MKT 4451 Final (Chapters 1-15)

56) To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.

TRUE

57) Definitions of a firm's mission as well as its marketing and financial objectives are included in the marketing strategy section of the marketing plan.

TRUE

58) Most marketing plans conclude with a section that indicates how the plan will be implemented.

TRUE

61) Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

TRUE

61) The market forecast shows expected market demand, not maximum market demand.

TRUE

62) Loss leader pricing dilutes a company's brand image.

TRUE

63) A firm's branding strategy is also called the brand architecture.

TRUE

63) Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions.

TRUE

63) Permission marketing presumes that consumers know what they want.

TRUE

65) A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

TRUE

66) Advertising can build up a long-term image for a product or trigger quick sales.

TRUE

66) Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.

TRUE

67) Clubs that are open to everyone who purchases a product or service are good for building a customer database.

TRUE

67) Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

TRUE

67) In the buying center, several people can occupy a given role such as user or influencer, and one person may play multiple roles.

TRUE

68) Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.

TRUE

68) In general, personal selling is one of the most helpful tools for closing sales.

TRUE

68) Villy Custom Bicycles come in a variety of mix and match colors and styles so consumers can design their own. This is an example of personalizing the product.

TRUE

69) Cocreation can help a company create favorable word of mouth.

TRUE

69) Relationship marketing aims to build mutually satisfying long-term relationships with key parties.

TRUE

7) An example of a subculture would be a person's geographic region.

TRUE

7) Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

TRUE

7) Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.

TRUE

70) In the growth stage of a product's life cycle, demand has its own momentum through word of mouth and interactive marketing.

TRUE

70) Proponents of holistic marketing consider internal marketing to be as important as marketing to consumers.

TRUE

73) Companies sometimes initiate price cuts in an attempt to dominate the market through lower costs.

TRUE

74) The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life.

TRUE

74) The most constructive response to protecting market share is continuous innovation.

TRUE

75) A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

TRUE

75) Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

TRUE

75) Firms that can develop substitute materials for finite nonrenewable resources have an excellent opportunity.

TRUE

76) Growing the core can be a less risky alternative for growth than expansion into new product categories.

TRUE

76) Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

TRUE

34) The product-line length can be obtained by averaging the number of variants within the brand groups.

FALSE

35) If firms wish to maximize their market share, they should opt for market-skimming pricing.

FALSE

74) Consumers usually like price increases because these changes signal that an item is "hot" and represents a good value.

FALSE

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

B) Warranties

55) The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Describe the advantages that you as a consumer have today that your parents or grandparents didn't have.

-a substantial increase in buying power -a greater variety of available goods and services -a great amount of information about practically anything -greater ease in interacting and placing and receiving orders -an increased ability to compare products and services

61) Briefly list the contents of a marketing plan.

-an executive summary and table of contents -a situation analysis -marketing strategy -financial projections -implementation controls

79) Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives; importance of supply; complexity of supply; and supply market dynamism. Based on these four factors, they classified buyer-supplier relationships into eight different categories. What are those categories?

-basic buying and selling -bare bones -contractual transaction -customer supply -cooperative systems -collaborative -mutually adaptive -customer is king

51) Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

-fewer,larger buyers -close supplier-customer relationships -professional purchasing -multiple buying influences -multiple sales calls -derived demand -inelastic demand -fluctuating demand -geographically concentrated buyers -direct purchasing

44) Good mission statements are essential to being a success in business. Describe the major characteristics that good mission statements should have.

-focus on a limited number of goals -stress on the companies major policies and values -definition of the major competitive spheres within which the company will operate (ex: industry, products and applications, competence, market segment, vertical and geographical) -long term view -should be as short, memorable, and meaningful as possible

64) Briefly describe the methods of forecasting future demand.

1) Survey of buyers intentions 2) Composite of salesforce opinion 3) Expert opinion 4) Past sales analysis 5) Market test method

50) What are the six steps involved in the marketing research process?

1) define the problem and research objectives 2) develop the research plan 3) collect the information 4) analyze the information 5) present the findings 6) make the decision

38) As a consumer gathers information about purchase alternatives, the number of alternatives decreases as he advances through four sets of brands before reaching a decision. What are those four sets?

1) total set 2) awareness set 3) consideration set 4) choice set

8) What are the two basic advantages that a company's marketers have in identifying significant changes in the market?

1. They have disciplined methods for collecting information 2. They spend more time interacting with customers and observing competition

23) What are the various steps a company can take to improve the quality of its marketing intelligence function?

1. a company can train and motivate the sales force to spot and report new developments 2. a company can motivate distributors, retailers, and other intermediaries to pass along important intelligence 3. a company can hire external experts (such as mystery shoppers) to collect intelligence 4. a company can network internally and externally 5. a company can set up a customer advisory panel 6. a company can take advantage of government data resources 7. a company can purchase information from outside research firms and vendors 8. a company can use online customer feedback systems to collect competitive intelligence

49) Good marketing is the art of finding, developing, and profiting from marketing opportunities. What are the three primary methods for uncovering possible product or service improvements?

