BUS 560 FINAL EXAM
BUS 560 FINAL EXAM (Chapters 6-11) 11ed
1. Many personal care products bring to the purchaser feelings of self-enhancement and security
in addition to the essential benefits they offer. This is an illustration of
A. An extended product
B. A generic product
C. Tangible product
D. Conventional product
2. The physical entity that is offered to the buyer is known as a(n)
A. Extended product
B. Value product
C. Tangible product
D. Generic product
3. The tangible product along with the whole cluster of services that accompany it is called a(n)
A. Extended product
B. Intangible product
C. Generic product
D. Conventional product
4. Which of the following is a basic assumption underlying product classification schemes?
A. Each product is unique and should be marketed differently
B. The same marketing strategy can be used for all product types
C. Products with common attributes can be marketed in a similar fashion
D. Products should be differentiated on the basis of profit margins
5. Products having limited number of buyers are better known as a
A. Limited market
B. Vertical market
C. Horizontal market
D. Non-segmented market
6. Which of the following best describes a horizontal market?
A.
These markets offer only specialty goods so that consumers will make a special effort to buy
them
B. These markets offer certain products that have a limited number of buyers
C.
These markets offer goods that are purchased by all types of firms in many different
industries
D.
These markets include only those convenience goods that are purchased frequently and with
minimum effort
7. Convenience goods generally require
A. Broadcast promotion and long channels of distribution
B. Broadcast promotion and short channels of distribution
C. Targeted promotion and long channels of distribution
D. Targeted promotion and short channels of distribution
8. _____ goods are purchased frequently with minimum effort.
A. Convenience
B. Specialty
C. Shopping
D. Organizational
9. Which of the following best fits the definition of total-quality management?
A.
It is a method used to minimize manufacturing costs through large-volume production units
and thus lower distribution costs
B.
It encompasses high quality adherence only for consumer goods that generally require
broadcast promotion and long channels of distribution
C. It is the degree of excellence or superiority that an organization's product possesses
D.
It is a commitment to satisfy customers by continuously improving every business process
involved in delivering products or services
10. Identify the correct statement from the following.
A. The number of outlets is few for convenience goods
B. The time spent planning for a shopping good is very little
C. The price and quality are compared in the case of shopping goods
D. The stock turnover is reasonably high for specialty goods
11. An alternative to line extension is a(n) _____, where a current brand name is used to enter a
completely different product class
A. Line extension
B. Brand extension
C. Dual branding
D. Franchise extension
12. Arm & Hammer first introduced a line of toothpastes with the Arm & Hammer brand. The
introduction of a mouthwash and a chewing gum using the Arm & Hammer brand name are
examples of a(n)
A. Line extension
B. Product mix addition
C. Brand extension
D. Franchise extension
13. Mama Moo's began by manufacturing butter. Today this company also produces Mama Moo's
cream cheese, which is an example of
A. A brand extension
B. A product mix addition
C. A franchise extension
D. Dual branding
14. When a corporate name is attached to a product to enter into an entirely new market segment,
for example, Honda lawnmower and Toyota Lexus, it would be an example of a
A. Multibranding strategy
B. Franchise extension
C. Dual branding strategy
D. Line extension
15. Products ranging from cranberries to grapefruits marketed by Ocean Spray are sold under the
Ocean Spray corporate name. Ocean Spray uses
A. Dual branding
B. Singular branding
C. Family branding
D. Associate branding
16. Procter & Gamble makes Camay soap for those concerned about soft skin and Safeguard soap
for those who want deodorant protection. What is the strategy used by P&G?
A. Multibranding
B. Joint branding
C. Product extension
D. Brand extension
17. All of the following are advantages of using multiple brand names except
A. The firm can distance products from other offerings it markets
B. The image of one product is not associated with other products the company markets
C. The products can be targeted at a specific market segment
D. The probability of a product failure impacting on other company products is maximized
18. Who ultimately determines brand equity?
A. Advertisers
B. Employees
C. Consumers
D. Management
19. Products that are equivalent to national brands but are priced much lower are called
A. Premium brands
B. Value brands
C. Quality brands
D. Deluxe brands
20. Arizona jeans, which is a store brand of J.C. Penney Company, is an example of a
A. National brand
B. Private label brand
C. Dual quality brand
D. Deluxe brand
21. Which of the following observations about marketing strategies used during various stages of
the product life cycle is true?
A. Sales promotion is not used in the maturity stage
B. Limited number of channels are used during the growth stage
C. Communication is always high during the decline stage
D. A defensive strategy is adopted during the maturity stage
22. The diffusion of innovation is
A. Used to describe an audit task that is carried out at regular intervals
B. Described using five adopter categories
C. The term used for the introductory stage of the life-cycle
D. Used to emphasize the effect of sales after the product has been introduced
23. According to the adopter categories, consumers who are first to purchase a product are known
as
A. Innovators
B. Early adopters
C. Laggards
D. Early majority
24. According to the adopter categories of diffusion of innovation, the biggest category of buyers is
divided into groups called the
A. Innovators and laggards
B. Laggards and late majority
C. Early majority and late majority
D. Early majority and innovators
25. A company changes the packaging of one of its existing products to make it more attractive to
consumers. The company has undertaken product improvement by changing the
A. Marketing dimensions
B. Product attributes
C. Channels of distribution
D. Promotional strategy
26. In improving a product, the term "attributes" mainly refer to
A. Product price
B. Product features
C. Promotion strategy
D. Distribution channels
27. Clothes Store sent a manager to visit the L.L.Bean warehouse to determine how the warehouse
employees are able to pick and package merchandise three times as fast as Clothes Store's
workers. By comparing the work performed by the warehouses' workers with the retailer's
employees, Clothes Store was able to improve its own operation. Clothes Store engaged in
A. Capacity planning
B. Product rejuvenation
C. Benchmarking
D. Product renewal
28. Which of the following is not true of benchmarking?
A. It helps enhance the product quality
B. It is used to develop more user-friendly products
C. It increases delivery lead times
D. It improves customer order-processing activities
29. General Foods has managers who are solely responsible for each of its brands of coffee - Brim,
Maxwell Houses, International Coffee, Sanka and Yuban. These brand managers are
A. Responsible for everything from research to advertising for their products
B. Often considered to be superior to the marketing managers
C. A part of the system that is also known as category management
D. Only concerned with the product's sales and product planning
30. Which of the following observations is true of the brand-manager system?
A.
