final exam review

For the company using Umbrella branding, each of the sub-brands has a similar benefit. The parent company name is generally highlighted more than sub-brand labels. a) True b) False

a) True

When defining core business, the definitions should be based on a customer benefit rather than a technology, product, or process to avoid marketing myopia. a) true b) False

a) true

A fundamental assumption of the 5-box positioning statement is that consumers behaviors are driven by their beliefs. a)True b)False

a)True

Which of the following best describes the breakeven volume? a)total costs / profit b)fixed costs / unit margin c)fixed costs / variable costs d)unit margin / selling price

b)fixed costs / unit margin

Experiments helps us understands whether the exact relationship between two variables is at best correlational. a)True b) False

b) False

What does an umbrella brand represent and deliver? a) Represent: one specific product—Delivers: a benefit unique to itself b) Represent: a family of products—Delivers: a common higher-order benefit c) Represent: a wide range of products—Delivers: a benefit unique to itself d) Represent: the corporate brand plus separate brands—Delivers: a common benefit

b) Represent: a family of products—Delivers: a common higher-order benefit

Based on our understanding about customer loyalty and satisfaction, along with what we discussed about measuring customer satisfaction -- which of the following statements is true? a) The ACSI (American Customer Satisfaction Index) measures customer loyalty directly. b) The ACSI does not measure customer loyalty directly. Instead, satisfaction likely correlates with customer loyalty.

b) The ACSI does not measure customer loyalty directly. Instead, satisfaction likely correlates with customer loyalty.

Brands commonly serve which of the following functions: a) Bundle of benefits b)A basis for differentiation c)The primary point of communication between the firm and consumer d) A value-transfer mechanism e)A consumer proposition

b)A basis for differentiation

Product differentiation is what positioning essentially is. a)True b)False

b)False

Targeting a potentially vulnerable group of consumers is CERTAIN to offend people. a)True b)False

b)False

Test marketing is a more cost-effective tool to estimate long-run market share compared to using the ASSESSOR tool. a)True b)False

b)False

An orange juice company encouraging consumers to drink orange juice with breakfast by saying "A breakfast without OJ is like a day without sunshine is an example of retention/stimulating demand. a)True b)False

b)False, t's acquisition stimulating demand

Which type of customer is highly involved and emotionally connected with the company? a)The ideal customer b)The head-loyal customer c)The heart-loyal customer d)The hand-loyal customer

c)The heart-loyal customer

__(a)___ are relatively more efficient than __(b)__ but offer less flexibility. 1- (a) Hybrid brands, (b) umbrella brands 2-(a) Collective brands, (b) distinct brands 3-(a) Distinct brands, (b) umbrella brands 4-(a) Umbrella brands, (b) distinct brands 5- (a) Brands, (b) logos

4-(a) Umbrella brands, (b) distinct brands

Soft drink manufacturers appear to be advertising nothing more than their brand name even though it is clear they already have great brand recognition. What objective is pursued here?A) Information B) Image C) Top-of-mind awareness D) Behavioral E) Basic awareness

C) Top-of-mind awareness

Which branding strategy is most flexible? a) Distinct branding b) Umbrella branding c) Mixture branding d) Hybrid branding

a) Distinct branding

Arms and Hammer letting current baking soda users know about other usages of the product (e.g., teeth whitening, cleaning pets, etc.) is an example of stimulating demand. a)True b)False

a)True

Belief perseverance reflects how difficult it is to convert current belief into desired belief. a)True b)False

a)True

From it's name, we can infer that Better-than-Bouillon's current source of volume is earning share. a)True b)False

a)True

Self-reports are not always accurate as the responses are influences by social desirability and how the questions are shaped and ordered. a)True b)False

a)True

The attitudinal segmentation variable is not easily measurable and thus can provide a competitive advantage. a)True b)False

a)True

With the foot-in-the-door technique, the consumer is first asked to comply with a very large and possibly outrageous request, followed by a smaller and more reasonable request. a)True b)False

b)False

what are the three main attributes?

search experience and credence

T/F? Trial pricing should be used for acquisition efforts, and continuity pricing should be used when the marketing objective is retention.

true

AMC wants to use a behavioral dimension to segment movie customers. Which of the following is a possible option for AMC? A) frequency of movie rental B) distance between consumer's home and theater C) Degree of optimism D) B and C E) A, B and C

A) frequency of movie rental

For a company employing an acquisition/stimulate demand strategy, the positioning statement should emphasize which of the following? A. Dynamic Variable B. Main Variable C. Execution D. Convenience

B. Main Variable

Stereotypical judgements are more likely to occur during which segmentation variable? A) behavioral B) attitudinal C) demographic D) psychographics

C) demographic

What is attitudinal data? A. Thoughts, feelings, beliefs that are future-oriented B. Your past purchase choice C. Attitudes, thoughts, feelings about the present. D. Region, gender, age, income E. None of the above.

