Marketing Exam

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A company can increase its business in four ways. Which is NOT one of these ways? A) It can add new product lines, thus widening its product mix. B) It can lengthen its existing product lines. C) It can add more versions of each product and thus deepen its product mix. D) It can discontinue some of its lines. E) It can increase the consistency of its product mix.

67) Which of the following is NOT a way that business and consumer markets differ? A) satisfaction of needs through purchases B) market structure and demand C) nature of the buying unit D) types of decisions E) decision process

A) satisfaction of needs through purchases

23) Opinion leaders are sometimes referred to as ________. A) the influentials B) the upper class C) the middle class D) buzz marketers E) networkers

A) the influentials

When a company lengthens its product line beyond its current range, it is ________. A) product line filling B) product line stretching C) product mixing D) increasing product depth E) building brand equity

t or f: 99) A business marketer normally deals with far fewer buyers than the consumer marketer does.

true

) An alternative to product line stretching is ________, adding more items within the present range of the line. A) product mixing B) interactive marketing C) product line filling D) co-branding E) service marketing

43) Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitve advantage through superior ________. A) customer value B) customer service C) employee value D) employee service E) target locations

A) customer value

70) Expanding the total market, protecting market share, and expanding market share are all strategies for ________. A) market leaders B) market challengers C) market followers D) market nichers E) market providers

A) market leaders

26) Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. A) customer value analysis B) competitive customer analysis C) power analysis D) advertising specialty analysis E) benchmarking

A) customer value analysis

A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies that maker or seller of a product or service. A) service B) brand C) co-branding D) internal marketing E) external marketing

All of the following are methods for developing a differentiated service delivery EXCEPT which one? A) having more capable customer-contact people B) developing a superior environment in which the service is offered C) having more reliable customer-contact people D) developing symbols and branding E) designing a superior delivery process

132) Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products. The company has developed a differentiation strategy based on ________. A) people B) image C) channels D) services E) positioning

B) image

82) Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a ________. The challenger observes what has made the leader successful and improves upon it. A) "competitor myopia" B) "second mover advantage" C) "strategic sweet spot" D) "blue ocean strategy" E) "red ocean strategy"

B) "second mover advantage"

1) ________ is the amount of money charged for a product or service. A) Experience curve B) Demand curve C) Price D) Wage E) Salary

C) Price

32) A company's close competitors are ________. A) considered "bad" competitors B) those that least resemble the company's operation C) those that most resemble the company's operations D) not a threat E) the sole focus of all successful companies

C) those that most resemble the company's operations

66) Which of the following is the opposite of FOB-origin pricing? A) basing-point pricing B) freight-absorption pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

C) uniform-delivered pricing

Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has high brand ________. A) extension B) equity C) licensing D) service E) evidence

73) To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________. A) hire and train new employees B) evaluate current employees C) run smaller companies out of business, causing them to sell out to larger companies D) try to expand their market share further, even if market size remains constant E) shut down current company locations and reopen in highly populated areas

D) try to expand their market share further, even if market size remains constant

24) Which of the following statements about a break-even chart is true? A) It is used to determine how the customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It shows the level of earnings a company has during an accounting period. D) It is a tool marketers use to examine the relationship between supply and demand. E) It uses variable costs, the unit price, and fixed costs.

E) It uses variable costs, the unit price, and fixed costs.

For a fee, some companies ________ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name. A) service B) license C) market D) package E) brand

79)t or f: At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented mission.

false

80)t or f: "At Nike, we sell shoes" is a market-oriented business definition.

false

80)t or f: When backed by buying power, needs become wants.

false

82)t or f: The primary activity in strategic planning is goal setting.

false

The major product line decision involves ________. A) line stretching B) moving the line upward or downward C) product line filling D) product line length E) product packaging

When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable servicewhich even allows customers to hand-select their own cuts of meat________ is/are are evident. A) only an actual product B) only an augmented product C) only a core benefit D) both a core benefit and an actual product E) a core benefit, an actual product, and an augmented product

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Line extensions B) Services C) Brands D) Consumer products E) Supplements

101) Of the different types of buying situations, the modified rebuy presents the fewest decisions for a business buyer to make.

false

102)t or f: ) Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a marketing force.

false

t or f: 99) Mass marketing is becoming the marketing principle for the 21st century.

false

t or f: 100) Buyer and seller are less dependent upon each other in the business buying process than in the consumer buying process.

false

t or f: 96) Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.

false

100)t or f: Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.

true

t or f: 97) Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

true

95)t or f: A company with limited resources would likely decide to serve all segments of a market.

false

95)t or f: In its broadest sense, customer relationship management (CRM) is a customer data management activity.

false

t or f: 80) Online social networks represent an important form of buzz for marketers.

true

98)t or f: Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

false

4) Marketing stimuli consist of the four Ps. Which is NOT one of these Ps? A) product B) politics C) price D) promotion E) place

B) politics

98)t or f: In the four Ps of the marketing mix, promotion refers solely to advertising.

false

99)t or f: A customer-centered organization seeks to maximize customer satisfaction.

false

99)t or f: One valid criticism of the four Ps concept is that services are not considered.

false

105) The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery.

true

105)t or f: The final step in the marketing control process is taking corrective action to erase any gaps between goals and performance.

true

76)t or f: ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.

true

59) Marketers describe the way the consumer processes information to arrive at brand choices as ________. A) alternative evaluation B) information search C) purchase decision D) situational factors E) post-purchase dissonance

A) alternative evaluation

100) All of the below choices are evolving company orientations EXCEPT? A) central-orientation B) competitor-orientation C) customer-orientation D) product orientation E) market-orientation

A) central-orientation

40) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences

A) external factors

9) It is most accurate to say that marketers are always trying to spot ________ in order to discover new products that might be wanted. A) lifestyles B) cultural shifts C) groups D) dissonance E) attitudes

B) cultural shifts

25) A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns. A) strong B) mediocre C) weak D) distant E) smaller

A) strong

7) ________ are human needs as shaped by individual personality and culture. A) Deprivations B) Wants C) Demands D) Values E) Exchanges

B)wants

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) convenience product E) product bandwidth

A company has four choices when it comes to developing brands. Which is NOT one of those choices? A) line extension B) brand extension C) multibrands D) width and depth extension E) new brands

A key element in a company's relationship with consumers, a ________ represents consumers' perceptions and feelings about a product and its performance. A) product line B) product experience C) brand D) service E) product attribute

A manager of a Holiday Inn said, "We have power and value in the market and people are willing to pay for it." This manager is referring to ________. A) social marketing B) brand equity C) specialty products D) line filling E) product length

41) The marketing concept is best thought of as which of the following? A) a guiding philosophy for the company's marketing strategy B) a specific approach to building relationships with customers, vendors, and suppliers C) the overall purpose of the company D) the position the company's product holds in customers' minds E) the organization of the company's marketing department

A) a guiding philosophy for the company's marketing strategy

An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) unsought products B) private brands C) specialty products D) service variability E) shopping products

88)t or f: A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

true

89)t or f: The marketing department alone cannot produce superior value for customers.

true

20) ________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs. A) A money-back guarantee B) Low pricing C) Good customer service D) A value proposition E) An attribute

D)a value proposition

89)t or f: The production concept and product concept are orientations that can lead to marketing myopia.

true

91)t or f: To improve its value delivery network, a company needs to examine the value chains of its suppliers and distributors.

true

93)t or f: The societal marketing concept calls on marketers to balance consumer wants and desires, company profits, and society's interest.

true

94)t or f: Product, price, place, and promotion make up the elements of a firm's marketing mix.

true

At the very least, the ________ identifies the product or brand. It might also describe several things about the product and promote the brand. A) line extension B) social marketing C) label D) specialty product E) package

27) ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats

B) Cash cows

28) The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do. A) product B) production C) selling D) equity E) marketing

E)marketing

Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) augmented B) specialty C) convenience D) shopping E) unsought

Paper, pencils, lubricants, paint, nails, and brooms are examples of ________. A) supplies B) capital items C) raw materials D) specialty products E) installations

t or f: 100) When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life-cycle stage.

true

The impossibility of a barber storing haircuts for later sale is an example of which of the following? A) service intangibility B) service inseparability C) service variability D) service perishability E) provider-customer interaction

Which of the following is NOT one of the links in the service-profit chain, linking service firm profits with employee and customer satisfaction? A) internal service quality B) evidence management C) satisfied and productive service employees D) satisfied and loyal customers E) healthy service profits and growth

Which of the following is a potential drawback of multibranding? A) Consumers may become confused about the image of the main brand. B) An overextended brand name might lose its specific meaning for consumers. C) Different product features can appeal to consumers with different buying motives. D) The company's resources may be spread over too many brands. E) The company can occupy more retail shelf space.

Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names. B) Retailers have exclusive products that cannot be purchased from competitors. C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. D) Advertising, sales, promotion, and marketing must be carefully coordinated. E) Brand equity is stabilized.

Which of the following is most likely to be seen as the major enduring asset of a company, outlasting the company's specific products and facilities? A) brands B) convenience products C) specialty products D) unsought products E) staples

t or f: 76) Today, most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

true

90)t or f:A company's value chain is only as strong as its strongest link, or most effective department.

false

92)t or f: 92) The major difference between customer-driving marketing and customer-driven marketing is that the customer-driving marketing considers only existing needs.

false

92)t or f: The image of a product in the minds of consumers is called market segmentation.

false

93)t or f: A market segment consists of consumers who respond in different ways to a given set of marketing efforts.

false

94)t or f: Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

false

105)t or f: Unlike Web 1.0 and 2.0, Web 3.0 is about connecting people with information.

false

76) t or f: Selling is managing profitable customer relationships.

false

77)t or f: Mission statements should be realistic and general in nature.

false

78)t or f: Human needs are shaped by culture and individual personality.

false

81)t or f: ) Market offerings are limited to physical products.

false

83)t or f: When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.

false

83)t or f: When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia.

false

85)t or f: More and more companies involve only upper-level management teams in strategic planning.

false

t or f: 81) Children exert little influence on family buying decisions, particularly in areas such as entertainment and food.

false

t or f: 82) Personality is a person's pattern of living as expressed in his or her psychographics.

false

t or f: 83) User status segmentation involves finding the major advantages or features people look for in the product class, the kinds of people who look for each advantage or feature, and the major brands that deliver each advantage or feature.

false

t or f: 84) LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as the segmentation approach.

false

100)t or f: The four Ps concept takes the seller's view of the market.

true

101)t or f: New communication technologies create challenges as well as advantages for marketers.

true

101)t or f: The four marketing management functions are analysis, planning, implementation, and control.

true

102) The buying center is not a fixed or formally identified unit within an organization.

true

103) Environmental, organizational, interpersonal, and individual factors all influence business buyer behavior

true

General Electric's campaign stating, "We bring good things to life" is an example of ________. A) personal marketing B) corporate image marketing C) product quality D) product line E) social marketing

Gina's Nail Salon is serious about pleasing its customers. Employees are trained to immediately and pleasantly respond to any customer complaints, and they are empowered to offer discounts and free add-ons to customers who believe they have received anything less than the best service. Gina's Nail Salon focuses on ________. A) differentiating its offer B) good service recovery C) internal marketing D) image marketing E) productivity

Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated hair. This is an example of ________. A) line filling B) social marketing C) a shopping product D) an unsought product E) people marketing

) Because service quality depends on the quality of buyer-seller interaction during the service encounter, service marketers use ________ to train employees in the art of interacting with customers to satisfy their needs. A) internal marketing B) external marketing C) interactive marketing D) service differentiation E) service productivity

) Developing a product involves defining the benefits that it will offer. These benefits are communicated and delivered by ________ such as quality, features, and style and design. A) private brands B) product attributes C) consumer products D) product mixes E) marketing tools

In assessing which new features to add to a product, a company must weigh each feature's ________ to customers versus its ________ to the company. A) cost; line extension B) cost; service C) value; cost D) service; line extension E) equity; cost

In most ________ situations, one company licenses another company's well-known brand to use in combination with its own. A) brand extension B) brand equity C) co-branding D) internal marketing E) line extension

In recent years, product safety and environmental responsibility have become major ________ concerns. A) branding B) packaging C) product mix D) service E) product line

A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) brand line C) consumer mix D) packaging mix E) line extension

A ________ involves the use of a successful brand name to launch new or modified products in a new category. A) line extension B) product line C) brand extension D) private brand E) brand symbol

A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter

A hickory rocking chair, handmade by an Amish woodcarver in northern Indiana from locally grown wood, is an example of a(n) ________. A) convenience product B) shopping product C) specialty product D) service E) augmented product

A sensational ________ may grab consumers' attention and produce pleasing aesthetics, but it does not necessarily improve a product's performance. A) design B) style C) experience D) service-profit chain E) augmented product

A stripped-down model without any extras is the starting point; a company can create a higher-level model by adding ________. A) co-brandings B) features C) product quality D) service variability E) conformance

31) Which of the following reflects the marketing concept philosophy? A) "We don't have a marketing department, we have a customer department." B) "We're in the business of making and selling superior products." C) "We build them so you can buy them." D) "When it's profits versus customers' needs, profits will always win out." E) "You won't find a better deal anywhere."

A) "We don't have a marketing department, we have a customer department."

21) Which customer question is answered by a company's value proposition? A) "Why should I buy your brand rather than a competitor's?" B) "How does your brand benefit me and society?" C) "What are the costs and benefits of your brand?" D) "What kind of experience will I have with products and services associated with this brand?" E) "What are the benefits of being a loyal consumer of your brand?"

A) "Why should I buy your brand rather than a competitor's?"

28) A company wants to find the ________ , the place where it meets customers' needs in a way that rivals can't. A) "strategic sweet spot" B) "value innovation" C) "blue ocean strategy" D) "red ocean strategy" E) "common platform"

A) "strategic sweet spot"

33) A customer's lifestyle can be measured using the AIO dimensions. What does AIO stand for? A) Activities, Interests, Opinions B) Achievement, Involvement, Organizations C) Accommodation, Investment, Orientation D) Acknowledgement, Interests, Observations E) Adoptions, Interests, Occupations

A) Activities, Interests, Opinions

6) ________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A) Competitor analysis B) Benchmarking C) Customer-centered analysis D) Market leading E) The marketing management process

A) Competitor analysis

51) ________ are subtle stimuli that influence where, when, and how a person responds to an idea. A) Cues B) Drives C) Messages D) Personalities E) Impulses

A) Cues

8) ________ is(are) the most basic cause(s) of a person's wants and behavior. A) Culture B) Brand personality C) Cognitive dissonance D) Social factors E) Selective perception

A) Culture

27) ________ is the most important consumer buying organization in society; the roles and influences of different members have been researched extensively. A) Family B) Social class C) Membership group D) Subculture E) Reference group

A) Family

12) This group of consumers tends to buy more branded, higher-quality products. and to make shopping a family event, with children having a big say in the purchase decision. In general, they are very brand loyal, and they favor companies who show special interest in them. A) Hispanic B) African American C) Asian D) mature E) gay and lesbian

A) Hispanic

31) Which of the following does NOT accurately reflect a problem with the BCG matrix approach? A) It focuses on future planning. B) It can be costly to conduct. C) It can be time consuming to implement. D) It is difficult to define SBUs and measure market share and growth. E) It focuses on classifying current businesses.

