MCE CHAPTER 6 QUESTION BANK1. If Rival #1 in an industry uses a particular promotion mix, all other rivals will typically use the same mix.a. true b. false2. At the start of the school year, many vendors near Pitt’s Student Union will give away free T-shirts to sign up for a credit card. This is an example of discounting.Threw out, but the answer is a. true b. false3. In the past year, US universities seem to have increased their use of scholarshipsto attract highly qualified students. This is an example of sales promotion.a. true b. false4. Personal, face-to-face, persuasive interaction, including sales presentation, ordertaking, and customer assistance is called direct marketing.a. true b. false5. If the promotion mix produces sales that buyers subsequently wish they had not made, the seller may lose customers in the long run.a. true b. false6. Dell has alienated many buyers with shoddy customer service. This can likely befixed with a good public relations campaign.a. true b. false7. Avon sells cosmetics directly. From this we can conclude that they do not use personal selling. a. true b. false8. The primary goal of public relations is to increase the firm’s NI in the short-term.a. true b. false9. For a given firm, there is usually one best channel mix for all of their products. a. true b. false10. Over the course of the product life cycle…a. channel mix may change b. promotion mix may changec. both of the above d. none of the above11. The distribution system can be viewed as a subset of firm’s marketing channels.a. true b. false12. Services can be sold through direct or one-level channels. a. true b. false13. Web based channels usually have unlimited capacity.a. true b. false14. Two-level distribution systems are normal in some industries.a. true b. false15. A captive supplier is typically also a monopolist.a. true b. false16. In general markets are more efficient than hierarchies.a. true b. false17. Focused firms tend to be vertically integrated.a. true b. false18. One response to unstable market transactions is to shift from spot to future transactions.a. true b. false 1. Promotion mix can vary by industry, firm within industry, and product within firm.a. true b. false2. Giant Eagle often has buy-one-get-one offers on standard goods. This is an example of … a. discount pricing b. sales promotionc. both of the above d. none of the above3. In the past year, US auto firms seem to have reduced their use of rebates and low-cost financing. From this we can conclude these firms have increased their use of sales promotion.a. true b. false4. Finding a balance between the firm’s ability to influence short-term purchase decisions and customer retention in the long-term requires the firm to engage in aggressive direct marketing.a. true b. false5. A few years ago, Wal-Mart fired Thomas Coughlin, a board member, for diverting company funds for personal use. Given this bad publicity, we might expect Wal-Mart to react by… a. beginning a direct mail campaign emphasizing quality products at a fair priceb. developing a public relations campaign to reassure its investors that this was an isolated incidentc. decreasing its advertisement of low prices d. all of the above6. Dell used to sell PCs only direct-to-end users via the web. From this we can conclude that Dell’s promotion mix emphasizes personal selling. a. true b. false7. The primary goal of public relations is to increase the firm’s revenue in the short-term.a. true b. false8. For a given product, there is usually one best channel mix for all firms. a. true b. false9. Over the course of the product life cycle…a. channel mix may change b. promotion mix may changed. both of the above d. none of the above10. Market channels can be viewed as a subset of firm’s distribution system.a. true b. false11. Since services have little or no tangible components, they cannot be sold through retailers.a. true b. false12. Electronic channels usually have unlimited capacity.a. true b. false13. Two-level distribution systems have essentially disappeared due to technology such as the internet.a. true b. false14. A sole source is typically also…a. a captive supplier b. a monopolistc. both of the above d. none of the above15. In general hierarchies tend to be more efficient than markets.a. true b. false16. Vertical integration generally reduces the amount of market information available to the firm.a. true b. false17. Manufacturing-to-estimated-demand is typical in pull systems. Push/pull NOT on your quiz a. true b. false 18. Assume a two-level marketing channel between a manufacturer and the end-user. From this, we can infer that intermediaries provide value added services. a. true b. false19. When competitive markets “fail,” firms have incentives to vertically integrate.a. true b. false20. T-Mobile is a German firm that also sells mobile phone services in the US. Assume they learn that a particular promotion mix is very effective in Germany. Most likely the same mix will be effective in the US market. a. true b. false21. Public relations can assist a firm… a. building a new image b. reinforcing an existing imagee. repairing a tarnished image d. all of the above22. In class, I discussed my experience as the target of a promotion mix at a Mercedes dealership. As you should recall, I test drove a car, but did not purchase one. This suggests the campaign was not effective.a. true b. false 23. Assume market research learns that our firm’s target market is especially price sensitive. In this case the firm’s promotion mix should most probably emphasize… a. our low price b. our knowledgeable salespeoplef. our broad range of products d. our reputation for friendly service24. An effective promotion mix may increase a product’s brand equity. a. true b. false 25. Many sports cars are simultaneously targeted at different market segments (an example in the notes concerned the Miata). Since the product is identical, we would expect the firm to use virtually the same promotion mix for both segments. a. true b. false26. Scholarships offered to university students are a form of… a. direct marketing b. mark-down pricingg. life cycle pricing d. sales promotion27. Sales promotions are generally not used with premium-priced goods. b. true b. false28. Media available for advertising have