Discussions;
1. Branding helps firms build and maintain identity and competitive advantage for their products.
2. Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown to the known category, which increases the probability that they will purchase it.
3. Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a branded product when choosing it, if available, over competitors' products.
4. A national brand defines the image most people form when they think of a brand.
5. Companies that follow category management process define the category based on the target market's needs.
6. The original owner of a brand name can claim exclusive rights to the name even when the brand name becomes a descriptive generic name for a class of products.
7. A trademark is different from a trade name which is usually used to identify a company.
8. Merrill Lynch's bull logo cannot be considered a part of the product's trade dress.
9. An excellent brand name or symbol in one country may prove disastrous in another.
10. A line extension involves the addition of new sizes, styles, flavors, or related products to an existing group of products.
11. Cannibalization is the loss of sales of an existing product due to competition from a new product introduced into the market by a competing firm.
12. Consumer innovators are individuals who rely on the experiences of initial buyers before making trial purchases.
13. The terms "transportation" and "physical distribution" can be used interchangeably because these terms carry the same meaning.
14. Direct selling is an important option for goods requiring extensive demonstrations in persuading customers to buy.
15. The traditional channel for consumer goods proceeds from producer to wholesaler to retailer to user.
16. Marketers usually adopt a dual distribution strategy either to maximize their firm's coverage in the marketplace or to increase the cost effectiveness of the firm's marketing effort.
17. Horizontal territorial restrictions result from agreements between retailers or wholesalers to avoid competition among sellers of products from the same producer.
18. When a beverage company acquires a water purification plant, it is an example of backward integration of distribution channels.
19. The supply chain begins with the movement of finished products through the marketing channel to customers.
20. Customer service standards state the goals and define acceptable performance for the quality of service that a firm expects to deliver to its customers.
21. Shippers that transport goods via water carriers incur very low costs compared with the rates for other transportation modes.
22. Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.
23. Markups are determined partly on the basis of marketers' judgments of the amounts that consumers will pay for a product.
24. A neighborhood shopping center consists of large stores featuring shopping goods, professional offices, a branch bank, and also a movie theatre or a supermarket.
25. The term "atmospherics" exclusively refers to the interior décor of a store.
26. Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.
27. Convenience retail stores attract consumers by providing easy access, extended store hours, and adequate parking facilities.
28. A discount house offers fewer services to its customers.
29. Truck wholesalers make regular deliveries to retailers and perform collection and promotion functions.
30. Marc is a wholesaling intermediary who brings buyers and sellers together, sometimes representing buyers and sometimes representing sellers, but never both in the same transaction. This information indicates that Marc is a commission merchant.
31. A manufacturer's representative can work only for a single manufacturer.
32. Infomercials are a form of telemarketing.
33. The success of any IMC program depends on identifying the members of an audience and understanding what they want.
34. Databases and interactive marketing are important IMC tools that help marketers collect information from customers and then segment markets according to demographics and preferences.
35. Mass media such as TV ads, while still useful, are no longer the mainstay of marketing campaigns.
36. An IMC strategy helps marketers create a unified personality for the product by choosing the right elements from the promotional mix to send the message.
37. Successful implementation of IMC requires that everyone involved in every aspect of promotion function as a team, presenting a consistent, coordinated effort at every point of customer contact.
38. The first step in the AIDA concept involves convincing the would-be buyer of the product's ability to satisfy his or her needs.
39. Nonverbal cues like body language and tone of voice are important to the communication process.
40. Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or website visits is referred to as direct marketing.
41. A tourism ad promoting Vermont as a winter holiday destination is an example of product advertising.
42. Some types of products like cigarettes and smokeless tobacco are banned from television advertising.
43. Setting the timing and sequence for a series of advertisements is called media scheduling.
44. Brand-building efforts to generate or enhance consumers' perceptions of value in a product, brand, or organization can be measured over the short term.
45. Personal selling is more costly and time consuming compared to other types of promotion.
46. Personal selling is an important component of the promotional mix for a firm that markets to relatively few potential customers.
47. Over-the-counter selling usually requires the customer to take the initiative and travel to the seller's place of business.
