Question 1
Which stage in the PLC normally lasts longest?
A. Growth
B. Decline
C. Maturity
D. Phase-in
Question 2
Which of the following is an example of a multichannel distribution system?
A. Walmart locating to several countries
B. J. C. Penney's catalog and retail store sales
C. Avon's door-to-door distribution
D. Starbuck's location inside of book stores
Question 3
Ecstasy Pharmaceuticals faces fixed costs of $1 million with manufacturing its new drug. The company sells the drug in bottles of 50 pills for $10. The company estimates that it must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills?
A. $2.50
B. $5
C. $6
D. $7.50
Question 4
The break-even volume is the point at which:
A. the total revenue and total costs lines intersect.
B. demand equals supply.
C. the production of one more unit will not increase profit.
D. the company can pay all of its long-term debt.
Question 5
Mabel Lu is planning to buy a new washing machine. She notices that washing machines are available in a wide range of prices, and she wants to make sure she gets the most for her money. This product is a(n) __________ product.
A. convenience
B. unsought
C. specialty
D. shopping
Question 6
Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes concept testing, the next step is:
A. commercialization.
B. focus group surveys.
C. concept development. (Incorrect)
D. post-testing.
Question 7
If demand is highly responsive to a change in price, we say the demand is:
A. variable.
B. inelastic.
C. value-based.
D. elastic.
Question 8
MRO products are goods that businesses use for:
A. management, research, and order-processing.
B. marketing, relationship-building, and operations.
C. maintenance, research, and organization.
D. maintenance, repair, and operations.
Question 9
A __________ is a physical facility used primarily for the storage of goods held in anticipation of sale or transfer within the marketing channel.
A. stock-keeping unit
B. wholesaler
C. retail outlet
D. warehouse
Question 10
A firm is using a(n) __________ pricing strategy when it introduces a product at a very low price to quickly generate sales volume or market segment penetration.
A. skimming
B. competitive
C. intensive
D. penetration
Question 11
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood is an example of a:
A. convenience product.
B. shopping product.
C. specialty product.
D. service.
Question 12
Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a __________ conflict.
A. multichannel
B. conventional
C. logistics
D. horizontal
Question 13
An intermediary who __________ has purchased the goods being handled.
A. breaks bulk
B. takes title
C. creates assortments
D. takes consignments
Question 14
__________ are products purchased and used by end consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.
A. Services
B. Consumer products
C. Line extensions
D. Industrial products
Question 15
When determining the distribution intensity, three strategies are available to marketers: intensive, exclusive, and __________ distribution.
A. multichannel
B. selective
C. international
D. direct
Question 16
__________ is the product life cycle period when sales fall off and profits drop.
A. Introduction
B. Growth
C. Maturity
D. Decline
Question 17
Unlike innovators, early adopters in general:
A. compose the smallest of the innovation adoption categories.
B. have greater concern for social acceptance.
C. have stronger physiological needs than others in the population.
D. are light media users.
Question 18
By using __________, a company deliberately sets a low price with the intention of driving its competition out of business.
A. price-fixing
B. price lining
C. price bundling
D. predatory pricing
Question 19
A producer that minimizes possession time would be MOST likely to expect which of the following benefits?
A. Better information flows among channel members
B. More easily accessible storage locations
C. Greater production capability
D. Reduced horizontal conflict
Question 20
In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?
A. Pure competition
B. Monopolistic competition
C. Oligopolistic competition
D. Monopoly
Question 21
Information about a customer's age, income, and family makeup is in the __________ category of a customer database.
A. demographic
B. psychographic
C. geographic
D. behavioral
Question 22
Mercy University's initial ads for the school's new MBA program are MOST likely intended to create:
A. reinforcement.
B. awareness and interest.
C. preference.
D. insistence.
Question 23
Which of the following marketing communication tools includes the functions of building up a positive corporate image and handling unfavorable stories and events?
A. Sales promotion
B. Sponsorship
C. Direct marketing
D. Public relations
Question 24
A company uses __________ to evaluate and shape long-term public opinion of the company and __________ to achieve specific marketing objectives by targeting consumers with product-focused messages.
A. advertising; marketing public relations
B. advertising; corporate public relations
C. corporate public relations; marketing public relations
D. corporate public relations; product placement
Question 25
After salesperson Danny O'Reilly has made a sale, he asks his customer if she knows of anyone else who might also be interested in buying his products. In doing so, he is:
A. prospecting.
B. closing the sale.
C. overcoming objections.
D. preapproaching.
Question 26
What should a salesperson do during the fifth step of the personal selling process?
A. Block objections
B. Anticipate and address objections
C. Begin building a bridge to the next sale
D. Wait for signals that the customer is ready to buy
Question 27
As the salesperson entered the prospect's office, the salesperson extended his hand and said, "Your old college roommate, Tiara Johns, suggested I call on you." This action occurred in which stage of the personal selling process?
A. Approach
B. Prospecting
C. Preapproach
D. Close the sale
Question 28
Which of the following types of retailers places the most emphasis on salespeople assisting customers throughout the purchase process?
A. Limited-service retailers
B. Full-service retailers
C. Wholesale-service retailers
D. Discount retailers
Question 29
Which kind of marketing involves sending a pamphlet or flyer containing an offer to a person at a particular address?
A. Direct-response advertising
B. Dynamic imaging
C. Catalog
D. Direct mail
Question 30
Stop-N-Go and Circle K, small stores that traditionally have had a market of consumers who are willing to pay a higher price for the ease of buying staples close to home, are:
A. specialty stores.
B. convenience stores.
C. supermarkets.
D. superstores.
Question 31
A marketing communications objective to __________ has the goal of influencing how the consumer feels about a category or brand and encouraging the consumer to find out more.
A. help the consumer recognize a need
B. build awareness and interest
C. remind about a brand
D. reinforce the buying decision
Question 32
Rack jobbers are limited-service merchant wholesalers who would MOST likely handle which of the following?
A. Imported plants
B. Precious minerals
C. Agricultural products
D. Magazines
Question 33
Which message-execution style depicts average people using a product in an everyday setting?
A. Lifestyle
B. Scientific evidence
C. Slice of life
D. Personality symbol (Incorrect)
Question 34
Which of the following is a promotional technique that returns some or all of the purchase price to the buyer to encourage product trial or repurchase?
A. Contest
B. Allowance
C. Loyalty program
D. Refund or rebate
Question 35
__________ carry a broad range of choices for a narrow product line.
A. Convenience stores
B. Specialty stores
C. Superstores
D. Discount stores
Question 36
Under a pay-for-performance compensation strategy, salespeople are paid based on the:
A. number of new customers they secure.
B. product knowledge they exhibit.
C. quality of their relationships with major customers.
D. amount of sales or profits they deliver.
Question 37
Which of the following is NOT a type of consumer sales promotion?
A. Advertising allowance
B. Point-of-purchase display
C. Loyalty program
D. Trial offer
Question 38
Marketing communicators should be good at __________ messages that take into account how the target audience __________ them.
A. delivering; encodes
B. sending; encodes
C. encoding; decodes
D. retrieving; perceives
Question 39
The first step in the personal selling process is:
A. preapproach.
B. prospecting.
C. approach.
D. overcome objections.
Question 40
The Paper Moon sells gift wrapping paper, stationery, and greeting cards. It does not sell any other products. The number of different kinds of wrapping paper, stationery, and cards make up its:
A. point-of-sale range.
B. retail price policy.
C. atmospherics.
D. merchandise assortment.