C. Attitudes, thoughts, feelings about the present.

What would be an example of 2nd degree price discrimination tactic? A) Fashion outlet malls B) Airline tickets C) Kids menu D) Buy more, save more E) Student discount

D) Buy more, save more

Happy hours help companies offering services overcome which of the following challenges? A) Simultaneous production and consumption B) Hard to achieve consistency C) Intangibility D) Inability to inventory

D) Inability to inventory

Which statement is NOT true about advantages and disadvantages of test marketing? A. It is hard to find a truly representative test market B. It is quite expensive to implement the test marketing. C. Competitors can disrupt the test market. D. Competitors can monitor the test market performance and plan their marketing actions. E. It is very powerful in predicting the full market performance.

E. It is very powerful in predicting the full market performance.

What type of strategy is having a target audience that is already in the category but using another brand, product, or service type within it? a) Acquisition/earn share strategy b) Retention/earn share strategy c) Retention/stimulate demand strategy d) Acquisition/stimulate demand strategy

a) Acquisition/earn share strategy

When launching a new product, you don't need to worry about long-run market share, you should only focus more on maximizing profit. a)True b)False

b)False

What question(s) should be asked when implementing an earn-share strategy? a)Why do we want to earn share? b)When? c)From whom? d)How long?

c)From whom?

_______ is a gathering of data collected by a third party for their own purposes, which is generally available on the web or other industry guides .a. Marketing metrics. b. Research design. c. Primary data. d. Secondary data. e. Quasi-experiment

d. Secondary data.

what are some efforts service providers make to overcome potential disadvantages of intangibility?

utilizing logos, jingles and taglines; Personifying the service

Are there ever situations in which we could make a promise we cannot keep?

when the service experience is ambiguous

When it comes to service delivery, what is the most important for firms to achieve? A) Differences in services they provide to their competitors B) Consistency in the service they provide C) Brilliance D) Service that is superior to their competition

B) Consistency in the service they provide

Attributes that can be evaluated only after consumption are referred to as: A) Search attributes B) Experience attributes C) Credence attributes

B) Experience attributes

Which of the following would be considered an importance problem?a) The brand does not offer what I need b) I do not need what the brand offers. c) I think the brand is too cool for me. d) I think the brand is not cool enough for me. e) All of the above are "importance problems".

B) I do not need what the brand offers.

The benefit provided by channel members (especially the intermediaries) that provides closer and convenient access to products is known as: A) Product utility B) Place utility C) Time utility

B) Place utility

Which of the following is/are true about vertical integration?A) Starbucks' decision to purchase a coffee farm in Costa Rica was their attempts to engage in forward vertical integration.' B) The key advantage of integration is the increase in power and control it confers to the manufacturer. C) Greater channel depth is always better than having minimal integration D) A and B E) A, B and C

B) The key advantage of integration is the increase in power and control it confers to the manufacturer.

How is segmentation different from targeting? A. Targeting uses grouping B. Targeting uses selecting, while segmentation uses grouping. C. Targeting leads to segmentation D. They're the same

B. Targeting uses selecting, while segmentation uses grouping.

Segmentation enables companies to strike the optimal balance between which of the following? A. Market specificity and population size. B. Market size and population size C. Population and Potential customers D. Market size and probability of conversion

D. Market size and probability of conversion

Indicate if the following statement by the manager of Dell's university sales division is necessarily true. "My plan is to expand the number of choices we offer our customers exponentially. We know people like choice, so the best thing to do it to give them even more of what they want."

False

T/F? The primary objective of most communication campaigns is to immediately change the behavior of the consumers.

False

T/F? When making media buying decisions, marketers should prioritize reach over frequency.

False

What is the skill of the firm that is pervasive throughout the organization and can lead to a sustainable, competitive advantage? a)Strategic asset b)Product feature c)Competitive technology d)Competitive feature e)Core competence

e)Core competence

Which of the following is NOT an assumption that the ASSESSOR tool makes? A. Everyone likes the product if they receive the sample B. Everyone receives the product sample. C. Everyone tries the product once they buy or receive the sample of the product. D. Everyone is exposed to an ad for the product (i.e., everyone becomes aware of the product) E. The product is accessible to everyone.

A. Everyone likes the product if they receive the sample

Which of the following is/are true of demographic variables? Choose TWO that apply. A. Marketers cannot grow a demographic segment B. Demographics need to be measured frequently. C. Information is generally readily available. D. The variables are closely tied to core competence of a company.

