that would be established is:
A) 14.
B) 25.
C) 56.
D) 72.
Free
Multiple Choice
Q 393Q 393
Mark
A) Teer believes he has found a surefire way to save money. He advises his friends, "Buy direct from the manufacturer. Any time intermediaries get involved, you'll pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." Mark's advice:
A) is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price.
B) is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is.
C) is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add.
D) is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.
Free
Multiple Choice
Q 394Q 394
Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a:
A) channel captain.
B) broker.
C) wholesaler.
D) logistics specialist.
Free
Multiple Choice
Q 395Q 395
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Sharp Focus carries out this plan, it is likely to find that:
A) most of the marketing functions performed by marketing intermediaries are helpful, but they aren't really necessary.
B) as the producer of the products, it will be able to perform the same functions more efficiently.
C) it will be unable to perform the functions as efficiently as they were performed by the marketing intermediaries.
D) telemarketing will become the only viable means of distributing its products.
Free
Multiple Choice
Q 396Q 396
____________ wholesalers are independently owned and take title to the goods they handle.
A) Full service broker
B) Merchant
C) Agent
D) Primary
Free
Multiple Choice
Q 397Q 397
Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
A) rack jobbers
B) retailers
C) cash-and-carry wholesalers
D) agents and brokers
Free
Multiple Choice
Q 398Q 398
The main way __________ differ from agents is that they do not develop long-term relationships with the buyers or sellers they assist.
A) brokers
B) rack jobbers
C) wholesalers
D) sales discounters
Free
Multiple Choice
Q 399Q 399
Discount stores, supermarkets, and department stores are all common types of:
A) multilevel marketers.
B) full-service wholesalers.
C) retail stores.
D) category killers.
Free
Multiple Choice
Q 400Q 400
A(n) __________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws.
A) department store
B) discount store
C) outlet store
D) specialty store
Free
Multiple Choice
Q 401Q 401
Discount stores owe much of their success to a competitive strategy based on:
A) low prices.
B) extra service.
C) special credit arrangements.
D) a wide selection in a limited number of categories of goods.
Free
Multiple Choice
Q 402Q 402
Retailers such as jewelry stores, shoe stores, and bicycle shops are:
A) department stores.
B) discount stores.
C) warehouse clubs.
D) specialty stores.
Free
Multiple Choice
Q 403Q 403
A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods.
A) department store
B) category killer store
C) saturation retailer
D) cash-and-carry retailer
Free
Multiple Choice
Q 404Q 404
A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy.
A) extensive
B) shotgun
C) universal
D) intensive
Free
Multiple Choice
Q 405Q 405
A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area.
A) intensive
B) selective
C) exclusive
D) restrictive
Free
Multiple Choice
Q 406Q 406
A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.
A) selective
B) restrictive
C) exclusive
D) solitary
Free
Multiple Choice
Q 407Q 407
___________ means selling goods and services to ultimate consumers over the Internet.
A) Electronic retailing
B) B2B distribution
C) E-selling
D) Intercommerce
Free
Multiple Choice
Q 408Q 408
___________ is the sale of goods and services by telephone.
A) Cel-tailing
B) Teleselling
C) Telemarketing
D) Direct marketing
Free
Multiple Choice
Q 409Q 409
Vending machines are most often used to sell:
A) shopping goods.
B) convenience goods.
C) specialty goods.
D) inferior goods.
Free
Multiple Choice
Q 410Q 410
Mall owners like to have __________ located along the walkways of their malls, because they create a marketplace type of atmosphere.
A) cartels
B) storettes
C) kiosks
D) minimarts
Free
Multiple Choice
Q 411Q 411
Companies who send salespeople to customers' homes or places of work are making use of __________ selling.
A) direct
B) point of contact
C) downline
D) nonretail
Free
Multiple Choice
Q 412Q 412
Direct mail, telemarketing, and catalog sales are all common examples of:
A) direct marketing.
B) downline selling.
C) multilevel marketing.
D) direct selling.
