Mark Exam 3

Most Americans tend to take access to global products and services for granted. TRUE/FALSE

TRUE

One of the benefits of careers in sales is flexibility in scheduling. TRUE/FALSE

TRUE

One of the major responsibilities of being a sales rep is being the frontline emissary for one's firm. TRUE/FALSE

TRUE

One problem facing advertisers is that consumers screen out messages that are not relevant to them TRUE/FALSE

TRUE

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who A. export goods to other countries. B. import goods from other countries. C. engage in countertrade. D. enforce import quotas. E. outsource labor.

A

Monica works as a salesperson in a retail clothing store. Of the five stages in the selling process, Monica is least likely to engage in A. generating and qualifying leads. B. making the preapproach. C. closing the sale. D. following up. E. making a sales presentation.

A

Regarding ethical issues, the most important thing a company can do is to have written formal guidelines for common ethical situations. TRUE/FALSE

FALSE

Russia lags behind most European countries in use of the Internet. TRUE/FALSE

FALSE

STP refers to segmentation, testing, and promotion. TRUE/FALSE

FALSE

Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.

A

"Buy one, get one free" is which type of sales promotion? A. Deal B. Coupon C. Sample D. sweepstake E. rebate

A

All of the following are service quality dimensions related to follow-up except A. ethics. B. reliability. C. tangibles. D. responsiveness. E. empathy.

A

Which of the following best describes a company sales force? A. A company sales force is composed of people who are employees of the selling company. B. A company sales force is made up of independent agents making cold calls. C. A company sales force is a team set up to sell products to companies. D. A company sales force is an organization that supplies sales reps to other companies. E. A company sales force is composed of people both inside and outside the organization.

A

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers announcing the arrival of this season's new clothing? A. mobile marketing B. social marketing C. personal selling D. sales promotions E. advertising

A

Sophia owns a string of boutiques in Italy. As such she is allowed to have sales only twice a year, in January and June or July. TRUE/FALSE

FALSE

Chet was struggling selling his golf photography outside a PGA event. When he offered a T-shirt with a golf photograph on it with any framed golf photo, sales picked up. Chet discovered the value of sales promotions—specifically _________—in encouraging customers to buy. A. deals B. premiums C. samples D. sweepstakes E. rebates

B

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to be ____________, quickly addressing any problems that occur. A. reliable B. responsive C. assuring D. empathic E. tangible

B

The communication process begins with __________, who(which) must be clearly identified. A. the integrator B. the sender C. the transmitter D. the communication channel E. the receiver

B

___________ means converting the sender's ideas into a message, which could be verbal, visual, or both. A. Decoding B. Integrated marketing communications C. Precoding D. Encoding E. Tracking

D

The content of an advertising message is closely tied to A. the size of the advertising team. B. the characteristics of the media selected to carry the message. C. the opportunity for posttesting. D. the sales promotion opportunities. E. the coupon redemption rate.

B

Tariffs artificially lower prices and therefore lower demand. TRUE/FALSE

FALSE

The "implement marketing mix" step of the strategic marketing planning process is part of the control phase. TRUE/FALSE

FALSE

The BRIC countries are Bolivia, Russia, Italy, and China. TRUE/FALSE

FALSE

A firm that places an emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy. A. personal selling B. mobile marketing C. advertising D. direct marketing E. public relations

E

The Big Mac Index is a measure of economic health in a country. TRUE/FALSE

FALSE

A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix. A. ladder B. dog C. cash cow D. star E. question mark

E

Chris is gathering information about the general economic environment in Nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and A. culture. B. real income. C. airport capabilities. D. political status. E.religious institutions.

B

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated. A. purchasing power parity B. segmentation, targeting, and positioning C. trading bloc coordination D. exchange control planning E. reducing trade surpluses

B

The Gaps Model allows systematic examination of all aspects of the product creation process. TRUE/FALSE

FALSE

The goals of IMC need to A. expand as the advertising budget expands. B. be explicit and measurable. C. be encoded before they can be decoded. D. include both the noise effect and the transmitter effect. E. be separate from budget.

B

The key to a successful emotional advertising appeal is to use the emotion to A. make consumers cry. B. create a bond between the consumer and the brand. C. get consumers to think about the benefits of the product. D. balance social marketing with product-focused advertising. E. deliver a logical message.

B

When entering a foreign market, the least risky strategy is A. franchising. B. exporting. C. joint venture. D. direct investment. E. strategic alliance.