A) It focuses on future planning.

22) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Habitual buyers C) Social networkers D) Stealth marketers E) Buzz marketers

A) Opinion leaders

35) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The break-even chart D) Target costing E) Supply

A) Price elasticity

81) ________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat. A) Runner-up firms B) Market nichers C) Market followers D) Localized marketers E) Market developers

A) Runner-up firms

131) Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed? A) SWOT analysis B) business portfolio analysis C) executive summary D) marketing plan E) marketing mix

A) SWOT analysis

17) ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. A) Social classes B) Cultures C) Reference groups D) Attitudes E) Lifestyles

A) Social classes

1) ________ is the task of developing and maintaining an overall company strategy for long-run survival and growth. A) Strategic planning B) Annual market planning C) Short-term planning D) Long-range planning E) Advertising

A) Strategic planning

5) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Value-based pricing B) Target return pricing C) Variable costs D) Price elasticity E) Product image

A) Value-based pricing

13) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic

A) behavioral

55) Most attempts to target children and minority groups provide ________ to target customers. A) benefits B) education C) disadvantages D) harm E) expenses

A) benefits

121) Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called? A) benefits sought B) user status C) age and life cycle D) psychographic E) demographic

A) benefits sought

75) A problem with the rapidly expanding use of e-purchasing is that it ________. A) can erode established customer-supplier relationships B) saves less time than expected C) generates more transactions to document D) generates less cost savings than predicted E) reduces the amount of time purchasing people can spend on strategic issues

A) can erode established customer-supplier relationships

55) The final step in the marketing process is ________. A) capturing value from customers B) creating customer loyalty C) creating customer lifetime value D) understanding the marketplace E) designing a customer-driven marketing strategy

A) capturing value from customers

64) When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check. A) cash rebate B) special event price C) dealer reduction D) promotional pricing reward E) discount allowance

A) cash rebate

55) Trade or functional discounts are offered by manufacturers to which of the following? A) channel members who perform tasks that the manufacturer would otherwise have to perform B) consumers who earn a price reduction for buying in bulk C) intermediaries such as financing institutions as a cost of doing business with them D) manufacturers that agree to exclusive distribution contracts E) the government market and other organizations that require bid proposals

A) channel members who perform tasks that the manufacturer would otherwise have to perform

15) Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________. A) company history B) current profitability C) market share growth D) cash flow E) technological and service leadership

A) company history

17) The more that one firm's strategy resembles another firm's strategy, the more the two firms ________. A) compete B) join C) grow D) fail E) succeed

A) compete

17) By studying its less loyal buyers, a company can detect which brands are most ________ with its own. A) competitive B) used C) often overlooked D) similar E) complementary

A) competitive

2) To gain ________ requires delivering more value and satisfaction to target consumers than competitors do. A) competitive advantage B) competitor analysis C) benchmarking D) a market-center E) a target advantage

A) competitive advantage

60) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy

A) competitive advantage

96) A negative side of the ________ is that the company becomes too reactive. Rather than carry out its own customer relationship strategy, it bases its own moves on competitors' moves. A) competitor-centered company B) customer-centered company C) market-centered company D) dual marketing strategy E) image-centered company

A) competitor-centered company

9) Companies can identify ________ from both the industry and market point of view. A) competitors B) products C) customers D) locations E) employees

A) competitors

41) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment

A) concentrated

131) Elisandra, a marketing manager at a regional chain restaurant, has decided to create a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. A) consumer-generated marketing B) partner relationship management C) customer lifetime value D) community development around a brand E) share of customer

A) consumer-generated marketing

78) The best response to competitive threats is ________. A) continuous innovation B) a frontal attack C) an indirect attack D) to find partners E) to ignore them

A) continuous innovation

50) There will be a constant tension between the formulated side of marketing and the ________. A) creative side B) competitor side C) customer side D) overall cost leadership E) product value

A) creative side

127) Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected. A) customer delight B) customer satisfaction C) customer equity D) customer value E) customer loyalty

A) customer delight

58) When customers are willing to pay a premium to get precisely what they want and company respond quickly to satisfy customer needs, the company has achieved what is called ________. A) customer intimacy B) employee intimacy C) operational excellence D) promotional intimacy E) marketing intelligence

A) customer intimacy

75) Which of the following is NOT a customer-centered measure of marketing impact? A) customer management B) customer acquisition C) customer equity D) customer retention E) customer lifetime value

A) customer management

130) Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year. Dekko is using ________. A) customer profitability analysis B) customer-managed relationships C) a club marketing program D) partner relationship management E) supply chain management

A) customer profitability analysis

38) Of the following, which is the most important concept of modern marketing? A) customer relationship management B) e-mail advertising C) mass marketing D) properly trained sales people E) low prices

A) customer relationship management

40) Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers? A) customer-perceived value B) customer satisfaction C) customer-perceived performance D) customer relationship management E) market segmentation

A) customer-perceived value

34) The relationship between the price charged and the resulting demand level can be shown as the ________. A) demand curve B) variable cost C) target cost D) break-even chart E) experience curve

A) demand curve

72) The social-responsibility and environmental movements are expected to ________ in the future. A) demand more from companies B) demand less from companies C) move away from sustainable marketing D) move toward partner relationship management E) move away from using social networking

A) demand more from companies

7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) lifestyle C) psychographic D) behavioral E) geographic

A) demographic

130) Environmental Service Company wants to practice effective positioning. To do so, the owners must ________ their marketing offering to give consumers more value than the services offered by competitors. A) differentiate B) promote C) advertise D) sell E) represent

A) differentiate

In the competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in print promotions. A) national; manufacturer's B) store; private C) national; private D) store; licensed E) private; distributor

135) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and it allows suppliers to send new-product information directly to Pace retailers. In this scenario, Pace Hardware is using a(n) ________. A) extranet B) intranet C) search engine D) trading exchange E) reverse auction

A) extranet

15) Costs that do not vary with production or sales level are referred to as ________ costs. A) fixed B) variable C) target D) total E) unit

A) fixed

17) Rent, electricity, and executive salaries are examples of ________ costs. A) fixed B) variable C) total D) accumulated E) marketing

A) fixed

86) Many firms prefer to ________ rather than ________ the leader. A) follow; challenge B) challenge; follow C) challenge; support D) support; challenge E) follow; support

A) follow; challenge

68) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is. A) formalized B) creative C) relationship-oriented D) independent E) concentrated

A) formalized

46) Frequent flyer programs offered by airlines are an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) consumer-generated marketing program E) structural benefit provided for top customers

A) frequency marketing program

5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image

A) geographic

30) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. A) harvesting; divesting B) promoting; selling C) downsizing; expanding D) diversifying; penetrating E) developing; growing

A) harvesting; divesting

61) The ultimate aim of customer relationship management is to produce ________. A) high customer equity B) high current market share C) steady sales volume D) a reliable database E) satisfied customers

A) high customer equity

63) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) company D) reputation E) subliminal

A) image

128) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong? A) innovator B) early adopter C) early majority D) late majority E) laggards

A) innovator

22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation

A) intermarket segmentation

66) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing

A) its value proposition

132) Busch Stadium in St. Louis charges different prices for seats in different areas of the ballpark, even though their costs are the same. What is this form of pricing called? A) location-based B) skimming C) product-form D) time-based E) penetration

A) location-based

68) A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________. A) market follower B) direct marketer C) market challenger D) market nicher E) market leader

A) market follower

72) The ________ usually leads the other firms in price changes, new product introductions, distribution coverage, and promotion spending. A) market leader B) direct leader C) market challenger D) target leader E) market nicher

A) market leader

88) Almost every industry includes firms that specialize in serving target subsegments called ________. A) market niches B) benchmarkers C) customer databases D) hotbox markets E) local markets

A) market niches

126) Paul Pendergraff is evaluating each market segment's attractiveness and is in the process of selecting one or more segments for his firm's product to enter. What is Paul doing? A) market targeting B) marketing segmenting C) marketing D) market positioning E) market penetrating

A) market targeting

9) A ________ defines a business in terms of satisfying basic customer needs. A) market-oriented mission statement B) product-oriented mission statement C) technology-oriented mission statement D) environment-oriented mission statement E) strategic plan

A) market-oriented mission statement

33) Which department in a company carries the primary responsibility for achieving profitable growth? A) marketing B) finance C) operations D) human resources E) management

A) marketing

134) Peter Cramer is constantly involved in evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained. Peter's current work is most accurately classified as ________. A) marketing control B) marketing planning C) strategic planning D) tactical planning E) strategic control

A) marketing control

67) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________. A) marketing control B) strategic control C) operating control D) developmental control E) efficiency

A) marketing control

23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable

A) measurable

132) You call in a department manager to assist in a purchase of industrial equipment. You are considering a change in product specifications, terms, and possibly suppliers. This is most likely a ________ situation. A) modified rebuy B) new task C) straight rebuy D) solution selling E) value analysis

A) modified rebuy

73) The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships

A) monopolies

56) When the economy tightens, customer loyalty and customer retention become ________ for marketers. A) more important B) less important C) impossible D) long-term but not short-term goals E) short-term but not long-term goals

A) more important

68) What competitive positioning strategy can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing

A) more-for-the-same

94) The market niche may dry up, or it might grow to the point that it attracts larger competitors. That is why many companies practice ________. A) multiple niching B) single niching C) specific niching D) service niching E) market niching

A) multiple niching

56) The buying process starts with ________, in which the buyer recognizes a problem or need. A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) separation of needs and wants

A) need recognition

57) Wal-Mart, Washington Mutual, and Southwest Airlines serve customers who want reliable, good-quality products or services, but who want them cheaply and easily. They are all known for pursuing a value discipline known as ________. A) operational excellence B) customer intimacy C) middle-of-the-road D) product leadership E) marketing insight

A) operational excellence

52) Wal-Mart, Texas Instruments, and Dell all achieve the lowest production and distribution costs to win a large market share. They utilize a(n) ________ strategy very effectively. A) overall cost leadership B) differentiation C) focus D) operational E) customer intimacy

A) overall cost leadership

52) Partner relationship management focuses on working with ________ to bring more value to customers. A) partners inside and outside of the company B) competitors C) consumers D) interest groups E) all of the above

A) partners inside and outside of the company

62) The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. A) perceived performance B) brand personality C) recognition D) consumer market E) service quality

A) perceived performance

10) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived value B) value-based C) variable D) demand curve E) price-floor

A) perceived value

29) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. A) personal characteristics B) reference groups C) perceptions D) attitudes E) psychographics

A) personal characteristics

54) Jill Reno has researched new markets and has decided which segments to enter. Next she should decide what ________ her company should occupy in those segments. A) position B) place C) rank D) rating E) percentage of space

A) position

74) What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) responsible target marketing

A) positioning statement

58) In the marketing management functions, a SWOT analysis should ________ a marketing plan. A) precede B) coincide with C) follow D) evaluate E) take priority over

A) precede

44) A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) price skimming B) trial pricing C) value pricing D) market-penetration pricing E) prestige pricing

A) price skimming

133) Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the business buying process when he decided to replace his old coops? A) problem recognition B) general need description C) product specification D) product value analysis E) performance review

A) problem recognition

56) In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________. A) product B) price C) promotion D) place E) position

A) product

118) Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________. A) product concept B) production concept C) selling concept D) marketing concept E) societal marketing concept

A) product concept

126) When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________. A) product line pricing B) market-skimming pricing C) market-penetration pricing D) break-even pricing E) target return pricing

A) product line pricing

119) Segmenting voters as either democrats or republicans is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) A and D

A) psychographic segmentation

120) In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores. This is an example of what type of market? A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialist

A) pure competition

31) Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) anti-trust agreements

A) pure competition

24) In the Boston Consulting Group approach, ________ serve(s) as a measure of company strength in the market. A) relative market share B) SBUs C) cash cows D) market growth rate E) market segmentation

A) relative market share

39) A company should set prices that will allow ________ to receive a fair profit. A) resellers B) producers C) consumers D) the elderly E) competitors

A) resellers

2) Price is the only element in the marketing mix that produces ________. A) revenue B) variable costs C) expenses D) fixed costs E) stability

A) revenue

57) By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented pricing B) variable pricing C) flexible pricing D) cost-plus pricing E) reference pricing

A) segmented pricing

122) Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions about what was important to implement in their jobs. Both used the information in different ways, according to what each already believed was important. They have engaged in ________. A) selective distortion B) selective attitude C) selective retention D) selective attention E) perceptual defense

A) selective distortion

47) People forget much that they learn. They tend to retain information that supports their attitudes and beliefs. This is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) perceptual vigilance

A) selective retention

52) Most companies today enter a new market by serving a ________; if this proves successful, they ________. A) single market segment; add segments B) multitude of segments; add more segments C) few segments; add more segments D) niche; differentiate E) target market; reposition

A) single market segment; add segments

116) Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a ________. A) subculture B) social class C) social network D) life-cycle stage E) lifestyle

A) subculture

54) Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials and components to final buyers who purchase final products. A) supply chain management B) direct marketing C) partnership relationship marketing D) customized marketing E) deviated marketing

A) supply chain management

70) Which of the following is a reason for a company to raise its prices? A) to address the issue of overdemand for a product B) to win a larger share of the market C) to use excess capacity D) to boost sales volume E) to balance out decreasing costs

A) to address the issue of overdemand for a product

29) Price setting is usually determined by ________ in small companies. A) top management B) marketing departments C) sales departments D) divisional managers E) cross-functional teams

A) top management

39) According to Freud's theories, people are ________ many of the psychological forces shaping their behavior. A) unaware of B) unsure of C) aware of D) status-driven about E) socially conscious of

A) unaware of

34) Typically, developing a strong position within several market segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual

A) undifferentiated

32) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing

A) undifferentiated marketing

80) Higher shares tend to produce higher profits only when ________ fall with increased market share. A) unit costs B) higher markets C) sales D) product values E) numbers of customers

A) unit costs

15) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rate C) benefit D) behavior E) loyalty status

A) user status

123) Wal-Mart relies on sound relationships with its low-cost suppliers in order to pass low prices on to consumers. Thus, forming a ________ is crucial to Wal-Mart's success. A) value delivery network B) growth-share matrix C) customer relationship management policy D) market concept philosophy E) diversification strategy

A) value delivery network

47) A challenge for management in product line pricing is to decide on the price steps between the ________. A) various products in a line B) product mixes C) product groupings D) product lines E) various target markets

A) various products in a line

14) ________ is the set of actual and potential buyers of a product. A) A market B) An audience C) A group D) A segment E) An exchange

A)A market

17) The art and science of choosing target markets and building profitable relationships with them is called ________. A) marketing management B) positioning C) segmentation D) selling E) societal marketing

A)marketing management

24) Which of the following marketing management concepts is most closely aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer high quality, performance, and innovative features? A) product B) production C) customer D) marketing E) promotion

A)product

22) Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept

A)production concept

All of the following are a manufacturer's sponsorship options for a product EXCEPT ________. A) manufacturers' brand B) multibrands C) private brand D) licensed brand E) co-branding

An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented? A) line extension B) brand extension C) multibranding D) new brands E) rebranding

12) Which of the following is NOT a market-oriented business definition? A) "to provide a global trading platform where practically anyone can trade practically anything" B) "to sell tools and home repair and improvement items" C) "to deliver low prices every day" D) "to be the guardian of our customers' financial dreams" E) "to bring inspiration and innovation to every athlete in the world"

B) "to sell tools and home repair and improvement items"

118) A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.00. How many units must they produce and sell to break even? A) 20,000 B) 25,000 C) 40,000 D) 50,000 E) not enough information to calculate

B) 25,000

132) Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis? A) A company is more able to change a threat than a weakness. B) A company is more able to change a weakness than a threat. C) A company can be more negatively affected by a weakness than by a threat. D) A company can be more negatively affected by a threat than by a weakness. E) A company can more easily identify threats than weaknesses.

