chapters 1,2,3,4,5,6,7,8,9,10, and 11 ; chapters 12,13,14,15,16, and 18 condensed

Which of the following is an example of a zero-level channel? A) A manufacturer takes online orders from customers and ships the products to them. B) An organization uses a combination of direct salespeople and sales agencies to increase sales. C) A manufacturer sells its products through wholesalers and retailers. D) A manufacturer sells its products through chains of supermarkets and other large sellers. E) A large company forms alliances with smaller companies to increase sales coverage.

A) A manufacturer takes online orders from customers and ships the products to them.

Which of the following statements about the branding guidelines for a small business is TRUE? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations.

A) A small business must creatively conduct low-cost marketing research.

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers. A) Bulk breaking B) Containerization C) Wholesaling D) Warehousing E) Broking

A) Bulk breaking

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes. A) Containerization B) Haulage C) Inventory carrying D) Order processing E) Warehousing

A) Containerization

________ seeks to determine whether an ad is communicating effectively. A) Copy testing B) Flighting C) Pulsing D) Frequency capping E) Square inch analysis

A) Copy testing

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty. A) Customer relationship management B) Customer lifetime value C) Customer profitability analysis D) Customer satisfaction analysis E) Customer-value delivery

A) Customer relationship management

________ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers. A) Marketing insights B) Marketing metrics C) Marketing channels D) Marketing information systems E) Marketing-mix models

A) Marketing insights

________ questions allow respondents to answer in their own words and often reveal more about how people think. A) Open-end B) Dichotomous C) Likert scale D) Multiple-choice E) Semantic differential

A) Open-end

________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem. A) Perceived-value B) Value C) Going-rate D) Auction-type E) Markup

A) Perceived-value

________ marketing is about making sure the brand and its marketing are as personally relevant as possible to as many customers as possible-a challenge, given that no two customers are identical. A) Personalizing B) Permission C) Identification D) Database E) Integrated

A) Personalizing

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable. A) Position B) Flank C) Preemptive D) Mobile E) Contraction

A) Position

________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization

A) Psychographics

Which of the following is TRUE for the retail industry? A) Retailers are experimenting with "pop-up" stores that let them create buzz. B) Upscale retailers see a decline in sales as middle-market retailers thrive. C) Fast fashion is offering more choice and longer-lived products. D) Technology use by stores is driving up the cost of inventory. E) Discount stores are not doing as well as middle-market retailers.

A) Retailers are experimenting with "pop-up" stores that let them create buzz.

In which of the following does a customer respond to the technical quality of a service? A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks. B) Kathy tries out a new restaurant every week, because she likes to experience the variety. C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill. D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful. E) Alex has no interest in theater, but goes often because her best friend loves plays.

A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.

________ is composed of all parties who participate in the purchasing decision-making process and share common goals and risks associated with their decisions. A) The buying center B) The marketing sales team C) Strategic management D) Engineering support E) The logistics center

A) The buying center

________ is a form of online word of mouth, or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video or written information to others online. A) Viral marketing B) Guerrilla marketing C) Microsite marketing D) Interstitial marketing E) Public relations

A) Viral marketing

Apple's iPod Shuffle is an example of ________. A) a sub-brand B) a parent brand C) family brand D) a brand mix E) an umbrella brand

A) a sub-brand

Which of the following is a prepurchase service offered by retailers? A) accepting orders over the telephone B) shipping the product C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet

A) accepting orders over the telephone

Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance

A) adaptable

Which of the following is most likely to be a valid reason for initiating a price increase? A) anticipated cost inflation B) excess plant capacity C) a drive to dominate the market D) a low-cost strategy E) a market share objective

A) anticipated cost inflation

The failure of Cracker Jack cereal is an example of consumers' ________ dictating that the extensions were inappropriate for the brand. A) brand knowledge B) brand equity C) brand stature D) power grid E) brand salience

A) brand knowledge

When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity

A) brand knowledge

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand. A) brand line B) cobrand C) generic brand D) licensed product E) subbrand

A) brand line

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework. A) buygrid B) buying/selling C) seller-centered D) commercial E) buy-analysis

A) buygrid

A brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority of an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness

A) clear superiority of an attribute or benefit

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________. A) company's objectives and resources B) effectiveness of the suppliers C) flexibility of legal rules governing the business D) socio-economic infrastructure E) global nature of the product

A) company's objectives and resources

A key driver of sales frequency is the product ________ rate. A) consumption B) disposal C) refusal D) utility E) option

A) consumption

Perdue's cogent reason why a target market should buy its chicken is "More tender golden chicken at a moderate premium price," also known as its ________. A) customer-focused value proposition B) competitive frame of reference C) points-of-parity D) straddle positioning E) perceptual map

A) customer-focused value proposition

When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest ________. A) customer-perceived value B) customer-perceived cost C) customer profitability analysis D) customer equity E) customer lifetime value

A) customer-perceived value

The responses marketers seek from prospects include all of the following EXCEPT ________. A) decampment B) attention C) a purchase D) a vote E) a donation

A) decampment

When companies measure the number of people who are willing and able to buy their products, they are measuring ________. A) demand B) price elasticity C) real needs D) standard of living E) disposable income

A) demand

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning. A) demand chain B) resource C) external channel D) materials E) strategic business

A) demand chain

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables B) situational factors C) operating variables D) purchasing approaches E) personal characteristics

A) demographic variables

Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________. A) design B) durability C) conformance D) reliability E) performance quality

A) design

Marketers usually identify niches by ________. A) dividing a segment into subsegments B) conducting VALS tests C) allowing consumers to gravitate toward product brands D) examining the demographics section of the handbook of marketing E) producing products that can be used in a variety of ways

A) dividing a segment into subsegments

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market. A) down-market stretch B) up-market stretch C) two-way stretch D) marketing research E) disintermediation

A) down-market stretch

Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand. A) elements B) value propositions C) perceptions D) images E) extensions

A) elements

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage

A) energized differentiation

Which of the following types of distribution involves severely limiting the number of channel intermediaries? A) exclusive B) selective C) intensive D) aggressive E) retail

A) exclusive

Not all self-service technologies improve service quality, but they can make service transactions more accurate, convenient, and ________. A) faster B) "high touch" C) interactive D) technical E) internal

A) faster

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

A) gap between perceived service and expected service

In ________ pricing, the firm bases its price largely on competitor's prices. A) going-rate B) auction-type C) markup D) target-return E) perceived-value

A) going-rate

According to BrandAsset® Valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation

A) high levels of energy, differentiation, relevance, knowledge, and esteem

The stage in the new product process that occurs first is the ________ stage. A) idea generation B) product development C) test marketing D) product soft launch E) concept testing

A) idea generation

Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior? A) inconvenience B) pricing C) response to service failure D) ethical problems E) involuntary switching

A) inconvenience

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad. A) indirect exporting B) licensing C) franchising D) direct exporting E) joint ventures

A) indirect exporting

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________. A) inelastic demand B) direct purchasing C) decision framing D) a modified rebuy E) a straight rebuy

A) inelastic demand

Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator B) influencer C) decider D) buyer E) gatekeeper

A) initiator

For which of the following product categories are consumers LEAST likely to engage with on social networks? A) laundry detergent B) news media C) charities D) fashionable clothing E) entertainment media

A) laundry detergent

Which of the following channel conflict resolution techniques is used only if everything else proves ineffective? A) legal recourse B) mediation C) arbitration D) co-option E) superordinate goals

A) legal recourse

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage B) age C) behavior D) user status E) income

A) life stage

The introduction of Diet Coke by the Coca-Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding

A) line extension

The goal of positioning is to ________. A) locate the brand in the minds of consumers to maximize the potential benefit to the firm B) discover the different needs and groups existing in the marketplace C) target those customers marketers can satisfy in a superior way D) collect information about competitors that will directly influence the firms' strategy E) help the firm anticipate what the actions of its competitors will be

A) locate the brand in the minds of consumers to maximize the potential benefit to the firm

Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________. A) loss leaders B) price ceilings C) price skimmers D) price floors E) cold calls

A) loss leaders

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation B) microsegmentation C) geographic segmentation D) global segmentation E) short-term segmentation

A) macrosegmentation

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________ process. A) market-sensing B) new-offering realization C) customer acquisition D) customer relationship management E) fulfillment management

A) market-sensing

Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing? A) mixed bundling B) pure bundling C) product line pricing D) captive-product pricing E) two-part pricing

A) mixed bundling

When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value? A) naked solution B) discretionary solution C) maximum solution D) pseudo solution E) virtual solution

A) naked solution

A factory outlet is an example of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog

A) off-price

A computer manufacturing company allows customers to shop in their preferred way. For example, they can gather information online or in the store; they can place orders online or by phone or purchase in a store. They can have orders delivered to their home or arrange to pick them up from a convenient retail location. Which of the following terms best represents this practice? A) omnichannel marketing B) mass customization C) online personalization D) push strategy E) internal marketing

A) omnichannel marketing

Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media. A) owned B) earned C) paid D) service E) marketing

A) owned

Points-of-________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) parity B) difference C) inflection D) presence E) divergence

A) parity

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?" A) performance B) bonding C) advantage D) relevance E) presence

A) performance

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection

A) points-of-difference

All marketing strategy is built on segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance

A) positioning

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy. A) preemptive B) counteroffensive C) mobile D) flank E) contraction

A) preemptive

Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid? A) presence B) bonding C) relevance D) performance E) advantage

A) presence

Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs, and high-speed wireless access. A) product-development B) market-penetration C) diversification D) market-development E) conglomerate

A) product-development

Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing? A) programs B) processes C) promotion D) people E) performance

A) programs

When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________. A) promise B) personality C) identity D) position E) revitalization

A) promise

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. A) psychographic lifestyle B) personality C) behavioral occasions D) social class E) demographic

A) psychographic lifestyle

When a marketer tries to alter consumers' beliefs about her company's brand to get the consumers to rethink a purchase decision, she is using ________. A) psychological repositioning B) competitive depositioning C) positioning D) repositioning E) biased positioning

A) psychological repositioning

Which of the following methods for new-product development incorporates buyers' preferences in the final design of the product? A) quality function deployment B) market leadership C) cost leadership D) incremental innovation E) disruptive technology