B

Customer retention programs are based on what concept? A. Customer excellence is the easiest macro strategy to follow. B. Customer relationships should be viewed from a lifetime value perspective. C. It is important to maximize profits in the first few months of a customer relationship. D. Segmentation, targeting, and positioning analysis should not be rushed. E. Firms must spend large amounts of money to retain customers.

B

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? A. planning phase B. implementation phase C. evaluation phase D. control phase E. strategy phase

B

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed. A. product B. place C. promotion D. price E. primary

B

Which advertising medium relies on a mix of visual and auditory techniques? A. radio B. magazines C. newspapers D. television E. direct marketing

D

Which country has a rapidly aging population due to its one-child policy? A. Brazil B. Russia C. India D. China E. Japan

D

The best way to avoid postsale problems is to contact customers right after they take possession of their products. TRUE/FALSE

FALSE

Effective service recovery entails all of the following except A. listening to the customer. B. estimating the damage. C. providing a fair solution. D. resolving the problem quickly. E. involving customers in the service recovery where possible.

B

A measure termed _______ describes how useful an ad message is to the consumer doing the search. A. reliability B. relevance C. impression D. awareness E. return on investment

B

According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance and power distance? A. Brazil B. Russia C. India D. China E. Iran

B

The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics. TRUE/FALSE

FALSE

The cost of communicating directly with a potential customer is low compared with other forms of promotion. T/F

FALSE

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. market growth D. product line E. mission statement

B

The first step in the personal selling process is the preapproach. TRUE/FALSE

FALSE

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals? A. Brazil B. Russia C. Iran D. China E. Afghanistan

D

Most beverage distributors have their delivery people act as the firm's sales representatives. The delivery people primarily function as A. order getters. B. order takers. C. sales support personnel. D. manufacturer's reps. E. telemarketers.

B

After creating awareness that the firm's products or services exist, the next goal of integrated marketing communications is to A. generate consumer action. B. increase the level of interest among consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. create intentions to purchase the product.

B

After defining the business mission, what should a firm do next to develop a marketing plan? A. conduct an STP analysis B. perform a situation analysis C. develop a positioning strategy D. select a target market E. implement the four Ps

B

As noted in your text, in Arthur Miller's play Death of a Salesman, Willie Loman portrays A. a leading example of an ethical salesman. B. the loneliness of a traveling salesman. C. the ruthlessness of a pushy salesman. D. the lifestyle and success of people in sales. E. the value salespeople provide to consumers.

B

The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider. TRUE/FALSE

FALSE

Tara made sure that her customers felt comfortable contacting her when they needed something, and she focused on the long term in her dealings with them. Tara is a ________-oriented salesperson. A. needs B. relationship C. sales D. profit E. rewards

B

Tariffs, quotas, and currency exchange policies affect global A. offshore product design. B. pricing strategies. C. advertising. D. logistics. E. promotion.

B

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in __________ exist in many African markets. A. transportation B. communication C. distribution D. commerce E. population

B

The Big Mac Index is a novel measure of A.GDP. B. purchasing power parity. C. per capita GNI. D. economic growth. E. international trade surplus.

B

The marketing of services differs from the marketing of products because services are tangible and separable from the service provider. TRUE/FALSE

FALSE

By providing good customer service, firms __________ their products or services. A. eliminate the communication gap for B. add value to C. reduce the assurance for D. reduce the empowerment cost associated with E. increase the perishability of

B

The __________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less. A. knowledge B. communication C. delivery D. standards E. empowerment

B

Of the five strategies for entering new markets, direct investment creates the A. least investment cost. B. greatest potential risk. C. most franchisee control. D. best opportunity for strong strategic alliances. E. greatest coordination of efforts of global and local partners.

B

Steve is working on the message to convey in his firm's advertising campaign. As a starting point, Steve should first consider A. the due date for his contribution to the campaign. B. touting the key benefits of his firm's services. C. what competitors are doing. D. which media he wants to use. E. whether or not he uses the product being advertised.

B

The __________ stage occurs prior to meeting the customer for the first time and extends the qualification of leads. A. qualify leads B. preapproach C. closing the sale D. follow-up E. sales presentation

B

The __________ stage of the selling process offers a prime opportunity for salespeople to solidify customer relationships through great service quality. A. generating and qualifying leads B. follow-up C. sales presentation D. closing the sale E. preapproach

B

Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time to stock up on Campbell's Soup." During the storm the ads said, "Stay home and stay warm with Campbell's Soup." The first ad was __________ advertising, while the second ad was __________ advertising. A. informative; persuasive B. persuasive; reminder C. reminder; persuasive D. discussive; informative E. institutional; persuasive

B

The primary federal agencies that regulate advertising activities in the United States are the Fed, FEMA, and the FCC. TRUE/FALSE

FALSE

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carl must recognize that each IMC alternative A. will stand on its own. B. is part of the whole. C. is part of noncommercial free speech. D. doesn't help communicate value to the consumer. E. is dictated by the nature of the supply chain.

