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University of Wisconsin - MARKETNG 300MKT 300

1) The new-product development process discussed in the text

Select one:
a. is based on the idea that a firm should eliminate potentially unprofitable
product ideas as early as possible.
b. relies solely on test marketing to decide whether to drop an idea or take it to
c. None of the provided alternatives is true.
d. seeks to take as many ideas to market as possible, hoping to find a breakthrough
e. is especially important since it increases the number of new product ideas that
get to the commercialization stage.

2) If members of the target market for an Apple iPad do not initially recognize the
brand name, but compelling advertising results in more members remembering
the brand, we say the Apple iPad has achieved:
Select one:
a. brand rejection.
b. brand preference.
c. brand non-recognition.
d. brand insistence.
e. brand recognition.

3) Every morning, Sycamore Dairy picks up milk which farmers have "milked"
that morning. The dairy processes the milk and separates the cream from the
milk. Some of the cream is made into butter and packaged in various sizes. The
milk and remaining cream are blended into various products, sealed in pint,
quart and half-gallon containers, and delivered to supermarkets in the quantities
and assortments they want. The dairy is providing what regrouping activity?
Select one:
a. Bulk-breaking
b. Sorting
c. Accumulating
d. All of these regrouping activities are being provided by Sycamore Dairy
e. Assorting

4) The "total cost approach" to physical distribution management:

Select one:
a. might suggest a high-cost transporting mode if storing costs could be
reduced enough to lower total distribution costs.
b. ignores inventory carrying costs.
c. seeks to minimize the cost of transportation.
d. seeks to eliminate the storing function.
e. All of the provided alternatives for the "total cost approach" are correct.

5) Regarding railroads,
Select one:
a. full carload rates are lower than less-than-carload rates.
b. None of the provided alternatives is true.
c. they handle products only if they are shipped in full carload lots.
d. they transport the same products in less-than-carload lots faster than full carload
e. rail shipments usually move much faster than truck shipments.

6) A manufacturer of accessories for personal computers evaluates all the

alternative systems by combining order processing, transportation, inventory
management, and storage. If the total cost approach is followed, which physical
distribution system should the manufacturer select?
Select one:
a. The one that maximizes customer service at the lowest total cost.
b. The one that maximizes customer service at the highest total cost.
c. The one that maximizes customer service and minimizes the cost of each
individual component of physical distribution.
d. The one that meets the customer service requirement and minimizes
transportation cost.
e. The one that meets the customer service requirement at the lowest total
7) Which of the following statements about the Lanham Act is TRUE?
Select one:
a. All the provided statements about the Lanham Act are TRUE.
b. The Lanham Act makes registration of a brand name mandatory.
c. It spells out what kinds of brand names can be protected.
d. Registration under the Lanham Act only applies to licensed brands.
e. Registering under the Lanham Act provides no protection for a trademark to be
used in foreign markets.

8) In which of the following situations is the new product entering the MARKET
INTRODUCTION stage of the product life cycle?
Select one:
a. Porsche just introduced a new luxury sports-utility vehicle to compete against
sport-utility vehilces made by others.
b. Google just introduced driverless cars.
c. Home Depot (a home improvement chain) just introduced its own dealer brand
of paint.
d. Colgate-Palmolive just introduced a "new and improved" chemical formula for
its "Total" toothpaste.

9) Distribution centers:
Select one:
a. Are always automated
b. May rely on technology to increase efficiency
c. Are always used by manufacturers
d. Is another name for a traditional warehouse.
e. All of the provided answers are true XXXXXX

10) Non-recognition of the brand name of a firm's product is likely to be

LEAST important for:
Select one:
a. USB drives
b. Lubricating oils for cars
c. Cold tablets
d. Replacement auto repair parts
e. Coal

11) A "good" retail strategy planner knows that:

Select one:
a. Emotional needs are more important than economic needs in choosing a retailer.
b. It's a mistake to try to develop a strategy that isn't equally appealing to all social
class groups.
c. It's a mistake to try to develop a strategy that isn't equally appealing to all
income groups.
d. None of the provided alternatives is correct.
e. The failure rate among beginning retailers is quite high.