A) quality function deployment

In response to threats from such companies as Amazon.com, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________. A) reintermediation B) disintermediation C) retail transformation D) e-collaboration E) new-market synchronization

A) reintermediation

Designing a research plan calls for decisions on all of the following EXCEPT ________. A) research objectives B) data sources C) research approaches D) research instruments E) sampling plans

A) research objectives

Services high in ________ qualities have characteristics that the buyers can evaluate before purchase. A) search B) experience C) credence D) privacy E) storing

A) search

One way marketers are addressing consumers' desire for convenience in services is by providing ________. A) self-service technologies B) product support services C) perceived service and expected service D) core service failure E) involuntary switching

A) self-service technologies

Atburex is a furniture manufacturing company in the United States. The company provides a 60-day credit period and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs? A) service backup B) large product variety C) spatial convenience D) large lot size E) short waiting time

A) service backup

When American Airlines asked "1) What types of first-class passengers would respond most to ultra high-speed Wi-Fi service and 2) How many are likely to use it at different price levels?", it was ________. A) setting specific research objectives B) conducting exploratory research C) outlining decisions D) defining the problem E) designing a research plan

A) setting specific research objectives

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

A) single-segment concentration

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

A) single-segment concentration

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. A) situational factors B) demographic C) purchasing approaches D) personal characteristics E) operating variables

A) situational factors

Dollar Shave Club attracted attention and comments by posting an irreverent online video on YouTube. This is an example of using ________. A) social media B) an interstitial C) a microsite D) a pay-per-click ad E) a mobile ad

A) social media

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________. A) straight rebuy B) modified rebuy C) new task D) secondary purchase E) procure-to-pay

A) straight rebuy

Marketers identify which segments of buyers present the greatest opportunity. These segments are called ________ markets. A) target B) capital C) tertiary D) demographic E) developing

A) target

ConAgra Foods decided its prices had risen too high, so it determined to set a lower price for its products. To make the new price level profitable, ConAgra cut $250 million in costs. What application of cost estimation did this represent? A) target costing B) experience-curve pricing C) ceiling pricing D) the learning curve E) promotional price elasticities

A) target costing

The process of selecting one or more market segments to enter is called market ________. A) targeting B) dominance C) positioning D) segmentation E) research

A) targeting

The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and programs

A) the associations indirectly transferred to the brand by linking it to a place or thing

Straight extension of the product means introducing ________. A) the product to the foreign market without any changes to the product B) the product to the foreign market with minor changes to the product C) the product to the foreign market with major changes to the product D) a customized product to the foreign market with a new marketing strategy E) a customized product to the foreign market with existing marketing strategy

A) the product to the foreign market without any changes to the product

A customer ________ is any occasion on which a customer encounters the brand and product from actual experience to personal or mass communications to casual observation. A) touch point B) point of order C) point of difference D) pivot point E) point of parity

A) touch point

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies. A) win-back B) retention C) defection D) sell-out E) recuperation

A) win-back

The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value

B) identifying and establishing brand positioning

Which of the following is the most constructive response a market leader can make when defending its market share? A) maintain basic cost control B) innovate continuously C) provide desired benefits D) meet challengers with a swift response E) provide expected benefits

B) innovate continuously

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This characteristic of services is known as ________. A) inseparability B) intangibility C) variability D) perishability E) heterogeneity

B) intangibility

Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. In so doing, Tracy's is practicing ________ marketing. A) internal B) integrated C) socially responsible D) global E) relationship

B) integrated

When the total market expands, the market ________ usually gains the most. A) challenger B) leader C) follower D) nicher E) entrant

B) leader

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________ pricing. A) value B) loss-leader C) special event D) high-low E) everyday low

B) loss-leader

The aim of customer relationship management is to produce high customer ________. A) integrity B) loyalty C) innovation D) liability E) equity

B) loyalty

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps banks to ________. A) reduce the rate of customer defection B) make low-profit customers more profitable C) enhance the growth potential for each customer through cross-selling D) increase the longevity of the customer relationship E) focus disproportionate effort on high-value customers

B) make low-profit customers more profitable

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________. A) marketing king B) market nicher C) segment king D) guerilla marketer E) strategic clone

B) market nicher

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. A) market research B) market positioning C) marketing effectiveness D) market segmentation E) market dominance

B) market positioning

When Coca-Cola focused on developing its soft-drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms. A) factor elimination B) marketing myopia C) factor reduction D) category points-of-parity E) reliance on product description

B) marketing myopia

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. A) niche B) mass C) guerrilla D) segmented E) differentiated

B) mass

Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding

B) narrative branding

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy. A) market-penetration B) new-market segment C) geographical-expansion D) niche identification E) blue-ocean

B) new-market segment

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade? A) descending bid B) offset C) barter D) compensation deal E) buyback arrangement

B) offset

Joe is a computer service technician. People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer. The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products. Within this context, Joe can be called a(n) ________. A) transactional leader B) opinion leader C) role model D) gate-keeper E) international marketer

B) opinion leader

Regular maintenance and repair costs are known as ________ costs. A) service contract B) out-of-pocket C) fixed D) facilitating services E) value-augmentation

B) out-of-pocket

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk. A) actual B) perceived C) real D) implied E) stated

B) perceived

Total customer satisfaction is measured based on the relationship of ________. A) expected value and total customer benefit B) perceived performance and expectation C) advertised outcomes and real outcomes D) past experience and present experience E) customer attitude and salesperson's attitude

B) perceived performance and expectation

The customer service representatives at G.K.'s Heating and Cooling must know as much about the products as possible, so that they can help customers solve their difficulties without sounding hesitant or unsure of themselves. This is an example of a high-quality strategy for ________. A) life-cycle cost B) postsale service C) self-service technologies D) out-of-pocket costs E) expectation management

B) postsale service

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A) function B) product C) benefit D) process E) structure

B) product

In his article, "Innovative Imitation," Theodore Levitt argues that ________. A) imitation is wrong and should be punished B) product imitation might be as profitable as product innovation C) innovation is not possible without substantial imitation D) innovation cannot begin unless dissatisfaction with imitation occurs E) imitation should be against the law because of the intellectual property decision involved

B) product imitation might be as profitable as product innovation

A ________ is the set of all products and items a particular seller offers for sale. A) product line B) product mix C) product extension D) product system E) product class

B) product mix

Which of the following activities is a reverse-flow channel of marketing? A) raw materials movement B) product recycling C) materials ordering D) finished goods storage E) customer order placement

B) product recycling

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________. A) maintenance, repair, and operating (MRO) B) product value analysis (PVA) C) vendor managed inventories (VMI) D) supplier performance management (SPM) E) supplier added value effort (SAVE)

B) product value analysis (PVA)

A market-penetration pricing strategy is most suitable when ________. A) a low price slows down market growth B) production and distribution costs fall with accumulated production experience C) a high price dissuades potential competitors from entering the market D) the market is characterized by inelastic demand E) a low price encourages actual competition

B) production and distribution costs fall with accumulated production experience

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________. A) retailer convenience B) profit tiers C) psychographic characteristics D) social influence E) customer preference

B) profit tiers

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer. A) prospector B) profitable customer C) market challenger D) market nicher E) pioneer customer

B) profitable customer

Which of the following is an example of a pure service? A) air travel B) psychotherapy C) baby oil D) a laptop E) a restaurant meal

B) psychotherapy

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use? A) quality control processes B) quality function deployment C) rapid prototyping D) marketing control E) control system formation

B) quality function deployment

Online customer reviews are the second-most trusted source of brand information. What is the most trusted source? A) print advertising B) recommendations from friends and family C) salesperson recommendation D) celebrity endorsements E) Facebook recommendations

B) recommendations from friends and family

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures? A) giving customers exclusive primary service packages B) redesigning processes to simplify service encounters C) using differential pricing and shared services D) minimizing service intangibility E) working with more customers at the same time

B) redesigning processes to simplify service encounters

When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price. A) markup B) reference C) market-skimming D) accumulated E) target

B) reference

The "Got Milk" campaign was intended to boost sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign is an example of ________ advertising. A) informational B) reminder C) institutional D) comparative E) reinforcement

B) reminder

Amtex Electronics, a consumer products brand, frequently advertises its products inside supermarkets and retail stores to promote the process of memory ________ and stimulate purchase. A) verification B) retrieval C) decoding D) formation E) augmentation

B) retrieval

A profitable customer yields a ________. A) cost stream that exceeds by an acceptable amount his revenue stream B) revenue stream that exceeds the company's cost stream C) cost stream that exceeds the company's revenue stream D) revenue stream that exceeds by an acceptable amount his cost stream E) revenue stream that equals the company's cost stream

B) revenue stream that exceeds the company's cost stream

Which of the following is the first step in setting a pricing policy? A) selecting a pricing method B) selecting the pricing objective C) determining demand D) estimating cost E) analyzing competitors' costs, prices, and offers

B) selecting the pricing objective

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered. A) immunity B) tolerance C) reliability D) assurance E) flexibility

B) tolerance

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering. A) value proposition B) value delivery system C) customer-value analysis D) total customer benefit E) total customer cost

B) value delivery system

Which of the following wholesaler functions reduces inventory costs and risks to suppliers and customers? A) selling and promoting B) warehousing C) transportation D) market information E) assortment building

B) warehousing

Which of the following will help a service provider overcome the limits imposed by the inseparability of services? A) using differential pricing B) working with larger customer groups C) providing complementary services D) concentrating on physical evidence and presentation E) standardizing the service process

B) working with larger customer groups

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires. A) special-customer pricing B) yield pricing C) cash rebates D) location pricing E) customer-segment pricing

B) yield pricing

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product. A) $18.10 B) $18.23 C) $20.25 D) $20.70 E) $25.50

C) $20.25

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes. A) $5,000 million B) $6,500 million C) $7,500 million D) $10,000 million E) $75 billion

C) $7,500 million

What is a global firm? A) A firm that operates in one country and exports its goods and services to foreign countries. B) A firm that operates in more than one country and has a sales and marketing staff in those countries. C) A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. D) A firm that sells its products and services across the world but restricts manufacturing to the home country. E) A firm that operates in more than one country but restricts the sale of its products to the home country.

C) A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.

________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field

C) Category membership

Which of the following is an advantage of online communications for marketers? A) Consumers cannot effectively screen out your messages. B) Companies can accurately track how effective their ads are because software filters out all bogus hits. C) Companies can offer tailored information or messages that engage consumers. D) Advertisers maintain complete control over the message. E) Advertisers do not need to worry as much about context.