48. A Frito-Lay driver who covers a geographic route of grocery stores taking orders, restocking shelves, and removing products past the expiration date is classified as a field salesperson.
49. Missionary selling is an indirect sales approach that focuses on promoting goodwill for the firm.
50. The first presentation being made to a potential customer is likely to be more detailed than that used for an existing customer.
51. The follow-up step in the sales process often determines whether an individual who has made a recent purchase will become a repeat customer.
52. Business firms that market highly technical and complex products will have a specialized sales force for each major category of the firm's products.
53. In creating an ethical environment, employees prefer a complete list of "do's and don'ts" over an open environment where they can approach management with ethics questions.
54. Personal selling and advertising are part of the marketing activities involved in a sales promotion.
55. A national grocery store runs an advertisement offering "buy one get one free" on packages of Thomas' English muffins to consumers. This is an example of a trade promotion.
56. A price is the exchange value of a good or service.
57. Pricing can be used to modify consumer behavior.
58. Fair-trade laws assert the manufacturer's authority to protect its asset by requiring retailers to maintain a minimum price.
59. Overall organizational objectives and more specific marketing objectives guide the development of pricing objectives, which in turn lead to the development and implementation of more specific pricing policies and procedures.
60. The government prohibits regulated monopolies in markets in which competition would lead to an uneconomical duplication of services.
61. When the elasticity of demand or supply is greater than 1.0, then that demand or supply is said to be inelastic.
62. Full-cost pricing allocates fixed costs that can be directly attributed to the production of the specific priced item.
63. Lower off-season prices and higher peak-season prices for lodging at resorts illustrate the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.
64. Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.
65. When the list price of a product is discounted by the value of a used product that is turned in at the time of sale, the transaction is called a sale with a trade-in.
66. In an FOB pricing policy, the seller pays all freight charges to transport the product from the manufacturer's loading dock.
67. In an attempt to simplify pricing structures, sellers will quote uniform prices that, in effect, spread the total shipping costs across all the customers.
68. A price of $ 9.97 is less likely to appeal to customers than $ 9.95 or $ 9.99.
69. Business and government purchasers often legally enter into contracts with favored suppliers instead of using competitive bidding.
70. Bots are search programs that hunt the Web for a specific vendor and then print out a list of products and their prices at that source.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Which of the following products is most likely to achieve the status of brand insistence?
a. Cars
b. Soaps
c. Milk
d. Toothpastes
2. Which of the following is most likely to be the primary factor that attracts a consumer to a generic product?
a. Package design
b. Brand name
c. Low price
d. Product quality
3. Which is the following statements is true of category management?
a. Category managers are responsible for the profitability of their product groups.
b. Category managers help a retailer's category buyer maximize sales for a particular manufacturer's product rather than the whole category.
c. Category managers are usually assigned to a single brand rather than each retail chains.
d. Category managers are oriented toward mass market advertising, not in-store merchandising.
4. The process by which new goods or services are accepted in the marketplace is known as the _____ process.
a. extension
b. referencing
c. diffusion
d. polarization
5. Which of the following is most likely to be true of consumer innovators?
a. They are unlikely to display brand loyalty toward products.
b. As compared to later adopters, they rely less on impersonal information sources.
c. They often act as opinion leaders from whom others seek advice.
d. They are less mobile, and do not prefer changing jobs often.
6. A new product innovation that is consistent with the values and experiences of potential adopters and attracts new buyers at a relatively rapid rate is said to have high _____.
a. complexity
b. observability
c. compatibility
d. transparency
7. During which of the following stages of a new-product development process, ideas with commercial potential are separated from those not meeting company objectives?
a. Idea generation
b. Business analysis
c. Screening
d. Test marketing
8. ABC Corp., a mining equipment manufacturer, provides loaders and feeder breakers for Ground Works, a mining company. ABC Corp. regularly sends information on new products as well as on upgrades for old products to the management in Ground Works. ABC Corp relies on _____ to sell its products.
a. direct channels
b. industrial distributors
c. manufacturer's representatives
d. franchisers
9refers to the movement of products through more than one channel to reach the firm's target market.