Brand managers have difficulties in their line of work because they do not have authority
commensurate with their responsibilities
B.
Also known as the category-management system, the brand-manager system has been
criticized on several dimensions
C.
Under a brand-manager system, a manager focuses on all the functional areas of marketing
such as research, advertising, sales promotion, sales and product planning
D.
Organizations such as PepsiCo, Purex, Eastman Kodak and Levi Strauss use some form of
brand-manager system
31. Compared to current products, new product sales typically`
A. Grow very slowly
B. Remain the same
C. Grow far more rapidly
D. Come down
32. A major obstacle to effectively predicting new product demand is
A. Competition
B. Market segmentation
C. Limited vision
D. Market research
33. Products that take a firm into a product type new to it, but that are not new to the world are
known as
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements
34. Hallmark sells cards, gift-wrapping materials and collectibles. However, in the summer of 2000,
Hallmark added fresh-cut flower arrangements to its product offering. In which of the new
product categories would the floral arrangements fall?
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements
35. Identify the products that are considered as flankers to the firm's current market.
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements
36. For the last decade, Green Giant has sold frozen vegetables in various types of sauces. In
2002, the company changed its packaging and began offering frozen vegetables in re-sealable
bags with separate frozen sauce pellets. In which of the new product categories would this new
method of packaging frozen vegetables fall?
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements
37. "Details" magazine was introduced to the market as a raw and bold "underground nightlife
magazine." Sales were low, so the publisher of the magazine re-launched it as a fashion and
lifestyle magazine for twenty something males. In which of the new product categories would
this product fall?
A. New-to-the-world products
B. New category entries
C. Product improvements
D. Repositioning
38. Minefree Games Inc. develops and markets mobile entertainment software. The company's
application portfolio includes single and multiplayer games, ring tones and other entertainment
content. Their most popular mobile game is the Nightfly200. Recently, they released a new
improved version compatible with all major mobile handsets, the Nightfly 201 series. Which is
the product category that would best describe Nightfly 201 series?
A. New-to-the-world products
B. Additions to product lines
C. Repositionings
D. Product improvements
39. Healthfood Inc. manufactures jelly, made out of gelatin - a colorless, edible protein - in various
fruit flavors. The company discovers that women used powdered gelatin dissolved in acetylene
- a liquid organic compound - to strengthen their fingernails. It introduces a flavorless jelly as a
nail-building agent. The new-use strategy was directed toward revamping the sales of a product
whose growth, based on its original conceived use, had slowed down. Identify the product
category involved.
A. Additions to product lines
B. Product improvements
C. Repositionings
D. New category entries
40. Coca-Cola plans to launch a new version of Diet Coke called Diet Coke Plus. The drink will be
similar to the current Diet Coke, but it will be fortified with vitamins and minerals. The Diet Coke
Plus would be a part of which of the following new products based categories?
A. New-to-the-world products
B. New category entries
C. Product improvements
D. Repositionings
41. The manufacturer of Snapple lemonade adds a diet lemonade beverage to its current markets.
This is an example of
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements
42. Avon first marketed its Skin So Soft lotion as a body lotion to compete with other similar body
lotions. Today Avon promotes its Skin So Soft lotion as an insect repellant that is good to your
skin. In which of the new product categories would Skin So Soft lotion fall?
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Repositionings
43. An approach to the new product question developed by H. Igor Ansoff is termed
A. Corporate marketing
B. Marketing mix
C. Growth vectors
D. Benchmarking
44. The use of movie stars like Brad Pitt on NBC's Friends television show is a strategy used to
find new viewers for the existing show. It also helps in increasing NBC's market share. NBC
encourages such guest appearances to implement which growth strategy?
A. Market development
B. Product development
C. Market saturation
D. Diversification
45. Which of the following is an example of a product development strategy?
A. Jeep introduces a new four-wheel drive vehicle to replace the Jeep Cherokee
B. McDonald's continually seeking expansion into overseas markets
C.
A carpet manufacturer introduces an organic stain remover designed to remove even the
worst spills
D. The manufacturer of Nine Lives cat food adds a line of flea collars
46. What kind of new product strategy is being used when an automobile manufacturer introduces a
new car model to replace an existing one?
A. Market development
B. Product development
C. Market diversification
D. Market penetration
47. Which of the following growth strategies are examples of product mix strategies?
A. Diversification and market penetration
B. Product development and diversification
C. Market development and diversification
D. Market development and market penetration
48. Which of the following organizational growth strategies deal with present products in present
markets?
A. Diversification
B. Product development
C. Market development
D. Market penetration
49. Which of the following is (are) critical to providing an atmosphere that stimulates new product
activity?
A. Unionization
B. Politics within the organization
C. Top-management support
D. External consultants
50. To facilitate top-management support, it is essential that new product development be focused
on
A. Designing new selling concepts
B. Facilitating rapid R&D
C. Gathering vast channel sources
D. Meeting market needs
51. Define a strategic alliance.
A.
Members from many different departments coming together to jointly establish new product
development goals and priorities
B. A relationship between an organization and it employees
C.
A long-term partnership between two organizations designed to accomplish the strategic
goals of both parties
D. A relationship between a business and the community in which it is headquartered
52. Aerospace Technologies, Australia, had an idea for a new airplane rudder. When it could not
gain access to the resources it needed to develop the new product, it entered into a long-term
partnership with Boeing. Today Boeing uses this rudder on its 777 commercial passenger jet.