A. Marketers cannot grow a demographic segment C. Information is generally readily available

What type of strategy is having a target audience that is already in the category but using our brand as well as another brand, product, or service type within the category? A. Retention/Earn Share B. Acquisition/Earn Share C. Retention/ Stimulating demand D. Acquisition/Stimulating demand

A. Retention/Earn Share

What is the main purpose of utilizing perceptual map and preference map? A. The maps describe the market as it is right now and lets companies to consider what it might become to better satisfy consumer needs. B. Plotting consumer data helps data become better organized and easier to read later. C. Both maps are only useful in plotting the consumer demand (or ideal product). D. Plotting consumer data is the most time efficient way to get results.

A. The maps describe the market as it is right now and lets companies to consider what it might become to better satisfy consumer needs.

When is it beneficial to segment the market? A. When incremental value from customizing is greater than the costs of developing separate offerings for each segment. B. When incremental value from customizing is less than the costs of developing separate offerings for each segment. C. When incremental value from customizing is equal than the costs of developing separate offerings for each segment. D. None of the above.

A. When incremental value from customizing is greater than the costs of developing separate offerings for each segment.

Josh is buying new Nike running shoes as he understands that the brand is well recognized by other people. He is not 100% sure if the quality is much better than shoes from other brands, but he is willing to pay the higher price for the pair. Which of the brand functions has Nike successfully established here? A) A memory aid B) Source of differentiation (brand equity) C) Josh's focus of emotion D) Superior product quality

B) Source of differentiation (brand equity)

Which is NOT true regarding push versus pull marketing? A) Push marketing is especially useful when the brand choice decision is taken at the point of purchase B) Investing in TV ads instead of paying for privileged shelf space is an example of pull marketing for a manufacturer. C) Push marketing is appropriate for products that have high brand loyalty and high involvement D) In pull marketing, manufacturers stimulate demand by advertising and promoting heavily on the end consumer E) In push marketing, manufacturers use their sale forces and promotional activities focused on their channel intermediaries in order to assure their products are available to the final consumer.

C) Push marketing is appropriate for products that have high brand loyalty and high involvement

By which of the following is channel breadth determined in general? A) The number of channel members in the chain B) The number of suppliers in a chain C) The number of distribution outlets at which the product is available D) The degree to which a channel member controls a portion of the channel

C) The number of distribution outlets at which the product is available

How did the development of digital marketing influence the payment process? A) People now consume less that the payment process feels like it is more painful B) It prevents all errors in the payment process C) Payment procedures online takes more time and patience, however it is of better quality D) It makes payment processes faster and more effective through online payment procedures E) The development of digital marketing had no significant impact on consumer payments

D) It makes payment processes faster and more effective through online payment procedures

What is a single-minded statement that contains the essence of the value proposition that a product can offer for the target audience called?A. Tagline B. Desired belief C. Desired behavior D. Consumer proposition E. Current belief

D. Consumer proposition

Psychographics is used for all of the following EXCEPT: A) Fine-tune offerings to meet needs of different segments. B)Understanding why consumers do something C)Determine consumers' reasons for choosing products D)Determine Market Segments E)Understanding how consumers compare themselves to other consumers.

E)Understanding how consumers compare themselves to other consumers.

Which layer of the Bull's Eye is linked to main vs dynamic variable a) main variable: Generic/expected product Dynamic variable: Augmented product b) main variable: generic and augmented product dynamic variable: expected product

a) main variable: Generic/expected product Dynamic variable: Augmented product

which of the following statements are true? a) things that feel familiar are more appealing than things that do not feel familiar b) things that are appealing feel more familiar than things that are not appealing

a) things that feel familiar are more appealing than things that do not feel familiar

A printer company sells its machines at a very low price in order to increase sales for its high margin replaceable ink cartridges. This practice is an example of which of the following pricing tactics?a)Complementary pricing. b)Price bundling. c)Price discrimination. d)Continuity pricing. e)None of the above.

a)Complementary pricing.

Which of the following statements it NOT true about goals? a)Goals are ultimately used to inspire employees. b)The beneficial goal statements are single-minded (i.e., prioritized in importance). c) Goals should be realistic and integrated. d) The goal statement should be measurable to be beneficial. e) Goals can simplify firm decision-making.

a)Goals are ultimately used to inspire employees.