a. Direct channeling
b. Dual distribution
c. Selective channeling
d. Exclusive distribution
10. Advertising in which the manufacturer pays a percentage of the retailer's advertising expenditures and the retailer prominently displays the firm's products is known as _____ advertising.
a. affinity
b. cooperative
c. sustainable
d. community
11. Which of the following distribution strategy seeks to distribute a product through a single wholesaler or retailer in a specific geographic region?
a. Exclusive distribution
b. Associative distribution
c. Selective distribution
d. Intensive distribution
12. An arrangement that requires a marketing intermediary to carry items other than those they want to sell is known as a(n) _____.
a. contractual collusion
b. tying agreement
c. closed sales territorial restriction
d. exclusive dealership agreement
13. A fast-food giant invests in potato farms in the Midwest in order to stabilize its raw material prices. This is an example of:
a. situational integration.
b. backward integration.
c. balanced integration.
d. horizontal integration.
14. A VMS that achieves channel coordination when a dominant channel member exercises its power is called a(n) _____ marketing system.
a. corporate
b. community
c. administered
d. contractual
15. The supply chain begins with:
a. the manufacturing or production activities.
b. the manufacturer seeking new markets for their products.
c. the movement of finished products through the marketing channel to customers.
d. the raw material inputs for the manufacturing process.
16. Which of the following terms represents transporters that provide service solely for internally generated freight?
a. Common carriers
b. Contract carriers
c. Private carriers
d. Regional carriers
17. Which of the following offers the fastest mode of transportation?
a. Water freight
b. Pipelines
c. Air freight
d. Railroads
18are increasingly taking on the role of channel captain within many distribution networks.
a. Manufacturers
b. Large-scale retailers
c. Consumers
d. Suppliers
19. An offering within a product line, such as a specific size of liquid detergent, is known as a(n) _____.
a. product array element
b. price look-up factor
c. stock-keeping unit
d. unique article number
20. A lifestyle center is a type of planned shopping center that:
a. provides a wide assortment of convenience, shopping, and specialty goods, plus many service facilities.
b. is usually located near a regional or superregional mall and brings together several huge specialty stores as standalone stores in a single trading area.
c. offers a combination of shopping, live entertainment, movie theatres, restaurants, decorative fountains, and much more in an attractive outdoor environment.
d. offers a product mix that is usually confined to convenience items and some limited shopping goods.
21. Reminding a customer that the flashlight they just purchased requires batteries (which are available for sale) would be an example of:
a. cross selling.
b. bait-and-switch selling.
c. selling up.
d. suggestion selling.
22. A retailer that offers a large assortment within a single product line or within a few related product lines is known as a(n):
a. limited-line store.
b. industrial distributor.
c. specific-line store.
d. rack jobber.
23. Wholesaling intermediaries help producers in transporting by:
a. reporting on competitors' activities and industry trends.
b. purchasing in economical truck load lots and then reselling in smaller quantities.
c. offering research inputs through regular contacts with retail and business buyers.
d. reducing their inventory turnover rates.
24. A _____ is a limited-function wholesaler that markets perishable food items.
a. cash-and-carry wholesaler
b. truck jobber
c. mail-order wholesaler
d. drop shipper
25. Typically, bread and dairy products are delivered to stores by wholesale intermediaries called:
a. drop shippers.
b. rack jobbers.
c. truck wholesalers.
d. clearing agents.
26. Which of the following statements is true regarding manufacturer's representatives?
a. They typically work for only one firm.
b. They contract for exclusive rights to market a product.
c. They are paid on a commission basis.
d. They take the title of the products from a manufacturer and then sell these products to customers.
27. Vending machines are an example of:
a. automatic merchandising.
b. Internet retailing.
c. telemarketing.
d. direct selling.
28. The _____ is at the heart of integrated marketing communications.
a. product
b. brand
c. organization
d. customer
29. Brad is a pharmaceutical representative for Merck. He attends a medical conference where he gives a presentation about a new drug which is being manufactured by his company. Brad's presentation is a part of Merck's IMC effort and it represents:
a. encoding of the product message.
b. decoding of the product message.
c. feedback for the promotional message.
d. noise generated by the promotional message.