The relationship between Aerospace and Boeing is an example of a(n)
A. Merger
B. Budget plan
C. Acquisition
D. Strategic alliance
53. Identify the two methods commonly used for creating and managing project teams.
A. Idea screening and observational research
B. Test marketing and marketing applications
C. Skunkworks and rugby approach
D. Idea generation and consumer research
54. Various alternatives exist for creating and managing cross-functional product development
teams. Two of the better-known methods are the establishment of skunkworks and
A. Rugby approach
B. The iceberg method
C. Idea equity
D. The tag team approach
55. Best City Co. opened Mobile Phone-only stores at nine locations in Manhattan to gauge
consumer's reactions to them. These stores, called Best City Mobile, carried more than 80
cell phones from big manufacturers. Shoppers here also had the option to choose from seven
mobile phone service carriers. Based on positive consumer reaction and the success of these
stores, Best City opened stores nation wide. This is an example of
A. Product development
B. Test marketing
C. Project planning
D. Idea screening
56. What is the main goal of a test market?
A.
Evaluate and adjust the general marketing strategy to be used and the appropriate marketing
mix
B.
Emphasize on the organizational structure and management talent needed to implement the
marketing strategy
C.
Evaluate the product plan from the standpoint of engineering, manufacturing, finance and
marketing
D.
Increase frequency of consumption or increase the number of customers using the firm's
product(s)
57. The product-launch step where the firm commits to introducing the product into the marketplace
is referred to as
A. Commercialization
B. Test marketing
C. Personal selling
D. Direct marketing
58. Identify the stage where heavy emphasis is placed on the organization structure and
management talent needed to implement the marketing strategy.
A. Commercialization
B. Test marketing
C. Personal selling
D. Direct marketing
59. In the development of new products, marketers have several important decisions to make about
the characteristics of the product itself. These include all of the following except
A. Quality level
B. Product features
C. Geographic reach
D. Product design
60. What is a guarantee?
A.
Unstated promises that businesses have to compensate buyers if their products fail to
perform
B. The measure used to check if products conform to established standards of safety
C. An assurance that the product is as represented and will perform properly
D. A promise by the customer to pay for goods and services in a timely manner
61. Positive images can create value for customers by adding
A. Meaning to products
B. Features to products
C. Design elements to products
D. Price details to products
62. Building relationships with wholesalers and retailers would pertain to which of the following
strategic goals of marketing communication?
A. Create awareness
B. Build channel relationships
C. Retain customers
D. Identify prospects
63. The promotion mix of which of the following products is most likely to contain short-run
incentives?
A. An essential commodity
B. An established product requiring nonpeak sales season stabilization
C. A product in the decline stage of the product life cycle
D. A product in the research and development stage of the product life cycle
64. If the product is a new complex technology that requires a great deal of explanation, its
promotional mix will most likely
A. Focus heavily on personal selling
B. Contain short-run incentives
C. Rely more on advertising
D. Rely on mass media to answer buyer questions
65. This paid form of nonpersonal communications may use media such as outdoor displays, car
cards, directories, etc., to reach out to a target audience.
A. Direct marketing
B. Advertising
C. Personal selling
D. Sales promotion
66. Which of the following statements about personal selling is true?
A.
It is a paid form of communication about an organization, its products or its activities that is
transmitted through a mass medium
B.
It is a nonpersonal form of communication that seeks to influence the attitudes, feelings and
opinions of customers, noncustomers and stockholders
C.
It is face-to-face communication with potential buyers to inform them about and persuade
them to buy an organization's product
D.
It can take the form of direct mail, online marketing, catalogs, outdoor displays, telemarketing
and direct response advertising
67. All of the following are promotional efforts undertaken when a new product is introduced in the
market, except
A. Making sure that buyers are aware of the product
B. Changing the product design according to buyer needs
C. Convincing buyers of the product's value
D. Informing the customer about the benefits of the product
68. Identify a nonpersonal form of communication that seeks to influence the attitudes, feelings and
opinions of customers, noncustomers, stockholders, suppliers, employees and political bodies
about the organization.
A. Personal selling
B. Door to door selling
C. Telemarketing
D. Public relations
69. If a product is a new complex technology that requires a great deal of explanation, the
promotional mix will most likely focus heavily on _____ so that potential buyers can have their
questions answered.
A. The mass media
B. Sales promotion
C. Advertising
D. Personal selling
70. According to the concept of integrated marketing communication, potential buyers usually go
through all of the following stages except
A. Conviction that the product has value for them
B. Ordering the product
C. Enhancing product image through publicity
D. Awareness of the product or service
71. A traditional approach to marketing communications
A. Uses one communication management agency
B. Focuses on mass marketing and customer acquisition
C. Uses cross-functional planning and monitoring
D. Focuses on creating core competencies
72. The generalist viewpoint about the contribution of advertising to the economic health of the firm
is primarily concerned with all of the following except
A. Sales
B. Profits
C. Return on investment
D. Effects of specific ads
73. Which method of determining advertising spending attempts to determine retail price by using
production costs as a base?
A. Percent of sales
B. The task approach
C. Per-unit expenditure
D. All you can afford
74. Using economic power to gain favorable publicity is a concern associated with this element.
A. Public relations
B. Advertising
C. Sales promotion
D. Personal selling
75. A local hardware store owner is preparing an advertising budget for his firm for the year.
He uses data on the proportion of sales that other hardware stores in the region allocate to
advertising as a base. Which of the following methods for establishing an advertising budget is
he using?
A. All you can afford
B. Task approach
C. Competitive parity
D. The research approach
76. "Advertising is defensive" is the basic philosophy underlying which of the following approaches?
A. Competitive parity
B. Per-unit expenditure
C. Percent of sales
D. The research approach
77. From a strategy standpoint, this is a "followership" technique.
A. Competitive parity
B. Per-unit expenditure
C. Percent of sales
D. The research approach
78. A product is advertised on a popular radio channel and is targeted at office goers driving
back from work in the evening. However, due to traffic and other distractions, some of the ads
message gets lost. In terms of the communication process this hampering of communications is
an example of
A. Encoding
B. Decoding
C. Noise
D. Positioning
79. Identify the disadvantage of advertising through the internet.
A. Short message life
B. High cost per exposure
C. High information content
D. Ads can be placed in interest sections
80. Advantages of the radio as a major advertising media include all of the following except
A. Audience selectivity via station format
B. Mass use
C. Standardized rate structures
D. Low cost
81. The number of times, on average that people are exposed to an advertisement within a given
time period is known as
A. Average frequency
B. Reach intensity
C. Frame rate
D. Time to target market
82. High school juniors who were considering applying to the University of Southern Mississippi
were asked to rank five different print ads intended to increase the enrollment to the college.
