Certification Test Study Guide 1

Front

Which of the following is a direct channel of distribution for consumer goods and services: Producer to industrial user, Producer to retailer to consumer, Producer to ultimate consumer, Producer to distributor to consumer

Back

Producer to ultimate consumer

Answer explanation

With this route, goods and services move straight from the producer to the ultimate consumer. It is the simplest of all channels. Although producer to industrial user is a direct route, it is used for industrial rather than consumer goods and services. The producer-to-retailer-to-ultimate-consumer channel and the producer-to-distributor-to-

Front

What effect does the technology of digital money have on the distribution function?

Back

Improves cash flow

Answer explanation

For many businesses, the distribution function is expensive to operate because it involves storing, processing, and transporting products. Oftentimes, businesses bill customers for the costs involved in distribution and then wait for payment. By using the technology of digital money, cash can be transferred electronically from the customer's account to the business's account. This improves cash flow because the business does not need to wait long periods of time for payment. It can receive cash instantly. The technology of digital money does not boost (employee) job performance, create virtual reality, or manage information.

Front

Preventing other distributors from obtaining and selling the same product to consumers is an example of a(n) ___________ that is illegal.

Back

tying agreement

Answer explanation

A tying contract, or agreement, is an illegal agreement requiring a customer to buy other products in order to obtain desired goods and services. Tying agreements are considered illegal if they substantially limit competition by preventing other distributors from obtaining and selling the same product to customers. An exclusive dealing arrangement between a supplier and an intermediary states that the intermediary will distribute only that supplier's products and will not handle a competitor's products. A strategic alliance is a long-term relationship between two or more businesses. A marketing plan is a set of procedures or strategies for attracting the target customer to a business.

Front

Why is it important for a large company's sales department to coordinate shipping arrangements with its transportation manager?

Back

Because sales personnel work directly with customers and understand their delivery requirements

Answer explanation

Sales representatives communicate directly with the customers and can relay information regarding delivery dates and acceptable shipping modes. For example, a customer who needs an item in three days tells the sales representative that s/he is willing to pay the extra charge for the item to be shipped via air freight. The transportation manager receives the information from the sales representative and makes the arrangements to have the order shipped in a timely, appropriate manner. The transportation manager coordinates shipping activities and the purchasing department generally orders the inventory, not the sales department. Transportation does not need a sales forecast report to determine delivery routes. Generally, the transportation manager or staff arranges for product pickups, not the sales department.

Front

What type of channel conflict might occur if the manufacturer of a specific brand begins to allow retailers other than the authorized retailers to sell the brand-name products?

Back

Vertical

Answer explanation

Vertical conflict occurs among different levels of the same channel of distribution, such as between a manufacturer and its authorized retailers. If a manufacturer begins to allow retailers other than those currently authorized to sell the brand-name products, the retailers may become upset because others now have the same products. Expanding the number of outlets for the products may be good for the manufacturer but detrimental to the retailers because they will have more competition. Horizontal conflict occurs among businesses at the same channel level, such as between the authorized businesses in the same city. Contractual and industrial are not types of channel conflict.

Front

Which of the following is a possible consequence of unethical decisions in marketing-information management: Damaged reputation, Increased objectivity, Less need for customer data, Stronger employee relationships

Back

Damaged reputation

Answer explanation

Unethical decisions related to marketing-information management can lead to consequences such as legal penalties, loss of revenue, and damaged reputation. Customers, partners, and society at large do not want to work with a company that is unethical and can't be trusted. Unethical decisions in marketing-information management do not lead to increased objectivity, less need for customer data, or stronger employee relationships.

Front

Which of the following are characteristics of effective marketing research efforts: Systematic, timely, and accurate, Accurate, creative, and outdated , Thorough, objective, and imprecise , Timely, objective, and general

Back

Systematic, timely, and accurate

Answer explanation

Marketing research is the systematic gathering, recording, and analyzing of data about issues relating to the marketing of goods and services. Companies acquire and use marketing-research data to solve problems and make business decisions. When conducting marketing research, the researcher should obtain the desired information in a systematic (scientific) manner. By doing so, the researcher can ensure that all of the steps in the research process—collection, recording, and analysis—are performed objectively, thoroughly, accurately, and in a timely manner. Marketing-research efforts often require researchers to use creative thinking, but they should not use data that are imprecise and outdated. The data the researchers collect should be specific enough to address the issue or solve the problem.

Front

Mara, a marketing researcher, watches customers as they shop for products and writes down her impressions of the customers' behaviors. Mara is gathering _________ data by _________.

Back

primary, observing

Answer explanation

Primary data are facts that are collected specifically for a problem or project at hand. The observation method is one way to obtain primary data, and it involves gathering data by watching consumers. A business or marketing-research firm may use the observation method to gather data about customers' shopping and buying habits. Interviewing and surveying are marketing-research methods that involve asking consumers questions to learn their opinions and the reasons behind those opinions. Interviews are usually conducted in person or on the telephone, and surveys are usually presented to consumers in a written document or by email. Secondary data are facts that have been collected for purposes other than the project at hand. Relating is not a marketing-research method.

Front

Managers and researchers have decided to conduct their marketing research study by looking at individual customers rather than at households. They have determined the

Back

unit of analysis

Answer explanation

Individual customers are the unit of analysis the managers and researchers are using in the marketing research study. Relevant variables are the types of information studied in a marketing research project (e.g., brand awareness, customer satisfaction, etc.). A decision problem is the issue from the managers' perspective. A research problem is the issue from the researchers' perspective.

Front

Which of the following words best describes the practice of sampling in marketing research: expensive, time-consuming, outdated, practical

Back

practical

Answer explanation

Using sampling in marketing research is a matter of practicality. Sampling is a relatively quick and inexpensive way to obtain data from a representative portion of the population. It is not outdated.