30. When a major pharmaceutical scandal shook people's belief in the Health Ministry, the public relations department in the ministry devised an IMC strategy to positively influence public perception. An evaluation of the effectiveness of the IMC strategy reported a positive change in the public perception of the ministry. In the context of the communication process, this change in perception represents _____.
a. encoding
b. channeling
c. feedback
d. noise
31. In the context of the communication process, translating a message into understandable terms and transmitting it through a communications channel is known as _____.
a. decoding
b. referencing
c. polarizing
d. encoding
32. Which of the following is the oldest form of promotion?
a. Product placement
b. Personal selling
c. Guerrilla marketing
d. Ambush marketing
33. Which of the following constitutes nonpersonal selling?
a. Product placement in a TV show
b. Face-to-face interaction between a buyer and a seller
c. Telephonic conversation between a buyer and a seller
d. A videoconference between a marketer and a customer
34. In an attempt to expand viewership of the television show Mystery Science Theater 3000 in its early days, the producers encouraged viewers to make copies of the show on video tapes and give them to friends. The closing credits included the words "Keep circulating the tapes!" This is an example of:
a. guerrilla marketing.
b. cause marketing.
c. ambush marketing.
d. cloud marketing.
35. Oriental Insurance promotes identity theft insurance with an advertisement that warns viewers about stealing of credit cards and usage of fake social security numbers. Which appeal is being used in this commercial to motivate the viewers to act?
a. Factual appeal
b. Humor
c. Cooperation appeal
d. Fear appeal
36. Which of the following is a disadvantage of using television as an advertising medium?
a. Ineffective impact of the promotional message on viewers
b. Loss of control of the promotional message to the telecaster
c. Inability to attain mass coverage
d. Inability to repeat messages
37refers to exaggerated claims of a product's superiority or the use of subjective or vague statements that may not be literally true.
a. Infiltrating
b. Puffery
c. Boosterism
d. Crowdsourcing
38. Which of the following is a posttest that assesses advertising effectiveness after it has appeared in a print or broadcast medium?
a. Miller test
b. Unaided recall test
c. Risk-utility test
d. Oakes test
39. Which of the following methods develops a promotional budget based on a sound evaluation of the firm's promotional goals?
a. The fixed-sum-per-unit method
b. The meeting competition method
c. The percentage-of-sales method
d. The task-objective method
40. The business department in Skandsoft Technologies, a computer software company, consists of technically trained, nonmarketing experts such as engineers or programmers. A salesperson continues to play the lead role in most sales situations while technical experts add value to the sales process. Which form of personal selling is being used by this organization?
a. Consultative selling
b. Team selling
c. Cross-selling
d. Inside selling
41. The use of technology in order-processing tasks can lead to an increase in:
a. the accuracy of processing an order.
b. the demand for the number of salespeople.
c. the time required to process an order accurately.
d. the sales quota to be fulfilled by each salesperson.
42. The first step in the sales process is to:
a. determine the potential customers.
b. identify the prospective customers.
c. advertise the product.
d. approach the potential customer.
43is a personal selling function that involves identifying potential customers.
a. Screening
b. Prospecting
c. Approaching
d. Processing
44. Prior to making the approach to a potential customer, the salesperson should:
a. outline objections and effective responses.
b. break down product features and benefits by category.
c. understand the way in which the industry operates.
d. collect and analyze information about the potential customer.
45. In the _____ stage of the sales process, a salesperson describes a product's features and relates them to the customer's needs.
a. approach
b. recall
c. closure
d. presentation
46. One important advantage of personal selling over most advertising is:
a. the cost factor; personal selling is much cheaper.
b. the ability to actually demonstrate the good or service.
c. the minimal dependence on technology.
d. the low requirement for skilled salespeople.
47. The overall direction and control of the personal selling effort is in the hands of a firm's:
a. board of directors.
b. sales analysts.
c. existing customers.
d. sales managers.
48. With regard to sales promotion, magazines, newspapers, and package inserts are the standard methods of distributing:
a. coupons.
b. samples.
c. premiums.
d. specialty items.
49. Which of the following sales promotion techniques produces a higher response rate than most other promotions?
a. Sweepstakes
b. Rebates
c. Sampling
d. Coupons
50. Julia noticed that her favorite shampoo is being packaged in a slightly larger bottle for the same price as the standard size bottle. This is an example of a:
a. bonus pack.
b. premium.
c. sample.
d. de facto rebate.