The ads were to be ranked according to believability, interest-level and attractiveness. The
survey the students filled out was an example of a(n)
A. Opinion test for evaluating specific ads
B. Recall test to determine ad effectiveness
C. Awareness test for evaluating specific advertising objectives
D. Recognition test for determining the number of people who are aware of an ad campaign
83. Identify the procedure for evaluating specific advertising objectives where potential buyers are
asked to indicate brands that come to mind in a product category. A message used in an ad
campaign is given and buyers are asked to identify the brand that was advertised using that
message.
A. Awareness
B. Attitude
C. Opinion
D. Publicity
84. Which of the following pertains to price deals as a form of consumer promotion?
A. Customers are offered regular trial sizes of the product either free or at a nominal price
B. Customers are offered discounts from the product's regular price
C. Additional amounts of the product are given to buyers when they purchase the product
D.
Customers are given reimbursements for purchasing the product either on the spot or
through the mail
85. Which of the following statements about trade sales promotions is true?
A. Trade promotions are those promotions which are aimed at consumers
B. A major objective of trade promotions is to encourage consumers to repurchase
C.
Promotions built around price discounts and advertising or other allowances are likely to have
lower distributor/retailer participation levels
D. Trade promotions encourage retailers to give the product more favorable shelf space
86. All of the following are stated objectives of consumer promotions except
A. Inducing the consumer to try the product
B. Rewarding the consumer for brand loyalty
C. Stimulating the consumer to make repeat purchases of the product
D. Convincing retailers to carry the manufacturer's products
87. In which type of consumer promotion are prizes available to consumers either through chance
selection or games of skill?
A. Rebates and refunds
B. Coupons
C. Sweepstakes and contests
D. Premiums
88. The objective of a news release is to
A. Inform members of the media of an event in the hope that they will convert it into a story
B. Announce major news events such as new products, technologies, mergers
C. Request members of the media to donate time for advertising for contributions and donors
D. Compile facts developed by journalists published in the print media
89. This is a form of publicity wherein nonprofit organizations rely on the media to donate time for
advertising for contributions and donors.
A. Public service announcements
B. Sponsorship
C. Press releases
D. News conference
90. Identify the public relations tool used for providing support for and associating the organization's
name with events, programs or even people such as amateur athletes or teams.
A. Sponsorship
B. News release
C. News conference
D. Public service announcement
91. Personal selling, unlike advertising or sales promotion, involves
A. Customer inducements
B. Direct relationship between buyer and seller
C. Mass marketing
D. A non-personal medium
92. _____ are in the best position to act as the intermediary, through whom valuable information
can be passed back and forth between buyers and producers.
A. Shareholders
B. Financiers
C. Advertisers
D. Salespeople
93. One of the main tasks of the salesperson providing after-sale service is
A. Delivery or installation of the product or service that meets or exceeds customer expectations
B. Gathering information about prospects
C. Selling additional or complementary items to repeat customers
D. Converting undecided customers into first-time buyers
94. Genesis International has developed a new device for monitoring refrigerant leaks in
supermarket refrigerated display cases. The devices are in compliance with recent
environmental protection legislation. To find supermarkets and convenience stores interested
in its new product, Genesis's sales department took out a full page in a trade publication called
Grocery Equipment. The ad had a coupon which any interested store owner or manager could
use to request further information. Genesis is using _____ for its prospecting.
A. Selected-lead searching
B. Prospect recruiting
C. Mass qualifying
D. Random lead generation
95. Which of the following is generally considered to be a salesperson's best source of prospects?
A. Editorials
B. Referrals from satisfied customers
C. Company employees
D. Financial publications
96. _____, as a source of generating leads, can be used by a salesperson by tying into a
company's direct mail, telemarketing and trade shows to secure and qualify leads.
A. Canvassing
B. Promotional activities
C. Screening
D. Center of influence
97. A sales person using canvassing as a source of lead generation would
A. Try to generate leads by calling on totally unfamiliar organizations
B. Use secondary data sources to generate leads, which can be free or fee-based
C. Write personal letters to potential leads
D. Contact current and previous customers for additional business and leads
98. Brad Wilson sells a scanner that converts large documents to an electronic format for editing
and printing items up to six feet long and four feet wide. He spent this morning showing his
product to the marketing manager of a large department store, which had been identified by his
sales force as a prospect. The manager is excited about the idea of being able to get multiple
use of a graphic designed sign. When Brad asks the manager if she is willing to buy, she
says, "No, all purchases must be made through our purchasing department." Brad now knows
that the manager
A. Was completely wasting his time
B. Is a qualified prospect
C. Is an unqualified lead
D. Should have been better screened
99. To find potential advertisers for Birder's World magazine, Allie Hagher attended the 2002
Birdwatch America trade show in College Park, Georgia. Which of the following methods did
Hagher use to find leads?
A. Centers of influence
B. Canvassing
C. Promotional activities
D. Endless chain
100
.
Sylvia Keyes is a salesperson at Eltron International. She sells handheld bar code verifiers.
The verifier interfaces with a retail store's computer and uses a point-and-shoot device to read
bar codes and confirm that products are marked correctly. Today Sylvia is planning on using
canvassing as a source for generating leads. This means that she will be
A. Asking current and previous customers for the names of potential customers
B. Using directories of retail outlets to locate potential customers
C. Trying to generate leads by calling on stores which are totally unfamiliar to her
D. Trying to secure the name of at least one potential customer from each customer she talks to
101
.
During the production era of the evolution of personal selling, the role of the salesperson was as
a
A. Persuader
B. Value creator
C. Problem solver
D. Provider
102
.
The main activity of the salespeople in the sales era of the evolution of personal selling was
A. Taking orders, delivering goods
B. Aggressively convincing buyers to buy the products
C. Matching available offerings to buyers needs
D. Creating new alternatives, matching buyers needs with seller capabilities
103
.