12) Debbie Wood sells food products to grocery wholesalers and large
supermarket chains in Tallahassee. She sells for several manufacturers with
noncompeting lines of food products-earning a 5 percent sales commission. She
neither handles nor owns the products she sells. Debbie is a:
Select one:
a. Rack jobber.
b. Selling agent.
c. Truck wholesaler.
d. Broker.
e. Manufacturers' agent.

13) Which of the following is NOT an example of the customer service level
Select one:
a. The local ice cream truck must have the lowest price
b. Business executives renting cars from Avis want the cars to be ready when they
get off their planes
c. An Apple store has enough iPhone 6’s in stock to sell to all customers wanting
to purchase one that day
d. All of the provided alternatives are examples of the customer service level
e. Online shoppers expect to receive the exact item they ordered from Amazon

14) Distribution agreements which limit sales by customer or territory:

Select one:
a. None of the provided alternatives is correct.
b. may be legal if they are horizontal agreements between producers and
c. are definitely illegal if they are vertical agreements between producers and
d. are always illegal.
e. are definitely illegal if they are horizontal agreements among competing
producers or intermediaries, but may be legal if they are vertical agreements.

15) A new product idea is more likely to move quickly through the early stages
of the product life cycle when:
Select one:
a. the product can be given a trial.
b. the product is easy to use.
c. the product's advantages are easy to communicate.
d. the product is compatible with the values and experiences of target customers.
e. All of the provided alternatives are correct.

16) Parties R Us is a large store containing nothing but party supplies. The store
carries everything from costumes to party favors, decorations to invitations, and
paper plates to birthday candles. The selection is huge and prices are low. There
is even a party consultant on hand to help plan parties. Parties R Us is a:
Select one:
a. Catalog retailer.
b. Department store.
c. Category killer.
d. Convenience store.

17) McDonald’s announced that at select locations, if drive-through customers

do not get exactly what they want within two minutes of placing the order, their
next meal will be free. This promise by McDonald’s is a good example of a(n):
Select one:
a. limited warranty.
b. no-fault insurance policy.
c. service guarantee.
d. warranty.
e. unit price.

18) Regarding wholesaling, which of the following is(are) TRUE?

Select one:
a. All of the provided alternatives about wholesaling are true. XXXXX
b. Merchant wholesalers have higher sales than agent wholesalers, but their
costs (as a percent of sales) are over three times as high.
c. There are many more manufacturers' sales branches than merchant wholesalers.
d. Good marketing managers select the type of wholesaler with the lowest cost
when planning channels of distribution.
e. Manufacturers' sales branches have higher costs than agent wholesalers and
account for a smaller percentage of total sales.XXXX

19) Kodak announced that it would no longer produce 35 millimeter film

cameras, but would manufacture digital cameras exclusively. Sales of digital
cameras have grown steadily and have far outpaced the sale of 35 mm cameras
in recent years, even among professional photographers. Kodak’s decision
indicates that 35 mm cameras are probably in the ________ stage of the product
life cycle.
Select one:
a. Market growth
b. Market maturity
c. Sales decline
d. Market introduction

20) A supply chain:

Select one:
a. focuses on procuring materials needed for production, so its main weakness is
that it ignores customer needs.
b. is part of a broader network of relationships called a channel of distribution.
c. requires skill in coordinating activities among different firms, and this has
prompted many firms to seek help from outside experts.
d. is most effective when the objectives of the manufacturer at the beginning of the
chain guide the activities of all other firms in the chain.
e. concerns only direct relationships between producers, but a channel of
distribution may involve intermediaries.