B) A company is more able to change a weakness than a threat.

11) All of the following are accurate guidelines for a company's mission statement EXCEPT which one? A) A mission statement should be realistic. B) A mission statement should focus on sales or profits. C) A mission statement should fit the market environment. D) A mission statement should be specific. E) A mission statement should motivate employees.

B) A mission statement should focus on sales or profits.

14) Although more price-conscious than other segments, ________ consumers tend to be strongly motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion conscious than other ethnic groups. A) Hispanic B) African American C) mature D) Asian E) baby boomer

B) African American

21) ________ are groups to which an individual wishes to belong, as when a teenage basketball player hopes to play someday for the Los Angeles Lakers. A) Membership groups B) Aspirational groups C) Leading adopter groups D) Leisure groups E) Social class groups

B) Aspirational groups

128) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Different people want different mixes of benefits from the products they buy. C) Procter & Gamble has little competition. D) Retailers request it. E) It creates healthy competition.

B) Different people want different mixes of benefits from the products they buy.

13) ________, the fastest-growing U.S. demographic segment, now number more than 46 million. A) African Americans B) Hispanics C) Asian Americans D) Mature consumers E) Gays and lesbians

B) Hispanics

49) ________ describes changes in an individual's behavior arising from experience. A) Lifestyle B) Learning C) Perception D) Cognitive dissonance E) Aggressiveness

B) Learning

67) ________ are those runner-up firms that are working to increase its market share in an industry. A) Market leaders B) Market challengers C) Market followers D) Market analyzers E) Market nichers

B) Market challengers

45) ________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. A) Market-skimming B) Market-penetration C) Below-market D) Value-based E) Leader

B) Market-penetration

44) ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. A) Personality B) Perception C) Selective grouping D) Learning E) Self-actualization

B) Perception

53) ________ is the place a product occupies in the consumer's mind relative to competitors' products. A) Product placement B) Product position C) Market segmentation D) Market targeting E) Product promotion

B) Product position

62) ________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product. A) Psychological B) Reference C) Promotional D) Geographical E) Dynamic

B) Reference

41) Which statement is NOT a factor of the competitive intelligence system? A) The system identifies the vital types of competitive information needed and the best sources of this information. B) The system creates a new brand image and marketing concept. C) The system collects information from the field and from published data. D) The system checks information for validity and reliability, interprets it, and organizes it in an appropriate way. E) The system sends key information to relevant decision makers and responds to inquiries from managers about competitors.

B) The system creates a new brand image and marketing concept.

122) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do? A) They will go out of business. B) They will want to compete by undercutting Canon's price. C) They will advertise less. D) They will unbundle their products. E) They will use market-skimming pricing.

B) They will want to compete by undercutting Canon's price.

72) Which of the following is a tool for monitoring strategic marketing performance? A) a marketing plan B) a marketing dashboard C) a customer management organization D) a product differentiation E) a value delivery network

B) a marketing dashboard

124) The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) measurable B) accessible C) substantial D) actionable E) profitable

B) accessible

64) Consumers learn about new products for the first time and make the decision to buy them during the ________. A) new product recognition B) adoption process C) evaluation process D) information search E) quality assessment

B) adoption process

9) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) geographic B) age and life cycle C) psychographic D) behavioral E) usage rate

B) age and life cycle

125) Market-skimming pricing would likely be most effective in selling ________. A) any convenience item B) an electronic device for which research and development must be recouped C) shampoo and bath soap D) anything easily copied by competitors E) most items at EDLP retailers such as Wal-Mart

B) an electronic device for which research and development must be recouped

18) Business portfolio planning involves two steps: ________ and ________. A) identifying SBUs; assessing the attractiveness of SBUs B) analyzing the current business portfolio; shaping the future business portfolio C) identifying internal strengths; identifying external opportunities D) conducting a SWOT analysis; establishing marketing controls E) identifying growth opportunities; evaluating growth opportunities

B) analyzing the current business portfolio; shaping the future business portfolio

20) After management has identified the key businesses making up its company, what is the next step? A) identify businesses in which to invest B) assess the attractiveness of its SBUs C) decide whether to harvest any businesses D) complete short-range planning E) SBU identification

B) assess the attractiveness of its SBUs

53) With product bundle pricing, sellers can combine several products and offer the bundle ________. A) as a working unit B) at a reduced price C) as a complete self-service package D) as a reward to loyal customers E) as segmented pricing

B) at a reduced price

60) Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors? A) postpurchase behavior B) attitude of others C) cognitive dissonance D) alternative evaluation E) new product adoptio

B) attitude of others

50) Greater consumer control means that companies must rely more on marketing by ________ than by ________. A) interruption; involvement B) attraction; intrusion C) socialization; information D) producing; selling E) inspiration; competition

B) attraction; intrusion

128) You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers? A) full partnerships B) basic relationships C) club programs D) selective relationships E) community relationships

B) basic relationships

7) The marketer wants to understand how the stimuli are changed into responses inside the consumer's ________, which has two parts: the buyer's characteristics that influence how he or she perceives and reacts to the stimuli and the buyer's decision process itself. A) culture B) black box C) belief D) lifestyle E) social class

B) black box

24) Many companies, such as JetBlue and Sony, enlist everyday consumers who are enthusiastic about their brands to become ________ who share their passion for a company's products with large circles of friends and acquaintances in return for insider knowledge and other rewards. A) early adopters B) brand ambassadors C) direct marketers D) direct sellers E) aspirational consumers

B) brand ambassadors

62) A highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer

B) butterfly

127) The fact that a hot dog cost five times more at Disneyland than at Sam's Club is an example of ________. A) allowance pricing B) captive-product pricing C) penetration pricing D) segmented pricing E) promotional pricing

B) captive-product pricing

64) Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company B is the market ________. A) leader B) challenger C) follower D) nicher E) strategist

B) challenger

62) Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation

B) channel differentiation

53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) elderly B) child C) animal D) minority E) senior

B) child

30) Most companies will compete with ________ rather than ________. A) distant competitors; close competitors B) close competitors; distant competitors C) benchmarkers; distant competitors D) market challengers; market followers E) market challengers; market nichers

B) close competitors; distant competitors

63) Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) purchase decisions D) legitimization E) dissatisfaction

B) cognitive dissonance

25) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company's overall marketing strategy

B) competition

7) To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________. A) benchmarking B) competitor analysis C) customer value analysis D) product leadership E) continuous innovation

B) competitor analysis

95) A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships. A) customer; competitor B) competitor; customer C) market; customer D) market; competitor E) competitor; product

B) competitor; customer

47) A sound marketing strategy begins with ________. A) positioning B) customer analysis C) differentiation D) promotion E) SWOT analysis

B) customer analysis

44) Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? A) satisfied customers B) customer evangelists C) butterflies D) full partners E) social customers

B) customer evangelists

42) It is most accurate to say that a customer will buy from the company that offers the highest ________. A) value for the dollar B) customer perceived value C) level of customer satisfaction D) company image E) concern for society's interests

B) customer perceived value

46) In a visual representation of the marketing process, which of the following should appear in the center? A) sales goals B) customer relationships C) company objectives D) customer retention rates E) competitors

B) customer relationships

125) Sally purchased Brand X lotion. In comparing her perception of how the lotion performed to her expectations for Brand X lotion, Sally was measuring her level of ________. A) customer perceived value B) customer satisfaction C) exchange D) demand E) customer lifetime value

B) customer satisfaction

121) Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates customer needs even better than customers themselves do and creates products and services to meet current and future wants and demands. Marie's firm practices ________ marketing. A) customer-driven B) customer-driving C) societal D) donor E) none of the above

B) customer-driving

33) When customers don't know what they want or don't even know what's possible, the most effective strategy is ________ marketing. A) customer-driven B) customer-driving C) societal D) production E) product

B) customer-driving

32) Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more ________. A) short-term oriented B) decentralized C) limitation-free D) product-oriented E) centralized

B) decentralized

130) Kroger buys a lot of cranberry products at Christmas due to high consumer demand. This is an example of ________ demand. A) joint B) derived C) elastic D) fluctuating E) inelastic

B) derived

33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) individual D) mass E) niche

B) differentiated

67) The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A) captive pricing B) dynamic pricing C) basing-point pricing D) price bundling E) cost-plus pricing

B) dynamic pricing

4) Part two of a competitor analysis is assessing all of the following EXCEPT a company's ________. A) objectives B) employees C) strategies D) strengths and weaknesses E) reaction patterns

B) employees

47) Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising, less marketing research, more guerilla marketing, and more acting from the gut." At this point, Hirshberg was following which marketing strategy? A) formulated marketing B) entrepreneurial marketing C) innovative marketing D) exponential marketing E) intrepreneurial marketing

B) entrepreneurial marketing

125) Blake is in the process of buying a new car. He is highly involved in the purchase and perceives significant differences among his three favorite models. Blake's next step is most likely to be ________. A) postpurchase behavior B) evaluation of alternatives C) opinion leadership D) cognitive dissonance E) purchase decision

B) evaluation of alternatives

44) Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ competitive marketing strategies. A) informal B) formal C) blue ocean D) red ocean E) technical

B) formal

48) As small companies achieve success, they inevitably move toward more ________ marketing. They pore over the latest Nielsen numbers, scan market research reports, and try to fine-tune their competitve strategies and programs. A) diversified B) formulated C) entrepreneurial D) intrepreneurial E) targeted

B) formulated

11) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A) age and life cycle B) gender C) behavior D) psychographic E) geographic

B) gender

35) Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________. A) target markets B) growth opportunities C) key customers D) new products E) suppliers

B) growth opportunities

60) Consumers usually perceive higher-priced products as ________. A) not within reach of most people B) having a higher quality C) having high profit margins D) popular brands E) being in the introductory stage of the product life cycle

B) having a higher quality

56) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; where

B) how; what

12) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) benefits sought

B) income

36) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating

B) inelastic

120) A marketing research company asked members of a focus group to describe several motorcycle brands as animals. This is an example of ________. A) hierarchical need analysis B) interpretive consumer research C) status influence D) buzz marketing E) information search

B) interpretive consumer research

4) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways

B) is no single way

54) A quantity discount is a price reduction to buyers who purchase ________. A) frequently B) large volumes C) close outs D) inferior merchandise E) superior merchandise

B) large volumes

20) Companies use secondary data, personal experience, benchmarking, and word of mouth to ________. A) estimate competitors' reactions B) learn about their competitors' strengths and weaknesses C) select competitors to attack or avoid D) identify competitors' target locations E) identify competitors' target customers

B) learn about their competitors' strengths and weaknesses

44) Which of the following is the narrowest strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing

B) local marketing

16) A company that pursues ________ leadership will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's advertising increase. A) high-cost; cost reducing B) low-cost; cost reducing C) high-cost; cost inflation D) low-cost; cost structure E) mid-cost; cost inflation

B) low-cost; cost reducing

87) The market follower must keep its manufacturing costs and prices ________ or its product quality and services ________. A) stable; low B) low; high C) high; low D) fair; low E) low; fair

B) low; high

70) "Less-for-much-less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) lower quality requirements at the lowest possible price D) high quality requirements at a discounted rate E) high quality requirements at the lowest possible price

B) lower quality requirements in exchange for a lower price

16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate

B) loyalty status

12) Hallmark's Binney & Smith, maker of Crayola crayons, might define its competitors as other makers of crayons and children's drawing supplies. But from a/an ________ point of view, it would include all firms making recreational and educational products for children. A) industry B) market C) segment D) niche E) expanded

B) market

120) Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy. A) market penetration B) market development C) diversification D) harvesting E) product development

B) market development

37) Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for ________. A) market penetration B) market development C) downsizing D) diversification E) product development

B) market development

65) The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments. A) product management B) market management C) geographic management D) vertical management E) functional management

B) market management

125) Paul Pendergraff has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n) ________. A) target market B) market segment C) market D) market position E) undefined niche

B) market segment

48) The process of customer-driven marketing involves ________, ________, ________, and ________. A) product; price; promotion; adaptation B) market segmentation; market targeting; differentiation; positioning C) marketing analysis; planning; implementation; feedback D) analysis; targeting; implementation; control E) problem identification; information search; decision; implementation

B) market segmentation; market targeting; differentiation; positioning

99) When companies watch both their customers and their competitors, they are called ________. A) promotion-centered companies B) market-centered companies C) competitor-centered companies D) customer-centered companies E) analytically-centered companies

B) market-centered companies

124) Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy. A) market-skimming B) market-penetration C) zone D) discount E) captive-product

B) market-penetration

123) When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was using ________. A) marketing-skimming pricing B) market-penetration pricing C) new-product pricing D) discount pricing E) promotional allowances