Which of the following observations pertaining to objections during a sales presentation is true?
A. Objections are typically best handled by ignoring them
B. Objections can arise at any time during the sales presentation
C.
A good salesperson only allows objections to be raised once the sales presentation is
concluded
D.
In handling an objection, a salesperson should be willing to challenge the prospect's opinion
and experience
104
.
Salespeople who can adapt their _____ to individual buyer's needs and styles have much
stronger overall performance than less flexible counterparts.
A. Selling style
B. Personal style
C. Leadership style
D. Management style
105
.
In response to an objection, the salesperson should _____ the customer.
A. Not challenge
B. Argue with
C. Listen passively to
D. Actively challenge
106
.
If at the end of a sales call, commitment is not obtained, salespeople should analyze the
reasons and determine whether
A. More sales calls are necessary to obtain commitment
B. The prospects objections should have been challenged more strongly
C. Information given could have been manipulated to hide the products shortcomings
D. The prospect decisions could be influenced by deprecating the competing product.
107
.
When organizations move beyond functional relationships, they develop
A. Prospect maximization
B. Strategic partnerships
C. Dissonance transformation
D. Functional alliances
108
.
Which of the following is not a key reason for the increased use of cross-functional sales
teams?
A. Increased customer satisfaction
B. Superior decision making through synergy
C. More flexibility in decision making
D. Frequent marketing programs
109
.
AT&T and Sovintel, a Russian telephone company, joined forces to offer high speed ISDN
services for digitized voices, data and video communications between the two countries. By
working together, the telecommunications companies could reach more businesses than either
could do alone. The relationship between AT&T and Sovintel is an example of a
A. Transactional relationship
B. Relational subsidy
C. Strategic alliance
D. Functional relationship
110
.
A company has a technically complex product which is extremely high priced and is being
sold to the whole organization. Specialized knowledge is also required by units of the buying
organization. The organization is most likely to use _____ in this situation.
A. Missionary salespeople
B. Technical sales specialists
C. Cross-functional sales teams
D. New prospects
111
.
The distribution channel for a line of products for cleaning hazardous waste sites starts at
the manufacturer, moves to the distributor and stops at the end user. The manufacturer has
_____ who call on distributors to offer suggestions on how they can better market the cleaning
products and to train their sales force in product usage.
A. Prospects
B. Technical sales specialists
C. Missionary agents
D. Advertisers
112
.
In which of the following situations would an organization most likely use a cross-functional
sales team?
A.
To sell $200,000 printing press for a company that publishes school directories for colleges,
universities and high schools all over the United States
B. To convince pharmacies to promote a new cold remedy
C.
To implement an ad campaign for a local used car dealer who claims to sell at least 50 cars in
a month and at a good profit margin
D. To replace a couple of computers in a university computer lab
113
.
In a _____, each salesperson is assigned to prospects and customers for a particular product or
product line.
A. Product structure
B. Geographical structure
C. Marketing structure
D. New task approach
114
.
A sales structure where a company makes use of team selling to focus on major customers to
establish long-term relationships is called
A. Major account management
B. Coparity support
C. Product structure
D. Geographic structure
115
.
One of the advantages of a customer structure is that it
A. Can result in large sales and satisfied customers
B. Is inexpensive
C.
Evenly distributes a salesperson time among a large number of customers as opposed to
being devoted to a singe customer
D. Limits the distance each salesperson must travel to see customers
116
.
_____ can be the largest marketing expense component in the final price of the product.
A. Research and development
B. Product development
C. Personal selling
D. Persuasion
117
.
The _____ of sales forecasting combines and averages the views of top management
representing marketing, production, finance, purchasing and administration.
A. Sales force composite method
B. Customer expectations method
C. Correlation analysis
D. Jury of executive opinion method
118
.
A commonly used sales forecasting method that involves analyzing past sales data and the
impact of factors that influence sales is known as
A. Sales force composite method
B. Customer expectations method
C. Time-series analysis
D. Jury of executive opinion method
119
.
Controlling the sales force would involve all of the following key functions except
A. Forecasting sales
B. Establishing sales territories and quotas
C. Undertaking research and development
D. Motivating and compensating performance
120
.
In order to forecast sales for a marketing management text book, the bookstore owner analyzed
past sales data and the impact of the number of books on similar topics released in the market.
The bookstore owner used _____ for its sales forecasting.
A. Jury of executive opinion method
B. Sales force composite method
C. Customer expectations method
D. Time-series analysis
121
.
A manufacturer of bathtubs could measure the relationship between its sales and the number
of new houses being built in a particular region to forecast its sales in that region. This type of
forecasting is an example of
A. Jury of executive opinion method
B. Sales force composite method
C. Customer expectations method
D. Correlation analysis
122
.
A sales forecasting method that obtains the combined views of the sales force about the future
outlook for sales is
A. Jury of executive opinion method
B. Sales force composite method
C. Customer expectations method
D. Correlation analysis
123
.
The establishment of sales territories and sales quotas represents the management's need to
match personal selling efforts with
A. Sales potential
B. Customer wants
C. Advertising
D. Production
124
.
_____ provide(s) quantitative standards against which the performance of individual sales
representatives or other marketing units can be measured.
A. Sales strategies
B. Promotional mix
C. Sales quotas
D. Market research
125
.
_____ allows the company to monitor whether salespeople are engaging in activities such
as calling on new accounts, collecting past due accounts and planning and developing sales
presentations to the extent desired.
A. Quantitative quotas
B. Activity quotas
C. Market research
D. Productivity logs
126
.
An effective sales manager should assign quotas not only for dollar sales but also for each
major
A. Strategy implemented
B. Product developed
C. Sales forecast
D. Selling function
127
.
Which of the following is a results oriented measure for evaluating sales people?
A. Number of demonstrations completed
B. Number of checks on reseller stocks
C. Distributor sales-inventory ratios
D. Number of inquiries followed up
128
.
Sales forecasts should include a(n)
A. Sales expense budget
B. Activity quota
C. Strategic alliance
D. Mission statement
129
.
