MKT 100 Final Quizes 2020(all quizes with all the correct answers)

Document Content and Description Below

MKT 100 Final Quizes • Question 1 6 out of 6 points Order-getting activities are divided into two categories: • Question 2 6 out of 6 points Developing a list of potenti... al customers is called • Question 3 6 out of 6 points Customer density and distribution are important factors in • Question 4 6 out of 6 points Salespeople receive a set salary plus a commission based on sales with a • Question 5 6 out of 6 points The two groups of order takers in personal selling are • Question 6 6 out of 6 points Creating a favorable impression and developing rapport with prospective customers is a critical part of the ____ step of personal selling. • Question 7 6 out of 6 points ____ are designed to identify the customers called on and to present detailed information about interaction with those clients. • Question 8 6 out of 6 points In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? • Question 9 6 out of 6 points A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) • Question 10 6 out of 6 points The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the • Question 11 6 out of 6 points An evaluation performed before an advertising campaign begins is a • Question 12 6 out of 6 points Generally, in small firms, ____ create(s) and implement(s) advertising campaigns. • Question 13 6 out of 6 points The most effective method of determining platform issues is to use a survey of • Question 14 6 out of 6 points The cost per thousand (CPM) indicator shows • Question 15 6 out of 6 points The two major types of product advertising are • Question 16 6 out of 6 points The total amount of money a marketer allocates for advertising for a specific time period is the • Question 17 6 out of 6 points ____ is communication in news story form about an organization or its products that is transmitted through a mass medium at no charge. • Question 18 6 out of 6 points An advertising platform is the • Question 19 6 out of 6 points In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to • Question 20 6 out of 6 points When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. • Question 21 6 out of 6 points When a source converts meaning into a series of signs or symbols representing ideas or concept, the source is undergoing • Question 22 6 out of 6 points The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines • Question 23 6 out of 6 points Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? • Question 24 6 out of 6 points Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is • Question 25 6 out of 6 points A paid form of nonpersonal communication about an organization and/or its products that is transmitted to a target audience through a mass medium is • Question 26 6 out of 6 points Pioneer promotion is most likely to be used during the ____ stage of the product life cycle. • Question 27 6 out of 6 points During the introduction stage of the product life cycle, which type of promotion would a firm focus on? • Question 28 6 out of 6 points The individual or group that decodes a coded message is called a • Question 29 6 out of 6 points The process of putting one's thoughts (meaning) into signs (symbols) is called • Question 30 6 out of 6 points A consumer contest is an example of • • Question 1 6 out of 6 points What do all of the following have in common: tuition, fee, premium, retainer, dues? • Question 2 6 out of 6 points A measure of sensitivity of demand in relation to changes in price is • Question 3 6 out of 6 points Price is a key element in the marketing mix because it relates directly to • Question 4 6 out of 6 points The type of prices most likely to appear in advertising is • Question 5 6 out of 6 points ____ consumers are concerned about both the price and the quality aspects of a product. • Question 6 6 out of 6 points A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a • Question 7 6 out of 6 points When companies operate their own facilities for storing and shipping products, these facilities are known as • Question 8 6 out of 6 points ____ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. • Question 9 6 out of 6 points When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists. • Question 10 6 out of 6 points The supply chain includes • Question 11 6 out of 6 points A retailer is an organization that purchases products for the purpose of reselling them to • Question 12 6 out of 6 points A merchant wholesaler • Question 13 6 out of 6 points Category killers compete primarily on the basis of • Question 14 6 out of 6 points Wholesaling can be defined as • Question 15 6 out of 6 points If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) • Question 1 6 out of 6 points • Question 2 6 out of 6 points Products are classified as being business or consumer products according to the Answer • Question 3 6 out of 6 points An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? Answer • Question 4 6 out of 6 points When a product tries to capitalize on the brand equity of two separate brands, marketers are using Answer • Question 5 6 out of 6 points The depth of a product mix is measured by the average number of Answer • Question 6 6 out of 6 points What do all of the following have in common: tuition, fee, premium, retainer, dues? Answer • Question 7 6 out of 6 points Temporary price reductions through sales, rebates, and special discounts are often used to Answer • Question 8 6 out of 6 points Premium-priced products are usually marketed through Answer • Question 9 6 out of 6 points • Question 10 6 out of 6 points Buyers who focus on purchasing products that signify prominence and status are Answer • Question 11 6 out of 6 points What two modes of transportation are used when containers are shipped by piggyback? Answer • Question 12 6 out of 6 points Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define • Question 13 6 out of 6 points What are the three primary tasks of order processing? • Question 14 6 out of 6 points Tying agreements occur when a • Question 15 6 out of 6 points Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called • Question 16 6 out of 6 points Which of the following is a common feature of a warehouse club? • Question 17 6 out of 6 points ____ have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars. • Question 18 6 out of 6 points A manufacturers' outlet mall is most appropriately classified as a(n) • Question 19 6 out of 6 points Off-price retailers feature • Question 20 6 out of 6 points The primary purpose of a(n) ____ is to bring buyers and sellers together. Question 1 0 out of 3 points All of the following are examples of publicity-based public relations tools except Question 2 3 out of 3 points The individual or group that decodes a coded message is called a Question 3 3 out of 3 points The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines Question 4 0 out of 3 points The message that a source originally encodes and the meaning a receiver ultimately decodes Question 5 0 out of 3 points During the decoding process, the Answer Question 6 3 out of 3 points When encoding the message, the source should use signs that have Answer Question 7 3 out of 3 points During the introduction stage of the product life cycle, which type of promotion would a firm focus on? Answer Question 8 3 out of 3 points Pioneer promotion is most likely to be used during the ____ stage of the product life cycle. Answer Question 9 3 out of 3 points Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered Answer Question 10 3 out of 3 points Advertising, personal selling, sales promotion, and public relations are called Answer Question 11 3 out of 3 points The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is called the Answer Question 12 3 out of 3 points The last stage in the development of any advertising campaign is Answer Question 13 3 out of 3 points What design element is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words? Answer Question 14 3 out of 3 points The most effective method of determining platform issues is to use a survey of Answer Question 15 3 out of 3 points The cost per thousand (CPM) indicator shows Answer Question 16 3 out of 3 points When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. Answer Question 17 3 out of 3 points An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. Answer Question 18 3 out of 3 points Belinda works for Burger King and her responsibilities include maintaining favorable relationships between the organization and its stakeholders. Belinda works in Answer Question 19 3 out of 3 points Generally, in small firms, ____ create(s) and implement(s) advertising campaigns. Answer Question 20 0 out of 3 points The limitations in using publicity-based public relations tools stem primarily from the fact that Answer Question 21 3 out of 3 points A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) Answer Question 22 3 out of 3 points The two groups of order takers in personal selling are Answer Question 23 3 out of 3 points A temporary price reduction to resellers for purchasing specified quantities of a product is Answer Question 24 3 out of 3 points The final stage of the selling process is Answer Question 25 3 out of 3 points Customer density and distribution are important factors in Answer Question 26 3 out of 3 points Salespeople receive a set salary plus a commission based on sales with a Answer Question 27 3 out of 3 points The type of salesperson that usually requires training in physical science or engineering is the Answer Question 28 3 out of 3 points A person who primarily seeks repeat sales is called a(n) Answer Question 29 3 out of 3 points Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? Answer Question 30 3 out of 3 points Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called Answer • Question 1 6 out of 6 points Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication. Answer • Question 2 6 out of 6 points Pioneer promotion is most likely to be used during the ____ stage of the product life cycle. Answer • Question 3 6 out of 6 points The process of putting one's thoughts (meaning) into signs (symbols) is called Answer • Question 4 6 out of 6 points During the introduction stage of the product life cycle, which type of promotion would a firm focus on? Answer • Question 5 6 out of 6 points All of the following are examples of publicity-based public relations tools except Answer • Question 6 6 out of 6 points Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered Answer • Question 7 6 out of 6 points A consumer contest is an example of Answer • Question 8 0 out of 6 points The message that a source originally encodes and the meaning a receiver ultimately decodes Answer • Question 9 6 out of 6 points A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a Answer • Question 10 6 out of 6 points Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is Answer • Question 11 0 out of 6 points The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is called the Answer • Question 12 6 out of 6 points An advantage of the arbitrary approach for determining the advertising appropriation is that it is Answer • Question 13 6 out of 6 points The total amount of money a marketer allocates for advertising for a specific time period is the Answer • Question 14 6 out of 6 points An advertising platform is the Answer • Question 15 6 out of 6 points The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of Answer • Question 16 6 out of 6 points Advertising that lets consumers know that an established brand still offers certain uses, characteristics, and advantages is ____ advertising. Answer 6 out of 6 points When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. Answer • Question 18 6 out of 6 points An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. Answer • Question 19 6 out of 6 points ____ is communication in news story form about an organization or its products that is transmitted through a mass medium at no charge. Answer • Question 20 6 out of 6 points Advertising that focuses on stimulating demand for a product category is called ____ advertising. Answer • Question 21 6 out of 6 points During the personal selling process, a salesperson, if possible, should handle objections when Answer • Question 22 6 out of 6 points The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. Answer • Question 23 6 out of 6 points The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the Answer • Question 24 6 out of 6 points The step of the personal selling process in which a salesperson contacts a potential customer is called Answer • Question 25 6 out of 6 points A major disadvantage of personal selling is that it Answer • Question 26 6 out of 6 points A temporary price reduction to resellers for purchasing specified quantities of a product is Answer • Question 27 6 out of 6 points Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? Answer • Question 28 0 out of 6 points Order-getting activities are divided into two categories: Answer • Question 29 6 out of 6 points Creating a favorable impression and developing rapport with prospective customers is a critical part of the ____ step of personal selling. Answer • Question 30 6 out of 6 points ____ are designed to identify the customers called on and to present detailed information about interaction with those clients. Answer • Question 1 6 out of 6 points Factors such as climate, seasons, and holidays tend to lead to the promotional objective of Answer • Question 2 6 out of 6 points An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is Answer • Question 3 6 out of 6 points During the decoding process, the Answer • Question 4 6 out of 6 points When a source converts meaning into a series of signs or symbols representing ideas or concept, the source is undergoing Answer • Question 5 6 out of 6 points All of the following are examples of publicity-based public relations tools except Answer • Question 6 6 out of 6 points Which of the following industries is most likely to employ combative promotional efforts? Answer • Question 7 6 out of 6 points The vehicle through which the coded message is transmitted from the source to the receiver is called a(n) Answer • Question 8 6 out of 6 points A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a Answer • Question 9 6 out of 6 points If the push policy is used in promoting a product, the firm Answer • Question 10 6 out of 6 points Which of the following are personal informal exchanges of communication that customers share with one another about products, brands, and companies? Answer • Question 11 6 out of 6 points Belinda works for Burger King and her responsibilities include maintaining favorable relationships between the organization and its stakeholders. Belinda works in Answer • Question 12 6 out of 6 points Advertising that lets consumers know that an established brand still offers certain uses, characteristics, and advantages is ____ advertising. Answer • Question 13 6 out of 6 points If a consumer is shown a particular advertisement and asked if she has seen it before, a(n) ____ is being performed. Answer • Question 14 6 out of 6 points Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising. Answer • Question 15 6 out of 6 points An advantage of the arbitrary approach for determining the advertising appropriation is that it is Answer • Question 16 6 out of 6 points An evaluation performed before an advertising campaign begins is a Answer • Question 17 6 out of 6 points The first stage in the development of any advertising campaign is Answer • Question 18 6 out of 6 points The two major types of product advertising are Answer • Question 19 6 out of 6 points When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. Answer • Question 20 6 out of 6 points A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) Answer • Question 21 6 out of 6 points The type of salesperson that usually requires training in physical science or engineering is the Answer • Question 22 6 out of 6 points A temporary price reduction to resellers for purchasing specified quantities of a product is Answer • Question 23 6 out of 6 points The two groups of order takers in personal selling are Answer • Question 24 6 out of 6 points Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called Answer • Question 25 6 out of 6 points ____ are designed to identify the customers called on and to present detailed information about interaction with those clients. Answer • Question 26 6 out of 6 points Retail salespeople are classified as Answer • Question 27 6 out of 6 points Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for Answer • Question 28 6 out of 6 points Salespeople receive a set salary plus a commission based on sales with a Answer • Question 29 6 out of 6 points A ____ is a gift to a retailer who purchases a specified quantity of merchandise. Answer • Question 30 0 out of 6 points Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at Answer • • Question 1 3 out of 3 points Products are classified as being business or consumer products according to the Answer • Question 2 3 out of 3 points In marketing, family packaging means Answer • Question 3 3 out of 3 points An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? Answer • Question 4 3 out of 3 points Brand ____ is a customer's favorable attitude toward a specific brand and, depending on its strength, some likelihood of the consistent purchase of this brand. Answer • Question 5 0 out of 3 points According to the text, a product is defined as Answer • Question 6 0 out of 3 points Temporary price reductions through sales, rebates, and special discounts are often used to Answer • Question 7 3 out of 3 points Generally, customers are most likely to