B

Charming Charlie's, a fashion accessories retailer, encourages visitors to its stores to "check in" using a smartphone app. In return, customers receive an instant coupon toward that day's purchase. This is an example of A. personal selling. B. mobile marketing. C. online marketing. D. social media. E. advertising.

B

Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

B

A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. A. quality B. knowledge C. standards D. delivery E. communication

B

A __________ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development

B

A ____________ advertising schedule uses heavy advertising during some periods followed by periods of no advertising. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

B

In most companies, portfolio management is typically done at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting

B

Which of the following statements best describes global expansion through a strategic alliance? A. In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits, and control. B. A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other. C. In a strategic alliance, two firms enter into a franchise agreement. D. In a strategic alliance, a firm in one country sends products to a firm in another country. E. In a strategic alliance, a firm signs a trade agreement with a firm in another country.

B

Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

B

With a median age of 36.3 years, ________ is one of the most rapidly aging countries in the world. A. Russia B. China C. Brazil D. India E. Chile

B

_______ refers to the process of evaluating and selecting the _______. A. Advertising; media buy B. Media planning; media mix C. Promotion planning; advertising mix D. Media buying; media mix E. Media mixing; media buy

B

__________ is when two or more firms join forces to reach a target audience in a short-term effort. A. Promotional co-branding B. Cross-promotion C. Joint-venture promotion D. Multi-target promoting E. Convenience promoting

B

in the "create advertisements" step when planning and executing an ad campaign, often the execution style for the ad will A. determine the pretesting pulse of the ad. B. dictate the type of medium used to deliver the message. C. determine which push-pull strategy will accompany the ad. D. dictate how advertising will be flighted. E. deliver integrated marketing.

B

A systematic ____________ program collects customer inputs and integrates them into managerial decisions. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

E

"Effective marketing doesn't just happen." It is A. promoted through STP analysis. B. possible only for seasoned marketing executives to achieve. C. carefully planned. D. the sole result of customer input. E. the result of competitor's failures.

C

A __________ is an advertisement that focuses on public welfare issues. A. product-focused advertisement B. consumer-generated advertisement C. public service announcement D. reminder advertisement E. push strategy

C

The sales reward is more important than the way in which it is operationalized. TRUE/FALSE

FALSE

Your text notes that global markets are the result of several fundamental changes. Which of the following is not one of those changes? A. reductions or eliminations of trade barriers by governments B. decreasing concerns of distance and time with regard to moving products across countries C. declining fuel costs allowing cost-effective shipping to global markets D. the standardization of laws across borders E. globally integrated production processes

C

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. A. Target marketing B. Market segmentation C. Market positioning D. Allocation E. Value capture

C

__________ appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built around relevant issues, explaining key benefits of the firm's products and services. A. Emotional B. Niche marketing C. Informational D. Institutional E. Reminder

C

Top-of-mind awareness is when consumers indicate that they know the brand when the name is presented to them. T/F

FALSE

Using intermediaries in global distribution networks generally lowers costs and prices for products. TRUE/FALSE

FALSE

"Now available—the latest fall fashions" is an example of a(n) __________ advertising message. A. persuasive B. reminder C. socially responsible D. informative E. institutional

D

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy. A. diversification B. market development C. market penetration D. product development E. product penetration

D

A __________ gap can be closed by getting employees to meet or exceed service standards. A. seniority B. knowledge C. standards D. delivery E. communication

D

A __________ gap is the difference between the firm's service standards and the service it provides to customers. A. seniority B. knowledge C. standards D. delivery E. communication

D

A competitive advantage based on location is often sustainable because A. mobile marketing has not yet proven its value for most customers. B .real estate prices have been dropping. C. few marketers are aware of its importance yet. D. it is not easily duplicated. E. the Internet has diminished the importance of brick-and-mortar stores.

D

A firm's marketing communication strategy is formulated specifically to A. increase its frequency ratio. B. control its public image. C. increase its social media presence. D. communicate the value of its product(s). E. increase its return on investment.