1. the problem detection method- asks consumers for their suggestions 2. the ideal method- asks consumers to imagine an ideal version of the product or service 3. the consumption chain method- asks consumers to chart their steps in acquiring, using, and disposing of a product

74) If the length of a product's downtime increases, the cost incurred decreases.

FALSE

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

A) Marketing insights

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

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

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

A) Customer relationship management

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

A) Experimental

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

A) Flanker

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

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

1) ________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption. A) Marketing channels B) Interstitials C) Communication channels D) Sales territories E) Marketing terrains

A) Marketing channels

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

A) Marketing implementation

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

A) Open-end

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

A) Perceived-value

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

A) Personalizing

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

A) Position

53) Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool? A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions. B) They incorporate an incentive that gives value to the consumer. C) Given their live, real-time quality, public relations tools are actively engaging for consumers. D) Public relations communications can be prepared to appeal to the addressed individual. E) Public relations tools create an immediate, interactive episode between two or more persons.

A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions.

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

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

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

A) The buying center

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

A) a sub-brand

32) One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.

TRUE

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

A) adaptable

2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media? A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations

A) advertising

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

A) anticipated cost inflation

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

A) average sales per point of sale

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

A) brand knowledge

28) Marketing communication strategy can be decided by conducting an image analysis, which profiles the target audience in terms of ________. A) brand knowledge B) purchase patterns C) demographic characteristics D) income levels E) psychographic characteristics

A) brand knowledge

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

A) brand knowledge

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

A) brand line

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

A) buygrid

8) Which of the following is an example of a word-of-mouth marketing communication platform? A) chat rooms B) billboards C) factory tours D) incentive programs E) trade shows

A) chat rooms

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

A) clear superiority of an attribute or benefit

11) Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models? A) cognitive stage—affective stage—behavioral stage B) affective stage—cognitive stage—behavioral stage C) behavioral stage—affective stage—cognitive stage D) cognitive stage—behavioral stage—affective stage E) affective stage—behavioral stage—cognitive stage

A) cognitive stage—affective stage—behavioral stage

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

A) consumption

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

A) core competencies

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

A) customer-focused value proposition

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

A) customer-perceived value

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

A) decampment

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

A) demand

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

A) descriptive

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

A) design

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

A) down-market stretch

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

A) elements

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

A) energized differentiation

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

A) faster

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

A) gap between perceived service and expected service

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

A) going-rate

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

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

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

A) idea generation

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

A) inconvenience

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

A) inelastic demand

40) Qualities such as candor, humor, and naturalness make a spokesperson ________, which is an important component of spokesperson credibility. A) likable B) an expert C) trustworthy D) transformational E) informational

A) likable

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

A) line extension

7) Which of the following is an example of a public relations and publicity communication platform? A) lobbying B) company museums C) street activities D) company blogs E) incentive programs

A) lobbying

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

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

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

A) market-sensing

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

A) mixed bundling

31) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need? A) normal depletion B) sensory gratification C) social approval D) intellectual stimulation E) value enhancement

A) normal depletion

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

A) owned

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

A) parity

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

A) performance

64) Which of the following is NOT one of the four important contributions an effectively trained company sales force can make to consumer marketing? A) remind end-consumers about the product B) increase stock position C) build enthusiasm D) conduct missionary selling E) manage key accounts

A) remind end-consumers about the product

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

A) points-of-difference

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

A) positioning

6) Which of the following is an example of an advertising platform? A) posters and leaflets B) company magazines C) fairs and trade shows D) sales presentations E) continuity programs

A) posters and leaflets

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

A) preemptive

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

A) presence

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

A) product-development

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

A) programs

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

A) promise

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

A) psychological repositioning

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

A) quality function deployment

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

A) reintermediation

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

A) research objectives

9) Which of the following is an example of a personal selling communication platform? A) sales presentations B) company blogs C) telemarketing D) TV shopping E) press kits

A) sales presentations

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

A) search

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

A) self-service technologies

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

A) service

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

A) setting specific research objectives

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

A) social responsibility

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

A) straight rebuy

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

A) target costing

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

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

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

A) touch point

33) Creative strategies refer to the ________. A) way marketers translate their messages into a specific communication B) amount of creative content in a communications message C) degree of innovation involved in the marketing of a product D) novelty of a marketing communication E) type of medium used to deliver a marketing communication

A) way marketers translate their messages into a specific communication

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

A) win-back

75) A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

FALSE

35) Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

FALSE

75) Self-audits tend to provide more objective information than audits conducted by external consultants.

FALSE

33) The product hierarchy stretches from basic needs to particular items that satisfy those needs.

TRUE

34) One of the selection criteria for creating a successful brand element is that it should be protectable.

TRUE

34) Small businesses should focus on building one or two strong brands based on one or two key associations.

