Question 1

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur? a. Elimination of the wholesaler\'s profit will result in a lower price to the ultimate customer b. Elimination of the wholesaler\'s marketing functions will increase efficiency c. The total cost of distribution will be reduced because of the elimination of the wholesaler d. The marketing functions performed by the wholesaler will be eliminated e. The wholesaler\'s marketing functions will be shifted to or shared by the manufacturer and the retailer

Accepted Answer

e. The wholesaler\'s marketing functions will be shifted to or shared by the manufacturer and the retailer

Question 2

Which of the following strategies for entering the international market would involve the highest risk? a. Joint Ventures b. Exporting c. Licensing d. Direct Investment e. Franchising

Accepted Answer

d. Direct Investment  The purchase or acquisition of a controlling interest in a foreign business by means other than the outright purchase of shares.

Question 3

For a US manufacturer of major consumer appliances, the most important leading indicator for forecasting sales is  a. automobile sales b. computer sales c. educational level of consumers d. housing starts e. number of business failures

Accepted Answer

d. housing starts

Question 4

Which of the following statements about the European Union is true? a. The EU creates a single Pan-European government b. The EU eliminates trade barriers among member countries c. The EU is considered the US of Europe, with its capital in Brussels d. The EU removes all internal and external trade barriers to global trade e. The EU minimizes inflation through price controls

Accepted Answer

b. The EU eliminates trade barriers among member countries

Question 5

In contrast to a selling orientation, a marketing orientation seeks to a. increase market share by emphasizing promotion b. increase sales volume by lowering price c. lower the cost of distribution by direct marketing d. satisfy the needs of targeted consumers at a profit e. market products that make efficient use of the firm\'s resources

Accepted Answer

d. satisfy the needs of targeted consumers at a profit

Question 6

All of the following are characteristics of services EXCEPT: a. intangibility b. heterogeneity c. inseparability d. perishability e. inflexibility

Accepted Answer

e. inflexibility   Heterogeneity is the uniqueness of service offerings. Services are more flexible than products

Question 7

A fertilizer manufacturer who traditionally markets to farmers through farm supply dealers and cooperatives decides to sell current products to home gardeners through lawn and garden shops. This is an example of  a. market penetration b. market development c. product development d. diversification e. vertical integration

Accepted Answer

b. market development  Market development is a growth strategy that identifies and develops new market segments for current products

Question 8

A manufacturer who refuses to sell to dealers its popular line of office copiers unless the dealers also agree to stock the manufacturer\'s line of paper products would most likely be guilty of which of the following? a. deceptive advertising b. price discrimination c. price fixing d. reciprocity e. tying contracts

Accepted Answer

e. tying contracts

Question 9

Prior to consumption by a final consumer, the last member in an indirect distribution channel is the  a. retailer b. wholesaler c. manufacturer d. factor e. freight forwarder

Accepted Answer

a. retailer

Question 10

In which of the following situations is the number of buying influences most likely to be greatest? a. A university buys large quantities of paper for computer printers on a regular basis b. A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture c. A consumer decides to buy a different brand of potato chips because they are on sale d. A retail chain is searching for a vendor of lower-priced cleaning supplies e. A purchasing manager has been asked to locate a second source of supply for corrugated shipping cartons

Accepted Answer

b. A computer manufacturer is building a new headquarters and is trying to choose a line of office furniture

Question 11

Which of the following best describes the process of selecting target markets in order to formulate a marketing mix? a. Strategic planning b. Product differentiation c. Market segmentation d. Marketing audit e. SWOT analysis

Accepted Answer

c. Market segmentation

Question 12

Cooperative advertising is usually undertaken by manufacturers in order to  a. secure the help of the retailer in promoting a given product b. divide responsibilities between the retailers and wholesalers within a channel of distribution c. satisfy legal requirements d. create a favorable image of a particular industry in the minds of consumers e. provide a subsidy for smaller retailers that enables them to match the prices set by chain stores

Accepted Answer

a. secure the help of the retailer in promoting a given product

Question 13

A marketer usually offers a noncumulative quantity discount in order to a. reward customers for repeat purchases b. reduce advertising expenses c. encourage users to purchase in large quantities d. encourage buyers to submit payment promptly e. ensure the prompt movement of goods through the channel of distribution

Accepted Answer

c. encourage users to purchase in large quantities

Question 14

Which of the following statements about secondary data is correct? a. secondary data are usually more expensive to obtain than primary data b. secondary data are usually available in a shorter period of time than primary data c. secondary data are usually more relevant to a research objective than are primary data d. secondary data must be collected outside the firm to maintain objectivity e. previously collected data are not secondary data

Accepted Answer

b. secondary data are usually available in a shorter period of time than primary data