B) market-penetration pricing

61) To be successful at marketing, companies must effectively turn marketing planning into ________. A) marketing analysis B) marketing implementation C) marketing control D) marketing audits E) marketing budgeting

B) marketing implementation

42) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) micro C) variable D) mass E) undifferentiated

B) micro

53) Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________. A) challenger risk-takers B) middle-of-the-roaders C) nichers D) analyzers E) overall cost leaders

B) middle-of-the-roaders

6) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) mission statement C) business portfolio D) marketing and functional strategies E) operational strategies

B) mission statement

32) Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism

B) monopolistic competition

134) When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. A) more-for-the same B) more-for-less C) same-for-less D) more-for-more E) same-for-more

B) more-for-less

72) Which difficult to sustain positioning strategy attempts to deliver the "best-of-both"? A) more-for-the-same B) more-for-less C) same-for-less D) more-for-more E) less-for-much-less

B) more-for-less

133) Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use? A) more-for-the-same B) more-for-more C) repositioning D) the-same-for-less E) more-for-less

B) more-for-more

38) A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction. A) stimulus B) motive C) culture D) perception E) tradition

B) motive

91) Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft. Yet through skillful ________, it dominates the PC mouse market, with Microsoft as its runner-up. A) employment tactics B) niching C) brand imaging D) vertical marketing E) benchmarking

B) niching

74) A church targeting different demographic groups to increase attendance is an example of ________. A) for-profit marketing B) not-for-profit marketing C) mindless marketing D) ethics in marketing E) societal marketing

B) not-for-profit marketing

30) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; offer new products E) identify behaviors; understand spending power

B) offer superior value; gain advantages over competitors

57) The text suggests that instead of thinking of selling products, marketers would be wise to take the customer's view and think of ________. A) providing convenience B) offering solutions to problems C) initiating two-way communication D) offering discounts E) connecting services and products

B) offering solutions to problems

69) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing C) mass media marketing D) social marketing E) word-of-mouth marketing

B) online marketing

70) Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________. A) marketing control B) operating control C) strategic control D) anticipatory control E) a marketing audit

B) operating control

49) Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. A) product bundle B) optional-product C) captive-product D) by-product E) skimming

B) optional-product

131) Jaygo Food Stores hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors. Jaygo has gained a strong competitive advantage through which type of differentiation? A) image B) people C) services D) product E) channel

B) people

41) A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. A) pricing by-product B) pricing structure C) pricing loop D) pricing cycle E) pricing bundle

B) pricing structure

73) During which stage of the business buying process is a buyer most likely to conduct value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensive? A) general need recognition B) product specification C) proposal solicitation D) order-routine specification E) performance review

B) product specification

71) As part of the rapid globalization of today's economy, companies are selling more locally produced goods in international markets and ________. A) taking a local view of their industry B) purchasing more supplies abroad C) reducing competition within their industry D) downplaying concerns for social responsibility E) competing solely in traditional marketplaces

B) purchasing more supplies abroad

121) With an understanding of price elasticity, sellers should know that the less elastic the demand for their product is, the more advantageous it is for them to ________. A) drop the price B) raise the price C) leave the price where it is D) discontinue the item E) bundle the product with another product

B) raise the price

118) A shoe company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and want to wear the same shoes. The shoe company is hoping that fans of the band view the band as a ________. A) membership group B) reference group C) brand personality D) subculture E) lifestyle

B) reference group

28) A ________ consists of the activities people are expected to perform according to the persons around them. A) motive B) role C) lifestyle D) life-cycle E) tradition

B) role

129) When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount. A) functional B) seasonal C) annual D) allowance E) credit

B) seasonal

46) People tend to interpret new information in a way that will support what they already believe. This is called ________. A) selective retention B) selective distortion C) selective attitude D) selective learning E) selective perception

B) selective distortion

49) The move toward individual marketing mirrors the trend in consumer ________. A) self-imaging B) self-marketing C) customizing D) spending E) self-conceptualization

B) self-marketing

68) Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________. A) cultural preferences B) selling strategies C) regional tastes D) customer perceptions E) language barriers

B) selling strategies

58) When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. A) its value proposition B) share of customer C) target markets D) customer variety E) customer ownership

B) share of customer

20) Family is one of the ________ factors that influence consumer behavior. A) cultural B) social C) personal D) psychological E) business

B) social

135) Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long-term benefits, both educational and professional, of reading every day. This is an example of a(n) ________ campaign. A) ethical B) social marketing C) for-profit D) consumer-generated E) differentiated

B) social marketing

73) Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream scoopers in their stores, to consider individual and community welfare in their day-to-day decisions. Actions such as this by companies seizing the opportunity to do well by doing good reflects ________. A) virtual marketing B) social responsibility C) profit marketing D) marketing E) myopia

B) social responsibility

10) Marketers must be careful to guard against ________ when using age and life cycle segmentation. A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias

B) stereotyping

5) Economic, technological, and cultural forces are all ________ in the stimulus-response model of buyer behavior. A) buyer responses B) stimuli C) components of the buyer's decision process D) buyer characteristics E) buying attitudes

B) stimuli

18) General Electric and Whirlpool each produce a full line of medium-price appliances supported by good service. In contrast, Sub-Zero and Viking produce a narrower line of higher quality appliances, offer a higher level of service, and charge a premium price. The first group and second group of companies are in the same ________ group. A) leading B) strategic C) branding D) target E) industry

B) strategic

117) Kimball Gardens is a company that operates as two distinct businesses-one that sells lawn and garden products and one that markets booklets. Each business is called a ________. A) separate entity B) strategic business unit (SBU) C) matrix D) division E) business portfolio

B) strategic business unit (SBU)

48) Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. A) alternative evaluation B) subliminal C) perceptual D) innovative E) comparative

B) subliminal

59) Which of the listed choices is NOT a positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent uses of the product C) selecting an overall positioning strategy D) effectively communicating and delivering the chosen position to the market E) selecting the right competitive advantages

B) surveying frequent uses of the product

31) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market

B) target market

23) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) competition-based pricing B) target return pricing C) fixed cost D) value-based pricing E) customer-based pricing

B) target return pricing

38) Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________. A) an economic boom B) the reseller's reaction to price changes C) an economic recession D) inflation E) interest rates

B) the reseller's reaction to price changes

69) Which of the following is NOT a reason for a company to initiate a price cut? A) to boost sales B) to obtain prestige C) to dominate the market D) to relieve excess capacity E) to influence falling demand

B) to obtain prestige

74) The leading firm normally gains the most when the ________. A) rest of the market follows far behind B) total market expands C) personal communication channels expand D) integrated marketing effort expands E) major competitors enter the market

B) total market expands

125) Jolene Enterprises mass-produces an all-purpose floor cleaner, mass-distributes it, and mass-promotes it. This firm uses ________ marketing. A) segmented B) undifferentiated C) traditional D) differentiated E) none of the above

B) undifferentiated

51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized

B) undifferentiated

126) A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. A) differentiated marketing B) undifferentiated marketing C) segmented marketing D) mass customization E) concentrated marketing

B) undifferentiated marketing

39) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; desired by B) unimportant to; overlooked by C) too large; undesirable to D) unknown by; desired by E) disappointed by; geographically far from

B) unimportant to; overlooked by

129) Of the following, it is most important for marketers to develop ________ for their products. A) customer management organizations B) unique market positions C) market management organizations D) marketing ROI data E) marketing dashboards

B) unique market positions

122) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) user status B) usage rate C) benefits sought D) occasions E) psychographic

B) usage rate

66) During the economic downturn, marketers have been emphasizing the ________ of their products more than ever. A) image B) value C) personality D) safety E) uniqueness

B) value

48) When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. A) nonprice competition B) value differences C) quantity levels D) images E) strategies

B) value differences

12) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added pricing strategies C) fixed costs D) price elasticity E) image pricing

B) value-added pricing strategies

6) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) target return pricing B) value-based pricing C) variable costs D) price elasticity E) cost-based pricing

B) value-based pricing

16) Costs that vary directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) total E) unit

B) variable

51) Hotline Long Distance Service uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a per-call ________. A) fixed rate usage B) variable usage rate C) standard usage rate D) market usage rate E) fixed fee

B) variable usage rate

74) Federal legislation on price-fixing requires that sellers set their prices ________. A) based on their fixed and variable costs B) without communication with competitors C) to achieve a specified profit margin D) with the intention of putting competitors out of business E) consistently throughout a region

B) without communication with competitors

8) When backed by buying power, wants become ________. A) social needs B) demands C) physical needs D) self-esteem needs E) exchanges

B)demands

12) ________ is the act of obtaining a desired object from someone by offering something in return. A) A value proposition B) Exchange C) Bribery D) Value E) Donation

B)exchange

15) Consumer research, product development, communication, distribution, pricing, and service are all most accurately described as core ________ activities. A) exchange B) marketing C) management D) production E) customer relationship management

B)marketing

Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways? A) internal marketing B) line filling C) product mixing D) social marketing E) line mixing

38) Tomorrow's leading companies will succeed by creating "blue oceans" of uncontested market space. Such strategic moves, termed ________ , create powerful leaps in value for both the firm and its buyers, creating all new demand and rendering rivals obsolete. A) "strategic sweet spots" B) "common platforms" C) "value innovation" D) "strategic platform" E) "service nichers"

C) "value innovation"

19) ________ can be a company division, a product line within a division, or sometimes a single product or brand. A) A market B) The BCG C) An SBU D) A PLC E) A value delivery network

C) An SBU

15) ________, the most affluent U.S. demographic subculture, now have more than $450 billion in annual spending power. A) African Americans B) Hispanics C) Asian Americans D) Gen Xers E) Gays and lesbians

C) Asian Americans

51) Which of the following is an example of consumer-generated marketing? A) Toyota's presence in online communities B) Nike's Nike Plus running Web site C) BMW's use of brand-related consumer videos posted on video-sharing Web sites D) Neiman Marcus's InCircle Rewards program for its best customers E) The Lexus Covenant aimed at creating customer delight

C) BMW's use of brand-related consumer videos posted on video-sharing Web sites

13) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming

C) Cost-based

60) ________ is the total combined customer lifetime values of all the company's current and potential customers. A) Share of customer B) Customer lifetime value C) Customer equity D) Profitability E) Share of market

C) Customer equity

26) ________ that influence pricing decisions include the nature of the market and demand. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors

C) External factors

65) Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) dynamic pricing E) zone pricing

C) FOB-origin pricing

31) ________ is a person's pattern of living as expressed in his or her psychographics, including his or her activities, interests, and opinions. A) Personality B) Culture C) Lifestyle D) Motive E) Social class

C) Lifestyle

89) ________ is profitable because the needs of the target customer segment are better met than when other firms casually attempt to sell to the same segment. A) Benchmarking B) Differentiated marketing C) Market niching D) Vertical marketing E) Dynamic marketing

C) Market niching

51) ________ involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A) Market segmentation B) Product differentiation C) Market targeting D) Market mixing E) Positioning

C) Market targeting

19) Which statement is true regarding social class in the United States? A) Social class is determined primarily by income level. B) Lines between social classes in the United States are fixed and rigid. C) Social classes show distinct product preferences in clothing and automobiles. D) Wealth is more critical than education level in measuring social class. E) People are relegated to a permanent class layer in the United States.

C) Social classes show distinct product preferences in clothing and automobiles.

118) Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation? A) Old women love to shop; young women love it more! B) Most 10-year-old boys are mischievous. C) Some 70 year olds require wheelchairs; others play tennis. D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds. E) both C and D

C) Some 70 year olds require wheelchairs; others play tennis.

129) Which of the following is NOT part of the business market? A) Scott Sign Systems sells interior signs to an Alabama resort. B) A municipal government buys chemicals for its city swimming pools. C) Sue buys a gift for her mother. D) A Canadian software company buys airplane tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan. E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.

C) Sue buys a gift for her mother.

67) Which of the following statements about the Internet is most accurate? A) Companies are hesitant to use the Internet to build closer relationships with customers and marketing partners alike. B) The Internet is still in its infancy with few consumers buying products and/or services online. C) The Internet allows anytime, anywhere connections to information, entertainment, and communication. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involved a less balanced approach to online marketing than the original dot-com boom did.

C) The Internet allows anytime, anywhere connections to information, entertainment, and communication.

40) Which of the following is NOT a reason that a firm might want to abandon products or markets? A) The market environment has changed, making a product less profitable. B) The firm has entered areas in which it does not have expertise. C) The economic climate is showing signs of recovery. D) The firm has grown too fast. E) The firm has not properly researched foreign markets which it has entered.

C) The economic climate is showing signs of recovery.

46) All of the following conditions support market-penetration pricing EXCEPT which one? A) The market must be highly price sensitive. B) Production and distribution costs must fall as sales volume increases. C) The product's quality and image must support the price. D) The low price must help keep out the competition. E) A low price will produce more market growth.

C) The product's quality and image must support the price.

