MKT 320F EXAM 2 Key

Lectures and Chapters. Legal Aspects of Marketing, Consumer Behavior, Organizational Buying Behavior, and
Product Management (includes Product Planning), as well as chapters 6, 7, 9 & 10.

1. A marketing manager for a new brand of bar soap decides to mail free samples to consumers. The logic for
using this approach is best explained by
A. the "economic buyer" model.
B. the stimulus-response model.
C. the typical consumer's adoption process.
D. the need to reduce dissonance.
E. the high level of problem solving required with such a product.

2. ) ______________ are capital items that cost less and are shorter-lived than installations.
A. Supplies
B. Staples
C. Component parts
D. Component materials
E. Accessory equipment

3. Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. legal bonds
B. new-task sharing
C. cooperation
D. operational linkages
E. information sharing

4. Total industry profits are normally the highest in which stage of the product life cycle?
A. Market introduction.
B. Market growth.
C. Sales decay.
D. Sales decline.

5. The fact that the demand for business products depends a lot on the demand for final consumer products is
called:
A. primary demand.
B. derived demand.
C. diminishing demand.
D. elastic demand.
E. secured demand.

6. Resident buyers:
A. usually work for only one large retailer because of the work involved.
B. are independent buying agents who work for several retailers.
C. frequently travel to central markets to buy new styles.
D. maintain offices in retailers' buying departments.
7. Which law made the protection of public health a primary objective of the Federal Trade Commission?
A. The Wheeler-Lea Act.
B. The Clayton Act.
C. The Lanham Act.
D. The Power Act.

8. A modified rebuy is MOST likely to occur for:

A. file folders.
B. brooms.
C. paper clips.
D. a desk.
E. copier paper.

9. Heinz ketchup and Heinz mustard would be an example of:

A. family brand.
B. licensed brand.
C. an individual brand.
D. separate brands.

10. Which legislation was designed to protect small retailers from power of mass-merchandising chain stores?
A. The FTC Act.
B. The Clayton Act.
C. The Robinson and Patnam Act.
D. The undifferentiated Product Act.

11. You have just been asked by your manager to compile data on firms in California that have a specific 4-digit
NAICS code. You should know
A. that there are no 4-digit NAICS codes.
B. that there is only one firm to find, since each firm has its own 4-digit NAICS code.
C. that it is possible that no data will be available, even if there is one large firm in California in that 4-digit
industry.
D. that she is talking about the New Auto Industry Classification Survey.

12. Multiple buying influence is MOST likely to occur in which of the following purchases?
A. note pads.
B. a voice-mail phone system.
C. a replacement for a broken chair.
D. gasoline.
E. paper clips.

13. A college student on her way to take an exam remembers that she doesn't have a pencil with an eraser--
which the instructor asked everyone to bring. The store where she stops doesn't have regular pencils--but it does
sell Scripto mechanical pencils priced at $2.95. That is what she buys. This case illustrates the affect of:
A. personal environment.
B. culture.
C. purchase situation.
D. learned set.
E. dissonance.
14. Good marketing managers know that
A. marketing strategies can't influence consumer "wants."
B. marketers can't create internal drives in consumers.
C. it is not that difficult to develop a marketing strategy that gets consumers to do what they don't want to do.

15. An office manager needs office supplies, so he fills out a form indicating what he needs and sends it to the
purchasing department to be ordered. This form is usually called
A. a purchase order.
B. a requisition.
C. a vendor analysis.
D. a buying center request.
E. the start of the adoption process.

16. Which of the following statements about organizing for new-product development is TRUE?
A. New-product development departments or committees usually cause delays and should be avoided.
B. Few new-product ideas fail when product managers control the new-product development process.
C. The specific organization arrangement may not be too important--as long as there is top-level support.
D. Marketing managers should control new-product development.

17. People from sales, production, quality control, and finance are working with the purchasing department to
select a new supplier. The sales manager wants to select a supplier that is also a customer. The sales manager
A. is a gatekeeper.
B. is more likely to get his way if his company is located in Japan instead of the U.S.
C. is trying to use vendor analysis to his advantage.
D. is not a member of the buying center, so he can be ignored.