TRUE

37) Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

TRUE

37) Prospect theory maintains that consumers frame decision alternatives in terms of gains and losses according to a value function.

TRUE

38) A brand audit can assess the health of a brand and uncover sources of brand equity.

TRUE

38) A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

TRUE

38) Interactive marketing describes the employees' skill in serving the client.

TRUE

38) Price elasticity depends upon the magnitude and direction of the contemplated price change.

TRUE

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

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

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

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

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

B) Customer lifetime value

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

B) Ingredient

76) ________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. A) Brand engagement B) Integrated marketing communications C) Market research D) Customerization E) Marketing research

B) Integrated marketing communications

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

B) It has quantifiable measures of financial performance.

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

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

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

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

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

B) It is trying to cultivate nonpeak demand.

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

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

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

B) Loyalty

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

B) Maytag has positive customer-based brand equity

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

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

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

B) Organizational buying

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

B) Permission

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

B) Personality

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

B) Satisfaction

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

B) Sealed-bid

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

B) Selective distortion

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

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

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

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

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

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

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

B) Total customer benefit

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

B) Use multilevel in-depth selling.

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

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

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

B) a customer-focused value proposition

57) Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness? A) sales promotion and advertising B) advertising and personal selling C) publicity and personal selling D) reminder advertising and publicity E) sales promotion and personal selling

B) advertising and personal selling

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

B) attitudes of others

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

B) available

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

B) basic product

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

B) brand extensions

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

B) cannibalizing

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

B) comparing to exemplars

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

B) compensation deal

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

B) competitors

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

B) conformance quality

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

B) conglomerate strategy

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

B) contacting the complaining customer as quickly as possible

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

B) customer churn

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

B) customer relationship management

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

B) defection

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

B) define the problem and research objectives

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

B) derived demand

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

B) detractors; promoters

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

B) durable goods

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

B) events and experiences

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

B) examine where the company is making and losing money

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

B) experience

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

B) flank

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

B) frequency

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

B) frontal

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

B) functional quality

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

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

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

B) identifying and establishing brand positioning

34) A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits. A) aesthetic B) informational C) bandwagon D) emotional E) transformational

B) informational

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

B) innovate continuously

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

B) intangibility

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

B) integrated

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

B) leader

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

B) loss-leader

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

B) loyalty

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

B) make low-profit customers more profitable

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

B) market nicher

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

B) marketing myopia

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

B) narrative branding

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

B) new-market segment

10) Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication? A) negative feedback B) noise C) attenuation D) phase lag E) selective distortion

B) noise

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

B) offset

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

B) opinion leader

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

B) out-of-pocket

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

B) overall cost leadership

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

B) perceived

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

B) perceived performance and expectation

65) The most effective communications mix tool at later stages of the buying process is ________ because it is particularly effective at building buyer preference, conviction, and action. A) sales promotions B) personal selling C) advertising D) direct and interactive marketing E) events

B) personal selling

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

B) postsale service

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

B) product

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

B) product

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

B) product imitation might be as profitable as product innovation

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

B) product mix

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

B) product value analysis (PVA)

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

B) production and distribution costs fall with accumulated production experience

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

B) profit tiers

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

B) profitable customer

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

B) providing the value

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

B) psychotherapy

5) Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) direct marketing B) public relations and publicity C) personal selling D) advertising E) sales promotion

B) public relations and publicity

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

B) quality function deployment

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

B) redesigning processes to simplify service encounters

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

B) reference

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

B) retrieval

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

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

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

B) secondary; primary

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

B) selecting the pricing objective

32) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car? A) problem removal B) sensory gratification C) normal depletion D) intellectual stimulation E) problem avoidance

B) sensory gratification

53) Amy is in the "aware" stage of the marketing funnel when she says ________. A) she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood B) she was informed about VeggiesNmore by her colleague at work C) she regularly shops from VeggiesNmore D) she shops from VeggiesNmore as far as the store is easily accessible E) she was happy with the experience of shopping at VeggiesNmore

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

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

B) syndicated-service research firms

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

B) systems buying

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

B) the actual future price

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

B) third-degree price discrimination

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

B) tolerance

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

B) value delivery system

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

B) value proposition

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

B) working with larger customer groups

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

B) yield pricing

35) The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs according to importance.

TRUE

35) To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise.

TRUE

36) The anchoring and adjustment heuristic comes in to play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind.

FALSE

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

C) $20.25

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

C) $7,500 million

59) Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle? A) sales promotions B) direct marketing C) advertising D) publicity E) interactive marketing

C) advertising

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

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

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

C) Category membership

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

C) Competitive advantage

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

C) Customer profitability analysis

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

C) External

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

C) Functional discounts

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

C) Heuristics

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

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

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

C) Lifestyle

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

C) Market demand

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

C) Needs; wants

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

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

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

C) Promotional allowances

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

C) Selective distortion

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

C) Situation analysis

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

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

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

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

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

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

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

C) We sell the safest, most durable wagon.