C) Companies can offer tailored information or messages that engage consumers.

________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence

C) Competitive advantage

Which of the following best characterizes average consumers' current media consumption patterns? A) Consumers spend more time listening to the radio than on their mobile phones, but less time on magazines and newspapers. B) Consumers spend more time reading magazines and newspapers than on their mobile phones, but less time listening to the radio. C) Consumers spend more time on mobile devices than on radio, magazines, and newspapers combined. D) Consumers spend an average of two hours and 52 minutes on radio, magazines, and newspapers combined. E) Consumers spend an average of one hour and 46 minutes on mobile devices.

C) Consumers spend more time on mobile devices than on radio, magazines, and newspapers combined.

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer. A) Mystery shopping B) Activity-based costing C) Customer profitability analysis D) Customer lifetime value E) American Customer Satisfaction Index

C) Customer profitability analysis

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What does this image pricing suggest about these consumers? A) They process prices from left to right. B) They use the price as an indicator of quality. C) They are rounding up the price. D) They are remembering an external frame of reference. E) They are breaking the price into smaller units.

B) They use the price as an indicator of quality.

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. A) Total customer cost B) Total customer benefit C) Total benefits of ownership D) Value proposition E) Value delivery system

B) Total customer benefit

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets? A) Concentrate on key buying influencers. B) Use multilevel in-depth selling. C) Use trade-based promotions. D) Concentrate sales efforts on the support staff. E) Move all operations to the Internet.

B) Use multilevel in-depth selling.

________ are formal statements of expected product performance by the manufacturer. A) Insurances B) Warranties C) Bonds D) Invoices E) Balance sheets

B) Warranties

The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition

B) a customer-focused value proposition

Whirlpool took a 53 percent stake in the Dutch electronics group Phillips' home appliances business. Sharing ownership and control of this business enabled Whirlpool to leapfrog into the European market. This is an example of ________. A) a straight extension B) a joint venture C) an exporting agreement D) a licensing agreement E) a sprinkler approach

B) a joint venture

Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision: one is unanticipated situational factors; what is the other factor? A) amount of purchasing power B) attitudes of others C) short-term memory capabilities D) ability to return merchandise E) the self-concept

B) attitudes of others

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer. A) potential B) available C) target D) penetrated E) reserve

B) available

When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy? A) pure tangible good B) basic product C) augmented product D) potential product E) generic product

B) basic product

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions

B) brand extensions

Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping

B) cannibalizing

SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes

B) comparing to exemplars

A Japanese firm is ready to sell its recent technological innovation to the U.S. government. But it has asked for 80 percent in cash and the rest in mica. The Japanese firm is looking to enter into a(n) ________ with the U.S. government. A) functional discount B) compensation deal C) buyback arrangement D) offset agreement E) barter deal

B) compensation deal

Using the market approach, ________ are defined as companies that satisfy the same customer need. A) communities B) competitors C) trendsetters D) industries E) task groups

B) competitors

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________. A) reliability B) conformance quality C) durability D) compatibility E) interoperability

B) conformance quality

A(n) ________ is when a company might seek new businesses to purchase that have no relationship to its current technology, products, or markets. A) concentric strategy B) conglomerate strategy C) horizontal strategy D) intensive growth strategy E) integrative strategy

B) conglomerate strategy

Which of the following is the best method of recovering customer goodwill? A) sending service people to conduct door-to-door surveys B) contacting the complaining customer as quickly as possible C) identifying prospective customers from the customer database D) customizing products according to individual customer need E) defining and measuring the customer retention rate

B) contacting the complaining customer as quickly as possible

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections. A) customer retention B) customer churn C) detraction D) share-of-wallet E) customer complaints

B) customer churn

Another term for high customer ________ is customer churn. A) retention B) defection C) value D) perception E) belief

B) defection

If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? A) personal characteristics B) demographic variables C) situational factors D) operating variables E) purchasing approaches

B) demographic variables

Pittsburgh-based Consol Energy's coal business largely depends on orders from utilities and steel companies which, in turn, depend on broader economic demand from consumers for electricity and steel-based products like automobiles and appliances because of ________. A) fluctuating demand B) derived demand C) professional purchasing D) multiple buying influences E) multiple sales calls

B) derived demand

The Net Promoter Score is calculated by subtracting ________ from ________. A) promoters; detractors B) detractors; promoters C) detractors; passively satisfied customers D) passively satisfied customers; detractors E) passively satisfied customers; promoters

B) detractors; promoters

General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro

B) differentiated

Your firm has decided to enter the international market with your product called "Trema," a combination of a pocket organizer and cell phone. Even though the product has been a huge success in the home country, market research suggests some changes may be required before it can be introduced in Europe. Your CMO is of the opinion that the product requires certain extra features and the product will also have to be advertised differently. Your CMO is advocating ________. A) product invention B) dual adaptation C) straight extension D) forward adaptation E) product standardization

B) dual adaptation

Which of the following are tangible goods that normally survive many uses? A) generic goods B) durable goods C) core benefits D) convenience goods E) unsought goods

B) durable goods

Stacey wants to use a highly relevant, engaging, and implicit communications mix mode to use a "soft sell" approach for her new makeup line. The communications mix mode that has these characteristics is ________. A) sales promotions B) events and experiences C) advertising D) direct and interactive marketing E) personal selling

B) events and experiences

The purpose of profitability control is to ________. A) examine whether the planned results are being achieved B) examine where the company is making and losing money C) evaluate and improve the spending efficiency and impact of marketing expenditures D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

B) examine where the company is making and losing money

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase. A) privacy B) experience C) credence D) search E) stock

B) experience

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack. A) frontal B) flank C) guerrilla D) encirclement E) bypass

B) flank

A ________ offering consists of two parts: a naked solution and discretionary options. A) differentiated market B) flexible market C) rigid market D) vertical market E) horizontal market

B) flexible market

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________ strategy. A) defined B) focus C) value-added D) competitive advantage E) customer-focused

B) focus

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________ programs. A) benefit B) frequency C) satisfaction D) profitability E) quality

B) frequency

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack. A) guerilla B) frontal C) encirclement D) bypass E) flank

B) frontal

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________. A) promotional marketing B) functional quality C) technical quality D) search qualities E) external marketing

B) functional quality

Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied. B) A segment is unattractive if buyers possess strong or growing bargaining power. C) A segment is attractive when there are actual or potential substitutes for the product. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

B) A segment is unattractive if buyers possess strong or growing bargaining power.

Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)? A) It offers limited guidance for go-to-market strategies. B) It has quantifiable measures of financial performance. C) It ignores the advantages of creating a strong brand. D) It overlooks the option value of brands. E) It does not fully account for social network effects or word-of-mouth.

B) It has quantifiable measures of financial performance.

"Enriching Women's Lives" is a three-word mantra that is used by Mary Kay. This is an example of which of the following characteristics of good mission statements? A) It is focused on a limited number of goals. B) It is short, memorable, and meaningful. C) It defines the major competitive spheres in which the company will operate. D) It takes a long-term view. E) It stresses the company's major policies and values.

B) It is short, memorable, and meaningful.

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________. A) the imported brand will not survive the competition from Maytag B) Maytag has positive customer-based brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Maytag washing machine has better features than the imported brand

B) Maytag has positive customer-based brand equity

When ConAgra learned that stores were selling more time-saving meals and snacks when school started, it launched its "Seasons of Mom" campaign to help grocers adjust to seasonal shifts in household needs. Which of the eight possible actions to improve the quantity and quality of its marketing intelligence yielded this insight? A) Train and motivate the sales force to spot and report new developments. B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence. C) Hire external experts to collect intelligence. D) Network internally and externally. E) Set up a customer advisory panel.

B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence.

________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. A) Marketing channels B) Organizational buying C) Corporate retailing D) Brand auditing E) Inventory control

B) Organizational buying

________ marketing is the practice of sending messages only when consumers express a willingness to become more involved with the brand. A) Relationship B) Permission C) Cause D) Defensive E) Horizontal

B) Permission

________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. A) Image B) Personality C) Psychological transformation D) Lifestyle E) Acculturation

B) Personality

________ reflects a customer's judgment of a product's performance in relation to his or her expectations. A) Brand equity B) Satisfaction C) Value D) Perception E) Brand image

B) Satisfaction

________ auctions let would-be suppliers submit only one bid; they cannot know the other bids. A) Descending bid B) Sealed-bid C) English D) Dutch E) Reverse

B) Sealed-bid

________ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive. A) Selective attention B) Selective distortion C) Selective retention D) Selective choice E) Selective embellishment

B) Selective distortion

________ refers to the ability to meet humanity's needs without harming future generations. A) Greenwashing B) Sustainability C) Ecological footprinting D) Scalability E) Legal practice

B) Sustainability

Which of the following statements is TRUE about licensing? A) It is one of the most complex ways to engage in international marketing. B) The licensor gains entry into the new market at low risk. C) The licensee has no access to proprietary information. D) The licensee receives a fee or royalty. E) The licensor can use a manufacturing process or trademark for a fee.

B) The licensor gains entry into the new market at low risk.

Which of the following is a characteristic of a service? A) The service is essentially tangible. B) The service does not result in the ownership of anything. C) The service's production is tied to a physical product. D) Services are typically produced and consumed at different times. E) A client's presence is not required for rendering a service.

B) The service does not result in the ownership of anything.

According to the BrandAsset® Valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem

B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still

Cadbury's "Sports for Schools" promotion offered sports and fitness equipment for schools in exchange for vouchers. The problem was that the public and media saw a perverse incentive for children to eat more chocolate, a product associated with obesity. Which of the following best summarizes Cadbury's problem? A) Customers felt that the cause was not in sync with the company's brand image. B) Consumers did not value the cause Cadbury was promoting. C) Customers saw the firm as self-serving and exploitive. D) Consumers resented being sold an inferior product on the back of a cause-marketing program. E) Consumers felt that the campaign did not try hard enough to change the audience's behavior.

C) Customers saw the firm as self-serving and exploitive.