An important task for the sales manager, which also is major determinant of sales force
productivity, is
A. Motivating and compensating the sales force
B. Undertaking research and development
C. Taking part in production activities
D. Recruiting employees for the organization
130
.
Which of the following is not useful for motivating salespeople?
A. Positive feedback on salesperson's evaluation
B. Travel allowance
C. Positive feedback on performance evaluations
D. Deductions in incentives
131
.
The _____ provide(s) the ultimate consumer or organizational buyer with time, place and
possession utility.
A. Marketing plan
B. Strategic plan
C. Channels of distribution
D. Marketing concept
132
.
Identify the merchant establishment operated by a concern primarily engaged in buying, taking
title to, usually storing and physically handling goods in large quantities and reselling the goods
to retailers or to organizational buyers.
A. Broker
B. Wholesaler
C. Middleman
D. Facilitating agent
133
.
A broker
A.
Is an independent business concern that operates as a link between producers and ultimate
consumers or organizational buyers
B. Is a merchant middleman who is engaged primarily in selling to ultimate consumers
C. Assists in the performance of distribution tasks other than buying, selling and transferring title
D.
Does not usually have physical custody of products and is not looked upon as a permanent
representative of either the buyer or the seller
134
.
_____ is a facilitating function of channels of distribution.
A. Financing
B. Buying
C. Selling
D. Transporting
135
.
In transactional functions of channels of distribution, contacting potential customers, promoting
products and soliciting orders is concerned with
A. Buying
B. Assorting
C. Selling
D. Sorting
136
.
Major functions performed in the channels of distribution include all of the following, except
A. Buying
B. Selling
C. Producing
D. Financing
137
.
Public warehouses, trucking companies, credit unions and railroad companies are all examples
of
A. Facilitating agents
B. Merchant middlemen
C. Merchandise jobbers
D. Product sellers
138
.
Which of the following observations about direct channels of distribution is true?
A. Direct marketing is a good example of an indirect distribution center
B.
The movement of products from a manufacturer, to a wholesaler, to a retailer, to a consumer
is an example of a direct channel
C. No more than two intermediaries are ever used in a consumer physical distribution channel
D.
In contrast to consumer products, the direct channel is often used in the distribution of
organizational goods
139
.
Identify the incorrect conventional channel of distribution of consumer goods?
A. Manufacturer to agent to wholesaler to retailers to consumers
B. Manufacturer to retailers to wholesaler to consumers
C. Manufacturer to consumers
D. Manufacturer to retailers to consumers
140
.
Gateway 2000 sold computers through a variety of methods which included telemarketing,
catalog selling and cable selling and online selling. Identify the type of channel used by
Gateway 2000.
A. Direct channel
B. Indirect channel
C. Peer to peer marketing
D. Indirect marketing
141
.
Channels with one or more intermediaries are referred to as
A. Administered systems
B. Direct channels
C. Indirect channels
D. Centralized channels
142
.
In the consumer markets, _____ are used when manufacturers do not wish to have their own
sales force.
A. Wholesalers
B. Planners
C. Agents
D. Producers
143
.
All of the following are reasons why manufacturers may not wish to have their own sales forces
except
A. It may not be economical for sellers to have their own sales teams
B. The market may be geographically too dispersed
C. It is always more efficient to have outside sales agents
D. The market may consist of too many small customers
144
.
Which among the following requires a direct channel of distribution and why?
A. Cream dessert, because it is perishable
B. Beer cans, because they are inexpensive
C. Soda cans, because they are perishable
D. Box of candies, because they are prestige products
145
.
All of the following are environmental characteristics that need to be considered in channel
planning except
A. Degree of standardization
B. Technological changes
C. Economic conditions
D. Political issues
146
.
Distribution coverage can be viewed along a continuum ranging from intensive to selective
to
A. Segmented distribution
B. Divisional distribution
C. Exclusive distribution
D. Proportional distribution
147
.
The general considerations in channel planning include customer characteristics, company
characteristics, environmental characteristics, product characteristics, competitor characteristics
and
A. Structural characteristics
B. Individual characteristics
C. Intermediary characteristics
D. Behavioral characteristics
148
.
Which of the following is a company characteristic that needs to be considered while channel
planning?
A. Past channel experience
B. Product perishability
C. Geographic dispersion of consumers
D. Number of competitors
149
.
All of the following are competitor characteristics considered during channel planning,
except
A. Their distribution channels and strategy
B. Their financial condition and estimated marketing budget
C. Their overall marketing strategy employed
D. Their past channel experiences
150
.
During channel planning, all of the following customer characteristics are considered except
A. Geographic dispersion
B. Preferred channels and outlets for purchase
C. Degree of standardization
D. Purchasing patterns
151
.
Why would a manufacturer of health and beauty products share promotional expenditures with
its intermediaries as well as provide them with the computer software needed for an inventory
system?
A. To shorten its channel of distribution
B. To avoid having to perform risk-taking activities
C. To avoid having to perform any sorting activity
D. To maintain a degree of control over its intermediaries
152
.
All of the following are stated characteristics of perfect intermediaries except
A.
They provide services to customers—credit, delivery, installation and product repair—and
honor the product warranty conditions
B.
They carry adequate stocks of the manufacturer's products and a satisfactory assortment of
other products
C. They have access to the market that the manufacturer wants to reach
D. They build product demand for these products by advertising them
153
.
In many places much of the population has moved from inner cities to suburbs and thus buyers
make most of their purchases in shopping centers and malls. If a manufacturer had a long-term
_____ dealership with retailers in the inner city, the ability to adapt to the population shift from
inner cities to suburbs could have been severely limited.
A. Selective
B. Extensive
C. Exclusive
D. Widespread
154
.
More recently, a new view of distribution channels has developed which recognizes that much
can be gained by developing long-term commitments and harmony among channel members.
This view is referred to as
A. Customer service
B. Team building
C. Relationship marketing
D. Conflict resolution
155
.
In terms of distribution costs, a distributor of petroleum products might be able to optimize total
system performance if it could minimize
A. Its inventory carrying costs
B. The number of products it sells
C. The number of products in the introductory stage of the product life cycle
D. The time spent on personal selling
156
.