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

C) a slogan

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

C) announcing category benefits

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

C) availability

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

C) barter

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

C) behavioral

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

C) benefits

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

C) bypass

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

C) category points-of-parity

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

C) collaborative

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

C) companies that outsource all production to suppliers

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

C) follower

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

C) conducting beta testing with customers

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

C) consideration

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

C) cookies

3) Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums

C) display allowances

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

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

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

C) evaluation

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

C) everyday low

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

C) extension

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

C) generalization

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

C) heightened attention

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

C) identifying market segments

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

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

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

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

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

C) independent

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

C) industry

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

C) inelastic

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

C) influencers

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

C) learning curve

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

C) life-cycle

36) Receivers of a message generally see a source as credible if they perceive the source to have expertise, trustworthiness, and ________. A) congruity B) "borrowed interest" devices C) likability D) appeals E) experience

C) likability

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

C) market-skimming pricing

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

C) marketing audit

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

C) marketing network

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

C) markup pricing

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

C) multiple brands

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

C) need

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

C) networking internally and externally

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

C) nonprofit

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

C) observational

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

C) opportunism

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

C) order-to-payment cycle

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

C) own and nurture the resources and competencies

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

C) parallel entry

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

C) perishability

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

C) personal interviews

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

C) portfolio

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

C) potential

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

C) primary activities

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

C) printing tickets from a home computer

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

C) production-oriented

37) A person who has a bad customer experience is more likely to talk about it, but someone who has a good experience will talk to more people.

FALSE

12) All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence? A) socks B) salt C) real estate D) gasoline for a car E) airline tickets

C) real estate

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

C) resonance

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

C) response to service failure

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

C) sales quota

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

C) separate family brand name

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

C) shipping

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

C) short-run

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

C) social class

37) Personal influence in marketing communications carries great weight when the product being marketed ________. A) is a convenience item B) is considered to be safe and risk-free C) suggests something about the user's status or taste D) is purchased on a frequent basis E) is used without being recommended by others

C) suggests something about the user's status or taste

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

C) supply chain

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

C) survival

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

C) tactical

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

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

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

C) the marketing tactics

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

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

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

C) the reservations desk

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

C) total customer cost

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

C) value-augmenting services

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

C) variable

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

C) views of others

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

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

54) Which of the following statements is TRUE of the role of advertising in business markets? A) Advertising is unsuitable for explaining a product's features. B) Business marketers tend to spend comparatively more on advertising. C) Business buyers consider advertising inappropriate for reaching them. D) Advertisements can legitimize the company and introduce its products. E) Salespeople generate leads through personal selling and use advertising for follow-up.

D) Advertisements can legitimize the company and introduce its products.

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

D) Alpha

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

D) Can this product meet sales expectations?

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

D) Category points-of-parity

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

D) Channel

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

D) Consumer behavior

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

D) Core

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

D) Customer-perceived value

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

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

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

D) Ethnographic

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

D) It should determine the demand for its product.

38) Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It assumes competitors know better than the company's own planners. B) It results in high communication expenditures irrespective of what the company can afford. C) It is overly focused on the relationship among communication cost, selling price, and profit per unit. D) It treats sales as what determines communication, rather than as the result of effective communication. E) It is too focused on long-range planning.

D) It treats sales as what determines communication, rather than as the result of effective communication.

35) Which of the following ads depict a transformational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat B) DIRECTV offers better HD options than cable or other satellite operators C) NBA phenomenon LeBron James pitching McDonald's D) Pringles slogan, "Once You Pop, the Fun Don't Stop" E) Aleve's message that it offers the longest-lasting pain relief

D) Pringles slogan, "Once You Pop, the Fun Don't Stop"

52) Which of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than advertising. B) Sales promotion tools can reach prospects who prefer to avoid mass media. C) Sales promotion tools are typically an indirect form of "soft-sell," so customers welcome them. D) Sales promotion tools provide an incentive that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.

D) Sales promotion tools provide an incentive that gives value to the consumer.

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

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

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

D) The pace of change is accelerating today.

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

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

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

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

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

D) activity-based costing

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

D) additional brand extension opportunities

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

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

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

D) arriving at a decision

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

D) brand

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

D) brand beliefs

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

D) break-even analysis

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

D) category membership

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

D) checking out rivals

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

D) competition

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

D) competitive frame of reference

30) Which method for establishing the total marketing communications budget sets communication budgets to achieve the same amount of share-of-voice as competitors? A) comparative-parity method B) objective-and-task method C) affordable method D) competitive-parity method E) percentage-of-sales method

D) competitive-parity method

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

D) customer equity

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

D) customer-value hierarchy

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

D) desirability, deliverability, differentiability

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

D) difference

39) Marketing communications budgets tend to be higher when conditions include ________. A) high channel support B) hardly any change in the marketing program over time C) products purchased infrequently and in large quantities D) differentiated products and nonhomogeneous customer needs E) easily reachable customers

D) differentiated products and nonhomogeneous customer needs

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

D) durability

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

D) equipment

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

D) event

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

D) facilitating services

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

D) frequency of

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

D) fulfillment management

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

D) gatekeeper

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

D) happenings

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

D) improving existing products

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

D) inbound logistics

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

D) inseparability

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

D) internal company records

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

D) job-shop

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

D) late

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

D) linking internal and external marketing

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

D) marketing intelligence system

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

D) modified rebuy

52) Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned. A) aware B) open to trial C) most often used D) nonrejecter E) regular user

D) nonrejecter

36) Brand equity can be built by linking the brand to sources, such as channels of distribution, as well as to other brands.

