Multiple choice questions:
Question 1
Any human or mechanical effort that adds value to a product is called
a service.
an intangible.
overhead.
customer service.
service marketing.
Question 2
A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)
evaluation study.
formal evaluation.
product inspection.
systematic review.
reassessment examination.
Question 3
Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during
concept testing.
product development.
screening.
idea generation.
test marketing.
Question 4
Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern?
Screening
Concept testing
Business analysis
Product development
Test marketing
Question 5
Price is a key element in the marketing mix because it relates directly to
the size of the sales force.
the speed of an exchange.
quality controls.
the generation of total revenue.
brand image.
Question 6
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
The point at which the firm sells its product at the highest price
The breakeven point plus the adjusted marginal cost
The point at which marginal profits equal marginal revenue
The point at which marginal cost equals marginal profit
Question 7
A marketer sometimes uses temporary price reductions to
increase the number of competitors.
gain market share.
decrease volume sold.
increase revenue per item.
control demand.
Question 8
Buyers who focus on purchasing products that signify prominence and status are
value-conscious consumers.
price-conscious consumers.
socially elite buyers.
prestige-sensitive buyers.
brand aware consumers.
Question 9
A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales?
Cash flow
Sales potential
Product quality
Market share
Status quo
Question 10
Goods that are priced primarily based on the way they have always been priced are examples of
traditional pricing.
professional pricing.
everyday low prices.
price lining.
customary pricing.
Question 11
A cost-based pricing method commonly used in retail is called
value pricing.
cost-plus pricing.
cost discounting.
differential pricing.
markup pricing.
Question 12
A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.
random discounting
penetration pricing
reference pricing
everyday low pricing
periodic discounting
Question 13
The driving force behind marketing channel decisions should be
convenience.
cost reduction.
environmental concerns.
customer satisfaction.
quality.
Question 14
When companies operate their own facilities for storing and shipping products, these facilities are known as
distribution centers.
product storehouses.
public warehouses.
megawarehouses.
private warehouses.
Question 15
An independent business that takes title to products and carries inventories is a(n)
industrial distributor.
intermediary.
agency.
wholesaler.
producer.
Question 16
Freight transportation companies that offer several different shipment methods are called
megacarriers.
intermodal transporters.
freight forwarders.
shipping experts.
superfreighters.
Question 17
A retailer is an organization that purchases products for the purpose of reselling them to
other retail organizations.
the government.
ultimate consumers.
wholesalers.
nonprofit organizations.
Question 18
An agent that receives goods on consignment from local sellers and negotiates sales in large, central markets is called a
commission merchant.
sales branch agent.
selling agent.
manufacturers' agent.
broker-agent.
Question 19
Which of the following is a common feature of a warehouse club?
Concrete floors and wide aisles
Wide range of products
Good customer service
Moderate prices
Pleasant atmosphere
Question 20
Self-service, general merchandise stores such as Kmart are known as
discount stores.
warehouse showrooms.
catalog showrooms.
superstores.
specialty retailers.