68) Which version of the Internet has introduced small, fast, and customizable applications that can be accessed through multifunction mobile devices? A) Web 1.0 B) Web 2.0 C) Web 3.0 D) Web 4.0 E) Web 5.0

C) Web 3.0

30) People change the goods and services they buy over time because of the two changing factors of ________. A) belief and attitude B) perception and personality C) age and life-cycle stage D) groups and learning E) family and tradition

C) age and life-cycle stage

37) A person's buying choices are influenced by four major psychological factors. Which is NOT one of these factors? A) motivation B) perception C) alternative evaluation D) learning E) beliefs

C) alternative evaluation

84) Rather than challenging head-on, the challenger can make ________ on the competitor's weaknesses or on gaps in the competitor's market coverage. A) a direct attack B) a frontal attack C) an indirect attack D) an individual attack E) a cautious attack

C) an indirect attack

23) Knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions. A) remove; decrease B) attack; increase C) attack; defend D) value; change E) decrease; defend

C) attack; defend

35) Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal. A) good competitor B) marginal competitor C) bad competitor D) market-centered competitor E) maverick competitor

C) bad competitor

53) A(n) ________ is a descriptive thought that a person has about something. A) lifestyle B) motive C) belief D) attitude E) perception

C) belief

20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate

C) benefits; buying behavior

66) An increasingly large number of firms are changing their organizational focus from ________ to ________. A) product management; functional management B) product management; geographic management C) brand management; customer relationship management D) geographic management; functional management E) global management; regional management

C) brand management; customer relationship management

35) Researchers found that a number of well-known brands tended to be strongly associated with one particular trait, such as Jeep with "ruggedness." Which of the following terms would a marketer use to describe a specific mix of human traits that may be attributed to a particular brand? A) brand perception B) product image C) brand personality D) new product E) brand equity

C) brand personality

22) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) break-even pricing D) good-value pricing E) A and C

C) break-even pricing

25) Companies who use brand ambassadors are participating in ________. A) opinion leading B) traditional marketing C) buzz marketing D) direct marketing E) values marketing

C) buzz marketing

52) When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. A) by-product B) optional-product C) captive-product D) skimming E) penetration

C) captive-product

128) Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used? A) product line pricing B) optional-product pricing C) captive-product pricing D) by-product pricing E) allowance pricing

C) captive-product pricing

29) In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars. A) dogs B) SBUs C) cash cows D) sales revenue E) overseas operations

C) cash cows

3) Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image

C) ceiling

123) The Niketown running club that organizes twice weekly evening runs for Nike customers is an example of a ________. A) frequency marketing program B) basic customer relationship C) club marketing program D) consumer-generated marketing program E) structural benefit provided for top customers

C) club marketing program

127) Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing ________. A) postpurchase culture B) selective perception C) cognitive dissonance D) purchase decision E) information evaluation

C) cognitive dissonance

40) There are specific kinds of information that companies need about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information. A) marketing information B) global network C) competitive intelligence D) marketing research E) collaborative

C) competitive intelligence

5) Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________. A) competitor analyses B) customer relationship strategies C) competitive marketing strategies D) competitive relationship strategies E) universal strategy analyses

C) competitive marketing strategies

97) A positive aspect of a ________ is that the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses. A) market-centered company B) customer-centered company C) competitor-centered company D) branding-centered company E) image-centered company

C) competitor-centered company

29) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers

C) concentrated market

7) Value-based pricing is the reverse process of ________ pricing. A) variable cost B) cost-plus C) cost-based D) good-value E) value-added

C) cost-based

19) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) value-based B) fixed cost C) cost-plus D) variable E) skimming

C) cost-plus

20) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target return pricing

C) cost-plus pricing

75) The first four steps of the marketing process focus on ________. A) understanding the market B) delivering customer service C) creating value for customers D) understanding customer demands and needs E) capturing value from customers

C) creating value for customers

126) Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________. A) company-perceived performance B) customer values C) customer expectations D) relationship levels E) company expectations

C) customer expectations

39) Building and maintaining profitable value-laden relationships with customers of a company is called ________. A) customer lifetime value B) customer perceived value C) customer relationship management D) database marketing E) societal marketing

C) customer relationship management

1) Which of the following is most essential to any definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit

C) customer relationships

49) The marketing world is embracing ________ because consumers can wield greater power and control in the marketplace through communication technologies. A) partner relationship management B) supply chain management C) customer-managed relationships D) market segmentation E) target marketing

C) customer-managed relationships

43) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these aforementioned benefits against the monetary and psychic costs of using the service, they are acting upon ________. A) loyalty B) relationship marketing C) customer-perceived value D) social relationships E) a societal marketing campaign

C) customer-perceived value

58) The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________. A) time-based pricing B) location pricing C) customer-segment pricing D) revenue management pricing E) generational pricing

C) customer-segment pricing

4) The first step in strategic planning is to ________. A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify a problem

C) define the company mission

116) Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a ________. A) need B) necessity C) demand D) satisfier E) transaction

C) demand

76) Market leaders can expand the market by ________, new uses, and more usage of the product. A) developing competitors B) initiating monopolistic practices C) developing new users D) developing higher standards E) initiating new rules

C) developing new users

55) Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value. A) pricing B) aligning C) differentiating D) promoting E) placing

C) differentiating

32) All of the following make up a person's lifestyle EXCEPT ________. A) AIO dimensions B) interests C) dissonance-reducing buying behavior D) opinions E) work

C) dissonance-reducing buying behavior

38) If Under Armour, the successful maker of moisture-wicking shirts and shorts, considered introducing a line of Under Armour fitness equipment, the company would be considering ________. A) marketing controls B) market development C) diversification D) market penetration E) product adaptation

C) diversification

119) The Bank of New York bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston. The Bank of New York is pursuing a ________. A) product development strategy B) downsizing strategy C) diversification strategy D) market penetration strategy E) product adaptation

C) diversification strategy

65) Not every brand difference is worth establishing and promoting. A difference is worth promoting to the extent that it satisfies all of the criteria EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) preemptive

C) divisible

134) Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________. A) promotional pricing B) cost-plus pricing C) dynamic pricing D) value pricing E) penetration pricing

C) dynamic pricing

29) If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________. A) earn lower profits; gain higher profits B) earn higher profits; lose profits C) earn higher profits; gain more market share D) lose profits; gain more market share E) lose profits; gain higher profits

C) earn higher profits; gain more market share

37) If demand changes greatly with a small change in price, we say the demand is ________. A) inelastic B) variable C) elastic D) value-based E) fixed

C) elastic

46) Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention. What stage in marketing strategy are these individuals in? A) exponential marketing B) formulated marketing C) entrepreneurial marketing D) intrepreneurial marketing E) innovative marketing

C) entrepreneurial marketing

4) Product costs set a(n) ________ to a product's price. A) demand curve B) experience curve C) floor D) ceiling E) break-even cost

C) floor

83) The market challenger may launch a full ________, matching the competitor's product, advertising, price, and distribution efforts. It attacks the competitor's strengths rather than its weaknesses. A) indirect attack B) direct attack C) frontal attack D) multiple attack E) strength attack

C) frontal attack

71) Which of the following are market challenger strategies? A) expand total market and protect market share B) expand market share and follow closely C) full frontal attack and indirect attack D) follow closely and follow at a distance E) by customer, market, quality-price, service and multiple niching

C) full frontal attack and indirect attack

117) When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic factors B) political and legal factors C) geographic location D) benefits sought E) demographics

C) geographic location

70) It is most accurate to say that today almost every company, small and large, is affected in some way by which of the following? A) the societal marketing concept B) customer relationship management C) global competition D) not-for-profit marketing E) customer-generated marketing

C) global competition

61) Consumers use price less to judge the quality of a product when they ________. A) lack information B) lack skills to use the product C) have experience with the product D) are shopping for a specialty item E) cannot physically examine the product

C) have experience with the product

90) Whereas the mass marketer achieves ________, the nicher achieves ________. A) low margins; low volume B) low volume; high margins C) high volume; high margins D) high volume; low margins E) high margins; high volume

C) high volume; high margins

66) As compared to consumer markets, business markets are ________. A) approximately the same B) smaller C) huge D) somewhat larger E) less complex

C) huge

75) Price discrimination is legal under which of the following conditions? A) when a manufacturer and reseller have agreed upon a specified retail price for a product B) when a manufacturer sells to retailers in different markets C) if a seller can prove its costs per unit are different when selling to different retailers D) if a seller advertises prices that are not actually available to consumers E) if a seller has not communicated with competitors before announcing prices

C) if a seller can prove its costs per unit are different when selling to different retailers

36) Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment

C) increased costs for separate marketing plans for each brand

35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions

C) increased sales; increased costs

54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. A) the elderly B) white-collar workers C) inner-city minorities D) multiple international markets E) suburban adults

C) inner-city minorities

37) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; the local market

C) large; one or a few niches

52) Applying ________, marketers can affect demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. A) subliminal advertising B) social classes C) learning theory D) need recognition E) cognitive dissonance

C) learning theory

119) There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This change in ________ is one of the reasons the number of farmers markets in the United States has increased by 70 percent in the last eight years. A) life-cycle stage B) subculture C) lifestyle D) personality E) life cycle

C) lifestyle

47) When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing

C) local marketing

34) The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. A) short-run costs and profits B) short-run ethics C) long-run welfare D) immediate health E) value propositions

C) long-run welfare

50) It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product. A) low; low markups B) high; low markups C) low; high markups D) high; high markups E) moderately; moderate markups

C) low; high markups

45) Which of the following strategies would a company most likely use to increase customer satisfaction? A) decreasing variety of services offered B) lengthening the supply chain C) lowering prices D) "firing" unprofitable customers E) limiting experiences with a brand

C) lowering prices

71) When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price. A) reduce its production costs B) reduce its marketing costs C) maintain its current price and profit margin D) increase its marketing budget to raise the perceived value of its product E) increase its production costs to improve the quality of the product

C) maintain its current price and profit margin

8) Companies can identify competitors from a ________ point of view. Here they define competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group. A) customer's B) market nicher's C) market D) database E) industry

C) market

63) Most of the market is in the hands of the ________, the firm with the largest market share. A) market challenger B) market follower C) market leader D) market nicher E) market analyzer

C) market leader

22) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market or industry growth rate; market or industry attractiveness C) market or industry attractiveness; strength of the SBU's position D) market growth rate; profits E) market penetration; market development

C) market or industry attractiveness; strength of the SBU's position

36) Making more sales without changing a firm's products is ________. A) market development B) market growth C) market penetration D) product development E) market attractiveness

C) market penetration

128) Saturn is "a different kind of company, a different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's ________. A) product portfolio B) target markets C) market positioning D) strategy E) market niche

C) market positioning

50) For Hyundai Corporation, customers who care primarily about the price of a car and its operating economy make up one ________. A) market position B) value network C) market segment D) customer extension E) value chain

C) market segment

2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence

C) market segmentation, targeting, differentiation, and positioning

1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation

C) market targeting

42) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. A) market-level pricing B) market-competitive pricing C) market-skimming pricing D) market-price lining E) market-price filling

C) market-skimming pricing

37) The set of marketing tools a firm uses to implement its marketing strategy is called the ________. A) promotion mix B) product mix C) marketing mix D) TQM E) marketing effort

C) marketing mix

48) When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________. A) concentrated marketing B) mass marketing C) mass customization D) undifferentiated marketing E) localization

C) mass customization

129) Pete Sanchez, a recent graduate of business school, has a different approach than his marketing manager, who believes in keeping customers at arm's length and using mass media advertising. Pete knows that today few successful firms still practice this type of true ________ and are instead turning to selective relationship management. A) club marketing B) frequency marketing C) mass marketing D) customer satisfaction E) marketing segmenting

C) mass marketing

54) Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________. A) nichers B) challenger risk-takers C) middle-of the roaders D) differentiated E) formulated

C) middle-of the roaders

40) The term ________ refers to qualitative research designed to probe consumers' hidden, subconscious motivations. A) perception analysis B) neuromarketing research C) motivation research D) need recognition investigation E) depth research technique

C) motivation research

18) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing

C) multiple segmentation bases

69) Which business buying situation is the marketer's greatest opportunity and challenge? A) modified rebuy B) straight rebuy C) new task D) multiple rebuys E) system rebuy

C) new task

14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) demographic B) psychographic C) occasion D) impulse E) emergency

C) occasion

33) Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) capitalism

C) oligopolistic competition

40) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors

C) on the Internet

56) When a company provides superior value by leading its industry in price and convenience, it has obtained what is called ________. A) product leadership B) employee excellence C) operational excellence D) employee intimacy E) cost leadership

C) operational excellence

117) Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and her advice is often followed. Rashmi is an example of a(n) ________. A) membership group B) innovator C) opinion leader D) buzz marketer E) experiential source

C) opinion leader

61) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) prices B) nonprice factors C) people D) customer service E) location

C) people

9) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) perceived value D) break-even pricing E) variable costs

C) perceived value

34) An industry often contains "good" and "bad" competitors. Good competitors ________. A) break all of the rules B) are nice people C) play by the rules D) dominate the market E) share their marketing strategies

C) play by the rules

16) Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________. A) defining the company's mission statement B) preparing a business portfolio C) portfolio analysis D) marketing planning E) marketing control

C) portfolio analysis

61) After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in ________. A) need recognition B) alternative evaluation C) postpurchase behavior D) product expectations E) information searches

C) postpurchase behavior

135) Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________. A) market skimming B) price-fixing C) predatory pricing D) deceptive pricing E) price confusion

C) predatory pricing

65) Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of ________. A) alternative evaluation B) dissonance-reducing buying behavior C) product characteristics that influence rate of adoption D) individual differences in innovativeness E) postpurchase behavior

C) product characteristics that influence rate of adoption

61) Nokia and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. These companies are offering what value discipline? A) operational excellence B) customer intimacy C) product leadership D) promotional innovation E) differentiation

C) product leadership

134) John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. This approach to cost reduction likely took place in the ________ stage of the business buying process. A) problem recognition B) general need description C) product specification D) supplier search E) proposal solicitation

C) product specification

28) When dealing with a ________, managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out. A) star B) dog C) question mark D) cash cow E) cat

C) question mark

69) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing

C) same-for-less

123) Juana looked at her September issue of O magazine and did not see anything of interest. After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The September issue of the magazine became quite interesting to Juana due to ________. A) subliminal messaging B) social factors C) selective attention D) the hierarchy of needs E) unconscious motivations

C) selective attention

2) All of the following are accurate descriptions of modern marketing today, EXCEPT which one? A) Marketing is the creation of value for customers. B) Marketing is managing profitable customer relationships. C) Selling and advertising are synonymous with marketing. D) Marketing involves satisfying customers' needs. E) Marketing is used by for-profit and not-for-profit organizations.