Question 15

Missionary salespersons are most likely to do which of the following? a. sell cosmetics directly to customers in their own homes b. take orders for air conditioners to be used in a large institution  c. describe drugs and other medical supplies to physicians  d. secure government approval to sell heavy machinery to a foreign government  e. take orders for custom-tailored garments or other specially produced items

Accepted Answer

c. describe drugs and other medical supplies to physicians   Missionary salespersons are the people who sell goods by describing them

Question 16

The demand for industrial goods is sometimes called \"derived\" because it depends on  a. economic conditions b. demand for consumer goods c. governmental activity d. availability of labor and materials e. the desire to make a profit

Accepted Answer

b. demand for consumer goods

Question 17

Behavioral research generally indicates that consumers\' attitudes  a. do not change very easily or quickly b. are very easy to change through promotion c. cannot ever be changed d. can only be developed through actual experience with products e. are very accurate predictors of actual purchasing behavior

Accepted Answer

a. do not change very easily or quickly

Question 18

A channel of distribution refers to the  a. routing of goods through distribution centers b. sequence of marketing intermediaries from producer to consumer c. methods of transporting goods from producer to consumer d. suppliers who perform a variety of functions e. traditional handlers of a product line

Accepted Answer

b. sequence of marketing intermediaries from producer to consumer

Question 19

A major advantage of distributing products by truck is  a. low cost relative to rail or water b. low probability of loss or damage to cargo c. accessibility to pick-up and delivery locations d. speed relative to rail or air e. ability to handle a wider variety of products than other means

Accepted Answer

c. accessibility to pick-up and delivery locations

Question 20

If a firm is using penetration pricing, the firm is most likely trying to achieve which of the following pricing objectives? a. product quality leadership b. market-share maximization c. high gross margin d. status quo e. geographic flexibility

Accepted Answer

b. market-share maximization

Question 21

The marketer of which of the following products would be most likely to use a promotional mix with a heavy emphasis on personal selling? a. life insurance b. pencils c. transistor radios d. bread e. crackers

Accepted Answer

a. life insurance

Question 22

Marketing strategy planning includes a. supervising the activities of the firm\'s sales force b. determining the most efficient way to manufacture products c. selecting a target market and developing the marketing mix d. determining the reach and frequency of advertising e. monitoring sales in response to a price change

Accepted Answer

c. selecting a target market and developing the marketing mix

Question 23

A brand that has achieved brand insistence and is considered a specialty good by the target market suggests which of the following distribution objectives? a. widespread distribution near probable points of use b. exclusive distribution c. intensive distribution d. enough exposure to facilitate price comparison e. widespread distribution at low cost

Accepted Answer

b. exclusive distribution

Question 24

Market segmentation that is concerned with people over 65 years of age is called a. geographic b. socioeconomic c. demographic d. psychographic e. behavioral

Accepted Answer

c. demographic

Question 25

The XYZ Corporation has two chains of restaurants. One restaurant specializes in family dining with affordable meals. The second restaurant targets young, single individuals, and offers a full bar and small servings. The XYZ Corporation uses which form of targeted marketing strategy? a. mass marketing b. differentiated marketing c. undifferentiated marketing d. customized marketing e. concentrated marketing

Accepted Answer

b. differentiated marketing

Question 26

The marketing director of a manufacturing company says, \"If my wholesaler exceeds the sales record from last month, I agree to give him a paid trip to the Bahamas.\" This technique is a form of  a. sales promotion b. advertising c. personal selling d. direct marketing e. public relations

Accepted Answer

a. sales promotion

Question 27

Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is called a. conventional distribution  b. developing dual distribution c. selective distribution d. intermodal transportation e. freight forwarding

Accepted Answer

d. intermodal transportation

Question 28

Which of the following is a major disadvantage associated with the use of dual distribution? a. it is usually very expensive b. it can cause channel conflict c. it provides limited market coverage d. it is only appropriate for corporate channels e. some distribution channel functions are not completed

Accepted Answer

b. it can cause channel conflict

Question 29

The three strategic options of distribution intensity are a. concentrated, exclusive, and intensive b. intensive, extensive, and selective c. intensive, exclusive, and selective d. extensive, concentrated, and selective e. extensive, integrated, and concentrated

Accepted Answer

c. intensive, exclusive, and selective

Question 30

Which of the following would be considered a nonprofit organization? a. A homeless shelter that charges a fee for its services and uses the proceeds for the upkeep of the shelter b. a drug rehab center in which revenues in excess of cost go to the owners c. a vaccination clinic owned by an individual entrepreneur d. a bookstore open to the public for business e. a hospital that has a publicly traded common stock

Accepted Answer

d. a bookstore open to the public for business

Question 31

Which of the following approaches for entering international markets involves granting the rights to a patent, trademark, or manufacturing process to a foreign company? a. exporting b. franchising c. licensing d. joint venturing e. contract manufacturing

