Q: Which of the following best illustrates \"discrepancies of quantity\"?

Michelin made millions of tires last yearâbut most customers bought only one set. (Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.)

Question 1

By definition, a markup of $1 on a cost of $2 translates to a markup of 40 percent.

Accepted Answer

False (Unless otherwise stated, markup (percent) means percentage of selling price.)

Question 2

When customers have to pay the bill themselves, they are likely to be more price sensitive.

Accepted Answer

True (People tend to be less price sensitive when someone else pays the bill or shares the cost.)

Question 3

Business customers are sometimes less price sensitive if there are switching costs.

Accepted Answer

True (Customers are sometimes less price sensitive if there are switching costs.)

Question 4

Which of the following best illustrates \"discrepancies of quantity\"?

Accepted Answer

Michelin made millions of tires last yearâbut most customers bought only one set. (Discrepancy of quantity means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.)

Question 5

Traditional channels of distribution

Accepted Answer

may involve little or no cooperation among channel members. (In traditional channel systems, the various channel members make little or no effort to cooperate with each other.)

Question 6

Which of the following describes WTB\'s channel arrangements? (long question)

Accepted Answer

Intensive distribution

Question 7

A good reason for developing or joining a vertical marketing system

Accepted Answer

is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective. (Vertical marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.)

Question 8

A disadvantage of direct-to-customer channels is that

Accepted Answer

None of these is a disadvantage of direct-to-customer channels.

Question 9

National Tennis Ball\'s channel arrangement: (long question)

Accepted Answer

relies on exclusive distribution.

Question 10

Which of the following is true of direct distribution?

Accepted Answer

It requires a significant investment in facilities. (Direct distribution usually requires a significant investment in facilities, people, and information technology.)

Question 11

Which of the following appears to best describe ATB\'s channel arrangements? (long question)

Accepted Answer

Selective distribution

Question 12

Which of the following statements about channel systems is true?

Accepted Answer

Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility.

Question 13

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

Accepted Answer

ruled illegal by the U.S. Supreme Court.

Question 14

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

Accepted Answer

Discord concerning issues of physical distribution

Question 15

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

Accepted Answer

A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level.

Question 16

Which of the following is true regarding JIT systems?

Accepted Answer

JIT requires suppliers to respond to very short order lead times and the customer\'s production schedule.

Question 17

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

Accepted Answer

Transporting costs can be a large part of the total cost for heavy products that are low in value.

Question 18

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Accepted Answer

Only if the economies of scale in production are greater than the additional inventory carrying cost.

Question 19

To help in managing excess inventory, United Tools would most likely use: (long question)

Accepted Answer

a public warehouse.

Question 20

Department stores:

Accepted Answer

All of these (Department stores have many separate departments, each like a separate limited-line store; they can handle a wide variety of shopping products with strong customer services; the number of department stores, the average sales per store, and their share of retail business have declined.)

Question 21

Sebastian and Clere Franklin bought a tire recapping facility from a man who had decided to retire. They were going to convert the building to a studio for dance lessonsâso they wanted to sell off the inventory of recapped tires and equipment for whatever they could get. The Franklins don\'t know any buyers who might be interested in these products. Which of the following types of wholesalers would be most helpful?

Accepted Answer

Brokers

Question 22

Which of the following is NOT a franchise operation?

Accepted Answer

True Value Company

Question 23

Which of the following is a characteristic of agent wholesalers?

Accepted Answer

They normally specialize by customer type and by product or product line.

Question 24

The U.S. Census Bureau defines wholesaling as being concerned with the activities of those persons or establishments that sell

Accepted Answer

All are correct (Wholesaling is concerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers.)

Question 25

Department stores:

Accepted Answer

have declined since the 1970s because of competition from well-run limited-line stores and mass-merchandisers.

Question 26

U.S. Census data show that:

Accepted Answer

All of these alternatives are correct. (As per U.S. Census data, just over half of all the retail stores in the U.S. had annual sales of less than $1 million. Less than 15 percent of the retailers had annual sales over $5 million. There are over 1 million retailers and only 330,000 manufacturers and 435,000 wholesalers.)

Question 27

A wholesaler that carries only health foods instead of a full line of groceries is a

Accepted Answer

specialty wholesaler.

Question 28

The \"wheel of retailing\" theory says that:

Accepted Answer

new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.

Question 29

The development of new types of retailers can be best explained by applying:

Accepted Answer

target marketing and product life cycle concepts.

Question 30

Franchise operations provide a good example of:

Accepted Answer

contractual vertical marketing systems.

Question 31

Regarding wholesalers, which of the following descriptions is TRUE?

Accepted Answer

SELLING AGENT: does not own the products, does the whole marketing job nationally, and may handle competing lines.

Question 32

Regarding wholesalers, which of the following types has the LOWEST costs as a percent of sales?

Accepted Answer

Agent wholesalers

Question 33

Which of the following statements about agent wholesalers is FALSE?

Accepted Answer

They usually provide a larger number of functions than limited-function wholesalers.

