question

The product life cycle has four stages. Which of the following is not one of these?

answer

Economic Competition

question

As a product moves through its product life cycle:

answer

Customers' needs and attitudes change.

question

During the market introduction stage of the product life cycle:

answer

Funds are being invested in marketing with the expectation of future profits.

question

Total industry profits reach their maximum during the _________ stage of the product life cycle.

answer

Market Growth

question

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ______ stage of the product life cycle.

answer

Market Maturity

question

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product form a small group of loyal customers. This product-market is in which product life cycle stage?

answer

Sales Decline

question

Which of the following observations concerning the product life cycle is not true?

answer

The sales and profits of an individual brand follow the life-cycle pattern.

question

In the market introduction stage of a fast product life cycle, _______ helps develop loyal customers early and keeps competitors out.

answer

A low initial penetration price.

question

Which of the following is less likely to happen as a product moves through the last stages of the product life cycle?

answer

Place - move toward selective distribution.

question

According to your text, which of the following is an example of a "new product"?

answer

All of the above.

question

According to the FTC, for a producer to call a product "new," the product:

answer

Must be entirely new or changed in functionally significant or substantial respect.

question

Which of the following is not a separate stage of the new-product development process?

answer

Marketing Research

question

Which of the following is an effective source of ideas at the ideas generation stage of the new-product development process?

answer

All of the above

question

The Consumer Product Safety Commission can:

answer

All of the above

question

It is difficult to maintain consistent quality in services because

answer

The server is inseparable from the service.

question

______ means giving employees the authority to correct a problem without first checking with management.

answer

Empowerment

question

Regarding product life cycles, which is true?

answer

Product life cycles describe industry sales and profits within some product-market.

question

According to the text, product life cycles are:

answer

Getting shorter

question

As a product moves into the market maturity stage of its life cycle, the marketing manage should:

answer

Expect the market to move toward pure competition.

question

Regarding product life cycles, good marketing managers know that:

answer

Product life cycles can be extended through product modifications.

question

A channel of distribution:

answer

Is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

question

Which of the following statements about Place is false?

answer

Place decisions have relatively little impact on competition in a product-market.

question

Which of the following statements about Place is true?

answer

Place decisions are usually harder to change than other marketing mix decisions.

question

A direct-to-customer change

answer

Usually helps the product to be more aware of changes in final customer attitudes.

question

In which of the following distribution channels is the firm most likely to maintain control of the marketing mix?

answer

Direct

question

Direct _____ involves personal sales contact between a representative of the company and an individual consumer.

answer

Selling

question

Indirect channels are probably a better choice than direct channels when:

answer

All of the above

question

Which of the following is a function that an intermediary is likely to provide for customers?

answer

All of the above are functions provided for customers

question

"Discrepancies of quantity" occur because

answer

Producers seek economies of scale

question

Sony manufactures clock radios in quantities of more than 100,000 in a given time period -- but the average consumer wants only one clock radio at a time. This difference is an example of

answer

A discrepancy of quantity

question

"Discrepancies of assortment" means:

answer

the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.

question

Which of the following best illustrates adjusting "discrepancies of assortment?"

answer

A hardware store sells all the hardware items wanted by most people.

question

All of the following are regrouping activities EXCEPT

answer

Channeling

question

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

answer

Accumulating

question

The "regrouping activity" which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:

answer

Bull-breaking

question

_____ means separating products into grades and qualities desired by different target markets.

answer

Sorting

question

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:

answer

Assorting

question

When a channel has a "product-market commitment":

answer

All members focus on the same target market at the end of the channel, and its members attempt to share the various marketing functions in appropriate ways.

question

Channels of distribution

answer

usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly

question

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

answer

Vertical

question

Some channel conflict may

answer

All of the above are true

question

To reduce conflicts in channels, a firm should

answer

All of the above

question

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts is a

answer

Channel captain

question

A "channel captain"

answer

All of the above

question

Which of the following is NOT one of the degrees of market exposure?

answer

Multichannel Distribution

question

"Intensive distribution" means selling through:

answer

all responsible and suitable retailers or wholesalers.

question

Intensive distribution:

answer

is often used for convenience products and business supplies.

question

From a producer's viewpoint, which of the following is an advantage of INTENSIVE DISTRIBUTION over selective distribution?

answer

Intermediaries' facilities will be more convenient for customers.

question

______________ means selling a product only through those intermediaries who will give the product special attention.

answer

Selective distribution

question

Which of the following is true of selective distribution?

answer

It is selling through only those intermediaries who will give the product special attention.

question

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

answer

Exclusive distribution

question

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

answer

Ruled illegal by the U.S. Supreme Court

question

Multichannel distribution:

answer

All of the above

question

The need for reverse channels may arise in all of the following situations EXCEPT

answer

All of the above create a need for reverse channels.

question

Selling products manufactured in the United States to foreign customers--often without any product changes--is called:

answer

Exporting

question

The lowest cost and lowest risk way to enter a foreign market is through

answer

Exporting

question

_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.