Accepted Answer

c. licensing

Question 32

Reference groups are more likely to influence a consumer\'s purchase when the product being purchased is a. important b. inexpensive c. familiar d. intangible e. socially visible

Accepted Answer

e. socially visible

Question 33

Which of the following is true of the product life cycle? a. It can accurately forecast the growth of new products b. it reveals that branded products have the longest growth phase c. it cannot be applied to computer products that quickly become obsolete d. it is based on the assumption that products go through distinct stages in sales and profit performance e. it proves that profitability is highest in the mature phase

Accepted Answer

d. it is based on the assumption that products go through distinct stages in sales and profit performance

Question 34

The primary purpose of market segmentation is to  a. combine different groups to meet their needs b. create sales territories of similar size and market potential to determine sales quotas c. reduce market demand to a manageable size d. profile the market as a whole to optimize marketing efforts e. allocate marketing resources to meet the needs of specific segments

Accepted Answer

e. allocate marketing resources to meet the needs of specific segments

Question 35

A marketing expert said that he could have advertised a brand of soap as a detergent for men with dirty hands, but instead chose to advertise it as a toilet bar for women with dry skin. This illustrates the marketing principle is known as  a. product positioning b. sales promotion c. cannibalization d. deceptive advertising e. undifferentiated marketing

Accepted Answer

a. product positioning

Question 36

The process of ensuring that people or companies may have a need for a salesperson\'s product is known as  a. cold calling b. presenting c. approaching d. prospecting e. targeting

Accepted Answer

d. prospecting

Question 37

Which of the following is a primary disadvantage of direct marketing? a. it is difficult to measure response b. it is not personal c. it is poorly targeted d. it tends to have high costs per contact e. it has a fragmented audience

Accepted Answer

d. it tends to have high costs per contact

Question 38

A formal statement of standards that governs professional conduct is called a  a. customer bill of rights b. business mission statement c. corporate culture d. code of ethics e. caveat emptor

Accepted Answer

d. code of ethics

Question 39

Maxine suddenly realizes that she is out of paper towels. She remembers that she last bought Max Dri Towels, so she stops at the store and picks up another roll of Max Dri on her way home from work. In this example, Maxine uses what form of information search in her decision process? a. limited problem solving b. extended problem solving c. internal information search d. compensatory information search e. information search by personal sources

Accepted Answer

c. internal information search

Question 40

The ability to tailor marketing processes to fit the specific needs of an individual customer in internet marketing is called  a. customization  b. community building c. standardization d. mediation e. product differentiation

Accepted Answer

a. customization

Question 41

Which of the following would most likely be considered a form of direct marketing? a. Mail-order catalogs b. Convenience store c. Department stores d. Warehouse clubs e. Supermarkets

Accepted Answer

a. Mail-order catalogs

Question 42

ABC Company agrees to pay a certain amount of a retailer\'s promotional costs for advertising ABC\'s products. This is an example of  a. cooperative advertising b. reminder advertising c. comparison advertising d. slotting allowance e. a premium

Accepted Answer

a. cooperative advertising

Question 43

To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using? a. Sample b. Primary c. Secondary d. Survey e. Experiment

Accepted Answer

c. Secondary

Question 44

Positioning refers to  a. the perception of a product in customers\' minds b. the store location in which a marketing manager suggests a product be displayed c. where the product is placed on the shelf d. which stores will distribute a company\'s product e. where the new product is first advertised

Accepted Answer

e. where the new product is first advertised

Question 45

Which of the following best describes members of a buying center? a. Everyone involved in making the purchase decision b. Everyone involved in signing contracts c. Everyone employed in the purchasing department d. Direct reports of the VP of purchasing e. Technical experts who advise on product specifications

Accepted Answer

a. Everyone involved in making the purchase decision

Question 46

Which of the following most accurately describes agent wholesalers? a. they take title to goods that they sell to other intermediaries  b. they do not take title to goods that they sell to other intermediaries c. they take title to goods that they sell to final consumers d. they do not take title to the goods that they sell on commission to final consumers e. they manufacture the goods that they sell to final consumers

Accepted Answer

b. they do not take title to goods that they sell to other intermediaries

Question 47

Which of the following are key characteristics of services? a. Cost, time, quality, and value b. Uncertainty, variability, and standardization c. Intangibility, durability, and standardization d. Intangibility, perishability, and variability e. Tangibility, variability, and uncertainty

Accepted Answer

d. Intangibility, perishability, and variability

Question 48

The growth of service industries is primarily the result of a. increasingly complex and specialized customer needs b. a rise in income and the degree of customer input c. rapid growth of population and government tracking systems d. increased use of labor-intensive technology e. decreasing demand for equipment-based services