TRUE

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

D) partner relationship management

55) Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness? A) advertising B) publicity C) sales promotion D) personal selling E) events and experiences

D) personal selling

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

D) place

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

D) rapid prototyping

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

D) reliability

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

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

61) Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness? A) events and experiences B) publicity C) direct marketing D) sales promotion E) interactive marketing

D) sales promotion

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

D) sales promotions

37) The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

FALSE

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

D) sampling procedure-how should respondents be chosen

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

D) seasonal discounts

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

D) shifts downward

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

D) solicitations

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

D) stimulus-response

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

D) strategic

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

D) survey research

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

D) task

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

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

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

D) the marketer wants to suggest a discount or bargain

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

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

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

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

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

D) unbundled

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

D) valuation

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

D) value proposition

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

E) 55,000

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

E) All of these are touch points.

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

E) Attitudes

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

E) Brand-tracking studies

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

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

4) ________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers. A) Publicity campaigns B) Trade promotions C) Advertisements D) Public relations E) Events and experiences

E) Events and experiences

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

E) Infrequently purchased products

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

E) Interactive

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

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

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

E) Population growth is highest in developing countries.

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

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

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

E) a Dutch auction with one seller and many buyers

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

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

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

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

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

E) a set of nodes and links

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

E) an extended warranty

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

E) augment the product

56) Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness. A) comprehension B) conviction C) ordering D) reordering E) awareness-building

E) awareness-building

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

E) basic platform

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

E) bonding

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

E) captive-product

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

E) conformance quality

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

E) contact

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

E) core values

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

E) corporate culture

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

E) credence

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

E) customer is king

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

E) deliverability

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

E) determines the cause of serious performance deviations

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

E) developing new products from within

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

E) distributor feedback site

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

E) early majority

29) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars? A) enhancing brand awareness B) developing brand attitude C) increasing brand purchase intention D) encouraging repeat purchases E) establishing category need

E) establishing category need

58) Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle? A) personal selling B) sales promotion C) interactive marketing D) direct marketing E) events and experiences

E) events and experiences

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

E) exploratory

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

E) first-degree price discrimination

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

E) fixed

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

E) focus groups

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

E) implementation controls

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

E) integrated marketing

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

E) order-to-payment cycle

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

E) ordering ease

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

E) performance review

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

E) personalizing

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

E) product concept

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

E) product line

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

E) purchasing information from outside research firms and vendors

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

E) radical innovations

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

E) resonance

62) As Ben manages communications for his company's watch brand, which has reached the decline stage in the product life cycle, which of the following marketing communications mix tools is he most likely to continue? A) interactive marketing B) advertising C) personal selling D) direct marketing E) sales promotion

E) sales promotion

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

E) secondary service feature

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

E) services

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

E) slowing economic growth

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

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

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

E) superior

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

E) tangible good with accompanying services

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

E) they do not readily notice higher prices

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

E) touch points

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

E) touch points

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

E) value delivery

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

E) width

33) American Girl dolls tap into mother-daughter relationship and the cross-generational transfer of femininity. This is an example of a narrative arc.

FALSE

14) The rapid diffusion of multipurpose smart phones, broadband and wireless Internet connections, and ad-skipping digital video recorders (DVRs) have augmented the effectiveness of the mass media.

FALSE

16) In the new communication environment, advertising is often the single most important element of a marketing communications program for sales and building brand and customer equity.

FALSE

17) A service results in ownership on the part of the client.

FALSE

17) Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

FALSE

17) Firms should design the highest performance level possible for their products.

FALSE

17) Personal selling refers to person-to-person oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.

FALSE

18) A pure service requires a capital-intensive good, but the primary item is a service.

FALSE

18) Marketers should assume that buyers will pass through the classic hierarchy of affective, cognitive, and behavioral stages, in that order.

FALSE

18) The value proposition is stated in the price of a product and readily recognized by the average consumer.

FALSE

19) All services require the client to be present.

FALSE

20) If a small Iowa college builds awareness among applicants from Nebraska, increases the target audience's knowledge about its offerings, communicates in a way that makes the target audience like it and prefer it to other colleges, builds intent to apply, and gets the target audience to attend, it is applying a do-feel-learn sequence.

FALSE

20) Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

FALSE

20) PlanetFeedback.com is a website where consumers can post complaints and compliments about products and services. This is an example of a government-related public resource, which is one of the main ways marketers can research competitors' product strengths and weaknesses online.