________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers. A) Interactive B) Internal C) External D) Promotional E) Direct

C) External

________ are offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing, and record keeping. A) Consumer promotions B) Quantity discounts C) Functional discounts D) Seasonal discounts E) Trade-in allowances

C) Functional discounts

________ are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches. A) Common carriers B) Shills C) Generics D) Private labels E) Marques

C) Generics

________ are rules of thumb or mental shortcuts in the decision process. A) Attitudes B) Beliefs C) Heuristics D) Discriminations E) Biases

C) Heuristics

In which of the following is a person performing the role of an influencer? A) Dan decides on the product requirements and makes the final choice of suppliers. B) Luke has the authority to pick out the supplier and negotiate the terms of purchase. C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. E) Dana authorizes the actions of the deciders and buyers in LKG.

C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.

________ portrays the "whole person" interacting with his or her environment. A) Attitude B) Personality C) Lifestyle D) Self-concept E) Subculture

C) Lifestyle

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. A) Company demand B) Area market potential C) Market demand D) Company sales potential E) Total market potential

C) Market demand

________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing

C) Media selection

Which of the following statements is TRUE of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial. D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

C) New products typically merit large advertising budgets to build awareness and to gain consumer trial.

WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region.

C) Offer the core product in new formats or versions.

________ reward dealers for participating in advertising and sales support programs. A) Functional discounts B) Trade discounts C) Promotional allowances D) Rebates E) Quantity discounts

C) Promotional allowances

________ is the tendency to interpret information in a way that will fit our preconceptions. A) Selective retention B) Cognitive dissonance C) Selective distortion D) Subliminal perception E) Selective embellishment

C) Selective distortion

Pegasus writes about its target market and demographics in the ________ section of its marketing plan. A) Executive summary B) Implementation C) Situation analysis D) Strategy E) Tactics

C) Situation analysis

Which of the following is TRUE for activity-based costing (ABC)? A) ABC considers the real costs associated with each product. B) With ABC, the company can estimate all costs coming from the customer, less revenue. C) The tools of ABC can be used to conduct customer profitability analysis. D) It identifies the costs of products and services based on the revenue they generate. E) ABC allocates indirect costs in proportion to direct costs.

C) The tools of ABC can be used to conduct customer profitability analysis.

Which of the following is TRUE for business marketers? A) They deal with more and larger buyers than consumer marketers. B) They deal with more and smaller buyers than consumer marketers. C) They deal with fewer and larger buyers than consumer marketers. D) They deal with fewer and smaller buyers than consumer marketers. E) They deal with the same kind of buyers as consumer marketers.

C) They deal with fewer and larger buyers than consumer marketers.

Why do many U.S. firms prefer to sell in Canada, England, and Australia, rather than in Germany and France? A) They prefer markets that are culturally distant. B) Germany and France have larger markets. C) They feel more comfortable with the languages, laws, and culture. D) They are seeking markets with high market risk. E) This gives them a toehold in fast-growing markets

C) They feel more comfortable with the languages, laws, and culture.

Which of the following is a policy a store can adopt to make low-profit customers more profitable? A) 2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them. C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. E) 2Wheels encourages customers to send in their suggestions for product improvement.

C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city.

Which of the following best describes a car company's value proposition? A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets.

C) We sell the safest, most durable wagon.

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright

C) a slogan

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. A) life stage B) gender C) age D) income E) social class

C) age

Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability

C) announcing category benefits

A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is true or not, it is the consumer's perception. This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind. This scenario would be an illustration of the ________ heuristic. A) discrimination B) differentiation C) availability D) screening E) representativeness

C) availability

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved? A) buyback arrangements B) offsets C) barter D) sealed bids E) compensation deals

C) barter

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience. A) sensory B) affective C) behavioral D) intellectual E) social

C) behavioral

Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) equity B) awareness C) benefits D) architecture E) extensions

C) benefits

A marketing manager has decided to "leapfrog" the competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack. A) flank B) encirclement C) bypass D) guerrilla E) frontal

C) bypass

Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence

C) category points-of-parity

Rather than merely counting media exposures, a better measure of marketing public relations effectiveness is the ________. A) number of promotional tools required B) effect it has on its market capitalization C) change in product awareness, comprehension, or attitude D) changes observed in media behavior E) impact it has on the company's market share

C) change in product awareness, comprehension, or attitude

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________. A) basic buying and selling B) contractual transaction C) collaborative D) customer supply E) customer is king

C) collaborative

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step? A) commercializing the product B) performing concept testing C) conducting beta testing with customers D) creating a marketing strategy for the product E) performing business analysis

C) conducting beta testing with customers

Brands that meet consumers' initial buying criteria are called the ________ set. A) total B) awareness C) consideration D) choice E) decision

C) consideration

Companies can practice targeted marketing by using ________, which are records of Web site usage stored on personal browsers. A) plug-ins B) data warehouses C) cookies D) trolls E) Big Data

C) cookies

In an attempt to create greater competition and growth opportunities, countries often ________. A) increase trade barriers B) protect industries C) deregulate industries D) encourage intermediation E) reduce privatization

C) deregulate industries

In ________ marketing, the firm operates in several market segments and designs different products for each segment. A) individual B) undifferentiated C) differentiated D) concentrated E) niche

C) differentiated

Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy. A) overall cost leadership B) focus C) differentiation D) diversification E) promotional

C) differentiation

Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands

C) endowing products and services with the power of a brand

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in? A) awareness B) adoption C) evaluation D) trial E) interest

C) evaluation

Matt's retail store offers all products at $2 less than its competitors. The store never runs promotional campaigns or offers special discounts. Matt's retail store is following a(n) ________ pricing policy. A) auction-type B) target-plus C) everyday low D) high-low E) going-rate

C) everyday low

Using an established brand to introduce a new product is called brand ________. A) harmonization B) valuation C) extension D) positioning E) parity

C) extension

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a market ________. A) challenger B) leader C) follower D) nicher E) entrant

C) follower

Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a different flavored yogurt. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Here, her past experience with the brand prompts her to make the choice. Anne's behavior can be best described as ________. A) fallacy of proposition B) associative networking C) generalization D) heuristic thinking E) self-actualization

C) generalization

In addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as ________. A) common carriers B) shills C) generics D) private labels E) marques

C) generics

The milder information search state where a person simply becomes more receptive to information about a product is called ________. A) active information search B) information search C) heightened attention D) purchase decision E) dynamic information search

C) heightened attention

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. A) reverse flow B) vertical C) horizontal D) lateral E) forward flow

C) horizontal

Which of the following is a purpose of product mapping? A) studying market matrices B) integrating target markets C) identifying market segments D) educating consumers E) integrating target matrices

C) identifying market segments

Which of the following is a way for companies to increase customer-perceived value? A) increase the psychological investment associated with buying B) increase the buyer's time and energy investment C) increase total customer benefit by improving economic and functional benefits D) decrease total customer benefit by replacing psychological benefits of the product E) decrease the difference between total customer benefit and total customer cost

C) increase total customer benefit by improving economic and functional benefits

With an increase in marketing expenditure, market demand ________. A) continues to rise at an increasing rate B) initially increases and then declines C) increases first at an increasing rate, then at a decreasing rate D) decreases first and then spikes E) continues to increase at a decreasing rate.

C) increases first at an increasing rate, then at a decreasing rate

Which of the four characteristics of a marketing audit is described by the fact that outside consultants can bring necessary objectivity to the process? A) comprehensive B) systematic C) independent D) periodic E) opinion-based

C) independent

A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand

C) industry

If demand hardly changes with a small change in price, the demand is said to be ________. A) strained B) marginal C) inelastic D) flexible E) unit elastic

C) inelastic

Small sellers to a buying center should first concentrate their marketing efforts on reaching ________. A) approvers B) initiators C) influencers D) users E) initiators

C) influencers

The decline in the average cost of production with accumulated production experience is called the ________. A) demand curve B) supply chain C) learning curve D) value chain E) indifference curve

C) learning curve

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________ cost. A) service warranty B) out-of-pocket C) life-cycle D) facilitating services E) value-augmentation

C) life-cycle

Pepe Homes manufactures a range of bathroom accessories and fittings that include bath tubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers

C) magazines

When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price had come down to $399. What kind of a pricing did Apple adopt? A) loss-leader pricing B) market-penetration pricing C) market-skimming pricing D) target-return pricing E) value pricing

C) market-skimming pricing

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance. A) marketing plan B) test market C) marketing audit D) market-based scorecard analysis E) marketing metric

C) marketing audit

The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders. A) brand B) supply chain C) marketing network D) value proposition E) service channel

C) marketing network

Which of the following is the most elementary pricing method? A) value pricing B) going-rate pricing C) markup pricing D) target-return pricing E) perceived-value pricing

C) markup pricing

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved. A) branding synergy B) increased advertising dollars C) multiple brands D) bundled package E) pure bundling

C) multiple brands

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic B) business C) need D) geographic E) service

C) need

A company can take several steps to improve the quality of its marketing intelligence. One company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information. This company is ________. A) taking advantage of government data B) motivating intermediaries to share intelligence C) networking internally and externally D) setting up customer advisory panels E) buying information from research firms

C) networking internally and externally

Four key customer markets are the consumer, business, global, and ________ market. A) demographic B) physical C) nonprofit D) product E) exclusive

C) nonprofit

Primary data can be collected in several ways. Installing cameras in a retail store to unobtrusively record shopping behavior is an example of ________ research. A) focus group B) survey C) observational D) behavioral E) experimental

C) observational

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance? A) institutional sale B) business buying C) opportunism D) vertical integration E) contractual transactionism

C) opportunism

The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery. A) sales information system B) data mining system C) order-to-payment cycle D) information needs probe E) data warehouse

C) order-to-payment cycle

The key to utilizing organizational core competencies is to ________ that make up the essence of the business. A) force organizational departments to justify the budgetary components B) vertically integrate and own all intermediaries C) own and nurture the resources and competencies D) emphasize global promotions E) segment the workforces

C) own and nurture the resources and competencies

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here? A) first entry B) blunt entry C) parallel entry D) late entry E) exchange entry

C) parallel entry

Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the doctor had already begun with the next patient. This illustrates the ________ of services. A) variability B) heterogeneity C) perishability D) intangibility E) homogeneity

C) perishability

A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables

C) personal characteristics

Which of the following is considered to be the most versatile of all the contact methods? A) mail questionnaires B) telephone interviews C) personal interviews D) online interviews E) field trials