18. In the Standard Oil of New Jersey case (1911) the Supreme Court found that:
A. Standard Oil was guilty of violating the Clayton Act.
B. Standard Oil was guilty of violating the Sherman Act. **
C. Standard Oil was guilty of violating the FTC Act.
D. the conduct of the firm, not the market structure, was the controlling factor.**
E. the market structure was the controlling factor. **(WILL ACCEPT B & D AS CORRECT)

19. Regarding U.S. business and organizational customers,

A. more goods and services are purchased by business and organizational customers than by final consumers.
B. there are more business and organizational customers than final consumers.
C. there are more manufacturers than all other types of business and organizational customers combined.
D. more goods and services are purchased by government buyers than by all other business and organizational
customers.

20. An expectation is
A. an event that a person likes to remember.
B. a positive cue.
C. an unfulfilled need.
D. an outcome that a person looks forward to.

21. Which of the following buying methods would a supermarket buyer be MOST LIKELY to use in the
purchase of grade A large eggs?
A. Purchasing specifications
B. Competitive bidding
C. Negotiated contract
22. Which of the following provides high immediate satisfaction but low long-run consumer welfare?
A. Pleasing products
B. Salutary products
C. Deficient products
D. Desirable products

23. Impulse products:

A. are likely to gain or lose sales depending on where they're sold.
B. require a great deal of advertising.
C. are a specific type of specialty product.
D. are usually high in price.

24. Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)
A. are not very numerous compared to the very large firms.
B. account for the vast majority of the total employment provided by all manufacturers.
C. are the majority of all firms, but account for less than 3 percent of "value added" by manufacturing.
D. amount to nearly two million establishments.

25. Specialty products:

A. need widespread distribution at low cost.
B. need enough exposure to facilitate price comparison.
C. need adequate representation near similar products.
D. need widespread distribution near probable points of sale.
E. can have limited availability.

26. Which stage in the adoption process do individual firms learn of new products?
A. Awareness.
B. Initial interest.
C. First evaluation.
D. Eye in the sky.

27. According to the text, social class in the U.S. is usually measured in terms of:
A. income.
B. occupation, education, and housing arrangements.
C. income, occupation, and education.
D. race, religion, and occupation.
E. income, occupation, and religion.

28. When a large wholesaler or retailer uses a buying committee,

A. the buyer still makes the final purchase decision.
B. the sales rep may not be able to make a sales presentation to the committee.
C. the impact of persuasive salespeople is increased.
D. the middleman is more likely to take a chance on a really new product that hasn't yet proved itself.

29. ______________ means potential customers remember a particular brand.

A. Brand preference
B. Brand non-recognition
C. Brand insistence
D. Brand recognition
E. Brand rejection
30. The FTC Cooling Off Rule states that:
A. anyone who purchases a product for $25 or more from a door-to-door salesperson has the right to cancel a
purchase within 72 hours of the transaction and receive a full refund.
B. anyone who purchases a product for $125 or more from a door-to-door salesperson has the right to cancel a
purchase within 72 hours of the transaction and receive a full refund.
C. anyone who purchases a product for $25 or more from a door-to-door salesperson has the right to cancel a
purchase within 72 hours of the transaction and receive a 50% refund.
D. anyone who purchases a product for $25 or more from a door-to-door salesperson has the right to cancel a
purchase within 24 hours of the transaction and receive a full refund.

31. An industry's sales have leveled off and profits are declining in oligopolistic competition. Consumers see
competing products as "homogeneous." Several firms have dropped out of the industry, but a new one entered
recently. Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising. These
firms are competing in which stage of the product life cycle?
A. Market growth
B. Market maturity
C. Market development
D. Market introduction
E. Sales decline

32. When researching an organization prior to an interview, you should review the __________ of a company
and contact the __________ for literature if it is a governmental organization.
A. annual report; Information Office.
B. Website; Budget Office
C. Annual Report; hotline
D. Website; hotline

33Which of the following gives the correct order of the steps in the new-product development process?
A. Screening, idea generation, idea evaluation, development, commercialization
B. Idea generation, screening, idea evaluation, development, commercialization
C. Idea generation, idea evaluation, development, screening, commercialization
D. Development, idea generation, screening, commercialization, idea evaluation
E. Commercialization, idea generation, idea evaluation, screening, development

34. A potential supplier to the government market would probably learn the most about detailed purchase needs
of the U.S. federal government by reading or researching the websites for:
A. FEDERAL BUSINESS OPPORTUNITIES (FBO) DAILY.
B. the current STATISTICAL ABSTRACT OF THE U.S.
C. a trade association.
D. THE CONGRESSIONAL RECORD.
E. U.S. PURCHASING, SPECIFICATIONS, AND SALES DIRECTORY.

35. When business buyers purchase items such as grease, electricity, typing paper, and paper clips, they are
buying:
A. accessory equipment.
B. operating supplies.
C. components.
D. repair supplies.
E. maintenance supplies.
36. Dissonance is a:
A. tension caused by uncertainty about the rightness of a decision.
B. conflict between opinion leaders.
C. confirmation in the learning process.
D. kind of belief.
E. form of social influence.

37. Reference group influence is likely to have the strongest effect on the particular BRAND of
______________ purchased.
A. dishwasher detergent
B. frozen peas
C. batteries
D. watch
E. Reference group influence would be about the same for each of these products.

38. Product or brand managers are commonly used when a firm:

A. has several different kinds of products or brands.
B. wants to eliminate the job of the advertising manager.
C. has one or a few products--all of which are important to its success.
D. wants to eliminate the job of sales manager.
E. wants one person to have authority over all the functional areas that affect the profitability of a particular
product.

39. "We're in the __________ business....we just happen to fly planes," is a quote from Colleen Barrett, former
President of Southwest Airlines
A. profit-making
B. low-cost
C. transportation
D. customer service

40. The "economic-buyer" theory of buyer behavior:

A. is seen as too simplistic by most marketing managers.
B. assumes that consumers are affected by psychological variables and social influences.
C. suggests that men and women behave differently as buyers.
D. assumes that buyers don't have enough information to make logical choices--and as a result buy products
that are not a good value.

41. As a product moves into the market maturity stage of its life cycle, the marketing manager should:
A. try to build primary demand.
B. move toward exclusive distribution.
C. expect the market to move toward pure competition.

42. The text's consumer product classes are based upon:

A. methods of distribution.
B. NAICS codes.
C. the nature of the products.
D. the way people think about and buy products.
E. the way firms price their products.
43. An attitude is:
A. the same as an "intention to buy."
B. a person's point of view about something.
C. easy to change.
D. the same as a belief.

44. The present state of our knowledge about consumer behavior is such that:
A. the behavioral sciences provide the marketing manager with a complete explanation of the "whys" of
consumer behavior.
B. a marketing manager usually must blend intuition and judgment with findings from the behavioral sciences
to explain and predict consumer behavior.
C. relevant market dimensions can be easily identified and measured using "psychographics."
D. marketing research can't tell us much more about specific aspects of consumer behavior.

45. Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a
supplier is most likely to involve:
A. a reverse auction.
B. a procurement hub.
C. negotiated contracts.
D. competitive bids.

46. Which theory is based on the assumption that human beings are economic buyers that attempt to achieve
maximum satisfaction for each dollar spent:
A. The London Classical Economic Theory.
B. The Neoclassical Economic Theory.
C. The Stimulus-Response Economic Theory.
D. The Paulovian Economic Theory.

47. Regarding product life cycles, which is TRUE?

A. Industry sales and profits tend to reach their maximum during the market maturity stage.
B. Product life cycles describe industry sales and profits within some product-market.
C. Product life cycles are generally getting shorter and cannot be extended.
D. Every new brand must pass through all four stages of the product life cycle.

48. A marketing manager who wants to apply the "hierarchy of needs" model should keep in mind that:
A. most consumers are already satisfied and promotion will be needed to "create a need."
B. the same marketing mix might satisfy two or more levels of need.
C. not enough attention is focused on physiological needs.
D. "social needs" focus on the psychological variables in consumer behavior.

49. Regarding new-product development, market tests:

A. are used mostly for durable products because of their high production costs and risks.
B. seek customer reactions to ideas--not actual products.
C. should test specific marketing mix variables.
D. are especially important for high fashion products.
E. should always be run because testing does not involve any risk--but NOT TESTING does.
50. "Product" means:
A. A physical good or service which offers potential customer satisfaction.
B. A physical good with all its related features.
C. The entire physical output of a firm.
D. All of the elements in a firm's marketing mix.
E. Something that has been produced, packaged, branded, and given a warranty.