Accepted Answer

a. increasingly complex and specialized customer needs

Question 49

Which of the following is the fastest growing nonstore retail segment in the US? a. television home shopping b. automatic vending c. online retailing d. catalog marketing e. direct-response marketing

Accepted Answer

c. online retailing

Question 50

While writing a marketing plan, Melanie decides that the marketing objective should be \"to increase market share by 5%.\" A weakness in this objective is that  a. it is not measurable b. it should not be related to brand image rather than market share c. it does not specify a time period d. if the product is an industrial product, the objective should specify product quality e. it does not address all elements of the business plan

Accepted Answer

c. it does not specify a time period

Question 51

Which of the following is the first step in the sales process? a. Prospecting b. sales presentation c. gaining commitment d. approach e. precall planning

Accepted Answer

a. Prospecting

Question 52

Which of the following is an example of business-to-business buying? a. John buys a new home stereo b. Hannah pays for a new TV by monthly installment c. Daniel decides on which college to attend d. Avery purchases a new office desk for his company e. Corey buys a soft drink from a vending machine

Accepted Answer

d. Avery purchases a new office desk for his company

Question 53

President John F. Kennedy\'s assertion that consumers have certain rights led to legislation that guaranteed all of the following except the right to  a. be informed b. be heard c. choose d. bargain e. safety

Accepted Answer

d. bargain

Question 54

Harmony Households is the largest home improvement retailer in China. Because of its size and market power, the firm can insist upon desired product features, delivery schedules, and price points from its suppliers. Harmony Households is  a. a primary intermediary b. an agent retailer c. a multilevel distributor d. a channel captain e. a dominant distributor

Accepted Answer

d. a channel captain

Question 55

Which of the following is NOT a segmentation criterion or consideration used for choosing a target market? a. Market accountability b. Market identifiability and measurability c. Market substantiality d. Market accessibility e. Market responsiveness

Accepted Answer

a. Market accountability

Question 56

Rachel Terry, regional manager at Wilcon Solvents, Inc., compares last quarter\'s sales with the levels projected in the firm\'s marketing plan. She identifies three solvent brands whose sales are below projections and initiates a series of inquiries to discover the reasons for the shortfall. Ms. Terry is engaged in which stage of the strategic marketing process? a. environmental scanning b. opportunity analysis c. planning d. implementation e. control

Accepted Answer

e. control

Question 57

Richard Weiss, SA, is a Swiss watch manufacturer. One of its two major brands offers ruggedness, reliability, and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion conscious consumers. Which of the following segmentation approaches is this firm using? a. demographic b. geographic c. usage d. benefits sought e. socioeconomic

Accepted Answer

d. benefits sought

Question 58

Compared with agent intermediaries, merchant intermediaries a. sell only to organizational customers b. sell only in export markets c. are employees of the manufacturer d. are compensated by a commission on sales e. take title to the goods they sell

Accepted Answer

e. take title to the goods they sell

Question 59

Gabriella\'s is an Italian producer of fashion jeans. In this highly competitive market, the firm wishes to match the advertising efforts of its competitors by achieving a share of voice (promotion) which is roughly equal to its share of market (sales). This approach to promotional budgeting is called a. all you can afford b. percent of sales c. allocation per unit d. competitive parity e. objective and task

Accepted Answer

d. competitive parity

Question 60

On its e-commerce website, XYZMusic.com sells songs from new artists who produce their own music. The site also hosts ads from other e-businesses. The ads presented to a user depend on the type of music the user is reviewing. XYZMusic.com collects ad revenue when users follow links in the ads to the advertisers\' Web sites. XYZMusic.com\'s advertising revenue is based on a. cost-per-thousand exposures b. click-through rates c. ad presentation rates d. unique site-visitor data e. site-traffic data

Accepted Answer

b. click-through rates

Question 61

Which of the following organizations administers the GATT (General Agreement on Tariffs and Trade)? a. The United Nations b. The European Union c. The World Trade Organization d. The North American Free Trade Agreement e. The securities and Exchange Commission

Accepted Answer

c. The World Trade Organization

Question 62

At the most basic level, products and services should be viewed as a collection of a. attributes b. expectations c. benefits d. features e. promises

Accepted Answer

c. benefits

Question 63

The primary function of promotion is to  a. sell products and services b. create awareness c. inform, persuade, and remind d. make a demand more elastic e. eliminate competition

Accepted Answer

c. inform, persuade, and remind

Question 64

A marketing strategy is composed of both a. a target market and market opportunities b. a target market and related marketing mix c. a target market and SWOT analysis d. a marketing mix and required resources e. a marketing mix and competition

Accepted Answer

b. a target market and related marketing mix

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