Free
Multiple Choice
Q 413Q 413
Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
A) direct selling.
B) online marketing.
C) direct marketing.
D) kiosk-based.
Free
Multiple Choice
Q 414Q 414
Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a:
A) multifunction network.
B) supply chain.
C) critical distribution path.
D) marketing priority network.
Free
Multiple Choice
Free
Multiple Choice
Q 416Q 416
Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
A) intensive
B) exclusive
C) selective
D) restrictive
Free
Multiple Choice
Q 417Q 417
___________ would probably be distributed using an intensive strategy.
A) iPads
B) High-def television sets
C) Men's suits
D) Popular magazines
Free
Multiple Choice
Q 418Q 418
Which of the following firms would be most likely to use a selective distribution strategy for its products?
A) Newspaper publisher
B) Maker of designer men's suits
C) Super luxury car manufacturer
D) Maker of snack foods such as potato chips and pretzels
Free
Multiple Choice
Q 419Q 419
Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?
A) Carry a large inventory of their products
B) Provide limited service and delivery for their products
C) Sell their products at substantially discounted prices
D) Pay attention to the multiple competing brands that they carry
Free
Multiple Choice
Q 420Q 420
Which of the following statements provides the most accurate distinction between an agent and a broker? Agents:
A) represent final buyers while brokers represent marketing intermediaries.
B) represent one manufacturer in a large sales area, while brokers represent several different manufacturers in a smaller area.
C) develop a long-term relationship with the people they represent, while brokers are usually hired on a temporary basis.
D) take title to the goods they help distribute, while brokers never assume ownership of the products they distribute.
Free
Multiple Choice
Q 421Q 421
Paper 'N More sells a variety of office supplies to small businesses and local offices. The fact that it sells only to other firms and not consumers indicates that Paper 'N More engages only in:
A) wholesale sales.
B) mass marketing.
C) pure retailing.
D) second-tier retailing.
Free
Multiple Choice
Q 422Q 422
The characteristic that all forms of direct marketing have in common is that they:
A) are carried out by agents or brokers.
B) involve face-to-face or teleconferencing sessions with the customer.
C) include some type of activity that directly links manufacturers to the ultimate consumer.
D) make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.
Free
Multiple Choice
Q 423Q 423
In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing,
A) upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
B) upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit.
C) upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.
D) upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.
Free
Multiple Choice
Q 424Q 424
Which of the following statements identifies a key advantage of direct marketing? Direct marketing:
A) enables salespeople to close a non-refundable sale in the customer's home or place of work.
B) allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
C) is popular with consumers because it is so convenient to shop from home or work.
D) creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.
Free
Multiple Choice
Q 425Q 425
Compared to rail transportation, one of the advantages of shipping by truck is that trucks:
A) are more energy efficient.
B) can carry a greater volume.
C) can reach more destinations.
D) are less expensive.
Free
Multiple Choice
Q 426Q 426
Compared to railroads and trucks, the biggest advantage offered by air transport is that it is:
A) faster.
B) more dependable.
C) lower in cost.
D) able to reach more destinations.
Free
Multiple Choice
Q 427Q 427
Which of the following would be the best example of a broker?
A) Tri-State Lumber Supply does not actually store, handle, or deliver lumber, but rather solicits orders from retail hardware and home improvement stores, takes title to the lumber, then arranges for it to be shipped directly from sawmills to the retail stores.
B) Jill Moon helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does she develop long-term relationships with the buyers or sellers.
C) Hal Hinton is not an employee of Hyloft Golf Clubs, but he does solicit sales for their products at golf and sporting goods stores in a fairly large sales territory.
D) Spence Coker is employed by a vacuum cleaner company, and goes door-to-door selling products produced by his company.
Free
Multiple Choice
Q 428Q 428
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willing to fund the production of the jewelry abroad, as long as the designers agreed to sell their design through its outlets for the first two years. The retailer was asking the designers to agree to __________________.
A) intensive distribution
B) exclusive distribution
C) multi-level distribution
D) selective distribution
Free
Multiple Choice