Question 34

Producers who know something about their target customers\' needs and attitudes often supply their relatively untrained salespeople with a sales presentation in which (1) the salesperson does most of the talking at the beginning, (2) then brings the customer into the discussion to clarify the customer\'s needs, and (3) tries to close the sale. They are using a:

Accepted Answer

selling formula approach.

Question 35

Retail order getters are usually required for:

Accepted Answer

unsought products.

Question 36

Jan Alvarez works for a cable TV company in a large city. She makes telephone calls during the early evening and tries to sell cable services to nonsubscribers. Jan is

Accepted Answer

an order getter.

Question 37

Wilson Alvaro\'s sales position involves: (long question)

Accepted Answer

All of these are included in Wilson\'s sales position. (Wilson\'s sales position involves providing team selling, major account management, and also providing customer service.)

Question 38

Which salesperson\'s main sales task is supporting? (long question)

Accepted Answer

Melissa Tran

Question 39

Which of the following is likely to have the lowest total personal selling expenses?

Accepted Answer

A company with straight commission salespeople and low sales volume

Question 40

What sales presentation approach does Charlie Riggs use? (long question)

Accepted Answer

prepared sales presentation.

Question 41

Which salesperson has a job where compensation is likely to be straight salary? (long question)

Accepted Answer

Emily Winters

Question 42

The total personal selling expense of a business is likely to be most stable under which of the following scenarios?

Accepted Answer

All of the company\'s salespeople receive straight salary compensation.

Question 43

Which of the following is true about Melissa Tran\'s sales position? (long question)

Accepted Answer

It involves missionary sales.

Question 44

In the U.S., about ________ people work directly in the advertising industry.

Accepted Answer

460,000 (In the United States, about 462,000 people work directly in the advertising industry.)

Question 45

Which advertising agency \"supergroup\" had the largest revenue (almost $14 billion) in 2009?

Accepted Answer

WPP Group

Question 46

If the promotion objective is to get attention and hold interest, which type of publicity would work best?

Accepted Answer

Articles in the press

Question 47

In the U.S., about ________ people work in advertising agencies.

Accepted Answer

230,000 (In the United States, about 462,000 people work directly in the advertising industry. Advertising agencies employ only about half of all these people.)

Question 48

Ad spending for television in the U.S. in 2010 was about:

Accepted Answer

$50 billion. (Ad spending for television and cable in the U.S. in 2010 was about $50 billion. Refer to Exhibit 15-5.)

Question 49

Which of the following is most likely to spend 2.5 percent on advertising as a percentage of sales?

Accepted Answer

A producer of motor vehicles

Question 50

In 2010, about _______ percent of ad spending in the U.S. was for Internet advertising.

Accepted Answer

12

Question 51

In the U.S., producers of games and toys spend about _____ percent of their sales dollars on advertising.

Accepted Answer

10

Question 52

In the U.S., producers of sporting and athletic goods spend about _____ percent of their sales dollars on advertising.

Accepted Answer

9

Question 53

Ad spending for magazines in the U.S. in 2010 was about:

Accepted Answer

$17 billion.

Question 54

Which of the following observations is true?

Accepted Answer

Market share objectives and straight sales growth objectives have similar limitations.

Question 55

Over time, a skimming policy usually involves

Accepted Answer

price movement down the demand curve.

Question 56

Some top managers seek only enough profits to convince stockholders that they are \"doing a good job.\" The pricing objective of such managers is:

Accepted Answer

satisfactory profits.

Question 57

Cash discount terms of 2/10, net 30 on an invoice wouldâin effectâamount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 30 days.

Accepted Answer

36

Question 58

A target return figure of zero implies:

Accepted Answer

setting a price level that will just recover costs.

Question 59

Some marketing managers have set up relationships with Internet companies whose ads invite customers to \"set your own price.\" Such marketing managers

Accepted Answer

are carefully administering a flexible price.

Question 60

Seeking a profit maximization pricing objective:

Accepted Answer

All of these alternatives are correct. (A profit maximization objective seeks to earn \"all the traffic will bear.\" If there are no competitors and the demand curve is inelastic, then profit maximization leads to high prices in the short run. But pricing to achieve profit maximization doesn\'t always lead to high prices. If the whole demand curve is fairly elastic, then penetration pricing may be )

Question 61

Regarding pricing objectives, a good marketing manager knows that:

Accepted Answer

status quo pricing objectives can be part of an extremely aggressive marketing strategy.

Question 62

Pricing objectives should be explicitly stated because:

Accepted Answer

they have a direct effect on pricing policies as well as price setting methods.

Question 63

Careful handling of \"trade-ins\"âto avoid reducing the list priceâis especially important for sellers of:

Accepted Answer

None of these is a good answer.

Question 64

Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However, a competitor offered to sell similar motors to one of Jackson Motors\' biggest customers for only $80 and Jackson Motors offered that customerâbut not its other customersâa $80 selling price. According to the Robinson-Patman Act:

Accepted Answer

Jackson Motors has not violated the lawâit is just meeting competition.

Marketing Final Flash Cards – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards