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Marketing
Q:
An evaluation of an advertising campaign will usually measure:
a. awareness.
b. recall.
c. motivation.
d. all of the above.
e. (a) and (b) only.
Q:
Industrial products that are complex, unique and made to order are more frequently sold through:
a. direct channels.
b. indirect channels.
c. manufacturers' representatives.
d. industrial distributors.
e. merchant wholesalers.
Q:
The choice of a particular entry mode will also depend on the size of the market and its growth potential.
Q:
When supply needs are complex, the buying firm is less likely to opt for a close relationship with a supplier.
Q:
An e-mail list can be created by:
a. offering an e-mail alert service.
b. asking for e-mail addresses in direct mail campaigns.
c. collecting e-mail addresses at trade shows.
d. all of the above.
e. (b) and (c) only.
Q:
In specifying channel alternatives, which of the following issues is(are) involved?
a. determining the levels to be included in the channel
b. determining the number of channel intermediaries at each level of the channel
c. determining the types of intermediaries to employ
d. all of the above
e. (a) and (b) only
Q:
A single-country may not be large enough for a firm to realize economies of scale.
Q:
Buyer-seller relationships that arise for important purchases are the ones that are more likely to involve operational linkages and high levels of information exchange.
Q:
Which of the following statements regarding direct mail is incorrect?
a. Direct mail is efficient when compared to other media.
b. Direct mail is a viable medium when potential buyers cannot be clearly identified.
c. A direct mail advertisement typically gains the full attention of the reader.
d. Direct mail can accomplish all of the major advertising functions.
Q:
Which of the following statements concerning the selection of industrial channel structures is(are) true?
a. Frequently, the manager has little flexibility in the selection because of trade, competitive, company, and environmental factors.
b. The channel should be viewed as a set of channel institutions rather than as a sequence of activities to be performed.
c. Competitors often have the better intermediaries "locked up."
d. all of the above
e. (a) and (c) only
Q:
The home base for a business is the location where strategy is set and a critical mass of sophisticated production and service activities reside.
Q:
Buying firms prefer a more collaborative relationship when the supply market is dynamic.
Q:
Direct mail is commonly used for:
a. corporate image promotion.
b. sales force support.
c. distribution channel communication.
d. all of the above.
e. (a) and (b) only.
Q:
The first step in the channel design process is to:
a. determine channel design constraints.
b. consider the availability of good intermediaries.
c. outline key channel alternatives.
d. determine the tasks to be performed by the channel.
e. define customer segments
Q:
Markets of limited size surrounded by trade barriers may be supplied most cost effectively by using the exporting mode of entry.
Q:
Buying firms prefer a transactional relationship when there are few alternatives and the complexity of purchase is high.
Q:
The formula for calculating adverting cost is:
a. Cost per thousand = Cost per page / Circulation in thousands.
b. Cost per thousand = Circulation in thousands / Cost per page.
c. Cost per page = Cost per thousands / Circulation in thousands.
d. Cost per page = Circulation in thousands / Cost per thousands
Q:
A business marketer who places the highest priority on achieving control in the channel of distribution should use:
a. a direct channel.
b. a channel which includes numerous industrial distributors.
c. a channel which includes numerous manufacturers' representatives.
d. a channel which includes numerous commission merchants.
e. an indirect channel.
Q:
In high-risk foreign markets, firms can reduce their equity exposure by adopting low-commitment modes of entry such as licensing or contract manufacturing.
Q:
Buyers seek a close relationship for strategic purchases and employ a more distant arms-length approach in procuring non- strategic items.
Q:
The Objective-Task method addresses the major problem of the rule-of-thumb methods by applying funds to accomplish a specific goal:
a. so that advertising is a determinant of those results.
b. so that advertising is a consequence of those results.
c. because the manager does not have to have some knowledge or instinct for the proper relationship between expenditure level and communication response.
d. none of the above.
Q:
Concerning the compensation of manufacturers' representatives, the business marketer compensates them on the following basis:
a. percentage commission.
b. a salary.
c. salary plus commission.
d. varies by product category.
e. varies by SIC industry.
Q:
The purest global strategy concentrates as many activities as possible in one country, serves the world market from this home base, and closely coordinates those activities that must be performed near the buyer.
Q:
Customized, high-technology products-like semiconductor test equipment-fit the transactional exchange category.
Q:
Which of the following statements regarding advertising expenditures is incorrect?
a. Because advertising is a relatively large part of the total marketing budget for business firms, managers tend to follow simple rules of thumb (e.g., allocate 1% of sales to advertising).
b. The fundamental problem with percentage-of-sales rules is that they implicitly make advertising a consequence rather than a determinant of sales and profits.
c. Percentage-of-sales rules suggest that the business advertiser reduce advertising when sales volumes decline.
d. The decision to "match the competition's level of advertising spending" is an example of a rule of thumb philosophy.
Q:
Manufacturers' reps:
a. possess expert product knowledge.
b. sell non-competing but complementary products.
c. take title to the goods handled.
d. all of the above
e. (a) and (b) only
Q:
In multidomestic industries, a firm's competitive position in one country is significantly influenced by its position in other countries.
Q:
____ is composed of at least two dimensions: (1) trust in the salesperson and (2) satisfaction with the salesperson.
a. role definition
b. relational adaptiveness
c. relationship quality
d. role congruity
e. relationship congruity
Q:
An advertising objective must:
a. specify what is to be achieved and when.
b. be measurable.
c. be realistic.
d. all of the above.
e. (a) and (c) only.
Q:
Generally, manufacturers' reps:
a. take title to the products handled.
b. are restricted to a limited geographical area.
c. hold inventory.
d. provide customers with prompt delivery.
e. all of the above
Q:
Upstream activities in the value chain involve those primary activities that are closely tied to where the buyer is located.
Q:
From the customer's perspective, relationship quality centers on:
a. the sensitivity of the salesperson in understanding how business conditions affect the industry within which the buying firm operates.
b. the ability of the salesperson to understand the selection criteria of each member of the buying center.
c. trust in the salesperson.
d. satisfaction with the salesperson.
e. both (c) and (d)
Q:
The final, and critical, step for managing Business-to-Business advertising is:
a. integrating it with other business components.
b. formulating advertising objectives.
c. evaluating and selecting media.
d. evaluating the effectiveness of the campaign.
Q:
A distributor classification, the combination house:
a. operates in two sectors of the industrial market.
b. operates a chain of distributorships.
c. operates in both the industrial and consumer markets.
d. does not take title to the goods handled.
e. is paid on a commission basis.
Q:
A multidomestic strategy seeks competitive advantage with strategic choices that are highly integrated across countries.
Q:
Relationship efficacy
a. relates to the longevity of the relationship between a buyer and seller
b. is created by interactions at the top levels of the two firms involved in a relationship
c. refers to the ability of an interfirm relationship to achieve desired objectives.
d. is not required if the firms are in an arms-length relationship
e. none of the above
Q:
In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful measure that they provide isolates the percentage of the show audience that has decision authority for the types of products being exhibited. This is called:
a. Surveys of Industrial Purchasing Power.
b. Controlled Audience Index.
c. Total Buying Plans.
d. Buying Power Index.
e. Net Buying Influences.
Q:
The industrial distributor:
a. takes title to the product sold.
b. occasionally does some assembly and manufacturing work.
c. provides delivery.
d. all of the above
e. (a) and (b) only
Q:
Problems often plague joint ventures and, as a result, many of them fall short of expectations or are disbanded.
Q:
_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources.
a. Customer profitability
b. Activity-based costing
c. Total cost of ownership
d. Margin analysis
Q:
Which of the following statements concerning trade shows is(are) accurate?
a. The cost of reaching a prospect at a trade show less than the cost of making a personal sales call.
b. Over 83 percent of all trade show visitors have some buying authority.
c. The average company participates in 45 trade shows per year.
d. all of the above
e. (a) and (b) only
Q:
Service provided by industrial distributors includes:
a. repair.
b. credit.
c. maintenance.
d. all of the above
e. (b) and (c) only
Q:
As an entry strategy, licensing requires a major capital investment in a foreign market.
Q:
When business marketers are assessing which of their current customers represent the best opportunities for growth, which of the following factors should be considered?
a. The cost-to-serve the customer.
b. Projected profit margins.
c. The current share of the wallet the firm has attained.
d. All of the above.
e. Only (a) and (b).
Q:
The cost of reaching a prospect at a trade show is approximately:
a. $50
b. $150
c. $250
d. $500
e. $750
Q:
The largest proportion of sales handled by industrial channel members is accounted for by:
a. brokers and jobbers.
b. brokers and commission merchants.
c. manufacturers' representatives and industrial distributors.
d. jobbers and industrial distributors.
e. brokers and distributors.
Q:
Exporting involves giving up direct control of the marketing program, which often makes it difficult to coordinate activities.
Q:
Which of the following performance attributes has research recently shown influences customer satisfaction of business buyers?
a. Responsiveness of the supplier in meeting the firm's needs.
b. Product quality.
c. Delivery reliability.
d. All of the above.
e. Only (a) and (b).
Q:
An advertising evaluation program would include an assessment of:
a. target markets.
b. media and messages.
c. overall results.
d. buying motives.
e. all of the above
Q:
The need to employ more than one type of industrial channel of distribution arises as a result of:
a. different target markets sought by the firm.
b. a geographically concentrated market.
c. different marketing tasks associated with different products produced by the firm.
d. both (a) and (c)
e. all of the above
Q:
An industrial firm's first encounter with an overseas market usually involves the formation of a wholly-owned subsidiary in another country.
Q:
A(n) _____ represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization.
a. industry bandwidth
b. value proposition
c. marketing plan
d. customer relationship management program
Q:
Measuring industrial advertising effectiveness involves an assessment of advertising's impact on:
a. sales variables.
b. profit variables.
c. intervening variables in the buyer's purchase decision process.
d. all of the above
e. both (b) and (c)
Q:
The most appropriate channel of distribution for an industrial product is:
a. direct.
b. indirect.
c. one that relies on the firm's sales force.
d. a combination of direct and indirect.
e. dependent upon a host of product, company, market, and competitive conditions.
Q:
Some research suggests that, compared to consumer goods, industrial and high-technology products may be more appropriate for global brand strategies.
Q:
Which of the following are goals of customer relationship management (CRM)?
a. A continuing dialogue with customers.
b. Personalized treatment of the most valuable customers.
c. Achieving customer retention.
d. All of the above.
e. (a) and (c) only.
Q:
In evaluating the effectiveness of a business-to-business advertising program, the manager should center on:
a. changes in the target market's purchase rate.
b. changes in the target market's product awareness.
c. changes in the target market's product knowledge.
d. both (b) and (c)
e. none of the above
Q:
The channel strategy that involves the utilization of one or more middlemen is referred to as:
a. indirect distribution.
b. direct distribution.
c. selective distribution.
d. exclusive distribution.
e. restrictive distribution.
Q:
When moving to a RDE, suppliers must adjust their operating models to:
a. Maintain quality levels
b. Counter local suppliers offerings
c. To fully capture the cost advantages.
d. Consider the increased transportation costs involved
e. Consider market research data on procurement preferences
Q:
_____ occur in between the two extremes on the relationship continuum, where the focus of the selling firm shifts from attracting customers to keeping customers.
a. Transactional exchanges
b. Value-added exchanges
c. Competitive exchanges
d. Collaborative exchanges
Q:
Concerning the allocation of the publication budget among various journals,
a. the cost-per-thousand calculation should be based on circulation to the total audience.
b. the cost-per-thousand calculation should be based on circulation to the target audience.
c. the comparison of alternative journals can readily be made by examining their actual page rates (cost-per-page).
d. the comparison of alternative journals can readily be made by examining total circulation.
e. publications with low circulation levels should be avoided.
Q:
The channel strategy that does not utilize any manufacturers' representatives, industrial distributors, or other kinds of middlemen is referred to as:
a. indirect distribution.
b. selective distribution.
c. direct distribution.
d. exclusive distribution.
e. restrictive distribution.
Q:
The BCG Global Advantage Diamond portrays the key elements that must be developed and integrated to secure a strong position in global markets. This framework includes
a. A market access element
b. A market relevancy element
c. A resource accuracy element
d. All of the above
e. None of the above
Q:
_____ features very close information, social, and operational linkages as well as mutual commitments made in expectation of long-run benefits.
a. Transactional exchange
b. Value-added exchange
c. Competitive exchange
d. Collaborative exchange
Q:
Concerning business-to-business advertising media, _____ publications are directed at a specific task, technology, or function, whatever the industry.
a. common
b. specialty
c. horizontal
d. vertical
e. target
Q:
Because business marketers cannot always provide flawless service, the response to service problems is critical to future success. Explain how an excellent service recovery process can lead to a differential advantage for firms. How does a business marketer figure out how much to spend on service recovery and service quality?
Q:
_____ refers to how similar activities performed in various countries are couple with each other.
a. Coordination
b. Configuration
c. The home base
d. The value network
Q:
When organizational buyers consider changes from one selling firm to another, what are the two main categories of switching costs they consider?
a. Trust and relationship commitment
b. Transactional and collaborative relationships
c. Investments and risk of exposure
d. Operational linkages and relationship connectors.
Q:
Concerning business-to-business advertising media, the publications Purchasing, Advertising Age, and Materials Handling Engineering would be classified as a:
a. specialty publication.
b. target publication.
c. horizontal publication.
d. vertical publication.
e. common publication.
Q:
Many business marketers are turning from a product to a solutions perspective. How is the solutions perspective different from a product-centered perspective? What are the benefits of solution marketing? Illustrate the differences and benefits of solution marketing with an example using a business services marketer.
Q:
The choice of a foreign market entry mode depends upon:
a. the size of the market.
b. the market's growth potential.
c. Both (a) and (b).
d. Neither (a) or (b).
Q:
_____ involves a partner's belief that an ongoing relationship is so important that it deserves maximum efforts to maintain it.
a. Trust
b. Relationship commitment
c. Relationship marketing
d. A strategic alliance
Q:
Concerning business-to-business advertising media, _____ publications are directed at a specific industry and may be read by everyone from foreman to company president.
a. common
b. specialty
c. horizontal
d. vertical
e. target
Q:
New product development is inherently more difficult, messier, and less successful in the service sector. What steps can be taken to enhance the effectiveness of the new service development process? What are the common features that successful new service projects seem to share?
Q:
Which of the following issues pose problems to firms trying to manage joint venture relationships?
a. Disagreements over profit-sharing.
b. Opening up of new market opportunities.
c. Problems responding to changing market needs.
d. All of the above.
e. (b) and (c) only.
Q:
Which of the following are reasons for business marketers to employ relationship marketing activities?
a. Loyal customers are far more profitable than price sensitive customers.
b. Having strong relationships with customers can be hard for competitors to understand or duplicate.
c. Both (a) and (b) are true.
d. Neither (a) nor (b) is true.
Q:
Which method for determining advertising expenditures focuses on the communications effects of advertising, not on the sales effects?
a. affordable
b. percent-of-sales
c. match competitors
d. objective-task
e. arbitrary
Q:
The development of marketing programs for both products and services can be approached from a common perspective, yet the relative importance of various strategic elements and the form of these strategic elements will differ between products and services. Explain.
Q:
Which of the following issues pose challenges to business marketers considering strategic alliance as a market entry mode?
a. Problems with maintaining alliances over time.
b. Difficult to implement alliances on a global scale.
c. Problems establishing coordination and trust.
d. All of the above.
e. (a) and (c) only.
Q:
_____ centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents.
a. Relationship marketing
b. Transactional exchange
c. A strategic alliance
d. Buying centers