Final

Question 1

Retailing refers to:

Answer 1

the sale of products to final consumers.

Question 2

A retailer’s “Product” may include:

Answer 2

a particular assortment of goods and services.
special orders.
advice from salesclerks.

Question 3

Most conventional retailers in the U.S. are:

Answer 3

limited-line stores.

Question 4

The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

Answer 4

Mass-merchandising concept

Question 5

Expanded assortment and/or reduced margins and service are characteristic of

Answer 5

specialty shops.

Question 6

The “wheel of retailing” theory says that:

Answer 6

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

Question 7

Scrambled merchandising refers to: .

Answer 7

retailers carrying any product lines they can sell profitably.

Question 8

A corporate chain:

Answer 8

Is formed when a firm owns and manages more than one store.

Question 9

Voluntary chains are

Answer 9

wholesaler-sponsored groups that work with “independent” retailers.

Question 10

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 10

wholesalers

Question 11

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

Answer 11

Merchant wholesalers.

Question 12

_____ are merchant wholesalers that provide all the wholesaling functions.

Answer 12

Service wholesalers

Question 13

____________ wholesalers are service wholesalers that carry a wide variety of nonperishable items.

Answer 13

General merchandise

Question 14

A broker’s “Product” is:

Answer 14

information about what buyers need and what suppliers are available.

Question 15

Product” means

Answer 15

the need-satisfying offering of a firm.

Question 16

_____ means a product’s ability to satisfy a customer’s needs or requirements.

Answer 16

Quality

Question 17

Services

Answer 17

are intangible.
often have to be produced in the presence of the customer.
are not easy to store.
are perishable.

Question 18

A product assortment is:

Answer 18

the set of all product lines and individual products that a firm sells.

Question 19

Individual products:

Answer 19

may require their own marketing mixes.

are usually distinguished by brand, size, price, or some other characteristic.

Question 20

All products fall into one of two broad groups. Which of the following is one of these groups?

Answer 20

Consumer products.

Question 21

Consumer product classes are divided into four groups. Which of the following is one of these groups?

Answer 21

Convenience. Shopping. Specialty. Unsought.

Question 22

The big difference between the consumer products and the business products market is:

Answer 22

Derived demand.

Question 23

Business product classes are based on

Answer 23

how buyers think about products. how the products will be used.

Question 24

A ______________ is a word, letter, or group of words or letters.

Answer 24

brand name

Question 25

Which of the following conditions would not be favorable to branding?

Answer 25

Fluctuations in product quality due to inevitable variations in raw materials

Question 26

Which of the following is NOT a level of brand familiarity?

Answer 26

Brand nonexistence

Question 27

Characteristics of a good brand name include all of the following except:

Answer 27

Be trendy and fashionable.

Question 28

The law which focuses on the protection of trademarks and brand names is

Answer 28

the Lanham Act.

Question 29

Packaging

Answer 29

can serve as a useful enhancement tool. can serve as a useful promotional tool. is concerned with protecting the product in shipping and on the shelf.

Question 30

If a firm offers a written warranty, it

Answer 30

must be labeled either "full" or "limited." must be available to buyers before the sale. shouldn't be "deceptive" or "unfair" per FTC guidelines. may help create a new strategy.

Question 31

Which of the following is NOT one of the text's business product classes?

Answer 31

Specialty products.

Question 32

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

Answer 32

Economic competition.

Question 33

As a product moves through its product life cycle:

Answer 33

customers' needs and attitudes may change.

Question 34

Industry profits are largest in which of the following product life cycle stages?

Answer 34

Market growth.

Question 35

Product life cycles are concerned with sales and profits

Answer 35

in a product-market.

Question 36

Concerning product life cycles:

Answer 36

the stages usually have varying lengths.

Question 37

A new product idea is more likely to move quickly through the early stages of the product Life cycle when:

Answer 37

the product is easy to use. the product is compatible with the values and experiences of target customers. the product can be given a trial. the product's advantages are easy to communicate.

Question 38

According to the text, product life cycles are:

Answer 38

getting shorter.

Question 39

When planning for the different stages of the product life cycle, managers should remember that:

Answer 39

Sometimes, competitors can help to build customer interest in a new product idea. The correct strategy depends on how quickly the new idea will be accepted by consumers. Not all new product ideas catch on with consumers or intermediaries.

Question 40

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

Answer 40

Product - Some drop out.

Question 41

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage:

Answer 41

with lower production costs. by being more successful at promotion. by having a slightly better product than competitors.

Question 42

According to the text, a "new product" is one that is:

Answer 42

new in any way for the company concerned.

Question 43

According to the Federal Trade Commission (FTC), a new product is only new for ________ months.

Answer 43

6

Question 44

Which of the following is a common cause of new product failures?

Answer 44

The product fails to offer the customer a unique benefit. | The company delays putting the product on the market until it has developed a complete marketing plan.

Question 45

Which of the following gives the correct order of the steps in the new-product development process?

Answer 45

Idea generation, screening, idea evaluation, development, commercialization.

Question 46

The new-product development process

Answer 46

should have ongoing support from top management.

Question 47

The job of product or brand manager is often created when a firm:

Answer 47

has many different kinds of products or brands. | wants each product or brand to have a "champion."