51. Which of the following can be categorized as a tariff?
a. A tax exemption provided to domestic firms that import goods from foreign countries.
b. A tax levied on domestic exporters to maintain product quality.
c. A tax levied on foreign producers to prevent dumping of goods.
d. A tax exemption on agricultural produce to help domestic farmers.
52. Which of the following was rendered invalid by the federal Consumer Goods Pricing Act of 1975?
a. The Robinson-Patman Act (1936)
b. State unfair-trade laws
c. State fair-trade laws
d. The Clayton Act (1914)
53. Prestige pricing objectives emphasize:
a. quality and exclusivity.
b. revenue maximization.
c. cost minimization.
d. sales maximization.
54. When a State decides to double the tax on alcoholic beverages and consequently, increases their market price, the State is aiming at:
a. market suppression.
b. profit maximization.
c. cost recovery.
d. market domination.
55. A schedule of the amounts of a firm's product that consumers will purchase at different prices during a specified time period is referred to as _____.
a. demand
b. supply
c. surplus
d. ration
56. Which of the following is a market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price?
a. Pure competition
b. Monopolistic competition
c. Monopoly
d. Oligopoly
57. Which of the following is true of pure competition?
a. It is a market structure with very few sellers.
b. It presupposes a market condition where start-up costs are high for sellers.
c. It is a market structure with very few buyers.
d. It presupposes a market condition where sellers produce homogenous products.
58. Which of the following is a market structure in which only one seller of a product exists and for which there are no close substitutes?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
59. Which of the following market structure is characterized by the non-existence of direct competitors?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
60. In which of the following market structures individual firms have the highest control over product prices?
a. Pure competition
b. Monopolistic competition
c. Oligopoly
d. Monopoly
61. A cost that remains stable at any production level within a certain range is called a(n) _____ cost.
a. variable
b. fixed
c. average total
d. marginal
62. Under which of the following conditions is a product most likely to have an elastic demand?
a. Consumers can easily find close substitutes for the product.
b. The marginal cost of producing the product is equal to its marginal revenue.
c. A large portion of a person's budget is spent on the product.
d. The fixed costs associated with producing the product are higher than the variable costs associated with it.
63. The breakeven point is the point at which:
a. revenue from sales equals the variable cost of the product.
b. the supply curve intersects the demand curve.
c. total revenue from sales equals total cost.
d. marginal cost runs above the marginal revenue curve.
64. In international marketing, which of the following pricing objectives is used when products are associated with intangible benefits, such as high quality, exclusiveness, or attractive design?
a. Profitability objective
b. Volume objective
c. Meeting-competition objective
d. Prestige objective
65. The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.
a. market
b. list
c. cash
d. trade
66. The price reduction offered to a customer, business user, or marketing intermediary in return for prompt payment of a bill is called a _____ discount.
a. functional
b. trade
c. quantity
d. cash
67. A firm that manufactures TVs sells them at prices of $750, $1,000, and $1,250. The manufacturer will return $75, $100, or $125 respectively, by mail, to those who purchase its brand of TV. This reduction in price is an example of a:
a. promotion allowance.
b. trade-in.
c. rebate.
d. quantity discount.
68. When a manufacturer quotes the same price for goods (including freight charges) to a buyer in Miami, another in Los Angeles, and a third in Dallas, the seller is quoting a _____ price.
a. uniform-delivered
b. destination
c. zone
d. basing-point
69. Many government and organizational procurement departments do not pay set prices for their purchases. Instead, they:
a. always negotiate with favored suppliers to get exactly what they want.
b. approach the supplying industry and get an average estimate of price from all producers.
c. determine the lowest prices available for items that meet specifications through competitive bidding.
d. call the federal supply agency and place an order with this government-run factory.
70. Aken Laboratories, a chemical manufacturer for laboratory use, exports its products to various countries in South Asia. The company does not alter the prices of its products in these countries. Aken is adopting a _____ pricing strategy.
a. market-differentiated
b. variable
c. standard worldwide
d. dual