C) personal interviews

A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) architecture B) position C) portfolio D) extension E) image

C) portfolio

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product. A) consumption B) expected C) potential D) augmented E) basic

C) potential

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service). A) operations processes B) manufacturing processes C) primary activities D) secondary activities E) tertiary activities

C) primary activities

Which of the following is an example of self-service technologies? A) calling for a pizza delivery B) buying a service contract for a computer C) printing tickets from a home computer D) visiting a parts-and-service department E) offering secondary service features

C) printing tickets from a home computer

Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution. A) selling-oriented B) product-oriented C) production-oriented D) marketing-oriented E) consumer-oriented

C) production-oriented

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using? A) personalization strategy B) tailoring strategy C) push strategy D) pull strategy E) consumer promotion strategy

C) push strategy

Finnish cellular phone giant, Nokia, customized its 6100 series mobile phone for every major market in which it is present. In Asia, for example, the series came with higher ring volume so that it could be heard on the crowded Asian streets. This is an example of a ________. A) straight extension B) forward invention C) regional version D) city version E) country version

C) regional version

With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) imagery B) judgment C) resonance D) salience E) performance

C) resonance

Dean recently had a BRZ broadband connection installed. However, the connection was poor, and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior? A) involuntary switching B) competition C) response to service failure D) service encounter failures E) inconvenience

C) response to service failure

Indirect exports have two advantages for a firm: less investment and less ________. A) paperwork B) intrusion by the government C) risk D) competition E) customer suits

C) risk

Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers, or the trade? A) advertising B) public relations C) sales promotion D) events and experiences E) personal selling

C) sales promotion

The sales goal set for a product line, company division, or sales representative of an organization is called ________. A) sales budget B) company sales forecast C) sales quota D) company sales potential E) market potential

C) sales quota

In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. A) need-based segmentation B) segment identification C) segment attractiveness D) segment profitability E) segment "acid test"

C) segment attractiveness

A major advantage of a ________ strategy is that if the product fails, the company has not tied its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization

C) separate family brand name

Packaging includes all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package. A) retailer B) design C) shipping D) consumer E) supplier

C) shipping

The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a ________. A) culture B) subculture C) social class D) family E) group

C) social class

A firm that is plagued with overcapacity, intense competition, or changing consumer desires would do better if it pursues ________ as its major objective. A) market skimming B) product-quality leadership C) survival D) profit maximization E) market penetration

C) survival

Juan Garcia plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner. A) strategic B) selective C) tactical D) niche E) operational

C) tactical

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development

C) the initial choices for the brand elements or identities making up the brand

Which of the following elements of a marketing plan outlines the marketing activities such as pricing, channels, and communications? A) the situation analysis B) the marketing strategy C) the marketing tactics D) the financial projections E) the short-term targets

C) the marketing tactics

A customer touch point for Abacus Airlines would be an item such as ________. A) ease of access to the airport B) a mechanic's ability to service the airplanes C) the reservations desk D) the value of air travel versus surface transportation E) competency of a travel agent

C) the reservations desk

PepsiCo created a Mission Control Center-set up like a broadcast television control room-in the middle of the marketing department in its Chicago headquarters. What was the purpose of this effort? A) to monitor the performance of Coca-Cola B) to create a blog to promote its Gatorade brand C) to monitor the Gatorade brand on social networks around the clock D) to measure sales of its Gatorade brand on a minute-to-minute basis E) to get involved in consumers' conversations about their daily lives

C) to monitor the Gatorade brand on social networks around the clock

The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________. A) activity-based cost B) customer profitability analysis C) total customer cost D) product life-cycle cost E) direct product profitability

C) total customer cost

Johnson Controls reached beyond selling climate-control equipment and components by selling the service of managing facilities in a way that optimizes energy use in heating and cooling. This is an example of providing ________. A) facilitating services B) a primary service package C) value-augmenting services D) service contracts E) service warranties

C) value-augmenting services

Service quality depends on who provides them, when and where they are provided, and to whom they are provided. Thus, services are highly ________. A) inseparable B) tangible C) variable D) perishable E) intangible

C) variable

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc.? A) views of ourselves B) views of organizations C) views of others D) views of nature E) views of the universe

C) views of others

Share of ________ represents the proportion of company advertising of a product to all advertising of that product. A) wallet B) mind C) voice D) market E) cost

C) voice

________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. A) Target marketing B) Mind mapping C) Consumer activism D) Consumer behavior E) Product differentiation

D) Consumer behavior

________ beliefs and values are passed from parents to children and reinforced by social institutions-schools, churches, businesses, and governments; they are very difficult to change. A) Transient B) Secondary C) Protected D) Core E) Variable

D) Core

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives. A) Perceived usefulness B) Failure avoidance rate C) Total customer benefit D) Customer-perceived value E) Competitors' market share rate

D) Customer-perceived value

Which of the following can a company do to reduce defection? A) Attract new customers to try out the company's products. B) Increase customer lifetime value by increasing the non-monetary costs of products. C) Enhance the growth potential of existing customers through cross-selling and up-selling. D) Distinguish the causes of customer attrition and identify those that can be managed better. E) Make low-profit customers more profitable or terminate the relationship.

D) Distinguish the causes of customer attrition and identify those that can be managed better.

________ research approach uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work. A) Cognitive B) Inductive C) Archaeological D) Ethnographic E) Deductive

D) Ethnographic

Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are selective, confident, and impatient. C) Gen Xers are socially conscious and concerned about the environment. D) Gen Xers prize self-sufficiency and are pragmatic. E) Technology is a barrier for Gen Xers.

D) Gen Xers prize self-sufficiency and are pragmatic.

Which of the following statements about market segmentation is TRUE? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy? A) It should analyze its competitors' costs, prices, and offers. B) It should select its pricing method. C) It should select its final price. D) It should determine the demand for its product. E) It should estimate the cost of its product.

D) It should determine the demand for its product.

________ marketing by nonprofit or government organizations furthers a cause. A) Corporate societal B) Brand C) Causal D) Social E) Place

D) Social

During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) Step 2-segment identification B) Step 3-segment attractiveness C) Step 6-segment "acid test" D) Step 1-needs-based segmentation E) Step 7-marketing-mix strategy

D) Step 1-needs-based segmentation

Which of the following is an example of a functional hub? A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals. C) SteelMart.com concentrates on steel buyers from the United States. D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety. E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market.

D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety.

Which of the following is TRUE about the technology trends that marketers should monitor? A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side. B) Today, the time between idea and implementation is expanding. C) China leads the world in spending on research and development. D) The pace of change is accelerating today. E) The government has decreased regulation of technological change.

D) The pace of change is accelerating today.

Which of the following statements about brand mantras is TRUE? A) They guide only major decisions; they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors.

D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.

Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10 percent premium on our chicken.

D) We sell tender golden chicken at a moderate price.

The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. A) measurable B) substantial C) differentiable D) accessible E) actionable

D) accessible

Customer profitability analysis is best conducted with the tools of an accounting technique called ________. A) input-output analysis B) factor analysis C) revenue-based costing D) activity-based costing E) future date costing

D) activity-based costing

Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases

D) additional brand extension opportunities

Club membership programs that are open to everyone who purchases a product or service ________. A) are more powerful long-term loyalty builders than limited-membership clubs B) will not help a company attract customers from competitors C) prevent those with only a fleeting interest in a company's products from joining D) are useful for building a database of customers but are not very good as long-term loyalty builders E) are useless unless there are fees and membership conditions

D) are useful for building a database of customers but are not very good as long-term loyalty builders

Which of the following is considered to be the last step in the marketing research process? A) presenting findings B) analyzing information C) controlling the environment D) arriving at a decision E) drafting the report

D) arriving at a decision

The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." A) copyright B) trademark C) slogan D) brand E) logo

D) brand

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________. A) needs B) wants C) desires D) brand beliefs E) consuming attitudes

D) brand beliefs

When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products with which a brand competes and which function as close substitutes, it is determining Dasani's ________. A) customer-focused value proposition B) points-of-parity C) points-of-difference D) category membership E) brand mantra

D) category membership

The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. A) supply chain B) global market C) value proposition D) competition E) marketing environment

D) competition

The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis

D) competitive frame of reference

Dante is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for the ads of a department store chain to target the upcoming Thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping

D) concentration

In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension

D) customer equity

The five product levels add more customer value, and together they constitute a(n) ________. A) core benefit B) basic product C) augmented product D) customer-value hierarchy E) expected product

D) customer-value hierarchy

The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability

D) desirability, deliverability, differentiability

Brand mantras typically are designed to capture the brand's points-of-________. A) conflict B) parity C) inflection D) difference E) presence

D) difference

If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

D) differentiable

For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence. A) conformance quality B) performance quality C) repairability D) durability E) style

D) durability

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________. A) natural products B) component materials C) operating supplies D) equipment E) processed materials

D) equipment

Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________. A) idea B) place C) luxury item D) event E) service

D) event

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________. A) payment equity B) value-augmenting services C) differential pricing D) facilitating services E) a primary service package

D) facilitating services

When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ consumption of the brand. A) amount of B) level of C) dedication to D) frequency of E) awareness

D) frequency of

If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center. A) initiator B) influencer C) decider D) gatekeeper E) approver

D) gatekeeper

Which of the following is an ancillary service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) alterations and tailoring

D) general information

The internal records system supplies results data, but the marketing intelligence system supplies ________ data. A) internal B) revenue C) thematic D) happenings E) process

D) happenings

Most new-product activities are devoted to ________. A) changing the target markets B) developing new-to-the-world products C) introducing backward integration D) improving existing products E) changing the existing market dynamics

D) improving existing products

Which of the following can be considered a primary activity in the value chain process? A) procurement B) human resource management C) technology development D) inbound logistics E) firm infrastructure

D) inbound logistics

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services. A) perishability B) intangibility C) heterogeneity D) inseparability E) variability

D) inseparability

As the manager of an organization that is attempting to build a marketing information system (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research. A) external records and documents B) databases found on the Internet C) consultant reports D) internal company records E) secondary data from government sources such as the Better Business Bureau

D) internal company records

A firm that is based in France designs jewelry and takes custom orders from around the world. They design up to 15 pieces of jewelry in a year and ensure that each design uses distinctive stones and is unique. Such nichemanship is an example of ________ specialist role. A) customer-size B) product C) product-feature D) job-shop E) quality-price