Channels in which members are more dependent on one another and develop long term
working relationships in order to improve the efficiency and effectiveness of the system are
called
A. Virtual marketing systems
B. Horizontal marketing systems
C. Vertical marketing systems
D. Disintegrated marketing systems
157
.
_____ involve independent production and distribution companies entering into formal contracts
to perform designated marketing functions.
A. Administered systems
B. Contractual systems
C. Selective systems
D. Corporate systems
158
.
In which of the following type of contractual vertical marketing systems do a group of
independent retailers unite and agree to pool buying and managerial resources to improve
competitive position?
A. Retail cooperative organization
B. Wholesaler-sponsored voluntary chain
C. Franchising programs
D. Sponsored organizational programs
159
.
Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it
partially or wholly owns. Sears participates in a _____ vertical marketing system.
A. Retail cooperative
B. Contractual
C. Selective
D. Corporate
160
.
A manufacturer purchasing wholesalers or retailers is called
A. Forward integration
B. Backward integration
C. A wholesaler-sponsored voluntary chain
D. A franchising program
161
.
Which of the following is an example of backward integration?
A. A manufacturer purchasing wholesalers
B. A wholesaler purchasing channel members above it
C. A wholesaler purchasing retailers
D. A manufacturer purchasing retailers
162
.
Which of the following key ingredients of a franchised business involves the explanation and
codification of prescribed methods of buying and selling?
A. Commercial knowledge
B. Technical knowledge
C. Managerial techniques
D. Accounting controls
163
.
Merchants that are primarily engaged in buying, taking title to, usually storing and physically
handling goods in large quantities and reselling the goods to retailers or to industrial or business
users are called
A. Retailers
B. Logistics companies
C. Wholesalers
D. Vendors
164
.
Which of the following observations about wholesaling is true?
A.
While producers actively seek out wholesalers for their goods, wholesalers do not actively
seek out producers
B.
Agents, brokers and manufacturers' representatives are types of wholesalers that take title to
the merchandise they sell
C.
Wholesalers create value for retailers, producers and users of goods by performing all or
some of the distribution functions efficiently and effectively
D. Wholesalers do not typically engage in relationship marketing
165
.
_____ carry broad product assortments and compete on the basis of offering a good selection
in a number of different product categories and offering lower prices on products in their large
assortments.
A. Specialty stores
B. Mass merchandisers
C. Convenience stores
D. Catalogs and direct Mails
166
.
Mass merchandisers compete with other retailers on the basis of
A. Where they are located as they have a wide geographical reach
B. The sales promotion done by them, which are substantially better than other retailers
C. Offering a good selection in a number of different product categories
D. How much personal selling is done by their retail sales forces
167
.
Which of the following observations about nonstore retailing is true?
A.
There is no way a catalog retailer can reduce the disadvantage associated with the fact that
consumers can't experience the product before they buy it
B.
Net sales are higher for products sold through TV home shopping than for products sold
through vending machines
C.
Net sales are higher for products sold through electronic exchanges as compared to catalogs
and direct mail
D.
In the business-to-consumer market, electronic exchange is the fastest growing nonstore
method of retailing
168
.
All of the following are "information search" oriented questions that Web site designers must
contemplate except
A. Ease of navigation
B. Effectiveness of search features
C. Checkout process
D. Ease of product comparisons
169
.
Which of the following a disadvantage of electronic commerce to marketers?
A. Strong price competition
B. High entry barriers
C. Not suited for homogeneous products
D. Does not allow full description of product features and benefits
170
.
Which of the following companies would have the greatest disadvantage if it were to try to sell
its products through an electronic exchange?
A. A well known department store like Sears
B. A well-known catalog retailer like Lillian Vernon
C. A small perfume manufacturer
D. A large consumer products manufacturer
171
.
_____ on pricing decisions concern primarily the nature of the target market and expected
reactions of consumers to a given price or change in price.
A. Government influences
B. Environmental influences
C. Supply influences
D. Demand influences
172
.
Which of the following is an example of a demographic factor that is important to the pricing
decisions made for a new type of low-fat cereal for children?
A. How many boxes of the low-fat cereal will be consumed by a household in a month?
B. What price will indicate the quality of the cereal?
C. How will price elasticity affect the pricing?
D. Will potential buyers be attracted to the cereal if its manufacturer uses odd pricing?
173
.
Which of the following is an example of a psychological factor that is important to the pricing
decisions made for collectible dolls that sell for $299?
A. What is the discretionary income of prospective buyers of the doll?
B. Will prospective buyers view the doll's high price as an indicator of high quality?
C. Are the prospective buyers of the doll geographically clustered?
D. How many prospective buyers can afford to pay this much for a doll?
174
.
Hertz economy cars are rented for $129 rather than $130 to appear less expensive. This best
describes
A. Prestige pricing
B. Bundle pricing
C. Mark-up pricing
D. Odd-even pricing
175
.
When Greta went to buy some bedding plants for a flowerbed she was building, she noticed that
a six-pack of plants was for $.79, a 3-inch container with one plant was for $.99 and a 5-inch
container was for $1.29. This example indicates that the seller is using
A. Odd pricing
B. Bundle pricing
C. Prestige pricing
D. Exorbitant pricing
176
.
Winnie runs an ice cream cooler at the beach each summer. Her brother doesn't charge her
rent for setting up her ice cream cooler in his stand. Each bar of ice cream costs her $.20. She
adds on an additional $.20 to each bar to pay for electricity for the freezer, napkins and her
time, selling the ice cream finally at $.40 per bar. Winnie uses
A. Bundle pricing
B. Cost-plus pricing
C. Odd pricing
D. Markup pricing
177
.
In Canada, Home Depot shows it is serious about always having the lowest prices by using an
animated hammer that is shown in its ads smashing prices to make them even lower. In the
United States, Wal-Mart uses a smiley face in its ads because it has low prices. Both stores are
promoting their use of _____ pricing strategy.
A. Everyday low
B. Target-return
C. Rate-of-return
D. High/low
178
.
Kroger uses a strategy of price discrimination to increase profits. It charges higher prices to
customers who are not price sensitive and low prices to price sensitive customers who will wait
for sales. Identify the pricing strategy of Kroger.