21) Andrea’s Kitchen is a catering business that operates by means of its own
website. Customers order party platters, pastries, and other foods that the
company makes to order. The items are then vacuum-packed in dry ice and
shipped to the customer’s address via overnight delivery. Andrea’s Kitchen is
part of a(n):
Select one:
a. Dual channel. XXXX
b. Indirect channel.
c. Direct channel.
d. Traditional channel.
e. Intermediary channel.

22) From a producer's viewpoint, which of the following is an advantage of

INTENSIVE DISTRIBUTION over selective distribution?
Select one:
a. Intermediaries' price-cutting may be reduced.
b. Better service can be required from intermediaries.
c. More aggressive selling can be expected from intermediaries.
d. Intermediaries' facilities will be more convenient for customers.
e. Intermediaries can be required to carry larger stocks.

23) A typical problem for limited-line retailers is that:

Select one:
a. They usually cannot carry enough items in a line for any customers to find what
they want.
b. All of provided alternatives are problems for limited-line retailers.
c. It is almost impossible for them to satisfy any particular target markets better
than other types of retailers.
d. Their marketing strategy usually relies only on low price.
e. Many of the items they carry are slow moving.

24) Jack White wanted to purchase a new dress shirt. He went to a local
department store, toured the men’s department, and thought all the brands
looked about the same. He decided to buy the store brand shirt, because it was
the cheapest. For Jack, the new shirt was a(n):
Select one:
a. homogeneous shopping product.
b. convenience product.
c. specialty product.
d. heterogeneous shopping product.
e. impulse product.

25) Characteristics of a good brand name include all of the following except:
Select one:
a. Be easy to spell and pronounce.
b. Connotes positive imagery
c. Be legally available for use by the firm.
d. Describe the product and key benefits.
e. Be trendy.

26) All of the following would be reasons for a firm to use direct distribution
rather than indirect distribution, except:
Select one:
a. Customers are concentrated in same geographic areaXXXX
b. The firm has limited financial resources
c. Control of messaging XXXXX
d. Lack of cooperative intermediariesXXXX
e. Better contact with the end customer
27) The best transportation alternative for shipping chickens from farms in West
Virginia to processing plants in Maryland would be:
Select one:
a. Rail.
b. Water.
c. Air.
d. None of the provided answers is correct.
e. Truck.

28) Top management of a large company recently approached the dean of a

major business school about starting a specialized MBA program for the
company’s employees. After further discussions, the dean decided that the
program did not fit well with the objectives and resources of the school, so the
program was put on the “back burner” until conditions changed. The proposed
MBA program was at what stage of the new-product development process when
it was shelved?
Select one:
a. Idea evaluation
b. Idea generation
c. Development
d. Commercialization
e. Screening

29) Which of the following transportation modes is "best" at handling large

amounts of a variety of goods at one time?
Select one:
a. TruckXXXX
b. Water
c. Pipeline
e. Rail XXXX

30) Which of the following wholesalers own (take title to) the products they
Select one:
a. Brokers XXXX
b. Selling agents
c. Combination export managers
d. None of these wholesalers owns the products they sell
e. Manufacturers' agents

31) Lisa Campos was interested in buying a coffee pot to use at college and
a tablet for her sister's birthday present. At the local discount store, she
compared prices on coffee pots and chose the cheapest. She read the product
information on each tablet and finally chose one with high resolution and
an extra battery. For Lisa, the coffee pot was:
Select one:
a. a homogeneous shopping product, but the tablet was a heterogeneous
shopping product.
b. an impulse product, but the tablet was a convenience product.
c. a specialty product, but the tablet was a heterogeneous shopping product.
d. a heterogeneous shopping product, but the tablet was a staple.
e. a convenience product, but the tablet was a specialty product.

32) Which of the following statements about new-product development is

Select one:
a. All of the provided statements are TRUE.
b. The process should be informal to encourage innovation.
c. The best criteria for evaluating new product ideas in the early stages is return on
investment (ROI).
d. The process should have top management support.
e. The greatest number of product ideas is in the idea evaluation stage.