D

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. A. tariff B. duty C. trading bloc D. trade agreement E. quota

E

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a _______ gap. A. knowledge B. standards C. social expectations D. delivery E. communications

E

Which country is Europe's largest Internet market, with Internet users growing at a rate of 14 percent annually? A. Great Britain B. Spain C. France D. Germany E. Russia

E

Which of the following is not a communication channel used in the IMC process? A. radio B. television C. newspaper D. Internet E. supply chain

E

Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence

E

Which of these is not one of the BRIC countries? A. Bulgaria B. Russia C. India D. China E. These are all BRIC countries.

E

A consumer products company produces inexpensive goods in underdeveloped markets and then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization. TRUE/FALSE

FALSE

A mission statement describes the specific actions a firm will take to achieve its goals. TRUE/FALSE

FALSE

A pulsing advertising schedule uses periods of heavy advertising followed by periods of no advertising. TRUE/FALSE

FALSE

All products and services are intangible. TRUE/FALSE

FALSE

When businesses support cultural or sporting events, such as the Capital One Orange Bowl football game, this is known as cause-related marketing. TRUE/FALSE

FALSE

Whereas objective measures seek to assess salespeople's behavior, subjective measures are quantitative. TRUE/FALSE

FALSE

Mary visited an office building and went door to door to hand out business cards and sell office products. Mary was making cold calls. TRUE/FALSE

TRUE

Listening to the customer is the first step in service recovery. TRUE/FALSE

TRUE

Mobile marketing involves marketing to customers through wireless handheld devices such as mobile phones. T/F

TRUE

A delivery gap always results in a service failure. TRUE/FALSE

TRUE

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers. TRUE/FALSE

TRUE

Loyalty programs are sales promotions designed to retain current customers and encourage multiple purchases over time with the promise of a reward or premium. TRUE/FALSE

TRUE

One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality. TRUE/FALSE

TRUE

Price should be based on the value that the customer perceives. TRUE/FALSE

TRUE

Public service announcements (PSAs) represent a form of sales promotion. TRUE/FALSE

TRUE

Public service announcements (PSAs) typically focus on social marketing objectives. TRUE/FALSE

TRUE

Puffery is not always illegal in the United States under state and federal law. TRUE/FALSE

TRUE

Relative market share is an example of a marketing metric. TRUE/FALSE

TRUE

Retail salespeople should never "judge a book by its cover." TRUE/FALSE

TRUE

SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In the Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog. TRUE/FALSE

TRUE

Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer. TRUE/FALSE

TRUE

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates A. weaknesses. B. opportunities. C. strengths. D. threats. E. limitations.

B

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B

Galena is a new agent for a financial services company. She decides to join the local chamber of commerce, the local association of businesswomen, and the local chapter of the United Way organization. Galena is attempting to use __________ to generate leads. A. current customers B. networking C. trade shows D. the Internet E. customer complaints

B

Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of A. cultural shift. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.

B

Geert Hofstede's cultural dimensions concept focuses on six dimensions of __________ in a country. A. symbols B. underlying values C. buying patterns D. personality E. visible artifacts

B

Generally speaking, all advertising messages are designed to A. meet the needs of society. B. inform, persuade, or remind customers. C. comply with FCC rules combined with FTC antitrust regulations. D. entertain or apprise. E. match production scheduling with consumer demand.

B

Getting a commitment from the customer to purchase your product is also known as A. asking for the bacon. B. closing the sale. C. wrapping it up. D. preparing for follow-up. E. handling reservations.

B

Global businesses often find it particularly difficult to understand the __________ of a country's culture. A. symbols B. underlying values C. ceremonies D. exhibited behavior E. visible artifacts

B

Global expansion often begins with A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.

B

Globalization refers to the processes by which goods, services, capital, people, information, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. are similar in various markets. E. affect corporate culture.

B

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B

Hiro sells building materials to local contractors. He wants to build long-term relationships with his contractors through effective follow-up. After delivering the materials ordered, Hiro can demonstrate __________ by checking with his contractors right after the delivery and addressing any problems promptly. A. assurance and profitability B. responsiveness and empathy C. tangibility and competence D. profitability and reliability E. reliability and tangibility

B

If your company hired you to make sales calls via the telephone, it hired you to perform A. cold calling. B. telemarketing. C. relationship selling. D. inbound marketing. E. role reversal selling.

B

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was most likely trying to A. gain government subsidies. B. attract a different market segment. C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.

B

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.I

B

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used A. to shorten supply chains. B. as a response to perceived unfair trade practices. C. to offer domestic discounts. D. to stimulate consumer demand. E. as a way to equalize quotas.