rely on the price-quality association when Answer • Question 8 3 out of 3 points The type of prices most likely to appear in advertising is Answer • Question 9 3 out of 3 points A measure of sensitivity of demand in relation to changes in price is Answer • Question 10 3 out of 3 points At the breakeven point, Answer • Question 11 0 out of 3 points Which mode of transportation hauls more freight than any other? Answer • Question 12 3 out of 3 points Tying agreements occur when a Answer • Question 13 3 out of 3 points The supply chain includes Answer • Question 14 3 out of 3 points ____ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. Answer • Question 15 3 out of 3 points Which major mode of freight transportation provides the most flexible schedules and routes? Answer • Question 16 3 out of 3 points If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is a(n) Answer • Question 17 3 out of 3 points Selling agents perform every wholesaling activity except Answer • Question 18 3 out of 3 points Off-price retailers feature Answer • Question 19 3 out of 3 points Which of the following is the least flexible of these important retailing strategy issues? Answer • Question 20 3 out of 3 points Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called Answer • Question 1 6 out of 6 points An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? Answer • Question 2 6 out of 6 points Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? Answer • Question 3 6 out of 6 points A product that is simply labeled with the product category is considered a Answer • Question 4 6 out of 6 points ____ packaging means that the product is packaged in line with the packaging practices associated with a particular product category. Answer • Question 5 6 out of 6 points The development of a container and graphic design for a product is called Answer • Question 6 6 out of 6 points The tuition and fees each student paid for this semester of college are both terms for Answer • Question 7 6 out of 6 points The type of prices most likely to appear in advertising is Answer • Question 8 6 out of 6 points Safe Auto advertises its low-cost automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in Answer • Question 9 0 out of 6 points Price is a key element in the marketing mix because it relates directly to Answer • Question 10 0 out of 6 points Marketers have no flexibility in setting prices under conditions of Answer • Question 11 0 out of 6 points A public warehouse is a Answer • Question 12 6 out of 6 points An independent business that takes title to products and carries inventories is a(n) Answer • Question 13 6 out of 6 points When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists. Answer • Question 14 6 out of 6 points Freight transportation companies that offer several different shipment methods are called Answer • Question 15 6 out of 6 points Which mode of transportation hauls more freight than any other? Answer • Question 16 6 out of 6 points Which of the following is a full-service merchant wholesaler? Answer • Question 17 6 out of 6 points Full-service, specialty-line wholesalers that own and maintain displays in discount stores and supermarkets are called Answer • Question 18 6 out of 6 points Direct marketing, direct selling, and automatic vending are all examples of ____ retailing. Answer • Question 19 6 out of 6 points The primary purpose of a(n) ____ is to bring buyers and sellers together. Answer • Question 20 6 out of 6 points Wholesaling can be defined as Answer • Question 1 3 out of 3 points Which stage of the product life cycle is characterized by intense competition? Answer • Question 2 3 out of 3 points The three levels of brand loyalty from strongest to weakest are Answer • Question 3 3 out of 3 points The development of a container and graphic design for a product is called Answer • Question 4 3 out of 3 points The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage. Answer • Question 5 3 out of 3 points In marketing, family packaging means Answer • Question 6 3 out of 3 points When marketers emphasize price as an issue and match or beat the prices of other companies, they are using Answer • Question 7 3 out of 3 points A measure of sensitivity of demand in relation to changes in price is Answer • Question 8 3 out of 3 points ____ consumers are concerned about both the price and the quality aspects of a product. Answer • Question 9 0 out of 3 points The tuition and fees each student paid for this semester of college are both terms for Answer • Question 10 3 out of 3 points Price is Answer • Question 11 3 out of 3 points A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a Answer • Question 12 3 out of 3 points Dual distribution is characterized as Answer • Question 13 3 out of 3 points The three major levels of intensity at which a company can choose to distribute its products are ____ distribution. Answer • Question 14 3 out of 3 points Freight transportation companies that offer several different shipment methods are called Answer • Question 15 3 out of 3 points The notion of physical distribution is Answer • Question 16 3 out of 3 points Large, self-service stores that carry a complete line of food products and some nonfood products are called Answer • Question 17 3 out of 3 points Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called Answer • Question 18 3 out of 3 points What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection? Answer • Question 19 3 out of 3 points Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n) Answer • Question 20 3 out of 3 points Retailers that sell only to members and feature discount retailing combined with cash-and-carry wholesaling are called Answer MULTIPLE CHOICE 23. Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called a. supply chain management. b. vertical channel integration. c. industrial management. d. industrial distribution. e. marketing management. 24. The Home Depot is trying to reduce transportation, information management, and administrative costs. To accomplish this goal, channel members need to a. work independently. b. avoid cooperation due to antitrust considerations. c. work with competitors and share information. d. increase competition among channel members. e. cooperate and accommodate one another's needs. 25. The supply chain includes a. producers, wholesalers, and retailers. b. suppliers, producers, intermediaries, and customers. c. suppliers and suppliers' suppliers. d. all entities that facilitate product distribution. e. buyers, seller, marketing intermediaries, and agents. 26. All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is a. shifting costs to suppliers. b. maximizing costs. c. maximizing technology implementation. d. cooperation with competitors. e. customer relationships. 27. Wal-Mart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of a. supply chain management. b. a vertical marketing system. c. a horizontal marketing system. d. channel conflict. e. dual distribution. 28. A group of organizations and individuals that directs the flow of products from producers to the ultimate consumers is called a a. free trade association b. marketing channel c. channel of suppliers d. production line-up e. chain of retailers 29. A channel of distribution is defined as a group of individuals and organizations that a. consumes about one-half of every dollar spent on products in the United States. b. directs the flow of products from producers to customers. c. links producers to other marketing intermediaries. d. takes title to products and resells them. e. manages transportation and warehousing functions. 30. The driving force behind marketing channel decisions should be a. convenience. b. cost reduction. c. environmental concerns. d. customer satisfaction. e. quality. 31. What links producers to consumers through the purchase and reselling of products or contractual agreements? a. Marketing intermediaries b. Distributors c. Suppliers d. Middle marketers e. Marketing channels 32. Most marketing channels have marketing intermediaries. A marketing intermediary's role is to a. link wholesalers to other wholesalers. b. link producers to other middlemen or to consumers. c. always sell products to wholesalers. d. not take title to products. e. always sell products to retailers. 33. Channel decisions are important to marketers mostly because a. they are relatively flexible to change quickly. b. consumers value reasonable prices delivered through marketing channels. c. they dictate what promotional strategies companies should use. d. many businesses are marketing intermediaries. e. they involve long-term commitments and affect customer accessibility. 34. If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are a. long-term commitments. b. short-term commitments. c. easier to change than prices. d. easier to change than promotion. e. impossible to change. 35. Having products available when the customer wants them is called a. place utility. b. time utility. c. availability. d. possession utility. e. chronavailability. 36. Marketing channels create three types of utility for consumers including a. place, time, and possession. b. location, availability, and suitability. c. time, location, and promotion. d. retailer, wholesaler, and producer. e. position, possession, and place. 37. Possession utility is best described as a. products being available in places where the customers wish to purchase them. b. the customer having access to the product to use now or store and use later. c. having a company's products available when a customer needs them. d. being able to legally own a product despite restrictions on trade. e. getting the products to the consumers in as short of time as possible for ownership. 38. Consumers receive the benefits of place utility when a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they can stock up on products they need but not use them right away. d. they make purchases with credit and debit cards. e. products are available in locations where consumers want to buy them. 39. In a simple economy of five producers and five consumers, there would be ____ transactions possible without an intermediary and ____ transactions possible with one intermediary. a. ten; twenty-five b. thirty; ten c. twenty-five; fifteen d. sixteen; eight e. twenty-five; ten 40. Eliminating a wholesaler from a marketing channel will a. cut costs and lower prices. b. not eliminate the functions performed by that wholesaler. c. eliminate the functions performed by that wholesaler. d. lead to lower costs but higher prices. e. reduce channel conflict. 41. When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is a. fifteen. b. five. c. eighteen. d. six. e. twenty. 42. Without wholesalers and other intermediaries, a. most products would be much less expensive because fewer companies would be handling the product. b. products would be cheaper because the functions of intermediaries would be eliminated. c. products would likely be more expensive due to the use of less efficient channel members. d. products would never be able to make it to the ultimate consumer at any price without passing through intermediaries. e. many products would be more expensive because retailers would expect more profit. 43. Customers who purchase computer laptops from manufacturer websites are acquiring products through a. the most efficient channel of distribution. b. the most common type of marketing channel. c. a direct-marketing channel. d. a business-to-business channel of distribution. e. an indirect-marketing channel. 44. Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and Internet sales. This channel would be classified as a. direct distribution. b. producer, retailer, consumer. c. telemarketing. d. direct-marketing. e. indirect marketing. 45. Many producers selling on the Internet are using a. several intermediaries. b. complex marketing channels. c. Internet wholesalers, retailers, and agents. d. supply chain channels. e. direct-marketing channels. 46. After direct-marketing, the next slightly longer marketing channel adds a(n) a. retailer. b. producer. c. wholesaler. d. agent. e. consumer. 47. When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a a. retailer. b. wholesaler. c. broker. d. functional middleman. e. producer. 48. Large retailers such as J.C. Penney's and Target are most likely to participate in which of the following channels? a. Producer, industrial distributors, retailers, consumers b. Producer, consumers c. Producer, wholesalers, retailers, consumers d. Producer, retailers, consumers e. Producer, agents, wholesalers, retailers, consumers 49. The marketing channel of producer to retailer to consumer is most likely to be used by producers of which of the following products? a. Chewing gum b. Tobacco c. Automobiles d. Hardware e. Saltine crackers 50. Nationally distributed consumer convenience products are most likely distributed through which of the following channels? a. Producer, consumers b. Producer, agents, wholesalers, retailers, consumers c. Producer, wholesalers, consumers d. Producer, wholesalers, retailers, consumers e. Producer, industrial distributor, wholesalers, retailers, consumers 51. Manufacturers of convenience products such as chewing gum reach customers through thousands of retailers. What marketing channel are these manufacturers most likely to use? a. Producer, consumer b. Producer, wholesaler, retailer, consumer c. Producer, wholesaler, agent, retailer, consumer d. Producer, retailer, consumer e. Retailer, consumer 52. Which of the following is the most commonly used channel for distributing business products? a. Producer, agents, industrial distributors, organizational buyers b. Producer, industrial distributors, organizational buyers c. Producer, agents, organizational buyers d. Producer, organizational buyers e. Industrial distributors, organizational buyers 53. Steelcase, Inc. markets furniture directly to businesses. This is an example of a(n) ____ channel. a. producer-to-business buyer b. producer-to-industrial-distributor-to-business buyer c. producer-to-agent-to-business buyer d. equipment e. consumer 54. Organizational buyers are especially partial to direct marketing channels when a. they buy cheap materials in large quantities. b. they try a new product for the first time. c. they are filling an order for a very important customer. d. a modified rebuy type of decision is involved. e. expensive and/or complex equipment is involved. 55. Caruthers Paint Manufacturing Company buys the chemicals it needs for producing its products from a chemical producer, Roth Chemicals. In this instance, the chemicals are being distributed to Caruthers through which of the following types of channels? a. Industrial distributor b. Direct distribution c. Retail d. Wholesaler-sponsored e. Producer 56. An independent business that takes title to products and carries inventories is a(n) a. industrial distributor. b. intermediary. c. agency. d. wholesaler. e. producer. 57. Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel. a. direct distributor b. manufacturers' agent c. industrial distributor d. producers' agent e. wholesalers' agent 58. Which of the following is most likely to be a product stocked by an industrial distributor? a. Tires b. Exercise equipment c. Screws d. Countertops e. Bananas 59. Which of the following describes a disadvantage of using industrial distributors? a. Industrial distributors possess considerable market information. b. Their marketing exchange relationships are very focused. c. They are unlikely to handle bulky items or items that are slow sellers. d. Industrial distributors sell specific brands aggressively. e. Industrial distributors acquire title to the products and take possession. 60. Which of the following is an advantage of using an industrial distributor? a. These firms are easy to control because they work directly for the producers. b. Inventory holding costs are minimized because they can store inventory very cheaply. c. They are closer geographically to all of the producers' customers. d. They possess a high level of technical knowledge about their products. e. They help reduce a producer's financial burdens by extending credit to customers. 61. A producer is not likely to receive ____ from an industrial distributor. a. selling activities in local markets b. market information about consumers c. aggressive promotion of its brand d. reduced capital requirements e. a reduced financial burden from customers 62. A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances? a. When the firm wants specialized personnel to follow up the work of the sales force b. When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force c. When only one or two channels of distribution are available for products d. When the sales force is large and the marketer is thinking of cutting it down e. When customers are highly concentrated in one geographic area 63. Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products. a. wholesalers b. brokers c. agents d. merchants e. retailers . 64. An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n) a. sole intermediary. b. manufacturers' agent. c. producers' broker. d. industrial distributor. e. channel facilitator. 65. What is a primary difference between an industrial distributor and a manufacturers' agent? a. A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does. b. A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent. c. An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent. d. A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly. e. An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers. 66. Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using a. dual distribution. b. industrial distribution. c. strategic channel alliance. d. supply chain management. e. an unethical marketing channel. 67. Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a. multiple channeling. b. strategic channel alliance. c. intensive distribution. d. dual distribution. e. market splitting. 68. Gateway Computer makes computers available through its own stores, its toll-free telephone line, and a website. This is an example of a. dual distribution. b. vertical integration. c. horizontal integration. d. tying agreements. e. exclusive dealing. 69. Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of a. a strategic channel alliance. b. exclusive distribution. c. dual distribution. d. horizontal channel integration. e. channel leadership. 70. Which of the following is least likely to be a factor affecting the selection of marketing channels? a. Customer characteristics b. Product attributes c. Product packaging d. Competition e. Environmental forces 71. Fragile products that require special handling are more likely to be distributed through a. longer channels. b. shorter channels. c. Channel D. d. Channel H. e. exclusive outlets. 72. When considering the best channel to use, all of the following are true with regard to larger firms except they a. can use an extensive product mix as a competitive tool. b. may be better able to negotiate better deals with vendors or other channel members. c. may have more distribution centers. d. may have the resources to develop their own sales force. e. may be better suited to serve customers in a particular region. 73. The three major levels of intensity at which a company can choose to distribute its products are ____ distribution. a. narrow, medium, and wide b. cooperative, conflicting, and integrated c. intensive, extensive, and exclusive d. selective, cooperative, and conflicting e. exclusive, selective, and intensive 74. When Busch Light Beer was introduced as part of the Anheuser-Busch product line, the company most likely used ____ distribution. a. horizontal b. intensive c. selective d. agent e. exclusive 75. Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use ____ distribution. a. selective b. extensive c. intensive d. exclusive e. demand-based 76. Candy bars and chewing gum are most likely to be distributed through ____ and ____. a. selective distribution; multiple channels b. intensive; dual distribution c. strategic channel alliances; intensive d. exclusive; a single channel e. dual distribution; convenience channels 77. Sales are most likely to have a direct relationship to product availability for products that use ____ distribution. a. selective b. dual c. intensive d. extensive e. exclusive ANS: C PTS: 1 DIF: Moderate OBJ: 14-05 Identify the intensity of market coverage. NAT: AACSB: Analytic | MKTG: Distribution MSC: Knowledge 78. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products. a. intensive b. exclusive c. horizontal d. priority e. selective 79. Using only some of the available outlets to distribute a product is called a. selective distribution. b. intensive distribution. c. channel conflict. d. vertical channel integration. e. exclusive distribution. 80. Durable goods such as television sets and DVD players generally reach their target markets through a. intensive distribution. b. channel cooperation. c. direct marketing. d. exclusive distribution. e. selective distribution. 81. Product and target market characteristics usually determine the type of coverage a product receives. For which of the following products is selective distribution most appropriate? a. Gasoline b. Jaguar automobiles c. Cigarettes d. Laundry detergent e. Panasonic stereos 82. Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product? a. Intensive b. Selective c. Targeted d. Exclusive e. Premier 83. Expensive, high-quality products that are purchased infrequently often reach consumers through a. selective distribution. b. highly-selective distribution. c. sole-source retailers. d. complex marketing channels. e. exclusive distribution. 84. For which of the following products would exclusive distribution be most appropriate? a. Gasoline b. Rolls Royce automobile c. Washing machine d. Laundry detergent e. Moderately priced luggage 85. Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ____ in the distribution channel. a. conflict b. leadership c. dominance d. cooperation e. negotiation 86. A single leader who controls and organizes a marketing channel is called a a. channel champion. b. distribution leader. c. marketing maverick. d. channel captain. e. lead distributor. 87. Nike maintains a good deal of control over how its products are promoted, displayed, and sold. Because of this control, Nike would be appropriately described as the channel a. intermediary. b. captain. c. allocator. d. terminator. e. price leader. 88. Few supermarkets would try to replace a national brand of baby food with their own brand. Assuming that this is true, we have a good example of channel leadership by a. wholesalers. b. producers. c. retailers. d. agents. e. brokers. 89. When one company in a marketing channel has the ability to influence another member's goal achievement, the company has a. channel control. b. channel power. c. marketing leadership. d. a channel captain. e. distributive influence. 90. If Ralston Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be a. demonstrating sound channel leadership. b. insisting on exclusive exposure. c. exercising channel power. d. minimizing channel conflict. e. creating a coordinate system. 91. Overall channel goals and individual channel member goals cannot be achieved together without a. conflict. b. captains. c. leadership. d. cooperation. e. tying agreements. 92. Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of a. channel conflict caused by inefficient communication between channel members. b. open communication among the channel members. c. methods of channel coordination designed to reduce ambiguity. d. negotiating territorial issues among regional distributors of a product. e. allowing one member of the channel to take the role of channel captain. 93. When produce companies such as Dole Tomatoes bypass wholesalers and sell directly to retailers, it is likely to create channel ____ between Dole and these wholesalers. a. conflict b. cooperation c. leadership d. integration e. flows 94. Goodyear allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Goodyear dealers. a. understanding b. power c. leadership d. communication e. conflict 95. If a wholesaler continually emphasizes and promotes one company's products over a competing company's products, ____ is likely to result. a. channel cooperation b. vertical channel integration c. channel conflict d. horizontal channel integration e. channel leadership. 96. Vertical channel integration a. results in two or more different management teams for each member of the channel. b. is made possible when a large corporation divests itself of smaller subsidiaries. c. is a shift back to the conventional channel of distribution. d. combines institutions at the same level of operation. e. is made possible by purchasing the operations of a link in the channel. 97. When a single channel member manages an integrated marketing channel to achieve low-cost, efficient distribution for satisfying target markets, ____ exists. a. a vertical marketing system b. horizontal channel integration c. channel power d. channel cooperation e. extensive distribution 98. Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of a. channel leadership. b. channel cooperation. c. channel conflict. d. horizontal channel integration. e. vertical channel integration. 99. The reasons a vertically integrated channel can be more effective against competition is because of all of the following except a. the consolidation of power. b. tightly controlled and bureaucratic management style. c. the ability to inhibit competitors. d. the sharing of responsibilities and information. e. increased bargaining power. 100. Bennetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of integration is called a. horizontal. b. vertical. c. multilevel. d. retail. e. merchandising. 101. When Benetton, the Italian sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in a. channel repetition. b. vertical channel integration. c. channel conflict. d. horizontal channel integration. e. channel expansion. 102. The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n) a. administered vertical marketing system. b. conventional marketing channel. c. channel network. d. contractual marketing channel. e. corporate vertical marketing system. 103. When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists. a. horizontal channel integration b. an administered VMS c. a corporate VMS d. a channel captain e. a contractual VMS 104. In an administered vertical marketing system (VMS), interorganizational relationships are a. achieved by informal coordination. b. formalized through contracts. c. combined under the ownership of a single organization. d. guided by legal agreements. e. achieved by clearly defining the obligations and rights of all channel members. 105. In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless, a. decision making does not take into account the goals of the system. b. the channel members do not remain autonomous. c. the decision making is not coordinated. d. the channel members remain autonomous. e. the goals of the individual firms are not congruent with the goals of the system. 106. In the distribution channel for Domino's Pizza, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) ____ vertical marketing system. a. contractual b. administered c. corporate d. negotiated e. institutional 107. The Wicks 'N Sticks candle and gift marketing organization has a(n) ____ vertical marketing system arrangement with its franchised retail store operations. a. corporate b. administered c. negotiated d. contractual e. horizontal 108. Select the greatest advantage of horizontal channel integration. a. The flexibility of the channel is decreased. b. The markets are more heterogeneous. c. The expanded number of units is coordinated. d. Efficiencies in advertising, marketing research, and purchasing are increased. e. Planning and research are increased to cope with increased competition. 109. To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called a. vertical. b. retail. c. horizontal. d. backward. e. forward. 110. Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define a. wholesaling. b. retailing. c. physical distribution. d. channel management. e. drop shipping. 111. The notion of physical distribution is a. speed of delivery. b. used only by manufacturers. c. the movement of products from producers to end users. d. primarily the wholesaler's responsibility. e. an assessment of distribution costs. 112. The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as a. illegal. b. logistics. c. warehousing. d. wholesaling. e. outsourcing. 113. If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using a. outsourcing. b. sole-sourcing. c. logistics. d. wholesaling. e. distribution services. 114. Physical distribution activities may be performed by a producer, wholesaler, retailer or a. not performed at all. b. the customer. c. investors in any of the previous three. d. solely through technology. e. they may be outsourced. 115. As her Internet quilt and bed linen business grew, Danielle could no longer perform all the distribution activities, so she hired a shipper and an information technology firm to assist with these functions. Danielle is using ____ for physical distribution for her business. a. producers b. wholesalers c. retailers d. selling agents e. outsourcing 116. The main objective of physical distribution should be to a. decrease costs while increasing market coverage. b. increase service and market coverage. c. decrease costs while increasing service. d. increase market coverage and channel power. e. balance costs and market coverage. 117. The best way to reduce overall distribution costs is to a. use a total-cost approach to analyze and evaluate the entire system. b. minimize the costs associated with materials handling and transportation. c. reduce the number of distribution functions that are necessary. d. find the cheapest price for each function and use them to create the system. e. lower the service standards that the company has. 118. According to the text, physical distribution cost tradeoffs enable firms to a. resolve pricing conflicts among channel partners. b. minimize risk during test marketing of new products. c. reduce costs of all distribution functions simultaneously. d. resolve pricing conflicts within industry sectors. e. utilize resources for greatest cost-effectiveness. 119. At the annual managers' planning conference, Jackie Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85 percent to 90 percent. She states that she is willing to trade off the ____ incurred for the positive effect of better customer service. a. lower response time b. higher warehousing costs c. higher transportation costs d. higher order processing costs e. higher performance levels 120. An important goal of physical distribution is reducing the time it takes to complete a. inventory management. b. outsourcing evaluation. c. electronic data interchange. d. order processing. e. cycle time. 121. The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service works to reduce a. cycle time. b. order processing. c. turn-around. d. shipping time. e. transportation. 122. A goal of physical distribution is to reduce ____ or how long it takes to complete a process. a. time standards b. processing time c. production d. throughput measure e. cycle time 123. Order processing is defined as a. the receipt and transmission of sales order information. b. the second stage in a physical distribution system. c. the four main tasks. d. the same as order handling. e. electronic processing of information. 124. What are the three primary tasks of order processing? a. Order receipt, order delivery, order follow-up b. Order handling, inventory management, order delivery c. Materials handling, warehousing, order delivery d. Order handling, order entry, order delivery e. Order receipt, order checking, order delivery 125. By receiving orders online instead of through a paper-based ordering system, Barnes and Nobles has been able to save time and money on a. electronic data interchange. b. order entry. c. inventory management. d. order delivery. e. order handling. 126. The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders is a. warehousing. b. order handling. c. information processing. d. materials handling. e. order entry. 127. Order handling involves all of the following activities except that the a. credit department approves the purchase. b. order is transmitted to the warehouse. c. availability of product is verified. d. warehouse is instructed to fill the order. e. customer places a purchase order. 128. A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is a. web-based inventory management. b. just-in-time. c. electronic data interchange. d. universal product codes. e. activity based management. 129. Nathan is trying to decide which shipping company to use to transport his custom-made furniture to customers. Nathan is facing a decision about a. order entry. b. order completion. c. just-in-time. d. order handling. e. order delivery. 130. Because of the significant investment many companies have in the products they sell to customers, they must develop and maintain adequate varieties of products to meet their customers' needs. This is called a. just-in-time. b. order processing. c. inventory management. d. merchandise stocking. e. logistical management. 131. Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved? a. Order processing b. Materials handling c. Inventory management d. Transportation e. Warehousing 132. The result of an inventory stockout is usually an increase in a. inventory costs. b. lost sales. c. net profit. d. customers. e. prices. 133. Anna Wren, sales manager for Pacific Lumber, tells Jason Peoples, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? a. Carrying b. Replenishment c. Stockout d. Safety stock e. Reorder 134. What is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30? a. 50 b. 150 c. 80 d. 200 e. 400 135. A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called a. just-in-time (JIT). b. time management. c. inventory minimization. d. economic order quantity. e. reorder point maximization. 136. Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping a. short order lead times. b. just-in-time inventory. c. a controlled usage rate. d. safety stock. e. excessive inventory. 137. All of the following are concepts used in a just-in-time inventory management system except a. supplies arrive just as they are needed. b. safety stock is kept to reduce stockouts. c. much waste is eliminated. d. purchases are made in small quantities. e. purchases are made frequently. 138. Justin Abercrombie attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Justin take as he institutes this change? a. Increase safety stock b. Raise the reorder point c. Reduce customer service standard d. Increase order frequency e. Reduce estimates of inventory turnover rate 139. What is the primary determinant in deciding how materials will be handled? a. Unit loading b. Containerization c. Customer preference d. Cost reduction e. Product characteristics 140. Johnson Controls hires a consultant to assess its materials handling procedures. The consultant recommends the implementation of ____ if they want easier movement of items between internal destinations in the warehouse. a. unit loading b. piggybacking c. containerization d. inventory management e. priority transportation 141. Federal Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts. This system of materials handling is called a. warehousing. b. containerization. c. group storage. d. unit loading. e. mechanized handling. 