33) Walgreen’s, CVS, and other “drugstores” have become scaled-down

versions of mass-merchandisers by adding small appliances, housewares, food,
and other items to their traditional lines. This type of “scrambled
merchandising” is meant to deal with the increasing desire that consumers have
Select one:
a. Personal service.
b. Prestigious brand names.
c. Convenience.
d. Quality.
e. Low prices.
Question text
34) Target’s “Cherokee” brand of men’s clothing is available only at Target
stores. The brand provides a low-cost alternative to other men’s fashions
available at department stores and via catalogs. The Cherokee brand is a(n):
Select one:
a. national brand.
b. dealer brand.
c. generic brand.
d. licensed brand.
e. manufacturer brand. XXXX

35) Channel conflict:

Select one:
a. Is vertical but not horizontal XXXx
b. Is illegal
c. Is often reduced when different products are offered through different
d. Cannot be avoided or solved by the channel captainXXXX
e. Is very rare

36) Dealer brands, compared to manufacturer brands, usually offer wholesalers

and retailers:
Select one:
a. higher gross margins.
b. less risk.
c. faster turnover.
d. more prestige.
e. products which are presold to target customers.

37) Heinz has a new ketchup bottle that has the cap on the bottom, instead of the
top. The bottle uses gravity to help the consumer get every last drop of ketchup
out of the bottle. The cap is also designed to pour cleanly, so that dried ketchup
does not accumulate around the opening. This new bottle demonstrates how
packaging can:
Select one:
a. enhance product usage.
b. protect the product.
c. incorporate UPC codes.
d. promote product.
e. lower distribution costs.

38) A producer is most likely to use a "selling agent" if:

Select one:
a. He lacks marketing know-how and working capital.
b. His target customers are concentrated in a small geographic area.
c. He produces a broad product line.
d. He sells a technical product that needs a lot of follow-up service.
e. He mainly needs aggressive selling.

39) Chocolate Dreams is a manufacturer of expensive, high- quality, hand-made

“old style” candies that are sold through fine department stores and certain
bookstores and fine gift shops. The ideal market exposure for products
manufactured by Chocolate Dreams is
Select one:
a. Extensive.
b. Comprehensive.
c. Exclusive.
d. Selective.
e. Intensive.

40) Which of the following statements indicates a reasonable approach to the

management of inventory and storage?
Select one:
a. “Always have a large safety stock of inventory to eliminate the possibility of
b. “The cost of stockouts always exceeds the cost of carrying inventory.”
c. “Inventory and storage costs should be minimized, regardless of the impact on
customer service.”
d. “Have enough inventory on hand to meet the expected level of customer
service required, but don’t carry too much."
e. “Inventory that sits in a warehouse doesn’t do any harm; besides, it might be
needed someday.”

41) A wholesaler that sells electronics is trying to find more success with their
sales. They currently sell to several different customer groups, each with very
specific and different needs. Which method should they use to better meet the
needs of customers and improve their sales?
Select one:
a. Sorting
b. Accumulating
c. Bulk-breakingXXX
d. Assorting XXX

42) The "total cost approach" to physical distribution management:

Select one:
a. might suggest a high-cost transporting mode if storing costs could be
reduced enough to lower total distribution costs.
b. ignores inventory carrying costs.
c. seeks to eliminate the storing function.
d. All of the provided alternatives for the "total cost approach" are correct.
e. seeks to minimize the cost of transportation.

43) Marketing managers should recognize that:

Select one:
a. every segment within a market has the same product life cycle.
b. the product life cycle describes the sales and profits of individual products, not
industry sales and profits.
c. firms that enter mature markets have to compete with established firms for
declining industry profits.
d. product life cycles appear to be getting longer.
e. None of the provided alternatives is correct.