FALSE

20) When State Farm uses consumer research to create a mental map of consumers that indicates that consumers perceive State Farm as conservative, safe, responsive, and convenient, they are interested in subliminal perceptions.

FALSE

21) Consumers' expectations result exclusively from past buying experiences.

FALSE

21) Perception depends only on the physical stimuli experienced by the person.

FALSE

22) The quality of services is independent of who provides them.

FALSE

26) Associations that make up points-of-difference are based exclusively on product features.

FALSE

33) According to the BrandZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.

FALSE

34) Every consumer must pass through all five stages of the buying process when in a buying situation.

FALSE

39) If a company sought to grow by starting new businesses that have no relation to its current technology, products, or markets, the company would be using a market penetration strategy.

FALSE

39) In Interbrand's brand valuation model, Brand Value is the likelihood the brand will realize forecasted Brand Earnings.

FALSE

4) Marketers have little information about buyer wants, preferences, and behavior.

FALSE

40) An important part of reinforcing brands is providing uniform and unchanging marketing support.

FALSE

40) The task environment of a firm consists of demographic, economic, natural, and technological environments, as well as the political-legal system and the social-cultural arena.

FALSE

41) In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

FALSE

41) Problem removal and normal depletion are examples of positively oriented relevant brand needs.

FALSE

41) The desire to eat a Philly cheesesteak, whether or not you are in the position to buy one, is an example of a demand.

FALSE

42) One-sided presentations that praise a product are found to be more effective than two-sided arguments that also mention shortcomings.

FALSE

43) After developing a research plan, a marketing researcher should define the problem and research objectives.

FALSE

43) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media.

FALSE

44) The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds.

FALSE

47) Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

FALSE

48) The business market is essentially the same market as the consumer market.

FALSE

49) The demand for business goods is ultimately derived from the demand for raw materials.

FALSE

49) The response rate is usually very high for mail questionnaires.

FALSE

5) Physical goods, services, and stores can be branded, but ideas and people cannot.

FALSE

52) The overabundance of information available on the Internet has made it more difficult for consumers to compare product features and prices.

FALSE

54) A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

FALSE

55) The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.

FALSE

56) A written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives is called a vision statement.

FALSE

57) Pricing has no negative effect on customer loyalty.

FALSE

58) If expected service falls below perceived service, customers are disappointed.

FALSE

59) The marketing strategy section of the marketing plan spells out goals and budgets for each month or quarter so the management can review each period's results and take corrective action as needed.

FALSE

59) The zone of tolerance for a service is the perceived economic benefit in relationship to the economic cost.

FALSE

6) Because customers are not really concerned with timely delivery, customers are unlikely to differentiate between firms based on their order-to-payment cycles.

FALSE

6) Price is one of the two elements of the marketing mix that produces revenue.

FALSE

60) Aida decided to switch doctors after she had to wait two and a half hours at her scheduled appointment to see her doctor. She experienced the ethical problem factor that leads to customer switching behavior.

FALSE

60) In a compensation deal, the seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.

FALSE

62) In order to estimate future demand, companies commonly prepare a company sales forecast first, followed by an industry forecast, and finally a macroeconomic forecast.

FALSE

62) The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

FALSE

63) In first-degree price discrimination, the seller charges less to buyers who purchase in larger volumes.

FALSE

64) Customer churn is how rapidly a store can move customers through its checkout facility or process.

FALSE

64) When Honda expanded its brand into such areas as automobiles, snow blowers, and marine engines, it was pursuing a strategy called line extension.

FALSE

65) The role of a relatively high-priced brand in a portfolio is often to attract customers to the brand franchise or to "build traffic."

FALSE

66) In a buying center, people who authorize the proposed actions of deciders or buyers are initiators.

FALSE

66) The marketing funnel identifies the profitability of consumers at each stage in the decision process.

FALSE

66) The production concept is one of the newest concepts in business.

FALSE

67) A drawback of public relations is that is does not reach prospects who prefer to avoid mass media and targeted promotions.

FALSE

67) Customer equity is synonymous with brand equity.

FALSE

67) The selling concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.

FALSE

68) A business analysis is performed mainly to identify if a company has a technically and commercially sound product.

FALSE

68) Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

FALSE

68) The selling concept holds that consumers will prefer products that are ethical, environmentally responsible, legal, and social in the context of marketing activities and programs.

FALSE

69) Advertising and publicity play the most important roles in the conviction stage of buyer readiness.

FALSE

69) The business buying process begins when someone places an order with a sales representative.

FALSE

7) Today, consumers are price takers and accept prices at face value or as given.

FALSE

70) Concept testing means validating the product concept by discussing within the design group.

FALSE

70) In buying alliances, participants offer to trade goods or services.

FALSE

71) Beta testing tests the product within the firm to see how it performs in different applications.

FALSE

72) Building strong brands is the marketing task where the marketer is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and forecast demand.