C) selling and advertising are synonyms of marketing

119) Jolene's firm believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort. Jolene's firm is practicing the ________. A) production concept B) marketing concept C) selling concept D) relationship concept E) social advertising campaign

C) selling concept

59) Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on previous purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater ________. A) value proposition B) customer ownership C) share of customer D) social network E) customer base

C) share of customer

26) Facebook.com and YouTube are examples of ________. A) buzz marketing B) opinion leaders C) social networks D) virtual worlds E) early adopters

C) social networks

64) Which of the following has been the most common consumer response to the economic downturn that began in 2008? A) spending more on luxury items B) discontinuing any spending on luxury items C) spending less and choosing products more carefully D) spending less but choosing products less carefully E) saving more but spending more on credit cards

C) spending less and choosing products more carefully

25) The BCG growth-share matrix classifies four types of SBUs. They are ________, ________, ________, and ________. A) product; price; promotion; placement B) sales; market share; price; promotion C) stars; cash cows; question marks; dogs D) planning; organizing; leading; controlling E) market penetration; market development; product development; diversification

C) stars; cash cows; question marks; dogs

42) Which of the following is NOT part of Maslow's Hierarchy of Needs? A) physiological needs B) safety needs C) stimulus needs D) self-actualization needs E) social needs

C) stimulus needs

131) You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering relatively consistent amounts of the same products with each purchase. This is an example of a ________ situation. A) modified rebuy B) new task C) straight rebuy D) solution selling E) value analysis

C) straight rebuy

135) Juanita Castro is looking at whether her company's strategies are well matched to its opportunities. Juanita is utilizing ________. A) marketing control B) operating control C) strategic control D) SWOT analysis E) marketing auditing

C) strategic control

10) Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations. A) alternative evaluations B) cognitive dissonances C) subcultures D) social classes E) occupations

C) subcultures

24) When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable

C) substantial

119) Swatch surveyed the market and identified an unserved segment of watch buyers. Using these results, they created a watch at a price consumers were willing to pay. The unorthodox order of this marketing mix decision is an example of ________. A) competition-based pricing B) cost-plus pricing C) target costing D) value-based pricing E) penetration pricing

C) target costing

34) Which of the following is a useful tool for identifying growth opportunities? A) the BCG matrix B) the business portfolio C) the product/market expansion grid D) the value chain E) the value delivery network

C) the product/market expansion grid

118) The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers may decide to ________. A) hold the pharmaceuticals division's share B) implement a harvest strategy C) use money from a cash cow to promote the pharmaceuticals division D) divest the SBU E) diversify the pharmaceutical division

C) use money from a cash cow to promote the pharmaceuticals division

67) The answer to the customer's question, "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure

C) value proposition

55) The buyer decision process consists of five stages. Which of the following is NOT one of these stages? A) need recognition B) information search C) variety-seeking buying behavior D) purchase decision E) postpurchase behavior

C) variety-seeking buying behavior

24) Most companies prefer to aim competition against ________. A) their biggest competitor B) the market leader C) weak competitors D) new competitors E) distant competitors

C) weak competitors

46) Under what circumstances would local marketing likely be the most effective? A) when pronounced differences in psychographics are present B) when pronounced differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present D) when regional demographics and lifestyles are similar E) when pronounced similarities in psychographics are present

C) when pronounced regional and local differences in demographics and lifestyles are present

1) Of the following successful marketing strategies in the past, today's Nike has learned that the most important is ________. A) creating a recognizable brand image B) having creative advertising C) building deep community with customers D) maintaining big-name endorsers E) moving into new product categories, sports, and regions of the world

C)building deep community with customers

11) When marketers set low expectations for a market offering, they are most likely to run the risk of which of the following? A) disappointing loyal customers B) decreasing customer satisfaction C) failing to attract enough customers D) failing to understand their customers' needs E) incorrectly identifying a target market

C)failing to attract enough customers

5) The ________ steps of the five-step marketing process are about understanding customers, creating customer value, and building strong customer relationships. A) first two B) first three C) first four D) last three E) last four

C)first four

30) A firm that uses the selling concept takes a(n) ________ approach. A) outside-in B) customer-driven C) inside-out D) marketing concept E) customer service

C)inside-out

3) According to management guru Peter Drucker, "The aim of marketing is to ________." A) create customer demands B) identify customer demands C) make selling unnecessary D) set realistic customer expectations E) sell products

C)making selling unnecessary

29) According to the authors of your text, the ________ concept is a "sense and respond" philosophy rather than a "make and sell" philosophy. A) product B) production C) marketing D) retailing E) societal marketing

C)marketing

13) In addition to attracting new customers and creating transactions, the goal of marketing is to ________ customers and grow the company's business. A) encourage B) entertain C) retain D) recognize E) educate

C)retain

Costco's Kirkland products are an example of a(n) ________. A) organizational brand B) support brand C) private brand D) sponsorship brand E) manufacturer's brand

14) All of the following are examples of product-oriented mission statements, EXCEPT which one? A) "At America Online, we provide online services." B) "At Disney, we run theme parks." C) "At Nike, we sell shoes." D) "At Revlon, we sell lifestyle and self-expression; success and status; memories, hopes, and dreams." E) "At Ritz-Carlton Hotels, we rent rooms."

D) "At Revlon, we sell lifestyle and self-expression; success and status; memories, hopes, and dreams."

13) Which of the following is NOT an example of a market-oriented mission statement? A) "We make the Internet buying experience fast, easy, and enjoyable." B) "We create customer connectivity anytime, anywhere." C) "We create fantasies." D) "We hold online auctions." E) "We empower customers to achieve the homes of our dreams."

D) "We hold online auctions."

37) Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________. A) "red ocean strategy" B) "strategic sweet spot" C) "common platform" D) "blue ocean strategy" E) "strategic platform"

D) "blue ocean strategy"

130) A manufacturer offers 3/10, net 30, terms to a wholesaler for a recent purchase. Under these terms, the wholesaler may deduct ________ percent if the bill is paid within ________ days. A) 10; 30 B) 10; 3 C) 3; 30 D) 3; 10 E) 7; 10

D) 3; 10

2) The consumer market is made up of which of the following? A) individuals who acquire goods or services for personal consumption B) households that purchase goods or services for personal consumption C) businesses that purchase goods and services D) A and B E) all of the above

D) A and B

21) ________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. A) Competitive advantage B) Advertising synergy C) Sales promotion D) Benchmarking E) Publicity

D) Benchmarking

43) Which of the following would NOT support a market-skimming policy for a new product? A) The product's quality and image must support its higher price. B) Enough buyers must want the products at that price. C) Competitors are not able to undercut the high price. D) Competitors can enter the market easily. E) The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.

D) Competitors can enter the market easily.

33) All of the following statements are benefits from the existence of competitors EXCEPT? A) Competitors may share the costs of market and product development. B) Competitors help legitimize new technologies. C) Competitors serve less-attractive segments or lead to more product differentiation. D) Competitors divide the target market. E) Competitors may help increase total demand.

D) Competitors divide the target market.

1) ________ is never simple, yet understanding it is the essential task of marketing management. A) Brand personality B) Consumption pioneering C) Early adoption D) Consumer buying behavior E) Understanding the difference between primary and secondary data

D) Consumer buying behavior

65) Which of the following is a true statement about the economic crisis that began in 2008? A) The economic crisis caused a short-term change in consumers' spending habits. B) The average home value increased after the stock market plunge. C) Decreasing energy prices provided consumers with unexpected savings. D) Disposable incomes decreased. E) Consumers quickly regained confidence in the economy.

D) Disposable incomes decreased.

39) ________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy. A) Market segmentation B) BCG C) Product line extension D) Downsizing E) Market redesign

D) Downsizing

11) ________ involves charging a constant low price with few or no temporary price discounts. A) High-low pricing B) Target return pricing C) Cost-plus pricing D) Everyday low pricing (EDLP) E) Penetration pricing

D) Everyday low pricing (EDLP)

43) ________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated C) Niche D) Local E) Variable

D) Local

4) ________ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. A) Selling B) Advertising C) Bartering D) Marketing E) Negotiating

D) Marketing

45) ________ is the marketing logic by which a company hopes to achieve profitable customer relationships. A) Price B) Being a low-cost operator C) A consistent product mix D) Marketing strategy E) Implementing a differentiation strategy

D) Marketing strategy

8) ________ should be market oriented and defined in terms of ________. A) Strategic plans; company needs B) Annual plans; product needs C) Long-range plans; company needs D) Mission statements; customer needs E) Objectives; customer needs

D) Mission statements; customer needs

34) ________ refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. It is usually described in traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. A) Alternative evaluations B) Belief C) Culture D) Personality E) Self-awareness

D) Personality

74) Which of the following would NOT be a useful tool for determining marketing ROI? A) a marketing dashboard B) brand awareness C) market share D) SWOT analysis E) customer lifetime value

D) SWOT analysis

71) ________ involves looking at whether a company's basic strategies are well matched to its opportunities. A) Operating control B) Market management organization C) Marketing control D) Strategic control E) Distribution

D) Strategic control

2) ________ involves adapting a firm to take advantage of opportunities in its constantly changing environment. A) Long-range planning B) Short-range planning C) Annual planning D) Strategic planning E) Environmental scanning

D) Strategic planning

75) Once it has chosen a position, a company must take strong steps to deliver and communicate that position to target consumers. Which of the following is NOT necessarily needed for a company to support its positioning strategy? A) The company's marketing mix efforts must support the positioning strategy. B) Positioning the company calls for concrete action, not just talk. C) Designing the marketing mix involves working out the strategic details of the positioning strategy. D) The company's service personnel must be highly trained and provide superior service. E) The company must deliver the position first.

D) The company's service personnel must be highly trained and provide superior service.

16) Which of the following is NOT true of mature consumers? A) The best strategy is to appeal to their active, multidimensional lives. B) They are an ideal market for "do-it-for-me" services. C) High-tech home entertainment products appeal to them. D) They place more importance on brand names and are more brand loyal than members of other age groups are. E) They are good candidates for cosmetics and personal care products.

D) They place more importance on brand names and are more brand loyal than members of other age groups are.

120) Which of the following phrases reflects the marketing concept? A) The supplier is king. B) Marketing should be viewed as hunting and not gardening. C) This is what I make, won't you please buy it? D) This is what I want, won't you please make it? E) none of the above

D) This is what I want, won't you please make it?

21) Which of the following presents the strongest reason that markup pricing generally does NOT make sense? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged.

D) This method ignores demand.

18) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs; variable; total costs B) Fixed costs; total; variable costs C) Variable costs; fixed; total costs D) Total costs; fixed; variable costs E) Break-even costs; fixed; total costs

D) Total costs; fixed; variable costs

63) The authors of your text classify customers into four relationship groups, according to the customers' profitability and projected loyalty. ________ are the customers with the highest profit potential and strong loyalty. A) Barnacles B) Strangers C) Butterflies D) True friends E) Big fish

D) True friends

14) All of the following are fundamental questions that a marketing management team considers when assessing competitors EXCEPT? A) What are competitors' objectiveswhat does each seek in the marketplace? B) What is each competitor's strategy? C) What are various competitors' strengths? D) What are various competitors' locations? E) What are various competitors' weaknesses?

D) What are various competitors' locations?

32) Customer-driven marketing is most likely to work well when ________ and when customers ________. A) a clear need exists; are difficult to identify B) customers do not know what they want; have limited budgets C) there are few competitors; are concerned about their long-run welfare D) a clear need exists; know what they want E) a want exists; cannot afford it

D) a clear need exists; know what they want

25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable

D) actionable

85) Red Bull entered the U.S. soft drinks market with a niche product: a carbonated energy drink retailing at about twice what you would pay for a Coke or Pepsi. Their product was sold in unconventional outlets not dominated by the market leaders. In this case, Red Bull was using ________ against the market leaders. A) a direct attack B) an individual attack C) a cautious attack D) an indirect attack E) a frontal attack

D) an indirect attack

8) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments B) create more easily reached segments C) do not involve stereotypes D) are easy to measure E) involve fewer attributes to consider

D) are easy to measure

54) A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. A) lifestyle B) motive C) belief D) attitude E) perception

D) attitude

134) Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? A) butterflies B) true friends C) strangers D) barnacles E) short-term customers

D) barnacles

10) When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________. A) narrowly B) realistically C) specifically D) broadly E) early

D) broadly

72) Which of the following is NOT on an effective action that a company can take to combat a competitor's price cut on a product? A) reduce price B) raise perceived value C) improve quality and increase price D) bundle products together E) launch a low-price "fighting brand"

D) bundle products together

17) The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) mission statement C) strategic plan D) business portfolio E) operational factors

D) business portfolio

6) In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer's environment? A) economic B) technological C) political D) channels E) cultural

D) channels

27) To evaluate the different market segments your company is serving, you would look at all of the following factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company culture E) company resources

D) company culture

28) Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources

D) competition with superior resources

3) The first step in initiating competitive marketing strategies is to conduct ________. A) a private screening B) a competitive advantage analysis C) management modifications D) competitor analysis E) absolute advantage processing

D) competitor analysis

11) Kodak's film business didn't suffer at the hands of direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________. A) a blue ocean strategy B) benchmarking C) competitor phobia D) competitor myopia E) marketing myopia

D) competitor myopia

127) Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies? A) undifferentiated B) differentiated C) mass D) concentrated E) geographically dispersed

D) concentrated

130) Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following does NOT apply to this type of marketing? A) one-to-one B) customized C) markets-of-one D) concentrated E) mass customization

D) concentrated

57) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers

D) consumers

58) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers

D) consumers

43) As a company's different functions work to produce value for consumers, the marketing department of a firm should take the ________ point of view. A) employees' B) managers' C) stockholders' D) consumers' E) distributors'

D) consumers'

69) When it comes to creating ________, Ritz-Carlton sets the gold standard. "It's all about providing a unique, personal, memorable experience." A) overall cost leadership B) differentiation C) focus D) customer intimacy E) product leadership

D) customer intimacy

57) Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________. A) share of customer B) market share C) profitability D) customer lifetime value E) market share maintenance

D) customer lifetime value

27) PepsiCo conducts a survey on all Coca-Cola drinkers to assess the company's strengths and weaknesses upon their target customers. PepsiCo is using a/an ________. A) innovative market analysis B) global marketing strategy C) competitive marketing strategy D) customer value analysis E) blue ocean strategy

D) customer value analysis

98) A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________. A) market-centered company B) geographic-centered company C) target-centered company D) customer-centered company E) branding-centered company

D) customer-centered company

69) Which of the following is NOT a step in the marketing control process? A) setting goals B) measuring performance C) taking corrective action D) defining the mission E) evaluating the causes of gaps between expected and actual performance

D) defining the mission

6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic

D) demographic

77) NutriSystem has typically targeted its weight loss programs toward women. Recently, however, it stepped up its efforts to attract male customers. This is an example of how the market leader ________. A) develops new competitors B) changes its products C) develops new rules D) develops new users E) challenges competition

D) develops new users

25) The product concept says that a company should ________. A) improve marketing of its best products B) market only those products with high customer appeal C) focus on the target market and make products that meet those customers' demands D) devote its energy to making continuous product improvements E) make promoting products the top priority

D) devote its energy to making continuous product improvements

26) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable

D) differentiable

50) Learning occurs through the interplay of all of the following EXCEPT ________. A) drives B) stimuli C) cues D) dissonance behavior E) reinforcement

D) dissonance behavior

21) International Drilling Company segments its foreign markets by the income levels of a country's population. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors

D) economic factors

45) Approaches to marketing strategy and practice often pass through which of the three following stages? A) formulated marketing, intrepreneurial marketing, and innovative marketing B) entrepreneurial marketing, intrepreneurial marketing, and innovative marketing C) entrepreneurial marketing, formulated marketing, and strategic marketing D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing E) innovative marketing, strategic marketing, and formulated marketing

D) entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

133) Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into different marketing activities that are headed by specialists. What type of organization is this? A) geographic B) product C) organic D) functional E) market