142. Fansteel manufactures parts used in jet engines, which it sells to companies such as Boeing. When shipping products to Boeing, Fansteel seals the parts in 8'  8'  40' boxes for shipping to decrease loss and damage. This method of materials handling is a. unit loading. b. containerization. c. freight forwarding. d. unitized shipping. e. bonded packaging. 143. Managers and consultants at Colgate-Palmolive are meeting to discuss better ways to package its products to reduce damage and make loading more efficient. The primary function they are trying to improve is a. warehousing. b. inventory management. c. materials handling. d. cycle time. e. containerization. 144. Which of the following physical distribution functions involves design and operation of facilities for storing goods? a. Order processing b. Materials handling c. Transportation d. Warehousing e. Inventory management 145. What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items? a. Materials handling b. Warehousing c. Transportation d. Inventory management e. Order processing 146. Morgan Steel Company leases a warehouse in Jacksonville, Alabama to serve Deep South markets that were large enough and stable enough to make a long-term commitment to fixed facilities. This is a a. flexible warehouse. b. dispatching center. c. distribution center. d. private warehouse. e. public warehouse. 147. When companies operate their own facilities for storing and shipping products, these facilities are known as a. distribution centers. b. product storehouses. c. public warehouses. d. megawarehouses. e. private warehouses. 148. Air-Tech management learns that last month's production run of heaters at its Newark plant is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement of the defective thermostats, Air-Tech will probably need to add a ____ to its distribution network. a. distribution center b. private warehouse c. dispatching shipment system d. public warehouse e. materials handling system 149. A public warehouse is a a. business that leases storage space and related facilities for distribution to other firms. b. large, centralized warehouse that focuses on moving rather than storing goods. c. company that provides a complete array of logistical services for businesses. d. company-operated facility for storing and shipping products. e. warehouse used to store the personal property of many different customers. 150. Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following? a. Sales office b. Public warehouse c. Field public warehouse d. Distribution center e. Bonded warehouse 151. What is the most expensive physical distribution function? a. Warehousing b. Order processing c. Inventory management d. Transportation e. Materials handling 152. ____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. a. Warehousing b. Containerization c. Distribution d. Materials handling e. Transportation 153. Which major mode of freight transportation provides the most flexible schedules and routes? a. Trucks b. Waterways c. Airways d. Pipelines e. Railroads 154. Which mode of transportation hauls more freight than any other? a. Railroads b. Waterways c. Pipelines d. Trucks e. Airways 155. Magnetic Springs wants to ship its bottled water with the most flexible schedules and routes of all transportation modes. Magnetic Springs should use ____ as its transportation mode. a. railroads b. waterways c. pipelines d. trucks e. airways 156. If a microchip in a computer in New York failed, which method of transportation would be most appropriate to use to replace the chip immediately if one could get the new chip only from Silicon Valley, California? a. Pipeline b. Airways c. Waterways d. Truck e. Railroad 157. Kolder Inc. is using a new just-in-time inventory management system that requires ordering smaller quantities of parts more frequently. The success of its business depends significantly on receiving these parts very quickly, so like many other companies using just-in-time, Kolder Inc. is relying more on the ____ mode of transportation despite its expense. a. railroad b. pipeline c. airway d. truck e. waterway 158. The Diamond Salt Company needs to transport 20 tons of salt from Baton Rouge, Louisiana, to Cincinnati. Which of the following methods would be the cheapest for transporting this cargo? a. Pipelines b. Waterways c. Trucks d. Airways e. Railroads 159. Assuming everything else equal, the most cost-efficient way for British Petroleum to transport crude oil from remote oil drilling sites in central Alaska to shipping terminals on the Alaskan coast would be a. waterways. b. airways. c. tanker trucks. d. railroads. e. pipelines. 160. ____ is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers. a. Intermodal transportation b. Physical distribution c. Containerized movement d. Efficient transportation e. Freight forwarding 161. Piggyback, fishyback, and birdybackare terms usually associated with gaining efficiency in shipping through a. transit time. b. warehousing. c. packaging. d. containerization. e. lot sizes. 162. What two modes of transportation are used when containers are shipped by piggyback? a. Railroads and airways b. Trucks and airways c. Pipelines and trucks d. Waterways and railroads e. Railroads and trucks 163. Which of the following organizations consolidates shipments from several firms into more efficient lot sizes? a. Freight forwarder b. Forwarding agency c. Transporter d. Special transportation company e. Intermodal shipping company 164. Freight transportation companies that offer several different shipment methods are called a. megacarriers. b. intermodal transporters. c. freight forwarders. d. shipping experts. e. superfreighters. 165. Using a freight forwarder usually a. is not economical for a small firm. b. increases transit time and shipping costs. c. increases transit time and sometimes lowers shipping costs. d. lowers shipping costs for a large firm. e. reduces transit time. 166. Dual distribution is characterized as a. illegal under the Robinson-Patman Act. b. distribution channels that typically carry exclusive products, such as Rolex watches. c. marketing environments that are highly competitive. d. manufacturers that forbid an intermediary to carry products of competing producers. e. distribution of one manufacturer's product through two or more different channel structures. 167. In which of the following situations is dual distribution likely to be determined illegal? a. A manufacturer sells its product online and through independent and company-owned retail outlets. b. A manufacturer opens its own retail outlets across the country and sells its entire line of products. c. A producer uses company outlets to dominate independent retailers that carry its products. d. A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers. e. A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products. 168. Ralph Lauren sells Polo products through department stores as well as in its own specialty shops. The designer uses ____ as a channel strategy. a. channel extension b. intermediary exclusion c. broker utilization d. dual distribution e. channel diversification 169. The main reason a manufacturer will prohibit intermediaries from selling its products outside designated sales territories is to a. tighten its control over distribution of its products. b. discourage competition from other manufacturers. c. incorporate selective distribution. d. contain distribution costs. e. punish intermediaries for past behavior. 170. Tying agreements occur when a a. producer distributes the same product through two or more different channels. b. manufacturer forbids an intermediary to carry products of competing manufacturers. c. supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. d. producer refuses to deal to channel members that seem unethical or illegitimate. e. manufacturer prohibits intermediaries from selling its products outside designated sales territories. 171. An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called a. exclusive distribution. b. a tying agreement. c. refusal to deal. d. contractual VMS. e. exclusive dealing. 172. Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called a. a tying contract. b. refusal to deal. c. a restricted sales territory. d. a restricted channel. e. exclusive dealing. 173. If an intermediary wants to carry Tide detergent and Procter & Gamble agrees only if the supplier purchases P&G's entire line of detergents as well, the company is engaging in which of the following channel management practices? a. Exclusive dealing b. Dual distribution c. Tying agreement d. Refusal to deal e. Restricted sales territories 174. If Anheuser-Busch refused to allow Jackson Distributing to carry its product if the distributor also carried Miller Brewing products, the company would have been engaging in which of the following channel management practices? a. Exclusive dealing b. Dual distribution c. Tying contacts d. Refusal to deal e. Restricted sales territories Scenario 15.1 Use the following to answer the questions. Liz Claiborne, Inc. markets several different brands, under their own Claiborne name label, as well as others. Their primary brands, such as Liz Claiborne, Liz & Co, and DKNY, are sold to wholesalers. These brands are then available through retail department stores such as Kohl's and Macy's. Their wholesale-based brands division is positioned as customer-focused and cost-efficient. Their premium brands division includes labels such as Kate Spade, Juicy Couture, and Mexx. These premium brands are sold through stores that the Claiborne company owns. 175. Refer to Scenario 15.1. Liz Claiborne, Inc. uses which type of channel of distribution for its premium brands? a. A short, direct channel b. A long, direct channel c. Dual distribution d. Horizontal integration e. Intensive distribution 176. Refer to Scenario 15.1. The Liz & Co brand is sold only at J.C. Penney's. This is an example of ____ distribution. a. selective b. routine c. horizontal d. intensive e. exclusive 177. Refer to Scenario 15.1. If Liz Claiborne were to distribute their Kate Spade brand through its company-owned stores and through wholesalers, to major department stores, then Liz Claiborne would be using ____ distribution. a. intensive b. vertical c. horizontal d. dual e. exclusive 178. Refer to Scenario 15.1. Which of the following is most likely the primary factor Liz Claiborne, Inc. used when selecting the marketing channel for its Juicy Couture brand? a. characteristics of the intermediaries b. product attributes c. type of organization d. marketing environmental forces e. competition Scenario 15.2 Use the following to answer the questions. Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add new two new service product linespaper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. 179. Refer to Scenario 15.2. Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers? a. Wholesalers b. Retailers c. Merchants d. Industrial distributors e. Manufacturers' agents 180. Refer to Scenario 15.2. Currently, Star is using the ____ approach to distributing its janitorial supplies to its large customers. a. intensive b. just-in-time c. segmented d. outsourcing e. exclusive 181. Refer to Scenario 15.2. When Clint suggested that Star consider purchasing a paper shredding business and then offer the service to its large and small business customers, he was suggesting a method called ____, where Star would be the ____. a. horizontal integration; channel manager b. horizontal integration; channel captain c. vertical integration; channel captain d. outsourcing; channel manager e. outsourcing; channel captain 182. Refer to Scenario 15.2. Clint's suggestion for the uniform rental service was either picking up and delivering the uniforms themselves, or contracting this to a third party. If Star decides to pick up and deliver the uniforms with its own trucks, this is an example of a(n) ____ channel. If Star contracts this action to a third party, it is called ____. a. long; industrial distribution b. direct; industrial distribution c. long; outsourcing d. direct; outsourcing e. exclusive; outsourcing MULTIPLE CHOICE 16. Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called a. advertising. b. sales promotion. c. personal selling. d. target marketing. e. public relations. 17. A major disadvantage of personal selling is that it a. is not remembered as well by consumers as advertising messages are. b. cannot easily adjust the message to satisfy a customer's information needs. c. is very expensive per contact. d. does not provide immediate feedback. e. is not compatible with other promotional activities. 18. A sales career can offer all of the following except a a. structured, inflexible workday. b. high income. c. great deal of freedom. d. high level of training. e. high level of job satisfaction. 19. Personal selling goals include finding prospects, convincing prospects to buy, and a. monitoring new products being developed. b. being aware of competitors' sales activities. c. seeking one-sale customers. d. avoiding repeat transactions. e. keeping customers satisfied. 20. The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of a. chief executive officers. b. salespeople. c. sales managers. d. quality control experts. e. marketing directors. 21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of the state as a sales territory. Last year, the director of marketing for the publishing company told Jennifer's sales manager to increase her territory to the entire state. Now Jennifer's customers are less satisfied with the company. They are most likely to blame ____ for their reduced level of customer satisfaction. a. the textbook authors b. the company's chief executive officer c. the marketing manager d. the sales manager e. Jennifer 22. Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is a. prospecting. b. screening. c. researching. d. pre-approaching. e. surveying. 23. The final stage of the selling process is a. closing. b. trial close. c. presentation. d. follow-up. e. overcoming objections. 24. Developing a list of potential customers is called a. preapproaching. b. surveying. c. scouting. d. prospecting. e. screening. 25. Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called a. customer search. b. preapproach. c. approaching the customer. d. audience selection. e. prospecting. 26. Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for a. surveying. b. screening. c. researching. d. preapproaching. e. prospecting. 27. Advertising that encourages customers to send in reply cards for additional information aids salespeople in achieving which goal of personal selling? a. Convincing prospects to buy b. Finding prospects c. Keeping customers satisfied d. Making the presentation e. Following up the sale 28. Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through a. telephone directories. b. customer referrals. c. trade shows. d. local restaurants. e. other employees. 29. After compiling a list of potential customers, a salesperson must a. evaluate whether each prospect is able, willing, and authorized to buy the product. b. determine whether or not each prospect is really in his target market. c. find and analyze information about each prospect's specific needs and current brand choices. d. develop a presentation for each of the potential customers on his list. e. contact each of the prospects to get an initial feel for how likely they are to purchase his products. 30. Janetta Light tells her sales manager that she will be devoting more effort to ____ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan. a. approaching customers b. preapproaching c. closing the sale d. following up e. prospecting 31. Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to a. approach. b. preapproach. c. make the presentation. d. prospect. e. overcome objections. 32. Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called a. prospecting. b. preapproach. c. approaching the customer. d. sales training. e. sales planning. 33. A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during a. prospecting. b. the approach. c. presentation preparation. d. overcoming objections. e. the preapproach. 34. Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on him before lunch was a real loser: "He has done a poor job of ____. He didn't even know what brands we carry or what types of retailers we service!" a. prospecting b. preapproach c. follow-up d. presenting e. approach 35. Rick has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature. He feels he is ready for the ____ step of the personal selling process. a. prospecting b. presentation c. approach d. preapproach e. closing 36. The step of the personal selling process in which a salesperson contacts a potential customer is called a. making the presentation. b. cold calling. c. the preapproach. d. the approach. e. prospecting. 37. Creating a favorable impression and developing rapport with prospective customers is a critical part of the ____ step of personal selling. a. following up b. making the presentation c. approach d. prospecting e. preapproach 38. Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as a. referral approach. b. ambulance chasing. c. door-to-door selling. d. cold canvass. e. repeat contact. 39. The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a. prospecting. b. preapproach. c. approach. d. making the presentation. e. overcoming objections. 40. The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the a. prospecting. b. preapproach. c. follow up. d. approach. e. sales presentation. 41. Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the housewares department didn't seem involved as he explained the new food processor to her. She suggests that he use a ____ as part of his presentation next time. a. video b. referral c. demonstration d. trial close e. qualification 42. Which of the following is not true when making the sales presentation? a. The salesperson should focus on anticipating questions and answering them before they're asked. b. The salesperson must spark interest in the product. c. The salesperson should not only talk but also listen to the customer. d. The salesperson should involve the customer by having him or her hold, touch, or use the product. e. A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments). 43. A salesperson will be better able to determine the prospect's specific needs by a. listening carefully to questions and comments and watching reactions during the sales presentation. b. waiting until after the sale to see how the client is enjoying the use of the product. c. doing extensive research before the approach and making the sales presentation without adjustment. d. using trial closings throughout the sales presentation. e. making a very thorough and detailed sales presentation about the products and services being offered. 44. Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on a. listening skills. b. overcoming objections. c. prospect evaluation. d. product demonstrations. e. closing. 45. While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may a. annoy the customer. b. mention objections the customer had not thought of. c. take too long in trying to sell the product, and the customer may stop listening. d. not emphasize its features and benefits enough. e. begin to lie about the product. 46. During the personal selling process, a salesperson, if possible, should handle objections when a. they arise. b. the salesperson begins the trial close. c. the sales presentation is approximately half completed. d. when the customer appears to be unhappy or agitated. e. when the salesperson begins the sales presentation. 47. The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a. proposal b. closing c. overcoming objections d. approach e. trial 48. When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called a. order taking. b. new-business selling. c. trial closing. d. order getting. e. overcoming objections. 49. "Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement. a. referral b. objective c. bandwagon approach d. follow-up e. trial close 50. During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a a. referral. b. recommendation. c. follow up. d. trial close. e. closing argument. 51. A salesperson should try to close the sale a. at the end of the sales presentation. b. during the preapproach. c. about halfway through the sales presentation. d. after overcoming the biggest objection. e. several times during the sales presentation. 52. The purpose of the ____ stage in personal selling is to determine customers' problems and questions about using the product. a. prospecting b. approach c. overcoming-objections d. follow-up e. closing 53. Cheyenne calls to see if her customer's new hardwood floors were installed correctly a. during the follow-up step. b. immediately after the closing. c. near the end of the sales presentation. d. the next time she makes a sales call to that customer. e. after she receives cash payment from that customer. 54. Creative selling, which requires that salespeople recognize a potential buyer's needs and then provide the prospect with the necessary information, is performed by a. order takers. b. order getters. c. missionary salespeople. d. trade salespeople. e. technical salespeople. 55. Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n) a. order taker. b. order generator. c. missionary salesperson. d. technical salesperson. e. order getter. 56. Order-getting activities are divided into two categories: a. missionary sales and technical sales. b. current-customer sales and new-business sales. c. order takers and trade sales. d. current sales and support sales. e. inside order sales and field order sales. 57. A person who primarily seeks repeat sales is called a(n) a. current customer order getter. b. order recorder. c. order taker. d. follow-up salesperson. e. missionary salesperson. 58. The two groups of order takers in personal selling are a. current customer salespeople and new-business salespeople. b. missionary salespeople and trade salespeople. c. inside order takers and field order takers. d. trade salespeople and technical salespeople. e. advisory order takers and support order takers. 59. Retail salespeople are classified as a. order getters. b. support personnel. c. trade salespeople. d. inside order takers. e. field order takers. 60. Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n) a. order getter. b. inside order taker. c. support person. d. field order taker. e. trade salesperson. 61. A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the customer needs for the coming period. This sales representative would be classified as a(n) a. order getter. b. inside order taker. c. field order taker. d. missionary salesperson. e. trade salesperson. 62. Doug Browton travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is a(n) a. field order taker. b. current customer order getter. c. missionary salesperson. d. inside order taker. e. trade salesperson. 63. A missionary salesperson is usually employed by a. a retailer. b. a wholesaler. c. either a retailer or a producer. d. a manufacturer. e. an independent intermediary. 64. Which of the following is least likely to be directly involved in actually making sales? a. Order taker b. Current-customer salesperson c. Order getter d. Field order taker e. Support sales personnel 65. Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson? a. Trade salesperson b. Technical salesperson c. Missionary salesperson d. Order getter e. Order taker 66. Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current customers with advice about a product's characteristics and applications. He is a(n) a. missionary salesperson. b. trade salesperson. c. field order taker. d. inside order taker. e. technical salesperson. 67. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her job is to call on doctors and explain the benefits of new prescription drugs that her firm develops. Daphne would call herself a(n) a. technical salesperson. b. missionary salesperson. c. order taker. d. order getter. e. trade salesperson. 68. Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople? a. Trade salespeople b. Field order takers c. Advisory salespeople d. Technical salespeople e. Order getters 69. Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n) a. trade salesperson. b. technical salesperson. c. inside order taker. d. field order taker. e. missionary salesperson. 70. The type of salesperson that usually requires training in physical science or engineering is the a. trade salesperson. b. missionary salesperson. c. technical salesperson. d. order taker. e. order getter. 71. A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) a. trade salesperson. b. inside order taker. c. tech support worker. d. missionary salesperson. e. technical salesperson. 72. Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a a. trade salesperson. b. missionary salesperson. c. technical salesperson. d. systems engineer. e. field order taker. 73. In which of the following does the salesperson join with people from the firm's financial, engineering, and other functional areas to engage in the personal selling process? a. Trade selling b. Missionary selling c. Relationship selling d. Team selling e. Technical selling 74. Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment? a. Team selling b. Relationship selling c. Trade selling d. Technical selling e. Missionary selling 75. Which of the following involves building mutually beneficial long-term associations with a customerusually a business customerthrough regular communications over prolonged periods of time. a. CRM selling b. Missionary selling c. Exclusive selling d. Team selling e. Relationship selling 76. All of the following are key areas of sales force management except a. compensating salespeople. b. coordinating sales promotion efforts. c. recruiting salespeople. d. training sales personnel. e. motivating sales personnel. 77. Sales objectives can do all of the following except a. serve as a deterrent both to salespeople and their clients. b. give the sales force direction and purpose. c. serve as a standard for evaluating salesperson performance. d. let the sales force know what is expected of them. e. help to control the sales force. 78. Sales force objectives are generally established for a. the organization as a whole only. b. the total sales force and for each salesperson. c. just each salesperson but not the whole sales force. d. for each department or division of the company. e. long-term but not short-term salespeople. 79. Which of the following is the best example of a well-stated sales objective? a. Companywide sales should increase by 25 percent. b. Each salesperson should increase his or her client group by 10 percent. c. Each salesperson should bring in $25,000 in new sales by November 15. d. The sales force should increase the market share in all markets by December 1. e. Each salesperson should increase the number of calls they make by 20 percent. 80. Sales objectives for individual salespeople can be stated in several ways. Which of the following would least likely be used for stating an individual salesperson's goal? a. Dollar volume sales b. Unit volume sales c. Average order size d. Ratio of profits relative to number of sales calls e. Average number of calls per time period 81. A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to a. recruit appropriate salespeople. b. set sales force calling objectives. c. compensate salespeople fairly. d. train its salespeople. e. determine sales force size. 82. When better market conditions prevail or when company growth occurs, a company may suffer if it a. lowered its sales force objectives. b. recruited additional salespeople. c. decided to use a combination compensation plan. d. provided additional training for its sales force. e. cut back the size of its sales force. 83. Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are a. near the beginning. b. always completed before anything else. c. near the end. d. paid by the prospects rather than the company. e. never reached. 84. The best advice for recruiting and selecting salespeople for one's organization would be a. follow a clear set of generally accepted job characteristics when determining an applicant's qualifications. b. keep the expensive stages near the beginning of the recruiting process. c. find out how long the applicant plans to stay with the company. d. make recruitment a continuous activity aimed at seeking out the best applicants. e. recruit primarily from educational institutions. 85. Which of the following best characterizes the function of recruiting and selecting a sales force? a. It should be a continuous, systematic attempt to match applicants' characteristics to the firm's needs. b. It is a process that should be set up that incorporates at least two steps: an interview and a written application. c. Sources of applicants should be limited, since the recruitment process is expensive and more applicants mean greater expense. d. After interviewing applicants, the manager should attempt to find a position that can be tailored to fit applicants' qualifications. e. It should not be made from personnel in other departments in the firm, as this would necessitate training two people rather than one. 86. Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about a. the company. b. his customers' companies. c. basic selling methods. d. new-product information. e. prospecting. 87. Which of the sales force compensation methods is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople? a. Straight commission b. Salary plus bonus c. Salary and commission d. Straight commission and combination e. Straight salary 88. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements? a. Combination b. Straight salary c. Straight salary plus generous fringe benefits d. Straight commission e. Salary plus a bonus 89. Salespeople receive a set salary plus a commission based on sales with a a. straight salary compensation plan. b. combination compensation plan. c. cafeteria plan. d. straight commission compensation plan. e. salary plus bonus program. 90. Effective motivation of a sales force is best achieved through a. annual retreats at resort locations open to families. b. emphasizing sales force objectives and their connection to compensation. c. an organized set of activities performed continuously. d. motivation meetings when sales have declined. e. daily pep talks before the sales force makes sales calls. 91. In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and a. territories should be designed to minimize selling costs. b. all territories should be of similar size. c. the territorial pattern should consist of concentric circles. d. the density of potential customers should be minimized. e. the distribution of customers should be relatively equal. 92. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to a. develop larger income potentials. b. have to work longer and harder to generate a certain sales volume. c. work about the same amount, since potential is the same. d. have much larger sales than those salespeople with smaller territories. e. be limited to a smaller income potential. 93. Customer density and distribution are important factors in a. prospecting. b. motivating salespeople. c. creating sales territories. d. compensating salespeople. e. establishing sales force objectives. 94. A primary goal of routing and scheduling decisions in personal selling is to a. determine the sequence in which customers will be called on. b. use existing transportation facilities. c. minimize nonselling time. d. determine duration of sales calls. e. provide salespeople with an opportunity to plan their own routes and schedules. 95. ____ are designed to identify the customers called on and to present detailed information about interaction with those clients. a. Invoices b. Feedback notices c. Work schedules d. Call reports e. Recall files 96. The most common sales force evaluation practices are for sales managers to compare a salesperson's performance with other salespeople operating under similar selling conditions, or to compare a. the size of sales territories. b. selling expenses by various members of the sales force. c. the amount of new business generated. d. current performance with past performance. e. the ratio of costs to profits. 97. Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the prior year led to his conclusion that she lacked key product information. At their upcoming session, he will most likely do which of the following? a. Decrease the size of her territory. b. Increase her sales quotas. c. Terminate her. d. Recommend that she attend a training program. e. Ignore this problem given that her sales results were good. 98. Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at a. motivating salespeople. b. compensating salespeople. c. providing training for the sales force. d. managing sales territories. e. selecting salespeople. 99. In establishing sales promotion objectives, a marketer should always a. concentrate on activities that will increase consumer demand. b. focus on consumers. c. focus on resellers. d. be defensive in the methods used. e. align objectives with the organization's overall objectives. 100. In recent years the proportion of promotional dollars spent on sales promotion has a. increased relative to advertising. b. remained constant. c. declined slightly, and the proportion spent on advertising has increased. d. declined slightly, and the proportion spent on advertising has declined as well. e. increased, and the proportion spent on advertising has risen as well. 101. Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a. Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts. b. Because of an increased focus on value, consumers are more responsive to promotional offers. c. The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. d. Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. e. All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts. 102. Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered a. trade sales promotion methods. b. consumer incentives. c. consumer sweepstakes. d. buying allowances. e. consumer sales promotion methods. 103. As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer sales promotion. a. free samples b. rebates c. point-of-purchase displays d. coupons e. cents-off offers 104. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following? a. Sweepstakes b. Money refunds c. Frequent-user incentives d. Coupons e. Premiums 105. As a promotional strategy, using coupons strives to achieve all of the following except a. show how a product is used. b. increase sales volume quickly. c. introduce new package sizes. d. prompt trial usage of a new product. e. attract repeat users. 106. ____ are offers of cash to customers who purchase a specific product, and ____ are offers of cash to customers who purchase a specific quantity of a specific product. a. Rebates; reimbursements b. Cents-off; refunds c. Rebates; premiums d. Buy-back allowances; money refunds e. Rebates; money refunds 107. Which of the following is most likely to stimulate customer loyalty? a. Coupons b. Sweepstakes c. Frequent-user incentives d. Samples e. Premiums 108. Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a a. free sample. b. rebate. c. frequent-user incentive. d. premium. e. consumer contest. 109. Signs, counter pieces, racks, and self-service cartons are all forms of a. in-store attention grabbers. b. demonstrations. c. retail media. d. premiums. e. point-of-purchase displays. 110. Although Maybelline would like to use ____ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder. a. frequent-user incentives b. demonstrations c. coupons d. rebates e. consumer contests 111. Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ____ as playing a role in her sales promotion plan. a. samples b. coupons c. point-of-purchase materials d. money refunds e. premiums 112. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a a. premium. b. coupon. c. cents-off offer. d. free sample. e. money refund. 113. ____ are items offered free or at minimal cost as a bonus for purchasing a product. a. Rebates b. Premiums c. Samples d. Merchandise allowances e. Coupons 114. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a a. consumer prize. b. rebate. c. premium. d. free sample. e. free merchandise. 115. On a break between classes, Kelley Macon selects two magazines and mails the Publishers Clearing House entry form. She doubts that she will win $10 million, but she never passes up a chance to participate in a a. premium. b. consumer contest. c. sampling. d. sales contest. e. sweepstakes. 116. The difference between consumer sales promotion methods and trade sales promotion methods is a. with consumer sales promotion, marketers try to persuade retailers to carry their products. b. with trade sales promotion, marketers focus on trading with consumers. c. consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers. d. consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy. e. trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales promotions focus on persuading people to buy particular products. 117. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a a. trade sales promotion method. b. point-of-purchase material. c. consumer sales promotion method. d. merchandise allowance. e. dealer loader. 118. Which of the following is an example of a trade sales promotion method? a. Frequent-user incentives b. Point-of-purchase displays c. Retailer coupons d. Free merchandise e. Money refunds 119. A temporary price reduction to resellers for purchasing specified quantities of a product is a. premium money. b. a merchandise allowance. c. a buying allowance. d. a buy-back allowance. e. a money refund. 120. Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion? a. Push money b. Buy-back allowance c. Buying allowance d. Cents-off offer e. Money refund 121. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a a. buying allowance. b. count-and-recount allowance. c. scan-back allowance. d. buy-back allowance. e. coupon follow-up campaign. 122. When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a a. merchandise allowance. b. count-and-recount allowance. c. buy-back allowance. d. scan-back allowance. e. scan-count allowance. 123. When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering a. premium money. b. cooperative advertising. c. a dealer loader. d. a buying allowance. e. a merchandise allowance. 124. An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is a. a buy-back allowance. b. a merchandise allowance. c. premium money. d. push money. e. cooperative advertising. 125. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and Wal-Mart. This form of sales promotion is called a(n) a. cooperative advertising. b. dealer listing. c. push money. d. dealer loader. e. advertising allowance. 126. A ____ is a gift to a retailer who purchases a specified quantity of merchandise. a. dealer loader b. premium c. dealer listing d. merchandise allowance e. count and recount 127. A dealer loader is a. additional compensation to salespeople from the manufacturer to promote a line of goods. b. an agreement in which a producer offers free merchandise to a retailer. c. an advertisement that promotes a product and identifies retailers who sell the product. d. a gift to a retailer who purchases a specified quantity of merchandise. e. a temporary price reduction to resellers for purchasing a certain quantity of merchandise. 128. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the ____ program they have on for this quarter?" a. buying allowance b. merchandise allowance c. push money d. dealer loader e. sweepstakes 129. While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that a. they are often too complicated. b. they are not taken seriously by the employees. c. people often discontinue their positive behavior after the contest is over. d. many point-of-purchase display materials are needed to implement a contest. e. people often feel they are not being recognized enough. Scenario 18.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. 130. Refer to Scenario 18.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process? a. Prospecting and evaluating b. Preapproach c. Overcoming objections d. Closing e. Following up 131. Refer to Scenario 18.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Sean is engaged in which of the following? a. prospecting. b. the preapproach. c. approaching the customer. d. making the presentation. e. overcoming objections. 132. Refer to Scenario 18.1. Sean has narrowed his list and is preparing a packet of information about Jafrum and its products to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks to set up a sales visit. In this scenario, Sean is all of the following except a. a trade salesperson. b. a field order taker. c. a missionary salesperson. d. an order getter. e. a new business salesperson. 133. Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan, however he is considering changing to the ____ plan. a. straight salary; salary plus commission b. straight commission; straight salary c. salary plus commission; straight commission d. salary plus bonus; straight bonus e. straight bonus; straight commission Scenario 18.2 Use the following to answer the questions. The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce. Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members of the salesforce will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. 134. Refer to Scenario 18.2. Kerry and the other salesforce members are best described as a ____ sales force. a. technical b. missionary c. trade d. field e. pioneer 135. Refer to Scenario 19.2. Presto appears to be using ____ to educate its sales force. a. formal sales training b. on-the-job training c. negative motivation d. territorial meetings e. recruiting training 136. Refer to Scenario 19.2. Which of the following are consumer sales promotion methods that Presto is using for the new stovetop grill? a. television commercials and the customer contest b. television commercials and the in-store rebate c. the customer contest and the in-store rebate d. the sales force contest and the in-store rebate e. the sales force contest and the customer contest 137. Refer to Scenario 19.2. Presto's use of a free trip to New York is an example of ____, while the $5 discount to its retail stores is an example of ____. a. a trade allowance; a buy-back allowance b. a buying allowance; a dealer loader c. a dealer loader; a buy-back allowance d. a sales contest; a buy-back allowance e. a sales contest; a buying allowance TRUE/FALSE 138. Personal selling is generally the most expensive element in the promotion mix. 139. The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers satisfied. 140. Most marketers depend on one-sale customers for long-run survival. 141. Developing a list of potential customers is called prospecting. 142. The preapproach is the first step in the personal selling process. 143. Even though salespeople do not use the exact same sales methods, they do go through the same general selling process. 144. In the cold canvass technique, the salesperson calls on potential customers without their prior consent. 145. Using referrals falls under the approach step in the personal selling process. 146. The approach step is an important step for gathering information about a buyer's needs and objectives. 147. Listening on the part of a salesperson is a major component in making a presentation. 148. One of the best ways to overcome a prospect's objections is to anticipate them and to deal with them before the prospect has an opportunity to mention them. 149. A salesperson should not attempt to close a transaction until he or she has finished the entire presentation. 150. Closing the sale is not a part of the sales presentation in which hidden objections are discovered. 151. It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections that the salesperson cannot overcome. 152. If possible, the salesperson should handle objections only when they arise. 153. Following up involves listening to a customer's response after finishing the presentation and overcoming those objections. 154. Order getters are sometimes called creative sellers. 155. A single salesperson may perform the functions of order getting, order taking, and support. 156. Current customers are sources of leads for finding prospective customers. 157. Locating prospects, educating customers, and building goodwill are functions performed by support personnel. 158. The missionary salesperson's primary purpose is to sell to the producer's customers. 159. Some support personnel, such as trade salespeople, may perform order-taking functions in addition to support functions. 160. The focus of personal selling is shifting from selling a specific product to building long-term relationships with customers by finding solutions to their needs, problems, and challenges. 161. Team selling involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. 162. Relationship selling is used especially in consumer marketing. 163. Selection of the right type and proportion of salespeople is important because it is a one-time decision that affects the company's ability to generate sales and profits. 164. When determining the characteristics desirable in salespeople, the sales manager should analyze the characteristics of the successful and ineffective sales personnel within the firm. 165. Among others, management recruits from within the firm or from recommendations of individuals by current employees. 166. Because salespeople are an expense to the company, yet they are the ones who generate revenues for the company, management must strive to achieve optimality in the size of its sales force. 167. Sporadic recruiting is more desirable than continuous recruiting because of the expense involved in the process. 168. Regardless of one's experience, firms always put new employees through a training program geared for their specific firm. 169. Training programs designed for experienced company salespeople generally are oriented toward product information. 170. A straight commission compensation program ensures that selling costs will be predictable. 171. Effective sales force motivation is achieved through a continual organized set of activities performed by the company's sales management. 172. The aim of a motivational program is to create a working environment in which sales personnel can achieve their goals. 173. To equalize the workload, a sales manager divides a geographic market into sales territories of equal size according to land area. 174. Maximization of selling time and minimization of nonselling time are the major goals of routing and scheduling decisions. 175. A salesperson with a larger territory will have the advantage of being able to achieve more sales than salespeople with smaller territories. 176. Salespeople should know the sales objectives of the firm in order to know what they are expected to accomplish. 177. Generally, a salesperson's performance is judged by comparing it with predetermined standards rather than by comparing it with the performance of other salespeople. 178. The factors used to evaluate a salesperson's performance are based on the sales objectives set by the sales manager for that salesperson. 179. A salesperson's performance is often compared with the performance of other salespeople operating under similar conditions. 180. Sales promotion activities are always supplementary to personal selling and advertising. 181. Decisions regarding sales promotion do not affect advertising decisions. 182. Generally, sales promotion attempts to influence consumers to purchase products but is not normally aimed at resellers. 183. Sales promotion may facilitate personal selling. 184. Sales promotion activities are generally used in conjunction with other promotional efforts. 185. Sales promotion objectives should be consistent with the organization's overall objectives and its marketing objectives. 186. A marketer's selection of sales promotion techniques is influenced by the state of the competitive environment. 187. Two major categories of sales promotion methods are consumer and trade. 188. One objective of consumer sales promotion techniques is to encourage patronage for a specific retail store. 189. Many consumers redeem coupons only for products they normally buy. 190. Most people who purchase rebated products actually apply for the rebates. 191. Demonstrations in retail stores are not used widely because they are expensive. 192. The use of sampling is declining. 193. Consumer contests and sweepstakes are used to promote established products and tend to generate similar levels of consumer response. 194. Generally, consumer sweepstakes are more popular than consumer contests. 195. Buying allowances are effective promotional techniques because they result in profits for resellers. 196. Merchandise allowances are generally used in conjunction with high-volume, low-profit items. 197. Cooperative advertising refers to advertisements promoting a product and identifying participating retailers that sell the product. SHORT ANSWER 16. Advertising is a promotion mix ingredient that is a(n) ____________________ communication. MULTIPLE CHOICE 17. Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising. a. institutional b. product c. organizational d. pioneer e. advocacy 18. First Union Bank airs a series of radio ads that claim, "We are the friendly bank." This campaign would best be described as ____ advertising. a. pioneer b. target c. product d. institutional e. comparative 19. The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as a. public relations. b. product advertising. c. advocacy advertising. d. institutional advertising. e. comparative advertising. 20. When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. a. institutional b. product c. advocacy d. issue e. competitive 21. When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using a. competitive advertising. b. public relations. c. product advertising. d. public service awareness. e. advocacy advertising. 22. A television advertisement showing the safety features of the Volvo "Cross Country" Wagon would be best classified as which of the following? a. Product advertising b. Pioneer advertising c. Defensive advertising d. Societal marketing e. Publicity 23. The two major types of product advertising are a. institutional and advocacy. b. pioneer and competitive. c. competitive and comparative. d. advocacy and competitive. e. informative and comparative. 24. Advertising that focuses on stimulating demand for a product category is called ____ advertising. a. pioneer b. competitive c. institutional d. categorical e. product 25. Which of the following lists forms of competitive advertising? a. Pioneer, comparative, reminder b. Reminder, repetitive, reinforcement c. Comparative, reminder, reinforcement d. Institutional, product, comparative e. Product, pioneer, reminder 26. What type of advertising points out a brand's features and advantages that fit consumers but may not be available in other brands? a. Reminder b. Reinforcement c. Competitive d. Defensive e. Institutional 27. Coors advertises that its beer is the only one that is kept cold from the brewery to the store. This type of advertising is called a. pioneer. b. competitive. c. comparative. d. defensive. e. institutional. 28. Troy Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ____ advertising. a. competitive b. pioneer c. institutional d. primary e. target 29. Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as a. pioneer. b. competitive. c. comparative. d. defensive. e. selective. 30. Brands that are promoted through comparative advertising are most likely to be a. market leaders. b. brands that are attempting to compete with market leaders. c. primarily services rather than tangible goods. d. attempting to compete on a nonprice basis. e. competing in a less competitive market. 31. Advertising that lets consumers know that an established brand still offers certain uses, characteristics, and advantages is ____ advertising. a. repetitive b. reminder c. pioneer d. competitive e. reinforcement 32. An ad for a multivitamin that claims, "We still bring you everything you need to get through your day in one vitamin," would most likely be considered ____ advertising. a. reinforcement b. competitive c. comparative d. reminder e. institutional 33. Reinforcement advertising is primarily targeted at a. new potential target markets. b. users of competitors' brands and products. c. anyone who uses that type of product. d. all the stakeholders of an organization. e. the current users of a particular product. 34. Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ____ advertising. a. reinforcement b. offensive c. comparative d. institutional e. defensive 35. The target audience for an advertising campaign is the a. information base on which to develop the campaign. b. geographic distribution of persons. c. people toward whom the advertisements are directed. d. overall goal of the advertising campaign. e. sales objective to be achieved by the campaign. 36. The first stage in the development of any advertising campaign is a. creating the message. b. setting the budget. c. identifying the advertising target audience. d. defining the advertising objectives. e. creating the advertising platform. 37. The last stage in the development of any advertising campaign is b. developing the media plan. c. creating the advertising message. d. evaluating the effectiveness of advertising. e. defining the advertising objectives. 38. After the target audience for an advertising campaign has been identified and analyzed, marketers should then proceed by a. creating the advertising platform. b. determining the financial resources available. c. defining the advertising objectives. d. developing a media plan. e. creating an advertising message. 39. After the advertising budget is determined, the next step in creating an advertising campaign is a. creating the advertising message. b. creating the advertising platform. c. evaluating the advertising objectives. d. executing the campaign. e. developing the media plan. 40. The step in developing an advertising campaign that directly precedes campaign execution is a. defining advertising objectives. b. creating the advertising platform. c. evaluating advertising effectiveness. d. developing a media plan. e. creating the advertising message. 41. Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) a. target audience goal. b. advertising platform. c. percent-of-sales approach. d. advertising objective. e. media plan goal. 42. When developing an advertising campaign, benchmarks need to be included in the a. campaign platform. b. evaluation of the advertising effectiveness. c. statement of advertising objectives. d. media plan. e. budget. 43. Why should a benchmark statement be included in advertising objectives? a. Shareholders want to see where a company is in relation to competition. b. It is useful in determining whether retailers have increased their sales over the year. c. It gives an indication of how the advertising message is best presented. d. Without a reference point, it is difficult to determine to what degree objectives have been accomplished. e. Objectives become more easily attainable when such a statement is included. 44. The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign. a. the target audience b. a budget c. a media plan d. objectives e. advertising directives 45. Advertising campaign objectives that are aimed at making customers' attitudes more favorable are stated in ____ terms. a. communication b. sales c. demand d. market e. survey 46. If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a product's features, the advertising objective should be stated in terms of a. market share. b. dollar sales. c. unit sales. d. communication. e. long-run goals. 47. An advertising platform is the a. basic issue or selling point that an advertiser wishes to include in an advertising campaign. b. objective of the advertising campaign, stated in precise and measurable terms. c. form in which the basic issues of the campaign should be presented. d. broad objectives of the advertising campaign. e. consumer advertising research conducted. 48. The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the a. advertising objectives. b. target audience objectives. c. media plan. d. advertising message. e. advertising platform. 49. Before launching a new advertising campaign, marketers for Healthy Choice frozen dinners must determine the selling points that they want to include in the advertisements. The identification and organization of these selling points is called the a. advertising appropriation. b. objective-and-task approach. c. advertising platform. d. advertising objective. e. advertising budget. 50. Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development? a. Determining the appropriations b. Creating the platform c. Identifying the target d. Defining objectives e. Developing the media plan 51. An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that a. competitive products lack. b. can be seen easily in a photograph. c. are familiar concepts to those in the target market. d. competitive products have as well. e. are reasonably inexpensive to develop. 52. The most effective method of determining platform issues is to use a survey of a. personnel within the firm. b. individuals at the advertising agency. c. customers. d. marketers in the industry. e. advertising experts. 53. What is an advertising platform most commonly based upon? a. The opinions of employees within the firm or the advertising agency b. Data collected from past marketing research about the brand c. Customer surveys about what they consider the most important issues d. Retailer information about potential consumers of the product e. The advertising appropriation for that particular ad campaign 54. The total amount of money a marketer allocates for advertising for a specific time period is the a. marketing budget. b. advertising appropriation. c. objective-and-task approach. d. promotion grant. e. finances for advertising. 55. Advertising appropriations are largest for which type of product? a. Business products b. Convenience goods c. High-priced products d. Specialty goods e. Infrequently purchased goods 56. Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach. a. reliable-appropriation b. match-competition c. arbitrary d. objective-and-task e. percent-of-sales 57. The main problem with using the objective-and-task approach to setting an advertising budget is that a. sales create advertising rather than advertising creates sales. b. it often results in overspending or underspending of the firm's resources. c. it does not achieve full potential in terms of stimulating demand. d. the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals. e. it is difficult to determine the objectives of the campaign. 58. Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels? a. Competitive parity b. Percent of sales c. Arbitrary d. Affordability e. Objective-and-task 59. To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80 percent of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a. Objective-and-task b. Percent of sales c. Competition matching d. Arbitrary allocation e. Past-year comparison 60. When using the percentage-of-sales approach for determining the advertising appropriation, marketers a. base their funding on a percentage of the competitors' sales. b. multiply the firm's past sales by a set percentage they want to spend. c. set sales objectives for the upcoming period and base appropriations on these goals. d. multiply the firm's past sales plus a factor for expected changes in sales times a standard percentage. e. use an industry standard to determine what percentage of their profits they want to allocate to advertising. 61. If Target were to base its advertising appropriation on the amount that WalMart spends, it would be using the ____ approach. a. objective-and-task b. percent-of-sales c. industry-standard d. arbitrary e. competition-matching 62. Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures. a. percent-of-sales b. objective-and-task c. competition-matching d. arbitrary e. judgmental 63. When the CEO or chief financial officer of a company states how much the company should spend on advertising for the coming period, the company is using the a. arbitrary approach. b. executive decision process. c. objective-and-task approach. d. percentage-of-sales approach. e. competition-matching approach. 64. An advantage of the arbitrary approach for determining the advertising appropriation is that it is a. objective. b. unique. c. profitable. d. effective. e. expedient. 65. After developing the budget for advertising GEO automobiles, marketing managers at General Motors then determined what proportion of that budget would be spent on magazine, television, and radio advertisements based on the cost effectiveness of each. This subsequent allocation of the budget is known as a(n) ____ plan. a. advertisement-allocation b. media c. arbitrary allocation d. objective-and-task e. percent-of-sales 66. A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a. advertising plan. b. media plan. c. advertising message. d. advertising appropriation. e. media platform. 67. The primary goal of a media planner is to a. choose the best commercial spots available. b. develop a message that works well with the firm's target market. c. achieve the appropriate message reach and frequency. d. use a wide variety of media to ensure the entire target audience is exposed. e. reach the largest number of people in the target market within the budget constraints. 68. The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of a. frequency. b. exposure. c. reach. d. targeting. e. push. 69. The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising a. reach. b. repetition. c. frequency. d. targeting. e. exposure. 70. Which of the following statements applies to media planning? a. Characteristics of the product are the most important consideration in selecting the media for a campaign. b. The message content affects the types of media used for an advertising campaign. c. The location of the advertising target is irrelevant in media planning. d. Total media dollars spent on advertising have decreased over the last 30 years. e. Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances. 71. A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n) a. cost comparison indicator. b. media comparison selector. c. unit-price selector. d. cost/person index. e. vehicle/price indicator. 72. Domino's is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Domino's must reach consumers as efficiently as possible. What can Domino's use to evaluate various magazines? a. A cost comparison indicator b. The total circulation of the magazines c. A list of the costs of a one-page ad in various magazines d. The advertising appropriations for each magazine e. An index of advertisement exposure 73. The cost per thousand (CPM) indicator shows a. the cost to expose 1,000 people to a television commercial. b. the cost to expose 1,000 people to a one-page magazine advertisement. c. the return on investment marketers get for their advertising dollar. d. the cost to expose a million people to any type of advertisement. e. how one media source compares to a different source for reaching target markets. 74. The three general types of media schedules are a. pulsing, beating, and continuous. b. short, medium, and long-term. c. morning, afternoon, and evening. d. pulsing, continuous, and flighting. e. light, heavy, and alternating. 75. A schedule in which advertisements run for set periods of time, alternating with periods in which no ads run is known as a. continuous. b. skipping. c. pulsing. d. flighting. e. intervals. 76. Subway decided to run its new commercials several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Subway is using a ____ schedule for its advertising. a. flighting b. varying c. continuous d. pulsing e. beating 77. If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ____ media schedule is being used. a. beating b. alternating c. flighting d. continuous with emphasis e. pulsing 78. During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule. a. flighting b. continuous c. pulsing d. alternating e. multimedia 79. Brian and Tiffany are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds. He tells her that while he agrees that ____ has tremendous impact, he does not feel that the upfront costs for such a campaign are in the modest budget that presently exists. a. radio b. outdoor c. television d. direct mail e. newspaper 80. As Oscar Meyer puts together its advertising campaign for the summer, it will need to keep in mind that its desire to use outdoor advertising will have strong effects on its selection of the advertising a. message. b. budget. c. platform. d. audience analysis. e. objectives. 81. A marketer that wanted to include detailed information in advertisements would most likely use a. radio. b. television. c. outdoor displays. d. magazines. e. mass transit. 82. The verbal portion of an advertisement, including headlines, body, and signature, is called the a. artwork. b. copy. c. storyboard. d. layout. e. script. 83. An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement. a. signature b. layout c. headline d. artwork e. subheadline 84. Why is the headline of a print advertisement such a critical component of the copy? a. It determines the final layout design. b. It is often the only part of the advertisement that is read. c. It takes up the most space. d. It links the copy to the signature. e. It links the artwork to the signature. 85. As Will Marcum reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Will focuses his creative efforts on the a. copy. b. body. c. text. d. signature. e. headline. 86. The identification of an advertisement's sponsor is the a. copy. b. signature. c. trademark. d. layout. e. subheadline. 87. The advertising department for the Pennzoil Corporation is working on a print advertisement for a new product. At this point, the layout contains a phrase to attract attention, an additional phrase to provide an explanation, an illustration to show the product, and a paragraph to explain the advantages and benefits of the product. What other important element should be included? a. Headline b. Subheadline c. Signature d. Artwork e. Body copy 88. Rachel is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio it will be important for her to a. use a high level of repetition. b. buy a really long time slot to get all the information in. c. be both informal and conversational in tone. d. use a quick speaker to attract attention to the commercial. e. say the restaurant's name and location three separate times. 89. Chelsea Collins walks her client, KaptainKorn president Steve Gonski, through her agency's proposed television campaign for the product's introduction. In doing so, she moves from square to square on the a. copy. b. storyboard. c. illustrations chart. d. artwork. e. media plan. 90. When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a a. parallel format. b. commercial layout. c. layout procedure. d. storyboard. e. visual-impact process. 91. Artwork, a major part of most advertisements, consists of the a. illustration and the signature. b. illustration and the layout. c. illustration and type of print used in the headlines. d. layout and the signature. e. method by which all the components are put together. 92. What design element is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words? a. Illustrations b. Headlines c. Copy d. Layout e. Signature 93. The physical arrangement of the illustration, headline, subheadline, body copy, and the signature is called the a. artwork. b. copy. c. art design. d. layout. e. storyboard. 94. Julie Reese is working on developing a magazine advertisement for Curves For Women, the ladies' fitness chain. She knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time putting it all together. Julie is having trouble determining the a. storyboard. b. artwork. c. copy. d. presentation. e. layout. 95. The effectiveness of an advertising campaign can be measured a. only after the campaign has been carried out completely and results have been tabulated. b. only before the campaign begins, to prevent unnecessary expenditures. c. during the campaign to determine whether more or less funds should be allocated, but not after the campaign. d. several weeks after the beginning of the campaign to determine whether the campaign is headed in the right direction. e. before, during, and after the campaign through the use of pretests, inquiries, and posttests. 96. An evaluation performed before an advertising campaign begins is a a. consumer exam. b. posttest. c. recognition test. d. pretest. e. recall test. 97. Mike Stevens wonders whether the creative idea of using the character "Tom T. Turtle" as an image for marketing a new line of running shoes will be successful. He should suggest to his account representative that a(n) ____ be used to pretest the campaign. a. storyboard b. survey c. experiment d. GSR test e. consumer jury 98. A consumer jury is a a. group of consumers who have purchased the product before that evaluate its effectiveness. b. panel of potential buyers of the advertised product brought together to pretest an advertising message. c. panel of buyers who review and evaluate an advertising message after it has been circulated in certain regions. d. group of consumers who determine whether or not other consumers have been treated fairly by companies. e. panel of consumer experts who rank the effectiveness of advertisements. 99. General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch their cholesterol. These consumers judged the advertisements prior to the execution of the advertising campaign. This is an example of a(n) a. pretest. b. inquiry. c. recognition test. d. recall test. e. posttest. 100. Matt was in a group considered to be actual or potential purchasers of a new mountain bike produced by Specialized. He and the other consumers were shown three different advertisements and asked to judge several dimensions of each one. Matt participated in a(n) a. posttest consumer group. b. panel of advertising experts. c. consumer jury. d. customer ad panel. e. ad preview group. 