B

In recent years, the component of IMC that has received the greatest increase in aggregate spending is A. media advertising. B. direct marketing. C. public relations. D. sales promotions. E. publicity.

B

In the AIDA model, the do stage is the __________ stage. A. awareness B. action C. interest D. desire E. intentions

B

Informative advertising is used to A. prompt repurchase of a product. B. create and build brand awareness. C. trigger an emotional response. D. gather information about consumers. E. convince consumers to take action.

B

Integrated marketing communications include all of the following except A. advertising. B. supply chain management. C. direct marketing. D. public relations. E. sales promotion.

B

Jackson manages an upscale French restaurant in the Washington, DC, area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his servers to report comments and requests for items that have previously been offered only as specials. Jackson uses this information to reduce the __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B

Kathleen has found out everything she can about a newly qualified lead. She has practiced making her sales presentation and has determined what goals she has for the first meeting. Kathleen has finished the ___________ stage of the selling process. A. qualify leads B. preapproach C. closing the sale D. follow-up E. sales presentation

B

Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of his firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

B

Like any effective salesperson, Tiffany walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Tiffany will try to create interest in her company's product. Tiffany will likely __________ to adapt or customize her presentation to match the customer's needs. A. use a hypothetical situation B. ask a series of questions C. examine the customer's office D. make a variety of assumptions E. refer to past sales

B

Managers and sales experts agree that certain personal traits are necessary to be a successful salesperson. Which of the following is not one of these traits? A. being optimistic B. being stubborn C. being resilient D. being empathetic E. being self-motivated

B

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. A. product proliferation B. market development C. market penetration D. diversification E. product developments

B

Marketers can take advantage of the variable nature of services by A. merging services with products. B. customizing services to meet customers' needs. C. offering to expedite intangibles. D. expanding the standards gap. E. using strict standardization.

B

Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has shown that A. effective branding requires marketers to encode messages identically for each market. B. each receiver decodes IMC messages in his or her own way. C. action is taken before desire and interest are determined. D. marketers can almost always use the same message for all audiences. E. messages are decoded in the manner intended by the encoder.

B

When a product has gained a certain level of brand awareness, firms use __________ advertising to motivate consumers to take action. A. informative B. persuasive C. institutional D. discussive E. reminder

B

Sales promotions include all of the following except A. coupons. B. rebates. C. online ads. D. point-of-purchase displays. E. free samples.

C

Effective service recovery efforts can lead to all of the following except A. increased purchase intentions. B. increased positive word of mouth. C. increased customer satisfaction. D. lower levels of satisfaction than prior to the service failures. E. increased dependence on technology to prevent future service failures.

E

There is only one global product strategy: to sell a product or service similar to that sold in the home country but include minor adaptations. TRUE/FALSE

FALSE

Though a picture may be worth a thousand words, the most important facet of encoding is not what is received but what is sent. T/F

FALSE

To build a sustainable competitive advantage, companies should focus on a single strategy TRUE/FALSE

FALSE

A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it. A. knowledge B. communication C. standards D. empowerment E. delivery

E

According to purchasing power parity theory, if __________ is(are) in equilibrium, products will cost the same in each country. A. imports and exports B. consumer spending C. interest rates D. domestic products E. exchange rates

E

After exchanging greetings and getting to know the customer a bit in an initial sales call, the first goal of a sales presentation is to A. close the sale. B. offer alternatives. C. estimate the total cost to the customer. D. requalify the customer. E. create interest

E

After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to A. logistical support. B. new product development. C. advertising assessment. D. determining why they should advertise. E. creation of the advertisement.

E

Allen is in the marketing department of a midsized firm that develops and sells communications systems. He is proud of the human resource area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all the following except A. customers appreciate the kind of service that knowledgeable employees provide. B. employees play a major role in the success of the firm. C. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. D. building customer loyalty depends on a committed workforce. E. the company provides products with a high perceived value.

E

An advertisement featuring a cartoon Smokey the Bear saying "Only you can prevent wildfires" is an example of a successful A. push-and-pull advertisement. B. puffery campaign. C. sales promotion. D. product-focused advertisement. E. public service announcement.

E

As the number of communication media has increased, the task of understanding how best to reach target customers has A. shifted from creating a value proposition to revising a value proposition. B. increased the use of rule-of-thumb targeting. C. become easier. D. focused on reducing communication noise. E. become more complex.

E

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

E

Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal is to A. maximize rating points. B. minimize marketing communication expenditures. C. shift encoding into decoding. D. use personal selling to augment public relations. E. drive the receiver to action.