FALSE

72) Profitability control is the prime responsibility of line and staff management.

FALSE

72) Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

FALSE

73) A fad is more predictable and durable than a trend.

FALSE

73) An innovation's rate of adoption depends in part on compatibility, or the degree to which the benefits of use are observable or describable to others.

FALSE

73) The annual plan control process begins with measuring performance.

FALSE

74) A marketing audit covers the marketing organization and its systems and strategies, rather than the macroenvironment.

FALSE

76) A firm in a homogeneous market that has the ability to augment its product is more likely to need to meet a competitive price reduction than one that does not have the ability to augment its product.

FALSE

76) A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.

FALSE

76) Regulation of technological changes has been relaxed by the U.S. government over recent years.

FALSE

76) The nicher achieves high sales volume, whereas the mass marketer achieves high margin.

FALSE

77) Growth strategies are "either/or" propositions; a focus on core businesses means foregoing new market opportunities.

FALSE

77) The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur.

FALSE

77) Value-augmenting services include installation, staff training, maintenance and repair services, and financing.

FALSE

78) Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.

FALSE

78) Preparing separate, unrelated online and offline communications improves consistency by sending distinct messages.

FALSE

8) Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

FALSE

8) The result of positioning is the successful creation of an employee-focused value proposition.

FALSE

8) When Ketan went to college he had a burning desire to join a social fraternity; for Ketan, the fraternity would be a dissociative group.

FALSE

9) Positioning requires that marketers define and communicate only the differences between their brand and its competitors.

FALSE

36) Co-branding involves combining two or more well-known existing brands are combined into a joint product and/or marketing them together in some fashion.

TRUE

36) Customers cause many service failures, and many firms find managing these more difficult than managing their own failures.

TRUE

36) In the case of prestige goods, the demand curve sometimes slopes upward.

TRUE

71) List the seven roles of people in a buying center.

Initiators- users or others in the organization who request that something be purchased Users- those who will use the product or the service Influencers- people who infulence the buying situation Deciders- people who decide on product requirements or suppliers Approvers- people who authorize the proposed actions of deciders and buyers Buyers- people who have formal authority to select the supplier and arrange the purchase terms Gatekeepers- people who have the power to prevent sellers or information from reaching members of the buying center

37) A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales would charge a markup price of $20.

TRUE

37) A profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing the customer.

TRUE

29) The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.

TRUE

30) A leverageable advantage is one that a company can use as a springboard to new advantages.

TRUE

31) An example of communicating category membership by relying on the product descriptor is Ford's positioning of its Freestyle automobile, which combines the attributes of an SUV, a minivan, and a station wagon, as a "sports wagon."

TRUE

32) Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.

TRUE

10) When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

TRUE

13) Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things.

TRUE

14) A short definition of marketing is "meeting needs profitably."

TRUE

14) The traditional view of marketing is that the firm makes something and then sells it.

TRUE

15) Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive.

TRUE

15) Services constitute the bulk of most countries' production and marketing efforts.

TRUE

16) One of the ways a company like Caterpillar could increase the customer-perceived value of an offer, relative to a competitor like Komatsu, is to increase the total customer benefit by improving psychological benefits of its product, services, people, and/or image.

TRUE

16) Place marketers include economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies.

TRUE

16) The private non-profit sector is a provider of services.

TRUE

18) Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

TRUE

19) A "do-feel-learn" response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category.

TRUE

19) Few consumers actually delete cookies frequently. When customers do not delete cookies, they expect customized marketing appeals and deals.

TRUE

19) Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that people cannot fully understand their motivations.

TRUE

19) The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

TRUE

19) To the manufacturer, a well-designed product is easy to make and distribute; to the customer, it is pleasing to look at and easy to use.

TRUE

20) The experience qualities of a good or service can be evaluated after purchase.

TRUE

21) If a company were pursuing a policy of networking externally to gather marketing intelligence, it might collect competitors' ads or look up news stories about competitors.

TRUE

21) If the Coolest Cooler introduced its cooler to the general market and developed communications around the idea that it was going to develop awareness, interest, evaluation, trial, and then adoption, it would be anticipating a learn-feel-do sequence of consumer responses.

TRUE

21) Service companies try to demonstrate their service qualities through physical evidence and presentation.

TRUE

22) Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

TRUE

23) Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

TRUE

27) Points-of-parity may be shared among two or more brands.

TRUE

28) Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.

TRUE

39) The answer to the question "was the surgery successful?" represents the technical quality aspect of interactive marketing, one of the three broad areas of service excellence.

TRUE

39) Total costs consist of the sum of the fixed and the variable costs for any given level of production.

TRUE

39) Unprofitable customers who defect to a competitor should be encouraged to do so.

TRUE

39) Walmart and Target stores could be part of the distribution channel for a marketer of hair care products.

TRUE

4) Consumers may evaluate identical products differently depending on how they are branded.

TRUE

40) "What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis.

TRUE

40) Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing.