101. Measuring effectiveness during a campaign is usually accomplished by using a. pretests. b. posttests. c. consumer juries. d. inquiries. e. sales force surveys. 102. Recognition and recall tests are posttest methods based on a. mail surveys. b. memory. c. inquiries. d. preferences. e. in-depth interviews. 103. Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches? a. The actual ads are shown in the former but not in the latter. b. The former method relies on memory alone, and the latter shows the actual ads. c. One uses a consumer jury; the other uses random individuals. d. The respondents are given class clues in the latter but not in the former. e. One is used primarily by the government, and the other is used by private businesses. 104. If a consumer is shown a particular advertisement and asked if she has seen it before, a(n) ____ is being performed. a. pretest b. consumer jury test c. recognition test d. unaided recall test e. aided recall test 105. Carla is stopped by a researcher at a shopping mall and asked what was last television commercial she remembers seeing was. This is an example of a(n) a. unaided recall test. b. pretest. c. recognition test. d. aided recall test. e. memory test. 106. When respondents are shown a list of various products, brands, and company names and then asked about advertisements they have seen lately, researchers are conducting a(n) a. unaided recall test. b. pretest. c. recognition test. d. aided recognition test. e. aided recall test. 107. What is the primary justification marketers use for conducting recognition and recall tests? a. Researchers find that recalling an advertisement has a strong link to purchasing a product. b. People have unfavorable views of advertising and are unlikely to purchase advertised products. c. Consumers tend to enjoy participating in these tests and are likely to purchase the products as a result. d. People are more likely to buy a product they have seen advertised than one they have not seen advertised. e. There is a strong link between advertisement recall/recognition and word-of-mouth communication. 108. When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as a. family behavior recording. b. single-source data. c. individual consumer jury. d. advertisement exposure data. e. detailed market research. 109. Darcy presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Darcy is providing a. family behavior recording. b. individual consumer jury. c. single-source data. d. advertisement exposure data. e. detailed market research. 110. An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or a. an advertising agency. b. a group of media specialists. c. a group of multiskilled managers. d. a "special projects" group. e. freelance advertising consultants. 111. Generally, in small firms, ____ create(s) and implement(s) advertising campaigns. a. an advertising agency b. a group of multiskilled managers c. an advertising department d. freelance specialists e. one or two individuals 112. When an organization uses an advertising agency, who usually develops the advertising campaign? a. The agency's specialists b. The firm and the agency working jointly c. The agency suggests ideas and the firm chooses among them d. The advertising department within an organization e. An individual or a few persons within the firm 113. ____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists. a. Public relation firms b. Media companies c. Advertising agencies d. Production companies e. Promotion experts 114. Advertising agencies typically receive a. large fees from the companies whose ads they develop and place. b. a 15 percent commission from the company whose product they are helping advertise. c. a 10 percent commission from the advertising company and 10 percent from the media they use. d. a 25 percent commission paid by the media from which it makes purchases. e. a 15 percent commission paid by the media from which it makes purchases. 115. The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ____ in compensation. a. $2,500 b. $10,000 c. $1,000 d. $5,500 e. $3,000 116. ____ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders. a. Advertising b. Selling c. A press strategy d. Public relations e. Publicity 117. Belinda works for Burger King and her responsibilities include maintaining favorable relationships between the organization and its stakeholders. Belinda works in a. sales. b. advertising. c. human resources. d. public relations. e. imaging. 118. Which of the following is not a public relations tool? a. Feature article b. Company magazine c. News release d. Annual report e. Product sample 119. Toyota's sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool. a. advertising b. public relations c. sales promotion d. publicity e. personal selling 120. A major benefit of using event sponsorship is that it a. enhances personal selling efforts. b. provides excellent support for advertisements. c. can provide large amounts of free media coverage. d. is cost-free. e. neutralizes the effects of unfavorable public relations. 121. Which of the following is the most important consideration when choosing an event to sponsor? a. Reasonable association between the event and the company's product b. The length of the event c. When the event occurs d. Whether or not the event is a national event e. The specific name of the event 122. ____ is communication in news story form about an organization or its products that is transmitted through a mass medium at no charge. a. Advertising b. Publicity c. Public relations d. Sales promotion e. Personal selling 123. Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called a. news reporting. b. public relations. c. mass communications. d. free advertising. e. publicity. 124. Which of the following is the most commonly used type of publicity-based public relations tool? a. News release b. Captioned photograph c. Feature article d. Press conference e. Letter to the editor 125. A single page of typewritten copy that has 300 words or less and describes a company event or product is called a a. press story. b. feature article. c. captioned paragraph. d. news release. e. publicity bulletin. 126. The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a a. feature article. b. public update. c. news release. d. media bulletin. e. publicity stunt. 127. If a company calls a meeting to announce a major news event, this is known as a a. media call. b. press conference. c. news release. d. press release. e. public service announcement. 128. To announce its development of a solid fuel titanium rocket for the U.S. missile defense system, Unijet management feels it needs to get wide media coverage. Under these circumstances, which of the following would be its best alternative? a. Captioned photograph b. Feature article c. Editorial letters d. Television advertisement e. Press conference 129. If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a a. captioned paragraph. b. press release. c. feature article. d. sponsorship. e. press conference. 130. A major reason why a substantial amount of publicity material is rejected by media personnel is that the material is a. too long. b. written at too high a reading level. c. submitted by organizations that the media do not like. d. not persuasive enough. e. not newsworthy. 131. The limitations in using publicity-based public relations tools stem primarily from the fact that a. marketers alter the length of publicity releases. b. publicity is never properly managed by media personnel. c. media personnel consider only unfavorable messages as newsworthy. d. it is time-consuming to convince media personnel that the information is newsworthy. e. media personnel control the content of the communication. 132. Which of the following is not an advantage of using publicity-based public relations tools? a. Control by media personnel of the content and timing of messages b. Credibility c. Strong news value d. Follow-up word-of-mouth communications e. A favorable perception of being endorsed by the media 133. A firm can identify changes in public opinion that affect it by conducting a. environmental monitoring. b. consumer polling. c. a consumer jury. d. a communications audit. e. press conferences. 134. A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n) a. consumer survey. b. public relations audit. c. environmental audit. d. communications audit. e. social audit. 135. Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n) a. social audit. b. publicity audit. c. environmental audit. d. communications audit. e. environmental impact study. 136. One way for a company to measure the effectiveness of its publicity-based public relations efforts is to a. tabulate the equivalent in advertising dollars if the time and space were purchased. b. ask for return of reply cards. c. calculate market share increase. d. count the number of exposures in the media. e. conduct an environmental audit of media alternatives. 137. In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to a. discourage news coverage of the event. b. deny that the event occurred. c. facilitate news coverage of the event. d. hire a public relations firm. e. refrain from publicity that reports the event. Scenario 17.1 Use the following to answer the questions. The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its new vehicle, the Venza, on TV and in major national magazines. It is possible that the ads could focus on the features of the Venza and its most likely competitor, the Ford Edge. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs. 138. Refer to Scenario 17.1. Toyota's television advertisements for the new Venza are examples of a. publicity. b. institutional advertising. c. product advertising. d. comparative advertising. e. pioneer advertising. 139. Refer to Scenario 17.1. If the ads include both the Venza and the Ford Edge, they would be examples of a. institutional advertising. b. public relations. c. product advertising. d. comparative advertising. e. competitive advertising. 140. Refer to Scenario 17.1. Advertisements such as the one proposed above for the Camry and hybrid SUVs, are most likely an example of a. product advertising. b. comparative advertising. c. competitive advertising. d. institutional advertising. e. reminder advertising. 141. Refer to Scenario 17.1. The advertising mentioned above in which Toyota features all brands of the company would be an example of a. competitive advertising. b. institutional advertising. c. comparative advertising. d. pioneer advertising. e. product advertising. Scenario 17.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the internet. It currently serves over 1.9 million bank accounts. 142. Refer to Scenario 17.2. In 2008, Cal Ripken, Jr. and State Farm teamed up to promote State Farm's national teen driver safety program. The marketing division at State Farm produced a one-page document that described the partnership, which was then published in several national newspapers and on the internet. The document from State Farm is an example of ____, while the publication in the newspapers is an example of ____. a. public relations; publicity b. public relations; a news release c. publicity; advocacy advertising d. a news release; publicity e. publicity; a news release 143. Refer to Scenario 17.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company. This method of advertising appropriation is known as the ____ approach. a. competition-matching b. arbitrary c. objective-and-task d. goals e. percent-of-sales 144. Refer to Scenario 17.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that a. it makes the bookkeeping too difficult. b. it is tied too closely to sales forecasts. c. a sales decline leads to an increase in the advertising appropriation. d. a drop in sales would cause a drop in the advertising budget. e. competitors may have different advertising objectives. 145. Refer to Scenario 17.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation. a. arbitrary b. competition-matching c. objective-and-task d. percent-of-sales e. percent-of-customer TRUE/FALSE 146. Advertising is paid nonpersonal communication transmitted through mass media. 147. Business organizations are the only major users of advertising. 148. Institutional advertising and promotional advertising are the two basic categories of advertising. 149. Advertisements that promote goods and services are called advocacy advertisements. 150. Product advertising is often used to stimulate demand directly. 151. If a commercial advertisement compares one brand of laundry detergent to another brand, this is a type of competitive advertising. 152. Pioneer advertising involves describing the features and benefits of a product in contrast to a direct competitor. 153. If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising. 154. In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of competing brands, but they do not actually mention the brand names of competitors. 155. Comparative advertisements mention the actual names of competing brands. 156. Reinforcement advertising tells current users how to get the most satisfaction from the brand they have chosen. 157. Reminder advertising is not applicable to new products. 158. Almost all advertising campaigns are aimed at producing immediate sales. 159. Advertising objectives should be stated in clear, precise, and measurable terms. 160. The statement of advertising objectives should include a benchmarksuch as the current sales leveland indicate how much improvement is sought. 161. A marketer's advertising platform should consist of issues that are important to consumers. 162. The advertising platform consists of the basic issues and selling points that an advertiser wishes to include in the campaign. 163. The advertising platform is the foundation on which campaign messages are built. 164. Most often, the opinions of a firm's personnel are used to develop the advertising platform. 165. The advertising budgets for industrial products are usually large relative to the sales of the products. 166. When sales go up, advertising should be increased; when sales decline, advertising should be decreased. 167. To assume that sales create advertising is incorrect. 168. The arbitrary approach to setting an advertising budget often results in inappropriate spending of the firm's resources. 169. The choice of media influences the content and form of the message. 170. A cost comparison indicator (such as CPM) should not be used to compare the cost and impact of a television commercial with the cost and impact of a newspaper advertisement. 171. The signature is not part of the verbal portion of an advertisement. 172. Radio copy should consist of short, familiar terms. 173. A layout includes only the illustrations used in an advertisement. 174. To be unbiased, a member of a consumer jury should not be a present user of the advertised product. 175. The effectiveness of an advertising campaign can be measured only after the completion of the campaign, when results are tabulated. 176. The type of posttest an advertiser uses is affected by the type of advertising objectives set by the advertiser. 177. In recall posttesting, respondents are shown the actual advertisement and are asked whether they recognize it. 178. Small firms generally depend on local newspapers and radio stations for assistance with advertising efforts. 179. Advertising departments may use independent research organizations or freelance specialists for some of their projects. 180. Ad agencies work jointly with their client firms to develop the ad campaigns. 181. Because ad agency personnel are outsiders to their client firms, they may not judge the firm's product objectively. 182. Ad agencies and firms usually work together when creating an ad campaign because the agencies would act too subjectively on their own. 183. Because ad agencies often get commissions on media purchases, firms can obtain some agency services at moderate prices. 184. Jobs such as specialists, copywriters, artists, media buyers, and technical production coordinators are included in the public relations department of a large organization. 185. One way an advertising agency assists a firm is that it takes care of all the grunt work in order to give its clients time to do the creative work on the campaign. 186. Advertising agencies often have more highly skilled people than the advertising departments of firms. 187. Small and medium-sized firms never use advertising agencies to produce campaigns for them. 188. Public relations, unlike advertising, is not particularly useful for promoting an organization's image. 189. If a company is perceived positively by the public, employee morale is often higher. 190. Public relations is communication in news story form about an organization, its products, or both that is transmitted through a mass medium at no charge. 191. Event sponsorship can provide companies with a considerable amount of advertising. 192. Publicity is a subset or part of public relations. 193. To announce a major news event, an organization should use a news release. 194. A feature article is longer than a news release and is written for a particular publication. 195. Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools. 196. A public relations audit is used to assess an organization's image among its publics or to evaluate the effect of a specific public relations program. 197. The effectiveness of a public relations program is usually measured in terms of sales. 198. A major way to reduce unfavorable public relations is to reduce the number of negative events. 199. An effective approach for dealing with potential unfavorable public relations resulting from a negative event is to discourage news coverage. [Show More]

Last updated: 2 years ago

Preview 1 out of 165 pages