Question 48

Strategy planning for Price is concerned with:

Answer 48

to whom and when discounts and allowances will be given. how transportation costs will be handled. how flexible prices will be. at what level prices will be set over the product life cycle.

Question 49

______ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

Answer 49

Price

Question 50

Pricing objectives should flow from, and fit in with,

Answer 50

company-level and marketing objectives.

Question 51

A marketing manager may choose a pricing objective that is:

Answer 51

sales oriented.status-quo oriented.profit oriented.

Question 52

Prices are "administered" when:

Answer 52

firms consciously set their own prices.

Question 53

A one-price policy means:

Answer 53

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.

Question 54

A flexible-price policy means offering

Answer 54

the same product and quantities to different customers at different prices.

Question 55

A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.

Answer 55

skimming

Question 56

Trying to sell a firm's new product to a large market at one low price is known as:

Answer 56

a penetration pricing policy.

Question 57

Using temporary price cuts to speed a producer's new product into a market is known as:

Answer 57

introductory price dealing.

Question 58

________ are the prices final customers or users are normally asked to pay for products.

Answer 58

Basic list prices

Question 59

______ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.

Answer 59

Discounts

Question 60

Which of the following statements about rebates is True?

Answer 60

Rebates are refunds paid to consumers after a purchase. Rebates ensure that the final consumer gets a producer's price reduction. Many consumers purchase a product because a rebate is offered but then never request the refund. Many consumers think that some sellers make it an unnecessary hassle to claim a rebate.

Question 61

If a producer wants title to pass to a buyer immediately--but still wants to pay the freight bill — the invoice should read:

Answer 61

F.O.B. seller's factory--freight prepaid.

Question 62

_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value.

Answer 62

Value pricing

Question 63

Unfair trade practice acts:

Answer 63

put a lower limit on prices, especially at the wholesale and retail levels.

Question 64

Price fixing means:

Answer 64

competitors getting together to raise, lower, or stabilize prices.

Question 65

According to the text, the two basic approaches to price setting are

Answer 65

cost-oriented and demand-oriented price setting.

Question 66

Most firms in the business world set their prices using:

Answer 66

cost-oriented price setting.

Question 67

A _____ is a dollar amount added to the cost of products to get the selling price.

Answer 67

markup

Question 68

The text says "markup" means percent of:

Answer 68

selling price--unless otherwise stated.

Question 69

The sequence of markups firms use at different levels in a channel is referred to as a(n)

Answer 69

markup chain.

Question 70

Which of the following is a TRUE statement about markups?

Answer 70

A firm can lose money even when using a high markup.

Question 71

High markups on a product could lead to low profits when

Answer 71

sales dip due to high prices

Question 72

Setting prices by adding a "reasonable" markup to a firm's average cost is called:

Answer 72

average-cost pricing.

Question 73

Average-cost pricing:

Answer 73

May be very profitable if actual sales are higher than expected. may lose money for the firm if actual sales are less than expected. does not take demand into account in setting prices.

Question 74

Total fixed cost:

Answer 74

is the sum of those costs which do not change in total no matter how much is produced.

Question 75

The sum of those changing expenses which are closely related to output is called:

Answer 75

total variable cost.

Question 76

At break-even point (BEP),

Answer 76

the firm's total sales will equal its total production.

Question 77

The best pricing tool marketers have for looking at costs and revenue at the same time is

Answer 77

marginal analysis.

Question 78

The main advantage that marginal analysis has over most other popular pricing methods is that it:

Answer 78

Takes into account both costs and demand.

Question 79

Customers are likely to be more price sensitive when:

Answer 79

the total expenditure is great.they have to pay the bill themselves.the end benefit isn't very significant.

Question 80

Which of the following observations concerning a "reference price" is true?

Answer 80

Demand may increase if a firm's price is lower than a customer's reference price.

Question 81

Which of the following statements is true?

Answer 81

Leader pricing means setting some very low prices to get customers into retail stores. Bait pricing is setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store. Price lining is setting a few price levels for a product line and then marking all items at these prices. Prestige pricing is setting a rather high price to suggest high quality or high status.

Question 82

_____ means offering a specific price for each possible job rather than setting a price that applies for all customers.

Answer 82

Bid pricing

Question 83

A good marketing plan sets the frame work for effective _____________ and control.

Answer 83

implementation

Question 84

_______is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future.

Answer 84

control

Question 85

With respect to marketing control,

Answer 85

faster feedback can often be the basis for a competitive advantage

Question 86

The basic objectives of implementation are to do things

Answer 86

better. faster. at lower cost.

Question 87

Sales analysis is a

Answer 87

detailed breakdown of a company’s sales records.

Question 88

A._________ looks for exceptions or variations from planned performance.

Answer 88

performance analysis

Question 89

The best way to break down or analyze sales data is

Answer 89

any of these are correct depending on the situation.

Question 90

According to the ________, much good information is hidden in summary data.

Answer 90

iceberg principle

Question 91

Which of the following statements best describes the iceberg principle?

Answer 91

Problems in one area may be offset by good performance in other areas – and thus the problems may not be visible on the surface.

Question 92

__________are the two basic approaches to handling marketing costs allocation problems.

Answer 92

The full-cost approach and the contribution-margin approach.

Question 93

A systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function – and of the organization, methods, procedures, and people employed to implement the policies – is called a:

Answer 93

marketing audit.