D) functional

122) Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is pursuing ________ as a growth strategy. A) market penetration B) product development C) demographic market development D) geographical market development E) diversification

D) geographical market development

38) It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing

D) greater knowledge of customers' needs; special reputation

41) Maslow's theory is that ________ can be arranged in a hierarchy. A) stimuli B) beliefs and attitudes C) perceptions D) human needs E) decisions

D) human needs

42) A manager who used to work for a competitor might follow that competitor closely to see what it does in the marketplace. Such a manager would be considered to be your company's ________ expert. A) market leader B) market follower C) strategy D) in-house E) technical

D) in-house

13) From a/an ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a/an ________ point of view, however, the customer really wants "thirst quenching." A) market; industry B) market; consumer's C) industry; competitive D) industry; market E) company's; consumer's

D) industry; market

124) Donna wants to buy a new coat. During the ________ stage of her purchase process she asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision

D) information search

57) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________. A) brand personality B) alternative evaluation C) postpurchase behavior D) information search E) product adoption

D) information search

123) MTV targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called ________ segmentation. A) political and legal B) cross-cultural C) cultural D) intermarket E) individual

D) intermarket

49) Companies that have been in existence for some time often lose the marketing creativity and passion that they had at the start. They now need to refresh their marketing strategies and try new approaches. This is known as ________. A) network marketing B) formulated marketing C) entrepreneurial marketing D) intrepreneurial marketing E) marketing myopia

D) intrepreneurial marketing

71) Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case, a consumer would purchase a product positioned with a ________ strategy. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing

D) less-for-much-less

23) In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness. A) relative market share B) SBUs C) cash cows D) market growth rate E) dogs

D) market growth rate

127) Favorite Memories specializes in serving market segments that major competitors overlook and ignore. Which of the following best describes Favorite Memories? A) market follower B) marketer challenger C) market seeker D) market nicher E) full market coverer

D) market nicher

66) Firms that serve small segments not being pursued by other firms are called ________. A) market followers B) direct marketers C) market challengers D) market nichers E) market leaders

D) market nichers

121) Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________. A) market development B) product development C) diversification D) market penetration E) product adaptation

D) market penetration

49) The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________. A) market targeting B) positioning C) marketing strategy D) market segmentation E) market extension

D) market segmentation

73) Which of the following measures the profits generated by investments in marketing activities? A) SWOT analysis B) marketing audits C) executive summaries D) marketing ROI E) budgets

D) marketing ROI

68) The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________. A) evaluating goals; measuring performance B) achieving goals; measuring performance C) taking corrective action; measuring performance D) measuring performance; taking corrective action E) taking corrective action; following up

D) measuring performance; taking corrective action

116) Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment." A) strategy B) market development C) business portfolio D) mission E) value-delivery network

D) mission

7) A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the 21st century, it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs." The marketing manager is most likely referring to Ford's ________. A) vision statement B) market tactics C) business portfolio D) mission statement E) business objectives

D) mission statement

75) Marketers can expand markets by discovering and promoting ________. A) subliminal points of interest B) the deficiencies of competitors C) subtle advantages of the product D) new uses of the product E) new employees

D) new uses of the product

65) Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers Company D is the market ________. A) leader B) challenger C) follower D) nicher E) strategist

D) nicher

18) What is one way that social class is NOT measured? A) occupation B) education C) income D) number of children in the family E) house type

D) number of children in the family

36) The implication suggested by strategic actions of "good competitor companies" is that they would like to shape an industry that consists of ________. A) all would-be competitors B) groups that support a democratic model of behavior C) "good" and "bad" competitors D) only well-behaved competitors E) monopolists

D) only well-behaved competitors

11) Which of the following do marketers NOT consider as an important American subculture? A) Hispanics B) African Americans C) mature consumers D) opinion leaders E) Asian Americans

D) opinion leaders

60) In a SWOT analysis, which of the following refers to factors in the external environment? A) strengths B) strategies C) weaknesses D) opportunities E) trends

D) opportunities

51) Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one. Which of the following are considered winning strategies? A) middle-of-the-roader, focus, and overall cost leadership B) focus, differentiation, and middle-of-the-roader C) overall cost leadership, differentiation, and middle-of-the-roader D) overall cost leadership, differentiation, and focus E) differentiation, operational excellence, and focus

D) overall cost leadership, differentiation, and focus

58) The information sources that are most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer. A) commercial B) public C) experimental D) personal E) social

D) personal

135) Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________. A) mission statement B) vision statement C) competitive statement D) positioning statement E) company statement

D) positioning statement

73) Which type of statement first states the product's membership in a category and then shows its point-of-difference from other members of the category? A) mission statement B) vision statement C) differentiation statement D) positioning statement E) statement of intent

D) positioning statement

27) Of the following, a company would be LEAST likely to set prices low to ________. A) prevent competition from entering the market B) stabilize the market C) create excitement for a product D) prepare for an easy exit from a market E) match a competitor

D) prepare for an easy exit from a market

72) The first step of the business buying process is ________. A) general need description B) supplier search C) proposal solicitation D) problem recognition E) order-routine specification

D) problem recognition

50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies

D) product cost

60) If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________. A) captive-product innovation B) promotional innovation C) new product innovation D) product leadership E) market leadership

D) product leadership

64) The ________ organizational format was first used by Procter and Gamble in 1929. A) functional B) market management C) geographic D) product management E) customer management

D) product management

117) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________. A) product concept B) marketing concept C) societal marketing concept D) production concept E) selling concept

D) production concept

56) When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. A) trade discount B) functional discount C) allowance D) promotional allowance E) trade credit

D) promotional allowance

63) What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) referent pricing D) promotional pricing E) dynamic pricing

D) promotional pricing

14) Fixed costs ________ as the number of units produced increases. A) decrease B) increase C) divide in half D) remain the same E) increase at a diminishing rate

D) remain the same

121) Bob's job description had been changed. The rationale for the changes made no sense to Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in ________. A) selective distortion B) selective attitude C) selective interpretation D) selective attention E) perceptual defense

D) selective attention

45) People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information to which he or she is exposed is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception

D) selective attention

43) What is the LEAST pressing in Maslow's Hierarchy of Needs? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs

D) self-actualization needs

79) Profitability increases as a business gains share relative to competitors in its ________. A) higher market B) direct market C) communication market D) served market E) valued market

D) served market

36) The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. A) human welfare B) want satisfaction C) company profits D) short-run wants E) long-term needs

D) short-run wants

35) The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer's and society's well being. A) marketing B) selling C) product D) societal marketing E) equity

D) societal marketing

122) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy. A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept

D) societal marketing concept

92) The key to successful niching is ________. A) having only a few specific customers B) buzz marketing C) follow-up D) specialization E) mass appeal of one idea

D) specialization

26) In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows

D) stars; cash cows

3) Of the following, the best starting point to understanding how consumers respond to various marketing efforts is the ________ model of a buyer's behavior. A) belief B) subculture C) generational D) stimulus-response E) societal

D) stimulus-response

19) Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. A) target B) leading C) geographic D) strategic E) competing

D) strategic

132) Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors, and distributors as partners in delivering customer value. What type of management is she practicing? A) outside partnering B) inside partnering C) marketing D) supply chain E) customer development

D) supply chain

15) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company. A) sets of strategies B) sets of tactics C) sets of product mixes D) supporting objectives E) sets of promotional tools

D) supporting objectives

116) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning

D) targeting

21) The best known product portfolio planning method was developed by ________. A) Philip Kotler B) Harvard University C) the SRI Consulting Firm D) the Boston Consulting Group E) James P. Hess

D) the Boston Consulting Group

59) When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. A) revenue management B) penetration C) skimming D) time-based E) value-added

D) time-based

131) Vac 'N' Sew will give customers $100 for a used vacuum cleaner, regardless of condition, when they purchase a new vacuum or sewing machine. This essentially reduces the price by $100. What is this type of discount called? A) functional discount B) captive-product discount C) seasonal discount D) trade-in allowance E) by-product allowance

D) trade-in allowance

47) Which of the following has NOT contributed to the deeper, more interactive nature of today's customer relationships? A) e-mail B) Web sites C) online social networks D) traditional advertising E) video sharing

D) traditional advertising

6) According to the simple five-step model of the marketing process, a company needs to ________ before designing a customer-driven marketing strategy. A) determine how to deliver superior value B) build profitable relationships with customers C) use customer relationship management to create full partnerships with key customers D) understand the marketplace and customer needs and wants E) construct key components of a marketing program

D) understand the marketplace and customer needs and wants

64) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique selling product B) unique services practice C) unique sales pitch D) unique selling proposition E) universally strategic practice

D) unique selling proposition

42) Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. A) market development B) product development C) business portfolio D) value chain E) value delivery network

D) value chain

116) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________. A) good-value pricing B) add-on pricing C) product-support pricing D) value-added pricing E) cost-based pricing

D) value-added pricing

8) With ________ pricing, price is set to match consumers' perceptions of product value. A) variable cost B) cost-plus C) cost-based D) value-based E) every day low

D) value-based

44) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. A) business model B) low-cost operator C) product mix D) value-delivery network E) problem-solver

D) value-delivery network

52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) mass market; deceptive

D) vulnerable or disadvantaged; controversial or potentially harmful

133) If Northwest Awnings charges the same price for delivery of their product to any customer that is located within the Great Lakes states, the company is using ________. A) psychological pricing B) promotional pricing C) reference pricing D) zone pricing E) uniform-delivered pricing

D) zone pricing

16) Which of the following is the most likely result of a marketing strategy that attempts to serve all customers? A) All customers will be delighted. B) Customer-perceived value will be increased. C) Customer evangelists will become unpaid salespersons for the service or product. D) Few customers will be satisfied. E) The company will likely need to follow up with a demarketing campaign.

D)few customers will be satisfied

10) ________ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs. A) Selling myopia B) Marketing management C) Value proposition D) Marketing myopia E) The product concept

D)marketing myopia

26) "Build a better mousetrap and the world will beat a path to your door" reflects the ________ concept. A) production B) marketing C) selling D) product E) target marketing

D)product

27) The ________ concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales. A) marketing B) production C) product D) selling E) societal marketing

D)selling

18) Selecting which segments of a population of customers to serve is called ________. A) market segmentation B) positioning C) customization D) target marketing E) choosing a value proposition

D)target marketing

19) Family Dollar stores profitably focusing on buyers who have relatively modest means is an example of ________. A) convenience B) value pricing C) market segmentation D) target marketing E) value packing

D)target marketing

39) An example of a company exhibiting blue-ocean thinking is ________. A) Amazon's digital music download services B) a Starbucks opening in the same vicinity of an independent coffee house C) Nike's brand image of the "swoosh" D) Whirlpool's full line of medium-price appliances supported by good service E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

E) Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

31) The following are all examples of close competitors EXCEPT ________. A) Nike and Adidas B) Wal-Mart and K-Mart C) Pepsi and Coca-Cola D) Neiman Marcus and Nordstom E) Nike and Timberland

E) Nike and Timberland

45) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are not cost-effective.

E) Supporting technologies are not cost-effective.

71) Which of the following statements about buying centers is true? A) The buying center is like a standing committee. B) The buying center roles are specified on the organizational chart. C) The typical buying center has five employees, one to assume each of the buying center's roles. D) An individual's role in the buying center does not change. E) The buying center may involve informal participants who are not obvious to sellers.

E) The buying center may involve informal participants who are not obvious to sellers.

48) Which of the following best explains why consumers have greater power and control in today's marketplace? A) The production concept and competition have lowered prices. B) Implementation of the product concept has resulted in continually improving products. C) Customer-driving marketing creates products and services that meet customers' future needs. D) More companies are implementing societal marketing and weighing long-run costs and benefits. E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

E) Through new communication technologies, customers have more access to information and more methods of sharing their opinions with other customers.

53) In today's world, marketing should be done by ________ employees in an organization. A) marketing B) marketing, sales, and customer-support C) sales and technology D) management E) all

E) all

41) To capture the full essence of customer relationship management, which of the following should a marketing manager take into consideration? A) owning customers for life B) capturing a customer's lifetime value C) building overall customer equity D) creating a sense of community surrounding a brand E) all of the above

E) all of the above

3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently B) effectively C) intensely D) indirectly E) both A and B

E) both A and B

129) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________. A) local marketing B) psychographic segmentation C) micromarketing D) demographic segmentation E) both A and C

E) both A and C

30) Price setting is usually determined by ________ in large companies. A) top management B) divisional managers C) product-line managers D) purchasing departments E) both B and C

E) both B and C

19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT which one? A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities

E) brand personalities

70) Marketers call the decision-making unit of a buying organization the ________. A) business buyer B) business-to-business market C) supplier-development center D) buying system E) buying center

E) buying center

133) At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Instead of focusing on each individual transaction, Gina and her staff put a priority on ________. A) maintaining customer-perceived value B) managing partner relationships C) attracting "butterflies" D) converting "strangers" E) capturing customer lifetime value

E) capturing customer lifetime value

22) Benchmarking has become a powerful tool for increasing a company's ________, A) brand image B) mass appeal C) employee training services D) distribution channels E) competitiveness

E) competitiveness

10) A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors. A) marketing myopia B) misdirected segmentation C) competitor synergy D) competitor phobia E) competitor myopia

E) competitor myopia

59) Nordstrom, Lexus, American Express, British Airways, and Ritz-Carlton Hotels will do almost anything to build long-term customer loyalty and to capture customer lifetime value. These companies are pursuing which of the following competitive marketing strategy? A) employee intimacy B) operational excellence C) differentiation D) product leadership E) customer intimacy

E) customer intimacy

124) You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? A) database management B) Web site hits C) the societal marketing concept D) not-for-profit marketing E) customer relationship management

E) customer relationship management

28) With target costing, marketers will first ________ and then ________. A) build the marketing mix; identify the target market B) identify the target market; build the marketing mix C) design the product; determine its cost D) use skimming pricing; use penetrating pricing E) determine a selling price; target costs to ensure that the price is met

E) determine a selling price; target costs to ensure that the price is met

74) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. A) secure extranets B) product value analysis C) vendor-managed inventory systems D) systems selling E) e-procurement

E) e-procurement

36) Brand personality is a mix of human traits attributed to a brand. Which of the following is NOT one of the five brand personality traits discussed in your text? A) sincerity B) excitement C) competence D) sophistication E) emotion

E) emotion

93) A market nicher can specialize along all of the following market, customer, product, or marketing mix lines EXCEPT? A) end users B) customer-size groups C) geographic market D) quality price E) employees