answer

Licensing

question

If a firm's involvement in international marketing is limited to managing others' production facilities, it is using:

answer

Management Contracting

question

When the Rosco International chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to Rosco to provide expertise in management and marketing. Rosco uses the _______ approach to enter international markets.

answer

Management contracting

question

Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:

answer

Joint venturing

question

Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

answer

Direct investment

question

When planning physical distribution, the marketing manager should:

answer

minimize the cost of distribution for a given customer service level.

question

The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.

answer

Physical distribution

question

Which of the following statements best reflects a marketing-oriented approach to physical distribution?

answer

"We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires."

question

A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows: The best alternative is:

answer

Cannot be determined without knowing how the target customers feel about the customer service level

question

Physical distribution decisions interact with which other marketing mix decisions?

answer

All of the above

question

A supply chain:

answer

requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.

question

Electronic data interchange

answer

All of the above

question

Which of the following statements about the transporting function is TRUE?

answer

Pharmaceuticals

question

More freight is carried more miles ______ than any other mode of transportation.

answer

By railroads

question

All of the following are advantages of using trucks except

answer

Serving a limited number of locations

question

At least ____ percent of all freight shipped in the United States moves by trucks--at least part of the way--from producer to user.

answer

75

question

Which of the following transportation modes is "best" at handling a variety of goods?

answer

Water

question

_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules.

answer

Pipelines

question

Regarding airfreight, which of the following statements is NOT true?

answer

Inventory costs usually increase, since only small quantities can be shipped at a time.

question

Inventory refers to

answer

the amount of goods being stored.

question

Storing:

answer

is necessary because production does not always match consumption.

question

Which of the following statements is NOT TRUE?

answer

Storing can increase the value of goods, but does not involve costs.

question

Distribution centers:

answer

are designed to facilitate the flow of products through the channel.

question

When a department store manager decides to make a personal shopper available to its career-oriented female shoppers, this is a decision about:

answer

Product

question

When a supermarket manage decides to offer online ordering at the store's web site, this is a decisions about:

answer

Place

question

When a department store manager decides to offer its female shoppers a free trial of Clinique's new skin cream, this is a decision about:

answer

Promotion

question

Most conventional retailers in the U.S. are:

answer

Limited-line stores

question

A limited-line store is to a single-line store as

answer

A tennis shop is to a sporting goods store.

question

A _______ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.

answer

Specialty shop

question

Department stores:

answer

All of the above are true

question

Compared to conventional retailers, which of the following types of retailers offer a wider product assortment but less service?

answer

Supermarkets

question

Regarding supermarkets, which of the following statements is true?

answer

None of the above are true

question

Regarding discount houses, which of the following statements is true?

answer

All of the above are true

question

Supercenters are also known as

answer

Hypermarkets

question

Which of the following would be considered a retailing "category killer"?

answer

All of the above

question

Vending machine

answer

Sales are now include higher-margin products like digital cameras and bathing suits.

question

Identify the characteristics of vending machines and door-to-door retailing.

answer

Added convenience and higher than conventional margins, usually reduced assortment.

question

Most catalog retailers, like Macy's and L.L. Bean, now use a multichannel approach but when they mail catalogs to potential customers' homes, they are using _________ retailing.

answer

Direct-mail

question

Expanded assortment, reduced margins, and more information are characteristics of

answer

Internet

question

Which of the following statements about retailing on the Internet is (are) true?

answer

All the above are true

question

The "Wheel of Retailing" theory suggests that:

answer

New types of retailers enter as low-price operators and eventually begin to offer more services and charge higher prices.

question

"Scrambled merchandising" refers to:

answer

Retailers carrying any product lines they can sell profitabilty

question

Franchisers:

answer

All of the above are true statements.

question

Business firms that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users--but which do not sell in large amounts to final consumers--are:

answer

Wholesalers

question

Regarding wholesales, which of the following is the most numerous?

answer

Merchant wholesalers

question

The main difference between merchant wholesalers and other wholesales is that they:

answer

Own (take title to) the products they handle.

question

The two basic types of merchant wholesalers are:

answer

Service and limited function

question

Which of the following is not a full-service merchant wholesaler?

answer

Broker

question

Which of the following is not a limited function merchant wholesaler?

answer

A general-line wholesaler

question

_________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them.

answer

Drop-shippers

question

A grocery store or mass-merchandiser might rely on a ______ to decide which paperback books or magazines it sells.

answer

Rack jobber

question

The main difference between agent wholesalers and merchant wholesalers is:

answer

That agent wholesalers do not own the products they sell--while merchant wholesalers do.

question

Which of the following is not an agent wholesaler?

answer

A drop-shipper

question

A manufacturers' agent:

answer

All of the above

question

All of the following are true of brokers except

answer

The usually have a permanent relationship with the buyer and seller.

question

Sandi Barefoot sells the entire output of several small companies based in Silicon Valley. Each of the companies designs and produces remote control devices. Sandi has almost complete control of pricing and selling--because the engineers who started the companies are mainly interested in inventing things. In addition, Sandi often provides working capital to the producers, who have very limited financial resources. Sandi is paid a substantial commission on all sales. Sandi is a:

answer

Selling agent

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