TRUE

40) Value pricing requires a company to reengineer its operations to become a low-cost producer.

TRUE

40) What the customer expects from a service is called the primary service package.

TRUE

41) An environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

TRUE

41) Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

TRUE

42) Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic-planning process model.

TRUE

43) For an MBO (management by objectives) system to work, one of the four criteria that the unit's objectives must meet is that objectives must be stated quantitatively whenever possible.

TRUE

44) The goal of exploratory research is to shed light on the real nature of the problem and to suggest possible solutions or new ideas.

TRUE

45) James collected primary data when he distributed a survey to dorm residents to discover their attitudes and opinions on campus life.

TRUE

46) A good example of collecting behavioral data would be when a store uses scanners to read bar codes on products selected by consumers.

TRUE

46) Warranties are formal statements of expected product performance by the manufacturer.

TRUE

47) Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant.

TRUE

48) A tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds and asks the respondent to describe what s/he recalls.

TRUE

5) Marketers have the major responsibility for identifying significant changes in the marketplace.

TRUE

50) The business buyer makes the fewest decisions in the straight rebuy situation and the most in the new-task situation.

TRUE

52) The competitive frame of reference defines which other brands that a brand competes with.

TRUE

53) Category membership is seen as the products that function as close substitutes of a brand.

TRUE

77) Media coordination can occur across and within media types, but marketers should combine personal and nonpersonal communications channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact.

TRUE

78) Driving sales and revenue growth can be more challenging in mature markets.

TRUE

8) Customers usually have a lower price threshold below which prices signal inferior or unacceptable quality, as well as an upper price threshold above which prices are prohibitive and the product appears not worth the money.

TRUE

9) Although consumers may have fairly good knowledge of the range of prices involved, very few can accurately recall specific prices of products.

TRUE

9) Brand personality is the specific mix of human traits that may be attributed to a particular brand.

TRUE

9) Capital items are long-lasting goods that facilitate developing or managing the finished products.

TRUE

75) Identify and define the traditional four Ps. Also identify the new four Ps and the reason for developing the new interpretation.

Traditional: 1. Product 2. Price 3. Promotion 4. Place New: 1. People 2. Processes 3. Program 4. Performance

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

B) focus

21) Marketers are involved in marketing 10 types of entities. List and briefly characterize these entities.

-goods -services -events -experiences -persons -places -properties -organizations -information -ideas

20) Describe the characteristics a core competency should possess.

1. it is a source of competitive advantage 2. it has applications in a wide variety of markets 3. it is difficult for competitors to imitate

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

A) Marketing

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

A) disintermediation

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

A) target

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

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

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

B) It is short, memorable, and meaningful.

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

B) strategic marketing plan

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

B) vertical

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

B) want

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

C) controlling

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

C) deliver customer value at a profit

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

C) deregulate industries

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

C) differentiation

38) The customer value triad consists of a combination of quality, durability, and price.

FALSE

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

D) place

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

D) secret

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

D) segmentation, targeting, and positioning

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

D) services

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

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

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

D) the rise of a creative society

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

E) customer groups

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

E) position its product

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

E) technology

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

E) the internal marketing of the firm

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

E) value delivery network

15) The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.

FALSE

16) The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.

FALSE

17) Attracting tourists to Wisconsin is an example of marketing properties.

FALSE

18) "Friends Don't Let Friends Drive Drunk," is an example of marketing information to an interested audience.

FALSE

19) Selling through creative advertising is the most important element in business marketing.

FALSE

2) A marketer's only concern is how best to create demand for a new product produced by his/her company. Marketing has little value for society as a whole.

FALSE

37) Wants are basic human requirements, such as food and shelter.

FALSE

38) Good mission statements should be long and clear, should emphasize on a wide range of goals, and stress on the company's major policies and values.

FALSE

17) A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

TRUE

37) A strategy is a game plan for achieving what the business unit wants to achieve.

TRUE

71) A firm's tangible offering to the market includes product quality, design, features, and packaging.

TRUE

53) The marketplace isn't what it used to be. List and briefly discuss the new behaviors, opportunities, and challenges that await the marketer in the 21st century.

changing technology- e-commerce; mobile internet, web penetration, sharing information is power globalization- international trade; multiculturalism social responsibility- need to consider ethical, environmental, legal, and social context of activities dramatically changed market place- new consumers and company capabilities

42) Consumers often have many needs that are not readily obvious. Just observing their behavior inside a retail store is not enough to get a true understanding of their "needs." List and briefly describe the five types of needs that most consumers have.

stated needs- the customer wants an expensive car real needs- the customer wants a whose operating cost, not initial cost, is low unstated needs- the customer expects good service from the the dealer delight needs- the customer would like the dealer to include an onboard navigation system secret needs- the customer wants to be seen by friends as a savvy customer

List and briefly describe the five core business processes.

the market sensing process the new offering realization process the customer acquisition process the customer relationship management proces the fulfilment management process