2002 Marketing Page 8
True and False. Mark your answer on the scantron form by selecting “A” if the answer is True or “B” if the answer is False.1. Decisions to change one of the four marketing-mix elements seldom affect any of the other elements. / a. True / b. False
2. The fundamentals of marketing do not apply to international marketing in the same way they apply to domestic marketing. / a. True / b. False
3. Branding is useful for differentiating commodities. / a. True / b. False
4. A manufacturer of pocket-sized horoscope computers that charges a different price to a retailer in Montana than it charges a retailer in Kentucky is using uniform delivered pricing. / a. True / b. False
5. The Robinson-Patman Act prohibits all forms of price discrimination. / a. True / b. False
6. When D'Lynn used a toll-free phone number and purchased home exercise equipment she saw advertised on television, it was an example of direct selling. / a. True / b. False
7. The newspaper announcement that Shaw Industries will donate $10,000 to help a family injured in a head-on accident with a drunk driver is an example of positive public relations. / a. True / b. False
8. A good way to make numerical facts in a complex written report easy for readers to grasp is to present the facts in an illustrated format. / a. True / b. False
9. Businesses often prefer to take inventory at the time of year when stock is at its lowest point. / a. True / b. False
10. Most of the products sold at neighborhood stores are considered to be convenience goods, which means that they are sold at certain times of the year. / a. True / b. False
11. As prices decrease, consumer demand always stays the same. / a. True / b. False
12. One way a business can try to increase its market share is by promoting its quality service. / a. True / b. False
13. To compute net profit, operating expenses are subtracted from gross profits. / a. True / b. False
14. Brand or trade names are used primarily to identify a retailer. / a. True / b. False
15. A print medium that is low in cost, has a short lead time, and usually covers an entire metropolitan area are magazines. / a. True / b. False
Multiple Choice. Mark your answer by selecting the appropriate letter on your scantron form.
16. A home cleaning service that wished to extend the breadth of its marketing concept should / a. consider the needs of the next as well as the present generation of home owners. / b. clean homes at a reasonable price and assume home owners will discover its existence through word-of-mouth advertising. / c. re-emphasize its commitment to ethical behavior. / d. recognize that its market includes not only home owners but also environmentalists who want to protect the earth from harsh chemicals. / e. create more form utility.
17. For an American firm engaged in international marketing, a joint venture / a. is a type of leasing arrangement. / b. is a type of licensing. / c. is a reciprocal arrangement with a foreign supplier. / d. is a partnership arrangement between the american firm and a foreign company. / e. requires the standardization of the marketing program.
18. A company is most likely to use a market aggregation strategy when / a. market potential is declining. / b. the company is operating in a highly competitive market. / c. the product is highly differentiated. / d. the company wants to reduce production and marketing expenses. / e. the firm is very customer oriented.
19. In the strategy of _____, two or more different groups of potential customers are identified and a separate marketing mix is developed to reach each segment. / a. undifferentiated marketing / b. multiple-segment target marketing / c mass marketing / d. market aggregation / e. market differentiation
20. Which one of the following businesses would be most likely to use a past sales analysis to forecast sales? / a. A publisher of a new ecology-oriented magazine for children / b. An art gallery that specializes in finding and selling the work of new artists / c. A mobile home dealer in an economically depressed area / d. A hospital pharmacy in an efficiently operated hospital / e. A tourist hotel in Cairo, Egypt, that features cruises down the Nile River
21. For which of the following situations is the observation method of gathering research data best suited? / a. Estimating the number of people who will attend a Bruce Springsteen concert / b. Determining how many packets of ketchup the average person uses on a regular order of fries / c. Finding out what radio stations people listen to when they are stuck in a traffic jam / d. Determining how many people accessed a company through its web site / e. Estimating the number of people who borrow books from a library
22. Which of the following is the best example of a convenience good? / a. Leather driving gloves / b. Microsoft works software / c. A pair of tennis shoes / d. A bic pen / e. A tombstone pizza
23. In a company like General Mills where many different brands and types of products are marketed, the executive responsible for planning a complete marketing program for one brand or a small group of similar products is called a _____ manager. / a. venture / b. brand / c. commercializing / d. field / e. marketing
24. The subdivision of consumer goods into various categories is based on / a. price. / b. types of products. / c. how the goods were manufactured. / d. consumer buying behavior. / e. how the goods will be distributed.
25. The set of all products offered for sale by a company is called its / a. product breadth. / b. product mix. / c. marketing mix. / d. product line. / e. strategic position.
26. Under market conditions of perfect competition, / a. buyers are ignorant. / b. product differentiation is used excessively. / c. the seller controls the selling price. / d. there are no directly competing products. / e. none of the above is true.
27. A(n) _____ is that quantity of output at which total revenue equals total costs, assuming a certain selling price. / a. Equilibrium price / b. Break-even point / c. Expected output / d. Average revenue / e. Marginal revenue
28. _____ are reductions from the list price offered to buyers in payment for marketing functions they will perform. / a. Markdowns / b. Cash discounts / c. Trade discounts / d. Oligopolistic discounts / e. Quantity discounts
29. Which of the following statements about telemarketing is true? / a. There are no state or federal regulations governing telemarketing operations. / b. Telemarketers never use cold canvassing. / c. Turnover for telemarketers is extremely high. / d. Telemarketers are best suited to sell tangible products like clothing. / e. The popularity of telemarketing has declined dramatically during the past decade.