E

Brad is working on the creative design for his company's new ad campaign. This is his first major assignment. His boss reminds him that when writing a headline, it should A. represent the main text of the ad. B. identify the sponsor of the ad. C. use jargon and complex terminology. D. overshadow the visual message. E. be short and use simple words.

E

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of A. sales promotions. B. advertising. C. public relations. D. price reductions. E. direct marketing.

E

Bridgette went to the Gap ready to buy a new shirt, but was not sure which color or style she wanted. The sales representative, sensing Bridgette's buying mode, most likely began with the __________ stage of the selling process. A. generate leads B. preapproach C. closing the sale D. follow-up E. sales presentation

E

Cross-promotion is most successful when A. one product is well known and one product is less known. B. the firms have a prior marketing relationship. C. the two products are similar in price. D. the promotion takes place over a very short time period. E. the two products appeal to the same target market.

E

Culture affects A. how consumers decide to make their purchases. B. what consumers decide to purchase. C. when consumers decide to make their purchases. D. where consumers decide to make their purchases. E. every aspect of consumers' purchase decisions.

E

David has been a star representative and has personally serviced and developed all his accounts. Recently, however, David's firm has grown steadily and the company's products and systems have become more and more complicated. In the past year or so, David and his sales colleagues have been changing their approach due to the sales growth and increasing product complexity. Customer relationships are now being handled more and more by __________, which is typical of firms experiencing this kind of growth. A. manufacturer's representatives B. brokers C. sales administrators D. junior sales reps E. selling teams

E

Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit. TRUE/FALSE

TRUE

Global expansion often begins when a firm receives an order for its product from another country. TRUE/FALSE

TRUE

Good salespeople know the types of reservations buyers are likely to raise. TRUE/FALSE

TRUE

Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles. TRUE/FALSE

TRUE

If it is a company's policy to intentionally mislead potential customers about some aspect of a product, a sales rep that carries out this policy by misleading the customer can be held legally accountable. TRUE/FALSE

TRUE

If there is a difference between the message that is sent and the message that is received, it is probably due to noise. T/F

TRUE

If you are hired as a sales manager, you will be responsible for recruiting, selecting, training, motivating, compensating, and evaluating the sales force. TRUE/FALSE

TRUE

If you had a small business and needed a sales force but did not wish to hire anyone, you could use the services of an independent agent. TRUE/FALSE

TRUE

In the communication process of marketing communications, the marketing department often functions in the role of transmitter. T/F

TRUE

In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers. TRUE/FALSE

TRUE

India is one of the fastest-growing markets and has one of the youngest populations in the world. TRUE/FALSE

TRUE

Isaac wants to measure the effectiveness of his company's advertising campaign. To do so, Isaac will have to assess elements of the campaign before, during, and after the campaign runs. TRUE/FALSE

TRUE

It is difficult, but not impossible, to integrate marketing communications across all platforms, including social media. T/F

TRUE

It is not always necessary to go through all the steps in the marketing planning process. TRUE/FALSE

TRUE

It may take several exposures to marketing communications before consumers are moved to buy. T/F

TRUE

Jobs in sales are among the highest-paying careers for college graduates. TRUE/FALSE

TRUE

Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence. TRUE/FALSE

TRUE

The EU recently recommended common guidelines for its member countries regarding advertising to children. TRUE/FALSE

TRUE

The communications gap can be reduced by managing customer expectations. TRUE/FALSE

TRUE

The distinct dimensions of service quality are reliability, responsiveness, assurance, empathy, and tangibles. TRUE/FALSE

TRUE

The four main types of financial rewards for sales representatives are salaries, commissions, bonuses, and sales contests. TRUE/FALSE

TRUE

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country. TRUE/FALSE

TRUE

The key to a successful emotional appeal is to create a bond between the consumer and the brand. TRUE/FALSE

TRUE

The target audience for advertisers is not always the same as current users of the product TRUE/FALSE

TRUE

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service. TRUE/FALSE

TRUE

There are ethical dilemmas associated with providing customers with personalized offers based on their browsing or purchasing habits. T/F

TRUE

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and a consumer's purchase. T/F

TRUE

To maximize potential, segments and target markets can and should be defined by more than just geography. TRUE/FALSE

TRUE

Twitter is a form of blogging and is increasingly used to reach current or potential customers. T/F

TRUE

When Buffalo Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Buffalo Bank's service fell outside customers' zone of tolerance. TRUE/FALSE

TRUE

When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around." TRUE/FALSE

TRUE

When using the rule-of-thumb method for IMC budgeting, prior sales and communication activities are used for guidance. T/F