D) job-shop

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry. A) strategic pay off B) parallel C) balancing D) late E) compensating

D) late

AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work

D) linking internal and external marketing

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. A) data warehousing system B) viral marketing campaign C) product management system D) marketing intelligence system E) sales information system

D) marketing intelligence system

Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product

Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points

D) microsites

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms. A) new rebuy B) regular buy C) straight rebuy D) modified rebuy E) new task

D) modified rebuy

When Goodyear began selling its popular tire brands through Sears, Walmart, and Discount Tire, independent dealers that sold the same tires at higher prices were angry. This is an example of a(n) ________ conflict. A) horizontal B) vertical C) intermediate D) multichannel E) parallel

D) multichannel

Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place

C) the product and all accompanying marketing activities and supporting marketing programs

The 80-20 rule reflects the idea that ________. A) 20 percent of the company's profits are generated by the top 80 percent of customers B) the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend C) 20 percent of customers are unprofitable, and 80 percent make up a company's profits D) the top 20 percent of customers often generate 80 percent of the company's profits E) any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle

D) the top 20 percent of customers often generate 80 percent of the company's profits

Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for ________ services. A) complementary B) perishable C) variable D) unbundled E) shared

D) unbundled

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits

D) user status

Brand ________ is the job of estimating the total financial worth of the brand. A) tracking B) auditing C) equity D) valuation E) harmonization

D) valuation

TBS Bikes has recently introduced a series of bikes called Surami. The core positioning of TBS Bikes is "speed." Surami is a five-gear bike, and apart from speed, the company promises to include other features such as safety, good performance, and pollution control features. This describes the ________ of the bike. A) total customer cost B) customer-perceived value C) value-delivery system D) value proposition E) total customer benefit

D) value proposition

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even? A) 1,819 B) 5,500 C) 18,000 D) 27,500 E) 55,000

E) 55,000

Which of the following is NOT a consumer touch point? A) store layouts B) package designs C) product functions D) shipping and logistics E) All of these are touch points.

E) All of these are touch points.

________ are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea. A) Discriminations B) Values C) Beliefs D) Feelings E) Attitudes

E) Attitudes

________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies

E) Brand-tracking studies

Which of the following is a possible trap of a price-cutting strategy? A) Low prices usually achieve increases in both market share and market loyalty when customers switch. B) The company might need additional business because it has excess plant capacity. C) The company can initiate price cuts to dominate the market through lower costs. D) Consumers might not demand price concessions in the future. E) Competitors that match low prices might have longer staying power because of deep cash reserves.

E) Competitors that match low prices might have longer staying power because of deep cash reserves.

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance. A) Frequently purchased products B) High-moving goods C) Inexpensive products D) Commodity products E) Infrequently purchased products

E) Infrequently purchased products

________ marketing describes the employees' skill in serving the client. A) External B) Internal C) Promotional D) Direct E) Interactive

E) Interactive

Which of the following is a risk that firms must consider prior to expanding abroad? A) The domestic consumers may prefer low-priced products. B) The market in the foreign country may be too similar to the domestic market. C) Consumers in the foreign country may be very particular about quality. D) The foreign country may have very low pollution control standards. E) Management may not understand the foreign country's business culture.

E) Management may not understand the foreign country's business culture.

Despite its weaknesses, markup pricing remains popular for which of the following reasons? A) Sellers can determine demand much more easily than they can estimate costs. B) By tying the price to cost, the pricing task becomes more sophisticated. C) When all firms in the industry use markup pricing, price competition flourishes. D) Sellers take advantage of buyers when the latter's demand becomes acute. E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

Which of the following is TRUE about trends in worldwide population growth? A) Birthrates are on the rise in developed countries. B) Overall, the world population growth is declining. C) Birthrates are on the rise in developing countries. D) Death rates are rising in developing countries. E) Population growth is highest in developing countries.

E) Population growth is highest in developing countries.

Which of the following is TRUE regarding services? A) Services are typically produced, stored, and then consumed. B) Services are generally low in experience and credence qualities. C) Service providers develop similar marketing programs for personal services and business services. D) There is less risk associated with the purchase of services than with the purchase of goods. E) Provider-client interaction is a special feature of services marketing.

E) Provider-client interaction is a special feature of services marketing.

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts? A) a Dutch auction with one buyer and many sellers B) an English auction with one seller and many buyers C) an ascending bid auction D) a sealed-bid auction E) a Dutch auction with one seller and many buyers

E) a Dutch auction with one seller and many buyers

What would a consumer's lower price threshold signal? A) the use of everyday low pricing B) a discounted price for a high-value product C) a fair price D) a price below which the product is considered to be a good value E) a price below which the product is assumed to be of unacceptable quality

E) a price below which the product is assumed to be of unacceptable quality

The associative network memory model views long-term memory as ________. A) a subliminal perception B) the interplay of drives C) a strong internal stimulus impelling action D) a temporary and limited repository of information E) a set of nodes and links

E) a set of nodes and links

For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

E) actionable

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________. A) a complementary service B) payment equity C) a service blueprint D) differential pricing E) an extended warranty

E) an extended warranty

In markets that are characterized by products that are highly homogeneous, how should a firm react to a competitor's reduction in price? A) shrink the amount of the product available B) substitute expensive materials or ingredients C) reduce product features D) reduce product services E) augment the product

E) augment the product

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements. A) convenience item B) flagship product C) staple item D) potential product E) basic platform

E) basic platform

A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid. A) advantage B) relevance C) presence D) performance E) bonding

E) bonding

Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles. A) optional-feature B) two-part C) by-product D) product line E) captive-product

E) captive-product

Rade and Talion are competitors in the business of manufacturing wrist watches. While Rade promises to deliver design and quality to its customers, Talion promises to deliver durability and cost effectiveness. When both these companies deliver their respective promised qualities, they are delivering ________. A) performance quality B) customer support C) unique quality D) accuracy quality E) conformance quality

E) conformance quality

The dimensions in the VALS framework are consumer resources and ________. A) marketer resources B) product innovation C) consumer maturity D) impulsiveness E) consumer motivation

E) consumer motivation

A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, its product category, or its market. A) value B) personality C) trait D) character E) contact

E) contact

Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves. A) time famine B) sophistication C) money constrain D) social class E) core values

E) core values

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"? A) organizational dynamics B) a business mission C) an ethical/value statement D) customer relationships E) corporate culture

E) corporate culture

Services high in ________ qualities are those services that have characteristics that the buyer normally finds hard to evaluate even after consumption. A) trial B) search C) experience D) privacy E) credence

E) credence

In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange. A) contractual transaction B) cooperative system C) collaborative D) mutually adaptive E) customer is king

E) customer is king

Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability

E) deliverability

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. To do this, management sets monthly or quarterly goals, monitors marketing performance in the marketplace, ________, and takes corrective action. A) conducts a SWOT analysis B) develops tactical plans C) conducts a marketing audit D) hires a marketing controller E) determines the cause of serious performance deviations

E) determines the cause of serious performance deviations

Which of the following is most closely related with the organic growth of an organization? A) acquiring a product or service brand B) entering new market places C) increasing the operational profitability D) increasing productivity of employees E) developing new products from within

E) developing new products from within

Joseph, a student of Columbia University, found that many of his classmates had purchased an iPad tablet from Apple. Several months after the product's launch, realizing that the iPad was widely considered to be useful and that many students in the United States had rated it highly, Joseph also decided to purchase an iPad. Which of the following is the adopter group to which Joseph belongs? A) early adopter B) innovator C) late majority D) laggard E) early majority

E) early majority

If the goal of marketing research is to shed light on the real nature of a problem and to suggest possible solutions or new ideas, the research is said to be ________. A) descriptive B) quantitative C) primary D) secondary E) exploratory

E) exploratory

In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand. A) second-degree price discrimination B) third-degree price discrimination C) psychological discounting D) special-customer pricing E) first-degree price discrimination

E) first-degree price discrimination

JJ's Hair Salon pays overhead each month, including bills for rent, heat, interest, and salaries. These payments are examples of ________ costs. A) total B) average C) activity-based D) variable E) fixed

E) fixed

As the marketing manager of Cominform Pvt. Ltd., a manufacturer of health drinks, you have selected 10 individuals who match the profile of your target customer, to participate in a discussion on changing lifestyle trends related to health. You have also hired a skilled moderator to facilitate the discussion and ensure that everyone participates and stays focused on the topic. The moderator provides questions and probes based on the "script" prepared by you. The discussions are also recorded for further analysis. Which of the following methods of acquiring primary data is being used in this case? A) observational research B) surveys C) behavioral data D) experiments E) focus groups

E) focus groups

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? A) differentiated marketing B) affiliate marketing C) guerrilla marketing D) affinity marketing E) grassroots marketing

E) grassroots marketing

The ________ is the last section of the marketing plan. It spells out the goals and budget for each month or quarter so management can review each period's results and take action as needed. A) executive summary B) situation analysis C) marketing strategy D) financial projections E) implementation controls

E) implementation controls

In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) personalized marketing B) mass customization C) globalized marketing D) relationship marketing E) integrated marketing

E) integrated marketing

A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables? A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables

E) operating variables

The elapsed time between an order's receipt, delivery, and payment is called the ________ cycle. A) variable-costs-to-payment B) product-to-payment C) inventory-to-sale D) order-to-inventory E) order-to-payment

E) order-to-payment

Smith & Adams Poultry set up a computer system so that its customers (restaurants and hotels) can directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of ________. A) customer relationships B) customer training C) installation D) delivery ease E) ordering ease

E) ordering ease

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage. A) problem recognition B) general need description C) order-routine specification D) supplier search E) performance review

E) performance review

BMW is ________ the customer experience when it offers 500 side-mirror combinations, 1,300 front bumper combinations, and 9,000 center-console combinations and provides new buyers a video link to watch their car being "born" while waiting for delivery. A) identifying B) synthesizing C) integrating D) acknowledging E) personalizing

E) personalizing

Walmart developed the Ol'Roy brand of dog food to sell only in its stores. Ol'Roy is an example of a ________. A) generic product B) national brand C) franchise D) copy-cat brand E) private label

E) private label

A(n) ________ is an elaborated version of a product idea expressed in consumer terms. A) test brand B) alpha product C) beta product D) business schedule E) product concept

E) product concept

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________. A) product type B) product class C) need family D) product variant E) product line

E) product line

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________. A) disruptive technologies B) incremental innovation C) complex innovations D) discontinuous innovations E) radical innovations

E) radical innovations

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty? A) salience B) imagery C) feelings D) judgments E) resonance

E) resonance

Belling Hotels provides a complimentary breakfast buffet to all guests. This is an example of a ________. A) primary service package B) service interface C) service support D) service frequency E) secondary service feature

E) secondary service feature

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. A) segment "acid test" B) segment attractiveness C) segment profitability D) need-based segmentation E) segment identification

E) segment identification

A possible unintended effect of business legislation is ________. A) restricting fair competition in the market B) encouraging unbridled business behavior C) reducing the social cost of producing a particular commodity D) exposing consumers to unfair trade practices E) slowing economic growth

E) slowing economic growth

Of customers who register a complaint, ________. A) all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor B) none will do business with the company again C) customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied D) the speed of resolution has no impact on the likelihood of repeat business E) some will do business with the company again if their complaint is resolved

E) some will do business with the company again if their complaint is resolved

Your firm has decided to enter the international market with your product called "Trema," a new pocket organizer that can also be used as a cell phone. While discussing marketing plans, your CMO decides that no changes will be necessary in either the marketing mix or the product for export. What form of marketing strategy is the CMO advocating? A) distributive marketing program B) leveraged marketing program C) adapted marketing program D) engineering-driven marketing program E) standardized marketing program

E) standardized marketing program

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition. A) not known B) different C) inferior D) equivalent E) superior

E) superior

To which of the following categories of services does a cell phone belong? A) major service with accompanying minor services B) major service with accompanying minor goods C) pure service D) pure tangible good E) tangible good with accompanying services

E) tangible good with accompanying services

Which of the three transformative forces mentioned in the chapter is associated with the Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"? A) demographics B) accountability C) social responsibility D) globalization E) technology

E) technology

Which of the following reflects the "people" component of the marketing mix? A) the creativity, discipline, and structure brought to marketing management B) the development of new products by the marketers C) the firm's consumer-directed activities D) the right set of processes to guide activities and programs within the firm E) the internal marketing of the firm

E) the internal marketing of the firm

Consumers are less price sensitive when ________. A) they buy high cost items B) they frequently change their buying habits C) there are more substitutes D) there are more competitors E) they do not readily notice higher prices

E) they do not readily notice higher prices

Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. These are examples of customer ________. A) lifetime value B) perceived value C) value analysis D) profitability analysis E) touch points

E) touch points

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________ system. A) horizontal marketing B) cost versus benefit C) consumption D) marketing channel E) value delivery

E) value delivery

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers? A) being willing to pay for price for valued offerings B) being turned off by overt marketing practices C) being pragmatic and prizing self-sufficiency D) wanting to purchase online E) wanting to turn back the hands of time

E) wanting to turn back the hands of time

WayToGrow Inc. is one of the most popular brands of toys in its home market. The company decides to expand its business abroad, and its directors feel that instead of trying to establish its presence all at once in multiple markets, it should expand one country at a time. This would limit their risk and allow them to analyze customer response, after which they could expand to other similar countries. WayToGrow is following a ________ approach. A) shotgun B) continuous C) born global D) sprinkler E) waterfall

E) waterfall

Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines. A) type B) length C) class D) mix E) width

E) width

The Marketing Funnel (Scenario) Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers. Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned. A) aware B) open to trial C) most often used D) nonrejecter E) regular user

D) nonrejecter

Bank customers try to reduce uncertainty by drawing inferences from the ________, such as the design of the building's exterior and interior, the layout of the desks, and the length of waiting lines. A) people B) symbols C) equipment D) place E) communication material

D) place

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and entices a famous athlete to endorse the product. This is an example of a ________. A) trade promotion B) reverse flow C) push strategy D) pull strategy E) backward flow

D) pull strategy

Brown & Smith, Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here. A) conjoint analysis B) perceptual mapping C) virtual reality testing D) rapid prototyping E) digital fabrication

D) rapid prototyping

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately. A) empathy B) assurance C) responsiveness D) reliability E) tangibles

D) reliability

For a new manufacturer managing product support for its equipment, what is usually the first strategy for postsale service? A) letting customers hire their own service people to work on-site B) letting independent services handle repairs and maintenance C) pricing equipment high and charging low prices for service D) running the company's own parts-and-service department E) switching maintenance services to authorized distributors

D) running the company's own parts-and-service department

Luke is considering the various options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up? A) advertising B) direct marketing C) events and experiences D) sales promotions E) publicity

D) sales promotions

With respect to the sampling plan, three decisions must be made: 1) the sampling unit—who is to be surveyed; 2) sample size—how many people should be surveyed; and 3) ________. A) sample cost-how much does sampling cost B) surveyor skill-who should conduct the survey C) sample security-how should the sample data be protected D) sampling procedure-how should respondents be chosen E) sample supervisor-who leads the sampling effort

D) sampling procedure-how should respondents be chosen

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________. A) trade discounts B) quantity discounts C) functional discounts D) seasonal discounts E) trade-in allowances

D) seasonal discounts

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize. A) secondary B) unstated C) delight D) secret E) stated

D) secret

If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. A) needs-based segmentation B) segment identification C) segment profitability D) segment "acid test" E) marketing-mix strategy

D) segment "acid test"

If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test"

D) segment positioning

The value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing. A) segmentation, developing, and delivering B) targeting, positioning, and communicating C) targeting, positioning, and delivering D) segmentation, targeting, and positioning E) researching, developing, and delivering

D) segmentation, targeting, and positioning

Discount stores that try to keep prices as low as possible are more likely to function using ________ operations. A) limited service B) self-selection C) full-service D) self-service E) limited-selection

D) self-service

Car rental firms, hair dressers, and management consultants provide ________. A) goods B) experiences C) events D) services E) information

D) services

During a recession, the market demand curve, which is a function of marketing expenditure, ________. A) shifts upward B) becomes vertical C) remains unaffected D) shifts downward E) slopes downward

D) shifts downward

To exploit the power of social media, marketers need to create tangible value for consumers, which can come from all of the following EXCEPT ________. A) discounts B) coupons C) information D) solicitations E) special offers

D) solicitations

The starting point for understanding consumer behavior is the ________ model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. A) self-reliance B) self-perception C) psychogenic D) stimulus-response E) projective

D) stimulus-response

Marketing effectiveness rating instruments and marketing audits are approaches to ________ control. A) annual-plan B) profitability C) efficiency D) strategic E) statistical

D) strategic

The value of an offering is described as the ________. A) price consumers are charged for a product B) cost of manufacturing a product C) degree to which consumer demand for a product is positive D) sum of the tangible and intangible benefits and costs to customers E) intangible benefits gained from a product

D) sum of the tangible and intangible benefits and costs to customers

Which of the following is used to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population? A) observational research B) descriptive research C) quantitative research D) survey research E) experimental research

D) survey research

Everyday low pricing is most suitable if ________. A) consumers are willing to perform activities such as clip coupons to avail of discounts B) consumers tend to associate price with quality C) customers are insensitive to changes in price D) the cost of conducting frequent sales and promotions is high E) consumers have sufficient time to find the best prices

D) the cost of conducting frequent sales and promotions is high

Prices that end in 9 are most appropriate when ________. A) customers have substantial knowledge about quality B) customers process prices right to left C) there is a mental price break at the lower, rounded price D) the marketer wants to suggest a discount or bargain E) the marketer wants to convey a high-price image

D) the marketer wants to suggest a discount or bargain

For price discrimination to work ________. A) the market must be segmentable and the segments must show similar intensities of demand B) members in the lower-price segment must be able to resell the product to the higher-price segment C) competitors must be able to undersell the firm in the higher-price segment D) the practice must not breed customer resentment and ill will E) the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market

D) the practice must not breed customer resentment and ill will

The three central trends in Marketing 3.0 are collaborative marketing, globalization, and ________. A) cultural relevance B) horizontal marketing C) consumer well-being D) the rise of a creative society E) sustained technological development

D) the rise of a creative society

________ is the process that turns marketing plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plan's stated objectives. A) Marketing implementation B) Marketing research C) Marketing analysis D) Brand management E) Product management

A) Marketing implementation

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized? A) average sales per point of sale B) sales from new products C) trial rate D) repurchase rate E) new customer gains

A) average sales per point of sale

Angelo made the decision to outsource the software components of his consulting company so he could focus on the company's ________, which are sources of competitive advantage, make a contribution to perceived customer benefits, have application in a wide variety of markets, and are difficult to imitate. A) core competencies B) infrastructure C) market-sensing processes D) fulfillment management processes E) outbound logistics

A) core competencies

Unistar Inc., is an FMCG company that produces a wide range of offerings such as grocery items and personal care products. If Unistar wants to estimate the demand for its new line of body moisturizers, which are all priced at $18, it should opt for ________ research. A) descriptive B) exploratory C) prescriptive D) causal E) qualitative

A) descriptive

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels. A) disintermediation B) diversification C) reduced competition D) deregulation E) privatization

A) disintermediation

If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel. A) service B) distribution C) communication D) relationship E) standardized

A) service

The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________. A) social responsibility B) technology C) globalization D) collaboration E) goodwill

A) social responsibility

Which of the following statements is most consistent with the integrated marketing approach? A) A good product will sell itself. B) If left alone, consumers are inclined to purchase only inexpensive products. C) All communication to consumers must deliver a consistent message irrespective of the medium. D) In order to succeed, the main focus should be on having an efficient production process in place. E) Online marketing is less important than traditional marketing efforts.

C) All communication to consumers must deliver a consistent message irrespective of the medium.