When determining the target market, the marketers should not only focus on their internal capabilities, but take into consideration the perspective of the consumers. a)True b)False

a)True

When a company tells consumers "One try is all it takes", they are emphasizing what sequence of behavior? a) Learn-Feel-Do b) Do-Learn(Feel) c)Feel-Learn-Do d)Learn-Do-Feel e) Do-Feel-Learn

b) Do-Learn(Feel)

According to research discussed in class, price increases are mostly likely to be tolerated by consumers when the producers' unit variable costs decrease a) True b) False

b) False

Besides behavioral data, what other source of data helps quantify our potential, acquired, and retained customers? a)Product specification data b)Attitudinal data c)Customer dynamics data d)Featured benefit data e)Customer lifetime value data

b)Attitudinal data

Who would benefit the most when stimulating demand efforts are executed? a)The newest brand b)Category leader c)The most historical brand d)Company with 2nd largest market share

b)Category leader

What is the first priority for a stimulate-demand strategy? a)Eliminating competition b)Emphasizing the main benefits of the category c)Creating brand awareness d)Developing a target market

b)Emphasizing the main benefits of the category

Consumer choice is not affected by the context in which consumers make choice. a)True b)False

b)False

Earning share strategy involves only emphasizing the dynamic benefit by comparing with the category leader; but there is no need to address the main variable. a)True b)False

b)False

Information on demographic variables is not only easier to obtain than attitudinal segmentation variables, but also best serves the role as the predictor for consumer needs. a) True b)False

b)False

Consumers in university towns can be clustered into several lifestyle groups, including fraternity row, granolas, graduate couples, and hangers on. This is an example of a description of consumer segmentation by a)Demographics b)Psychographics c)Socio-economic status d)Physiological spending patterns

b)Psychographics

Which of the following examples best illustrates the notion of time utility? a) Doug renting movies from Blockbuster instead of the local video store because of its wider selection of horror movies b) Wyle E. Coyote buying his coffee from a vending machine because the nearest Starbucks is on Atherton Street c) Mufasa ordering pizza from Dominos because he likes the fast delivery time d) Both A and B illustrates time utility e) None of the above illustrates time utility

c) Mufasa ordering pizza from Dominos because he likes the fast delivery time

Variables that combine personality, values,attitudes, interests, and lifestyles of consumers forsegmentation purposes are referred to as what? a) Behavioral variables b) Aspirational variables c) Psychographic variables d) Demographic variables

c) Psychographic variables

In the bull's-eye model, what type of benefit/variable determines whether or not the product is considered an augmented product? a) A new core benefit b) A new category main variable c) The dynamic variable d) The potential benefit e) The company's cutting edge technology

c) The dynamic variable

What type of pricing would the image on the right exemplifying? Also what can you infer about their marketing objective? a) Continuity pricing- retention b) Continuity pricing- acquisition c) Trial pricing- acquisition d) Trial pricing- retention e) Mark-up pricing- acquisition

c) Trial pricing- acquisition

When pursuing an "image" objective in promotion, we must: a) Already have achieved awareness b) Already have achieved the information objective c) Focus only on pursuing the image objective, because pursuing multiple objectives will dilute the image of our brand d) A and B e) A, B, and C

d) A and B

Which of the following is NOT true about principles social influence? a)People prefer to choose products that are advertised as "bestsellers" due to social validation principle b)Reciprocity principle supports the giving of favors since repayment is expected from the recipient c)Scarcity principle suggests consumers want it more if there are fewer resources and fewer opportunities to get them. Starbuck's seasonal offer for Chestnut Praline Latte is exploiting the scarcity principle. d) People prefer to say "yes"to individuals they know and like, and want to imitate their consumption patterns. This is called authority principle.

d) People prefer to say "yes"to individuals they know and like, and want to imitate their consumption patterns. This is called authority principle.

Which of the following is NOT true about pricing and the Big Picture? a)Price sensitivity can be used as a dynamic segmentation variable b)Price is a search attributes c) Continuity pricing should be used for retention effort d) competitive pricing is used for stimulating demand e)When the goals is to maximize profit, value (higher) pricing should be used

d) competitive pricing is used for stimulating demand

Which statement is TRUE about the disadvantages of test marketing? a) it is cheap b) it is easy to predict of full market performance c) competitors cannot disrupt test market d) it is hard to find representatives test market

d) it is hard to find representatives test market

Which of the following is NOT an example of an acquisition activity? a)Trial coupons and sampling b)Broad-scale introductory advertising campaigns c)50% promotion for first time users d)Creating a loyalty program to encourage customers repeat their purchase e) Social marketing campaigns dedicated to creating initial "buzz"

d)Creating a loyalty program to encourage customers repeat their purchase

How have we characterized the relationship between beliefs and behavior? a)Once you know what people believe, you know how they will behave. b)Beliefs tell us nothing about how people will behave. c)Marketers are focused primarily on changing behavior, not beliefs. d)Supportive beliefs are often a necessary, but not sufficient, precursor to behavior. e) None of the above

d)Supportive beliefs are often a necessary, but not sufficient, precursor to behavior.

Which of the following best defines external validity? a) The extent to which the independent variable impacts the dependent variable b) A measurement of how people act when they don't know they are being observed c) The extent to which the subjects know how the experiment will impact them d)A measurement of how observational a study is e) The extent to which the results of a study can be generalized to the world at large

e) The extent to which the results of a study can be generalized to the world at large