TRUE

iTunes software is often credited with the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage. TRUE/FALSE

TRUE

Because customers have different needs and expectations, the key to distributive fairness in service recovery is to A. listen to the customer. B. contact a supervisor quickly. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

A

A __________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company. A. corporate blog B. faxed newsletter C. Super Bowl ad D. full-page ad in selected newspapers E. public relations campaign

A

A salesperson's compensation can be made up of some combination of salary, commission, and __________, which are payments made at a manager's discretion when the salesperson achieves certain goals. A. bonuses B. metrics C. awards D. income segments E. rebates

A

A service is any intangible offering that involves a deed, performance, or effort that A. cannot be physically possessed. B. is high-priced. C. is supported solely through advertising. D. can be transformed into a physical product. E. offers benefits but not costs.

A

A small office supply company may have a person whose primary responsibility is to process routine orders, reorders, or rebuys of products for clients. This employee is known as a(n) A. order taker. B. order getter. C. sales support rep. D. sales team. E. sales manager.

A

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.

A

Along the service-product continuum, which of the following would be considered the most product dominant? A. grocery store B. auto repair shop C. doctor's office D. cell phone service provider E. restaurant

A

Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over A. how they communicate the services they promise. B. the price of ingredients. C. the attitudes of customers. D. the way customers view them compared to competitors. E. the knowledge gap consumers create.

A

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the __________ for this telecast. A. frequency B. reach C. gross rating points D. ROI E. click-through rate

A

An advertisement for Titleist golf balls that airs on the cable television network Golf Channel is an example of which type of media channel? A. niche B. mass C. select D. product placement E. institutional

A

An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is A. customer complaints. B. syndicated data services. C. employee empowerment programs. D. distributive fairness analysis. E. management by objective programs.

A

As firms become more sophisticated in their communication efforts, the trend is toward company blogs becoming more A. interactive. B. expensive. C. company-controlled. D. consumer-controlled. E. entertainment-oriented.

A

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals A. enables firms to make appropriate adjustments. B. allows managers to demonstrate their effectiveness. C. offers insights into crafting an appropriate mission statement. D. should always be followed by eliminating underperforming SBUs. E. allows firms to better assess customer loyalty.

A

Automobile manufacturers often use television advertising showing an attractive man or woman driving the manufacturer's stylish new car on a winding road along an ocean vista. These types of ads have __________ appeal. A. emotional B. ethical C. informational D. institutional E. reminder

A

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of A. instrumental support. B. employee incentives. C. emotional support. D. line extensions. E. the delivery gap.

A

Because advertising is the most visible form of marketing, A. many people think of marketing and advertising as synonymous. B. it is the most important part of a marketing mix. C. everyone prefers to be in advertising. D. marketing budgets always emphasize advertising over other forms of communication. E. it is the largest source of employment opportunities for marketing graduates

A

Because services like cruises and car rentals are perishable, many marketers use A. pricing strategies to match supply with demand. B. service quality to extend the life of the product. C. incentives to encourage staff to deliver according to standards. D. training to standardize delivery. E. machines to replace people for standard transactions.

A

Brandon is in the process of qualifying leads he received from corporate headquarters. Brandon will assess A. whether or not it is worthwhile to pursue these potential customers. B. how often these customers have bought his products in the past. C. whether he should use role playing in his sales presentation. D. what objections he is likely to receive from the customers. E. how to preapproach these people.

A

Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by A. keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B. avoiding the use of the brand name in advertising and focusing on features and benefits. C. translating advertising copy for the entire ad except the brand name. D. developing brand names that have no preexisting meaning in any known language. E. adhering to the UN Convention on Naming Rights.

A

Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because A. advertising regulations differ in other countries, including advertising to children. B. print media are different in Europe, and it would be difficult to create a global campaign. C. literacy rates are significantly lower in Europe, and print ads would be ineffective. D. research indicates that European children do not eat breakfast as often as American children. E. domestic advertising agencies cannot earn commissions on advertising they place overseas.

A

Chesnee works in the office of a building materials company. One of her jobs is to identify new building projects and to determine who will make the building materials purchase decisions. Chesnee is involved in the _______________ step of the selling process. A. generate leads B. preapproach C. closing the sale D. follow-up E. sales presentation

A

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing

A

Compared to mass media advertising, a key advantage of direct marketing is A. it allows for personalization of the message. B. it reaches a larger audience. C. it involves face-to-face contact. D. it uses the rule-of-thumb budgeting method. E. it is used almost exclusively for B2B marketing.