________ are basic human requirements, while ________ are the ways in which those requirements are satisfied. A) Wants; needs B) Demands; wants C) Needs; wants D) Needs; demands E) Demands; needs

C) Needs; wants

What are hollow corporations? A) companies that market their products through franchisees B) companies that have liabilities exceeding their assets C) companies that outsource all production to suppliers D) companies that do not have any physical presence and only operate online E) companies that are horizontally integrated

C) companies that outsource all production to suppliers

In the cycle of complete strategic planning, taking corrective action is a part of ________. A) planning B) implementation C) controlling D) organizing E) analyzing

C) controlling

The task of any business is to ________. A) create customer needs B) differentiate in terms of cost of production C) deliver customer value at a profit D) reduce competition E) communicate similar value as provided by competitors

C) deliver customer value at a profit

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus. A) long-term B) profit C) short-run D) product E) price

C) short-run

The ________ is the channel from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service chain E) marketing chain

C) supply chain

In a marketing plan, the financial projections include a sales forecast, expense forecast, and ________. A) situation analysis B) list of tactics C) communications strategy D) break-even analysis E) implementation controls

D) break-even analysis

Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers. Anne is attempting to conduct marketing research by ________. A) studying customer behavior B) forming alliances with competing firms C) using experimental research techniques D) checking out rivals E) tapping into marketing partner expertise

D) checking out rivals

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________ process. A) market-sensing B) customer acquisition C) customer relationship management D) fulfillment management E) new-offering realization

D) fulfillment management

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________. A) value managed partnership B) decentralized partnership C) centralized partnership D) partner relationship management E) intensive growth management

D) partner relationship management

The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing. A) event B) property C) service D) place E) idea

D) place

The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. A) economic B) management C) strategic D) task E) tactical

D) task

When gathering marketing intelligence, companies often use the U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of the more than 281 million people living in the United States. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration? A) A company can purchase information from outside suppliers. B) A company can take advantage of government data sources. C) A company can use online customer feedback systems to collect data. D) A company can network externally. E) A company can use its sales force to collect and report data.

B) A company can take advantage of government data sources.

Which of the following is TRUE regarding a marketing audit? A) It focuses primarily on a firm's macromarketing environment. B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps. C) It is less effective at locating the real source of a problem than a functional audit. D) It analyzes only those marketing activities that have failed to produce adequate results. E) It relies solely on company managers for data and opinions.

B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.

Which of the following is TRUE regarding annual-plan control? A) This control process begins by identifying the causes of serious performance deviations. B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis. C) The marketing controller has the primary responsibility for annual-plan control. D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures. E) It measures profitability by product, territory, customer, segment, trade channel, and order size.

B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.

Which of the following is an example of growth by diversification? A) a company introducing its existing products in a new market B) a company introducing new product category in a new market C) a company increases its product line in an existing market D) a company introducing a new product category in an existing market E) a company integrates backward to cut costs

B) a company introducing new product category in a new market

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of the ________ process. A) customer acquisition B) customer relationship management C) customer prospecting D) customer integrating management E) customer equity

B) customer relationship management

When American Airlines decided to review new ideas aimed at first-class passengers on very long flights, like an ultra high-speed Wi-Fi service and 124 channels of high-definition satellite cable TV, their first step in the marketing research process was to ________. A) develop the research plan B) define the problem and research objectives C) collect the information D) analyze the information E) make the decision

B) define the problem and research objectives

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies. A) product differentiation B) overall cost leadership C) focus D) domestic customer relationship E) price skimming

B) overall cost leadership

At the heart of any marketing program is the firm's ________, its tangible offering to the market. A) strategy B) product C) brand D) value E) people

B) product

What is the second phase of the value creation and delivery sequence? A) choosing the value B) providing the value C) communicating the value D) calculating the value E) calibrating the value

B) providing the value

Researchers usually start their investigation by examining some of the rich variety of low-cost and readily available ________ data, then collect ________ data if the needed data don't existing or are dated, inaccurate, incomplete or unreliable. A) primary; secondary B) secondary; primary C) primary; econometric D) secondary; econometric E) exploratory; econometric

B) secondary; primary

Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs. A) brand B) value proposition C) deal D) marketing plan E) demand

B) value proposition

The ________ sphere is the number of channel levels, from raw materials to final product and distribution, in which a company will participate. A) industry B) vertical C) product/application D) competence E) market segment

B) vertical

When Frank buys his own house, he would like to have a home theater system and a Jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the Jacuzzi is an example of a(n) ________. A) need B) want C) demand D) market E) prospect

B) want

A marketing dashboard should display ________. A) implementation controls B) plans for each marketing audit C) the company's marketing-mix models D) the instrument panel of all vehicles sold by a dealership E) a customer-performance scorecard and a stakeholder-performance scorecard

E) a customer-performance scorecard and a stakeholder-performance scorecard

For marketers, the term market refers to which of the following? A) a set of touch points such as store layouts and package designs B) a physical place where buyers and sellers gather C) a collection of buyers and sellers who transact over a particular product D) consumers and not businesses E) customer groups

E) customer groups

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a ________. A) government source of data B) public blog C) customer complaint site D) combo site offering customer reviews and expert opinions E) distributor feedback site

E) distributor feedback site

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents. A) payroll system B) market research process C) human resources system D) expense cycle E) order-to-payment cycle

E) order-to-payment cycle

When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________. A) segment the market B) provide a service C) enter a new market D) develop brand loyalty E) position its product

E) position its product

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to? A) training and motivating the sales force to spot and report new developments B) motivating distributors, retailers, and other intermediaries to pass along important intelligence C) hiring external experts to collect intelligence D) using external network E) purchasing information from outside research firms and vendors

E) purchasing information from outside research firms and vendors

As economies advance, a growing proportion of the economy's activities focuses on the production of ________. A) products B) events C) experiences D) luxury goods E) services

E) services

In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions. A) events B) prospects C) markets D) brands E) touch points

E) touch points

Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________. A) teamwork group B) horizontal integration C) domestic power center D) value exploration E) value delivery network

E) value delivery network

________ research is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. A) Experimental B) Behavioral C) Observational D) Focus group E) Descriptive

A) Experimental

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation

A) Flanker

Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region.

A) Make the core of the brand as distinctive as possible.

________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing B) Knowledge C) Operations D) Strategic E) Distribution

A) Marketing

Which of the following is an example of a gap between service delivery and external communications? A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well. B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered. C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design. D) Clearwater Spa attendants are well trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service. E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases. A) Activity-based costing B) Customer lifetime value C) Customer value analysis D) Customer-perceived value E) Customer profitability analysis

B) Customer lifetime value

________ gives products the appearance of being more environmentally friendly without living up to that promise. A) Ambush marketing B) Greenwashing C) Astroturfing D) Viral marketing E) Green politics

B) Greenwashing

________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products. A) Cross B) Ingredient C) Equity D) Family E) Generic

B) Ingredient

Which of the following statements about marketing is TRUE? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is not needed in an Internet-fueled environment. E) It is seldom used by nonprofit organizations.

B) It can help create jobs in the economy by increasing demand for goods and services.

Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization? A) It makes the company almost bulletproof to competitors' actions. B) It diversifies the firm's risk. C) It creates synergy between markets. D) It is a low-cost strategy. E) It treats all buyers the same and, therefore, lowers promotion costs.

B) It diversifies the firm's risk.

Which of the following is TRUE for customer-perceived value? A) It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. B) It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. C) It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. D) It is the net present value of the stream of future profits expected over the customer's lifetime purchases. E) It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies.

B) It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

The Caesar Park Hotel generally caters to business customers during the week, so weekends are relatively quiet. The hotel has decided to promote mini-vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do? A) It is implementing premium pricing. B) It is trying to cultivate nonpeak demand. C) It is promoting complementary services. D) It is putting reservation systems in place. E) It is implementing differential pricing.

B) It is trying to cultivate nonpeak demand.

Which of the following is TRUE regarding price elasticity? A) The higher the elasticity, the lesser the volume growth resulting from a one-percent price reduction. B) Long-run and short-run price elasticity may differ, delaying the impact of a price change. C) If demand is elastic, sellers assume that lowering the price will decrease total revenue. D) Price elasticity does not depend on magnitude and direction of the contemplated price change. E) When demand is inelastic, sellers should lower prices in order to increase total revenue.

B) Long-run and short-run price elasticity may differ, delaying the impact of a price change.

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. A) Value proposition B) Loyalty C) Satisfaction D) Respect E) Customer value

B) Loyalty

Which of the following is a reason why marketers see appeal in using mobile devices as a communication tool? A) Users frequently share the devices. B) Marketers can personalize messages. C) Users turn them on only when they want to engage with brands. D) They do not distract consumers by offering a payment system. E) They are used only in limited locations.

B) Marketers can personalize messages.

________ activities include those the company undertakes to make the product accessible and available to target customers. A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development

D) Channel

The Marketing Funnel (Scenario) Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers. Amy is in the "aware" stage of the marketing funnel when she says ________. A) she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood B) she was informed about VeggiesNmore by her colleague at work C) she regularly shops from VeggiesNmore D) she shops from VeggiesNmore as far as the store is easily accessible E) she was happy with the experience of shopping at VeggiesNmore

B) she was informed about VeggiesNmore by her colleague at work

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. A) hard-core loyals B) split loyals C) shifting loyals D) switchers E) antiloyals

B) split loyals

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. A) organizational plan B) strategic marketing plan C) corporate tactical plan D) corporate mission E) customer-value statement

B) strategic marketing plan

To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program. A) measurable B) substantial C) accessible D) differentiable E) actionable

B) substantial

Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Company)? A) custom marketing research firms B) syndicated-service research firms C) specialty-line marketing research firms D) generic marketing research firms E) focused marketing research firms

B) syndicated-service research firms

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________. A) channel consolidation B) systems buying C) vertical buying D) horizontal buying E) supply buying

B) systems buying

Which of the following would NOT be a consumer's reference price? A) the advertised price per month B) the actual future price C) a price the consumer remembers D) a posted "regular retail price" E) the manufacturer's suggested price

B) the actual future price

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. A) perceived value pricing B) third-degree price discrimination C) first-degree price discrimination D) second-degree price discrimination E) psychological discounting

B) third-degree price discrimination

Which of the following is an example of a gap between management perception and the service-quality specifications? A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting. B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong. C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters. D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed. E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.

________ testing is a customer test that involves placing the product within the firm to see how it performs in different applications. A) Beta B) Research C) Sales-wave D) Alpha E) Simulated

D) Alpha

Which of the following questions is answered during the business analysis of ideas? A) Does the product meet a need? B) Do we have a technically and commercially sound product? C) Can we find a cost-effective, affordable marketing strategy? D) Can this product meet sales expectations? E) Can we find a good concept consumers say they would try?

D) Can this product meet sales expectations?

________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference

D) Category points-of-parity