A. Target pricing
B. Odd-even pricing
C. High/low pricing
D. Discount pricing
179
.
The estimated production and sales for a coffee table book on celebrity gardening is 50,000
volumes at a total cost of $750,000. Calculate the sales price for each book if the publisher
desires a before-tax return of 25 percent.
A. $12.50
B. $15.00
C. $18.75
D. $30.00
180
.
Which of the following is a product consideration in pricing?
A. Affordability
B. Distinctiveness
C. Target return on investment
D. Target market share
181
.
Which of the following statements about product distinctiveness is true?
A. All commodities have a high degree of distinctiveness
B.
Producers of fruits, vegetables and processed food cannot increase their products'
distinctiveness
C.
Branding and brand equity are commonly used to make products distinctive in the minds of
the customer
D.
Products can be distinctive in the sense that demand for them is confined to a specific time
period
182
.
The fixed costs for manufacturing hand-painted wooden decorative plaques are $7,000. The 5-
inch oval plaques are sold at craft fairs for $2.25. Variable costs to produce 100 plaques are
$100. What is the break-even point in units?
A. 1,786 plaques
B. 3,111 plaques
C. 5,600 plaques
D. 7,000 plaques
183
.
Manufactured goods can be differentiated on the basis of certain features, such as package,
trademark, engineering design and chemical features. These features highlight the _____ of the
product.
A. Distinctiveness
B. Perishability
C. Life cycle
D. Intangibility
184
.
Ned buys old lawn mowers, reconditions them and sells them for $225. He knows he needs to
sell 80 mowers to break even. Calculate Ned's variable cost per lawn mower if his fixed costs
are $8,000.
A. $125
B. $100
C. $80
D. $150
185
.
Game Cube video game console was launched with an introductory price of $199.95, which
was quite low for products of this category. The reasoning behind this low pricing was that the
game cube manufacturers expected competition to move in rapidly. Identify the pricing policy
used here.
A. Penetration policy
B. Prestigious policy
C. Skimming policy
D. Going-rate policy
186
.
For which of the following products is the seller most likely to use going-rate pricing?
A. Sports cars
B. Wedding apparel
C. Whole milk
D. Designer furniture
187
.
A new device "Sniffer", used for testing alcohol levels in drunken driving suspects, is priced
out of the reach of most law enforcement units. Those units that have bought the Sniffer are
extremely pleased with its results and the fact that these results are readily accepted in court.
There is nothing on the market today that has the accuracy and the portability of the Sniffer. The
manufacturer of the Sniffer is likely to be using _____ pricing.
A. Penetration
B. Odd
C. Skimming
D. Going-rate
188
.
The two most important environmental influences in pricing decisions are competition and
A. Price elasticity
B. Government regulations
C. Demographic conditions
D. Psychological factors
189
.
Which is the primary law that is used to protect companies from price fixing?
A. Sherman Antitrust Act
B. Robinson-Patman Act
C. Federal Trade Commission Act
D. Clayton Act
190
.
An important legal constraint on pricing is that
A. Promotional pricing, such as cooperative advertising and price deals are illegal per se
B.
Price fixing is not illegal per se, but sellers must make agreements with competitors or
distributors concerning the final price of the goods
C. Price discrimination that lessens competition or is deemed injurious to it is outlawed
D.
Deceptive pricing practices are allowed under Section 5 of the Federal Trade Commission
Act
191
.
Marking merchandise with an exceptionally high price and then claiming that the lower selling
price actually used represents a legitimate price reduction, is an example of
A. Deceptive pricing
B. Odd pricing
C. Bundle pricing
D. Mark-up pricing
192
.
How does an organization know if its promotional allowances are legal?
A. They are legal if they are given proportionally to all buyers
B. They are not legal if they cannot satisfy all consumer wants
C.
They are legal if they enable the target market to purchase goods at prices lower than other
customers
D.
They are legal if the sellers make agreements with competitors or distributors concerning the
final price of the goods
193
.
Which legal tool monitors the illegal practice of granting price reductions to some customers
under the guise of promotional allowances?
A. Clayton Act
B. Federal Trade Commission Act
C. Robinson-Patman Act
D. Sherman-Antitrust Act
194
.
The sales of Noritake dinner plates are high even though a Noritake dinner plate is priced
relatively high for its product class. This is because it offers high quality, has special features
and consumers view it as a prestige product. The pricing used by Noritake can be best
described as
A. Value pricing
B. Markup pricing
C. Deceptive pricing
D. Bundle pricing
195
.
In which step of the general pricing model do we estimate how much of a particular product the
target market will purchase at various price levels?
A. Analyzing profit potential
B. Evaluating product-price relationships
C. Changing price as needed
D. Estimating costs and other price limitations
196
.
One of the price limitations that need to be considered by manufacturers is
A. The price that is charged by competitors for similar and substitute products
B. Offering quantity discounts for purchasing a large number of units
C. The payments made to retailers to get them to stock items on their shelves
D. To redesign the product so that its costs are lower
197
.
If a product cannot be produced and marketed at a price to cover its costs and provide
reasonable profits in the long run, then one possibility is to
A. Redesign the product so that its costs are lower
B. Mark the product at an exceptionally high price
C. Negotiate price fixing agreements with competitors and distributors
D. Offer discounts to customers on proportionately unequal terms
198
.
An individual who buys a twenty-four-issue subscription to Ellery Queen Mystery Magazine
saves $49 over the single issue newsstand price. This is an example of a
A. Quality discount
B. Slotting discount
C. Quantity discount
D. Functional discount
199
.
Why do manufacturers offer channel members quantity discounts, promotional allowances and
slotting allowances?
A. To decrease associated costs of marketing
B. To decrease recall memory of competitions' products in consumers' minds
C. To take advantage of price inelasticity
D. To encourage them to actively market the product
200
.
It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order
to get the shelf space needed to sell its new product in a particular retail establishment. This
$30,000 fee is an example of a
A. Slotting allowance
B. Promotional allowance
C. Quantity allowance
D. Rebates allowance
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