E) employees

62) Under the ________ organizational format of marketing departments, different marketing activities are headed by a specialist such as a sales manager, advertising manager, marketing research manager, or customer-service manager. A) geographic B) product management C) market management D) customer-centered E) functional

E) functional

5) Which of the following is NOT a step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) identifying the company's culture

E) identifying the company's culture

59) In a SWOT analysis, which of the following would be considered a strength? A) internal limitations B) trends in the market C) favorable factors in the environment D) factors that challenge the company's performance E) internal resources

E) internal resources

62) Which of the following is NOT an example of the competitive positions or roles that firms play in the target market? A) market leader B) market challenger C) market follower D) market nicher E) market provider

E) market provider

124) TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, and behaviors who might require separate products or marketing programs. Which of the following is this firm doing? A) market development B) market diversification C) market penetration D) market targeting E) market segmentation

E) market segmentation

55) Companies can pursue any of the following three strategies, called value disciplines, for delivering superior customer value: A) operational excellence, overall cost leadership, and differentiation B) customer intimacy, operational excellence, and focus C) employee relations, product leadership, and overall cost leadership D) product leadership, customer intimacy, and focus E) operational excellence, customer intimacy, and product leadership

E) operational excellence, customer intimacy, and product leadership

126) Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made during the ________ stage of the purchase decision. A) information search B) situational analysis C) alternative evaluation D) purchase decision E) postpurchase behavior

E) postpurchase behavior

120) At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. A) user status B) usage rate C) benefit D) behavioral E) psychographic

E) psychographic

63) Modern marketing departments are arranged in all of the following ways, EXCEPT which one? A) functional organization B) market management organization C) product management organization D) geographic organization E) strategic management organization

E) strategic management organization

3) Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities with which it is presented. To take advantage of its changing marketing opportunities, it is most important for Starbucks to have which of the following in place? A) value-delivery network B) mission statement C) supporting objectives D) profit analysis E) strategic plan

E) strategic plan

117) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________. A) value-based pricing B) going-rate pricing C) cost-plus pricing D) low-price image E) target return pricing

E) target return pricing

9) Which of the following is an example of a type of market offering? A) persons B) ideas C) information D) experiences E) all of the above

E)all of the above

23) Which of the following marketing management concepts is most likely to lead to marketing myopia? A) customer-driven marketing B) customer-driving marketing C) societal marketing D) selling E) product

E)product

Each new iPod product introduction advances the causes of democratizing technology and approachable innovation. iPod, an expert at fostering customer community, has been ranked one of the Breakaway Brands by the brand consultancy Landor Associates. iPod is positioned on ________. A) attributes B) benefits C) variation D) selection E) beliefs and values

Major brand marketers often spend huge amounts on advertising to create brand ________ and to build preference and loyalty. A) extension B) awareness C) packaging D) internal marketing E) franchising

Many companies now use a combination of phone, e-mail, fax, Internet, and other technologies to provide ________. A) labeling information B) brand equity C) support services D) packaging advantages E) product mixes

Most manufactured materials and parts are sold directly to ________. Price and service are the major marketing factors; branding and advertising tend to be less important. A) consumers B) industrial users C) government buyers D) co-branders E) wholesalers

Product is a key element in a company's ________, which may, at one extreme, consist of pure tangible goods or, at the other extreme, pure services. A) market offering B) brand equity C) brand extension D) co-branding E) core customer value

Product mix ________ refers to the number of different product lines the company carries. Procter & Gamble markets 250 brands organized into many product lines. A) length B) height C) width D) perimeter E) depth

Product mix ________ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations. A) length B) depth C) height D) width E) perimeter

Product planners consider products and services on three levels. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange

Products and services fall into two broad classifications based on the types of consumers that use them. Which of the following is one of these broad classes? A) industrial products B) specialty products C) supplies and services D) materials and parts E) convenience products

Public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are all examples of ________. A) specialty products B) social marketing C) shopping products D) consumer products E) responsibility marketing

Service providers must consider four special service characteristics when designing marketing programs. Which is NOT one of these characteristics? A) service intangibility B) service inseparability C) service perishability D) service heterogeneity E) service variabilityc

The Ad Council of America has developed dozens of ________ marketing campaigns, including classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can Prevent Forest Fires." A) social B) brand equity C) service D) product line E) place

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) depth B) length C) width D) consistency E) perimeter

The ________ requires sellers to provide detailed nutritional information on food products. A) Fair Packaging and Labeling Act of 1966 B) Nutritional Labeling and Educational Act of 1990 C) Labeling Act of 1970 D) Packaging Act of 1970 E) Federal Trade Commission Act of 1914

The fundamental asset underlying brand equity is ________-the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers. A) the customer mix B) customer equity C) line equity D) service variability E) the service encounter

The strongest brands go beyond attributes or benefit positioning; they are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) customer image

The third level of a product that product planners consider is a(n) ________ around the core benefit and actual product that offers additional consumer services and benefits. A) augmented product B) brand equity C) brand extension D) industrial product E) image

The total financial value of a brand is estimated through the process of brand ________. A) differentiation B) valuation C) extensions D) positioning E) equity

Through ________, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. A) service inseparability B) service intangibility C) service variability D) internal marketing E) external marketing

To achieve their social change objectives, social marketing programs ________. A) utilize only the promotional P of the marketing mix B) utilize only the promotional and product Ps of the marketing mix C) work to influence individuals' behavior to improve their well-being D) utilize all of the Ps in the marketing mix E) C and D

To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customer ________. A) feedback B) experiences C) brands D) product lines E) events

What are the two dimensions of product quality? A) performance and resistance B) level and consistency C) conformance and style D) design and innovation E) features and design

Which of the following capital items is NOT considered accessory equipment? A) buildings B) hand tools C) lift trucks D) desks E) chairs

Which of the following does NOT belong to the materials and parts group of industrial products? A) farm products such as wheat B) natural products such as iron ore C) repair and maintenance items D) petroleum E) lumber

Which of the following is NOT a desirable quality for a brand name? A) It should suggest something about the product's benefits and qualities. B) It should be easy to pronounce, recognize, and remember. C) The name should be a long word to get attention. D) The name should translate easily into foreign languages. E) It should be distinctive.

Which of the following is NOT one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand differentiation B) brand knowledge C) brand valuation D) brand esteem E) brand relevance

Which of the following is the MOST important for product designers to consider as they develop a product? A) which product features can be added to create higher-level models B) how the product appears C) what the product's technical specifications are D) how customers will use and benefit from the product E) how the product is packaged to attract spontaneous purchases

Which of the following is the lowest level on which marketers can position their brands in target customers' minds? A) interactive marketing B) internal marketing C) product attributes D) strong beliefs and values E) added service

Which of the following is/are examples of product mix depth? A) hamburger and cheeseburger B) hamburger and ice cream C) Coke and Diet Coke D) A and C E) all of the above

Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance? A) positioning B) style C) total quality management D) conformance E) adherence

Which strategy involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories? A) megabrand B) service inseparability C) social marketing D) unsought product E) undifferentiated

While advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference, brands are not maintained by advertising but by ________. A) marketing experience B) line extensions C) brand experience D) product mix E) word-of-mouth elements

You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) ________ product. A) unsought B) convenience C) augmented D) shopping E) specialty

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. A) Specialty products B) Line extensions C) Unsought products D) Shopping products E) Convenience products

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. A) Materials B) Parts C) Capital items D) Specialty items E) Supplies

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products. A) Shopping products B) Convenience products C) Unsought products D) Industrial products E) Line extensions

________ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products. A) Services B) Consumer products C) Line extensions D) Industrial products E) Straight extensions

________ are those products purchased for further processing or for use in conducting a business. A) Unsought products B) Specialty products C) Shopping products D) Industrial products E) Accessories

________ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. A) Corporate image advertising B) Organization marketing C) Person marketing D) Social marketing E) Intermarket marketing

________ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. A) Person marketing B) Organization marketing C) Internal marketing D) Service variability E) Intelligence marketing

________ contributes to a product's usefulness as well as to its looks. A) Style B) Design C) Package D) Brand E) Functionality

________ has been affected by the need to include unit pricing, open dating, and nutritional information. A) Branding B) Packaging C) Labeling D) Product line filling E) Product mixing

________ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions. A) Idea marketing B) Place marketing C) Social marketing D) Interactive marketing E) Organization marketing

________ involves designing and producing the container or wrapper for a product. A) Packaging B) Product line C) Service D) Branding E) Labeling

________ is an approach in which all the company's people are involved in constantly improving the products, services, and business processes. A) Product quality B) Brand equity C) Total quality management D) Specialty product marketing E) Positioning

________ is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society. A) Unsought product marketing B) Internal marketing C) Social marketing D) Person marketing E) Interactive marketing

________ is one of the marketer's major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction. A) Packaging B) Product quality C) Total quality management D) Specialty marketing E) Positioning

________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. A) Service inseparability B) Service variability C) Service intangibility D) Service perishability E) Service heterogeneity

________ means that services cannot be separated from their providers, whether the providers are people or machines. A) Service intangibility B) Service inseparability C) Service variability D) Service perishability E) Service heterogeneity

________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) A line extension B) A product mix C) Interactive marketing D) Service variability E) Service intangibility

________ occurs when two established brand names of different companies are used on the same product. A) A brand extension B) Brand equity C) Co-branding D) Internal marketing E) Cannibalization

103)t or f: Through annual marketing planning, the company decides what it wants to do with each business unit.

false

104) In the supplier search stage of the business buying process, the buyer ranks the importance of reliability, price, and other desired characteristics in the product.

false

104)t or f: ) It is cheaper for a company to acquire new customers than to maintain relationships with current customers.

false

84)to or f: In the BCG matrix, "dogs" by definition are businesses and products that do not generate enough cash to maintain themselves.

false

85)t or f: Only sellers of products, services, and ideas practice marketing, whereas buyers do not.

false

86)t or f: ) Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization.

false

87)t or f: ) Marketing management is interested in serving all customers in every way to remain competitive in today's markets.

false

87)t or f: The growth strategy of diversification involves offering modified or new products to current markets.

false

90)t or f: Amy's law office has developed a new format and wording for wills. The staff believes they offer the most in quality, performance, and innovative features. Her law office is practicing the production concept.

false

t or f: 102) A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributes-the place the product occupies in the retailers' minds relative to competing products.

false

t or f: 104) When Kia offers a new model of car with the same features as a comparable Toyota or Ford and provides a longer warranty, Kia is following a more-for-less strategy.

false

t or f: 76) The starting point of understanding how consumers respond to various marketing efforts is called the marketing-stimulus model of buyer behavior.

false

t or f: 77) Each social class contains groups of people with shared value systems based on common life experiences and situations.

false

t or f: 77) Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.

false

t or f: 78) Younger consumers are better off financially than mature consumers. They are the ideal market for travel, restaurants, high-tech home entertainment products, and leisure goods and services.

false

t or f: 79) Demographic segmentation uses different marketing approaches for different time periods of peoples' lives and different family situations.

false

t or f: 85) Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

false

t or f: 85) Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

false

t or f: 86) A belief is the specific mix of human traits that may be attributed to a particular brand.

false

t or f: 86) For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.

false

t or f: 88) Business and consumer marketers use the same set of variables to segment their markets.

false

t or f: 89) The majority of U.S.-based companies have developed the resources and the will to operate in multiple foreign countries.

false

t or f: 90) When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process.

false

t or f: 91) Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.

false

t or f: 91) People differ greatly in their readiness to try new products. In each product area, there are "consumption pioneers." They are also called laggards.

false

t or f: 94) The late majorities are tradition bound; they adopt an innovation only when it has become something of a tradition itself.

false

t or f: 95) In general, innovators tend to be relatively older, more mature, and have a lower income than late adopters.

false

t or f: 96) Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he knows already own the devices. However, Ed is rarely among the last people he knows to purchase a new technology. Ed is part of the laggard adopter group.

false

t or f: 98) One set of business purchases is made for each set of consumer purchases.

false

t or f: A market rarely exists for products that offer less and therefore cost less.

false

102) t or f: In SWOT analysis, strengths and weaknesses refer to a firm's internal environment, while opportunities and threats refer to the external environment.

true

103)t or f: Every functional area of an organization, not only a marketing department, can and should interact with customers.

true

104)t or f: Marketing planning is the task of selecting marketing strategies for each business, product, or brand in a company with the goal of helping the company attain its overall objectives.

true

77) t or f: The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

true

78)t or f: Mission statements should both fit the market environment and be motivating.

true

79) t or f:The difference between human needs and wants is that needs are not influenced by marketers.

true

81)t or f: A firm's mission statement should be the basis for both its business and marketing objectives.

true

82)t or f: Market offerings can include products, services, information, or experiences offered to a market to satisfy a need or want.

true

84)t or f: Marketers should look beyond the attributes of the products and services they sell to also create brand experiences for consumers.

true

86)t or f: Though companies need to grow to compete effectively and satisfy their stakeholders, growth itself should not be a company's objective.

true

88)t or f: Two important questions underlying marketing strategy are "Who is our target market?" and "What's our value proposition?"

true

91)t or f: The selling concept holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

true

96)t or f: Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.

true

96)t or f: When a company positions its product, it must first identify possible customer value differences within a market segment that could be the basis of a competitive advantage for the product.

true

97)t or f: Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

true

97)t or f: Guided by marketing strategy, the company designs a marketing mix made up of factors under its control: product, price, place, and promotion

true

t or f: 101) Most marketing targeted at children, minorities, or other special segments provides benefits to targeted consumers.

true

t or f: 103) Consumers position products in their minds in order to simplify the buying process.

true

t or f: 78) Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.

true

t or f: 80) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

true

t or f: 81) Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm would use income segmentation.

true

t or f: 82) Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.

true

t or f: 83) A person's buying choices are influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes.

true

t or f: 84) Maslow's theory is that human needs--including physiological, safety, social needs, esteem, and self-actualization needs--are arranged in a hierarchy and that an unsatisfied need motivates an individual to take action to satisfy it.

true

t or f: 87) Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.

true

t or f: 87) Consumers do not use a simple and single alternative evaluation process in all buying situations.

true

t or f: 88) After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in postpurchase behavior.

true

t or f: 90) There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.

true

t or f: 92) Early adopters are opinion leaders in their communities and adopt new ideas early but carefully.

true

t or f: 92) For market segments to be useful they must be measurable, accessible, substantial, differentiable, and actionable.

true

t or f: 93) In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

true

t or f: 93) Members of the early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person.

true

t or f: 94) At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.

true

t or f: 95) Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

true

t or f: 97) Two characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility.

true

t or f: 98) Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.

true

t or f:89) Almost all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict.

Marketing Exam

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