30. Which of the following does NOT explain why it is difficult to measure the sales impact of an advertisement? / a. All ads do not have the same objective. / b. Human motivation is too complicated to be explained by a single factor. / c. It is not possible to determine who is exposed to a particular ad. / d. All of the elements of the marketing mix are intertwined. / e. It is hard to determine when an ad influences consumers.
31. Which advertising medium is particularly popular with companies selling products that involve extensive decision-making? / a. Yellow pages / b. Billboards / c. Internet / d. Newspaper / e. Radio
32. Given the different types of advertising media, why would the operator of a car-towing service determine that newspapers were an inappropriate advertising medium? / a. Newspapers are not geographically selective. / b. The life of a newspaper is relatively short. / c. Newspapers require ads to be submitted several weeks before they are run. / d. Cost per person reached with a newspaper is relatively high. / e. Newspapers accept only four different sizes of commercial advertising.
33. Which of the following statements describes a demographic factor that is likely to affect the marketing of homes in retirement communities? / a. Congress amended the consumer credit protection act. / b. Interest rates for homebuyers are below 10 percent. / c. Concern about water and air pollution has increased. / d. More than one-quarter of the u.s. population is at least 50 years old. / e. People are more willing to pay for convenience.
34. The _____ is composed of family, friends, and acquaintances who directly or indirectly provide information about products. / a. commercial information environment / b. promotional mix / c. marketing mix / d. social information environment / e. culture
35. Which of the following audiences do exhibitors at trade shows want to reach? / a. buyers / b. vendors / c. sellers / d. suppliers
36. Which of the following is a permanent type of employee publication that outlines company rules, procedures, and benefits? / a. report / b. bulletin / c. manual / d. newsletter
37. Mike has been with the XYZ Company for five years. Sarah has been with them for one year. Assuming Mike and Sarah are assigned to sales territories with similar potentials, their sales quotas should / a. not be the same, as quotas should be based on individual performance. / b. be the same, as quotas should be based on the size of the territory. / c. be the same, as sales quotas should be based on the number of potential customers. / d. not be the same, as quotas should be appropriate to the territory and the salesperson.
38. Which of the following is NOT product information that could be obtained from a manufacturer’s representative? / a. Credit terms / b. Technical data / c. Service information / d. Operating instructions
39. On which of the following products would you expect to find safety information? / a. paper / b. clothing / c. spray paint / d. books and magazines
40. The ______method of prospecting involves asking the dominant member of a group to use or to endorse your products. / a. referral / b. endless chain / c. bird dogs / d. center of influence
41. ______is/are often a benefit to businesses of following up with customers. / a. Increased profits / b. Increased satisfaction / c. Increased trust / d. Increased knowledge
42. Whether you are selling a good or a service, it ______to involve the customer actively in the sales presentation because . / a. is important; customer involvement increases the chances of closing the sale / b. is not important; it is not possible to involve the customer when selling a service / c. is not important; it is not necessary to involve the customer as long as all facts are presented / d. is important; the salesperson cannot translate features into benefits without customer involvement
43. Sales managers who can easily sell customers additional items they had not originally planned to buy are using selling. / a. high pressure / b. inappropriate / c. substitute / d. suggestion
44. Which of the following is a guideline to follow in closing sales? / a. Use negative closes / b. Leave the customer undecided / c. Try to oversell / d. Always be closing
45. The salesperson should pause before answering a customer’s objections in order to / a. show empathy for the customer. / b. get the customer’s full attention. / c. delay dealing with the objection. . / d. let the customer see that he/she is upset
46. If a business does NOT carry the specific product requested by a customer, the salesperson should explain the situation and / a. suggest an alternative item based on the salesperson’s preferences. / b. tell the customer where he/she could find the product. / c. tell the customer that the product is not very good. / d. recommend an alternative, but equivalent item.
47. When conducting a probing process, the most appropriate type of question to ask is a(n) question. / a. personal / b. sensitive / c. open-ended / d. closed-ended
48. Performing occasional favors for customers is a way that might help a sales representative to / a. build a customer base. / b. guarantee satisfaction. / c. pay attention. / d. handle a problem.
49. Sales representatives should determine what buying decisions customers need to make by the customers’ comments. / a. ignoring / b. recording / c. talking over / d. listening to
50. Customers are NOT aware of their buying behaviors. / a. This statement is true; customers do not know the real reasons they purchase. / b. This statement is true; sales representatives are responsible for determining their buying motives. / c. This statement is false; customers may be aware or unaware of their buying motives. / d. This statement is false; buying motives change too quickly for customers to know them.
51. A business that lowers its prices in order to compete with other similar businesses is being influenced by factors. / a. external / b. customer / c. social / d. internal
52. When the federal government deregulates certain industries, causing changes in levels of competition, this is an example of risk. / a. natural / b. marketing / c. human / d. economic
53. A disadvantage to businesses of buying goods for resale from foreign manufacturers is that / a. labor cost may be less. / b. unique items can be purchased. / c. deliveries have a long lead time. / d. some foreign goods are status symbols.
54. A seasonal discount entitles a business to a 15 percent reduction in the price of Christmas decorations. What would be the final cost to the business for an order of Christmas items priced at $1,200? / a. $995 / b. $1,020 / c. $1,047 / d. $1,195