A

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that A. countries with high purchasing power today may not continue to show the same growth in the future. B. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. C. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. D. in places like India, urban population centers will become increasingly unattractive and the rural areas will experience major growth in population. E. the global population is expected to grow at staggering rates indefinitely.

A

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. A. evaluate performance B. define the business mission C. perform situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

A

Danielle is creating an advertising message designed to appeal to consumers' fears of having their home broken into. Danielle's message will focus on a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

A

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap. A. knowledge B. standards C. ethics D. delivery E. communications

A

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is not one of these factors? A. ethical B. cultural C. political D. technological E. demographic

A

Each time an employee at an audio store makes a sale of $500 or more, the department manager awards a chocolate gold coin in recognition of the employee's accomplishment. This reward is known as a A. nonfinancial reward. B. financial reward. C. bonus. D. commission. E. salary increase.

A

Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only A. material output. B. international trade. C. global expectations. D. purchasing power parity. E. poverty potential.

A

Empowerment of employees helps address the delivery gap because A. employees directly involved with the customer can respond effectively at the moment the problem occurs. B. customers appreciate feeling empowered. C. management then doesn't need to devote time and energy to resolving service delivery problems. D. employees spend less time resolving problems than managers would. E. it ultimately contributes to employee knowledge and retention.

A

Every Monday during the month of December, salespeople who had the highest sales the previous week participated in a package surprise, where each would receive a package containing either a $50 or a $100 bill. This short-term incentive is known as a A. sales contest. B. bonus. C. commission. D. salary. E. rebate.

A

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.

A

For consumer products like toothpaste and groceries, things consumers purchase throughout the year, most advertisers would use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

A

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. a situation analysis does not accurately predict a firm's strengths. C. customer excellence cannot be achieved. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

A

Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to A. open a McDonald's franchise. B. directly invest in McDonald's. C. export McDonald's products to other countries. D. form a strategic alliance with McDonald's. E. form a joint venture with McDonald's.

A

Generally, firms entering foreign markets begin with A. less risky strategies first. B. direct investment. C. importing. D. decentralized production. E. the riskiest, but most profitable endeavor.

A

Generally, less money is spent on advertising in B2B markets because A. B2B marketing usually involves more personal selling. B. B2B marketing is too expensive to use advertising. C. business customers prefer coupons. D. B2B markets are too homogeneous to use advertising. E. publicity is the most effective advertising in B2B markets.

A

Generally, when advertising to consumers, the objective of an advertising campaign is A. a pull strategy—to get the product into stores by having consumers demand it. B. a push strategy—to stimulate interest among members of the supply chain. C. to win advertising awards. D. to offset sales promotion costs. E. to maximize media planning.

A

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will most likely use a(n) __________ strategy. A. franchising B. exporting C. joint venture D. direct investment E. strategic alliance

A

Global marketers typically find distribution in developing countries is more complex because A. they must go through many different types of distribution channels. B. distribution is more heavily regulated in developing countries. C. most consumers in developing countries live in densely populated cities. D. the infrastructure is more advanced in most developing countries. E. consumers in developing countries have very specific preferences.

A

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because A. consumers may view their roles differently in different countries. B. there are fewer franchising opportunities in global markets. C. global consumer markets are almost totally homogeneous, making segmentation difficult. D. most governments have rules against targeting consumers. E. positioning almost always fails when attempted in a foreign country.

A

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because A. differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets. B. copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market. C. he had not applied for or received international certification that was required for working outside the United States. D. he was unfamiliar with the code of ethics for advertising in other countries. E. he did not have the budget for a global rollout.

A

Heather has been assessing a number of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine A. the product's relative market share. B. the market growth rate. C. a source of competitive advantage. D. the impact of population shifts on future demand. E. cash equivalent values for each product.

A

The __________ stage of the advertising campaign planning process can be described by the question, "Whom are we trying to talk to?" A. identifying target audience B. setting advertising objectives C. conveying the message D. assessing the impact E. determining the advertising budget

A

If marketing communications are effective, they will A. result in purchases by some consumers receiving the communications. B. offset any negative publicity the firm may have received. C. minimize the number of communication channels used by the firm. D. generate interest in the product in over half the consumers reached. E. include all steps of the AIDA model with equal weighting to each step.

A

If you ever watched a television commercial and at the end of the message wondered what was being promoted, you may had trouble __________ the IMC message. A. decoding B. transmitting C. precoding D. encoding E. tracking

A

If you send an e-mail and include a link, you can track how many people took the desired action of clicking on the link. This is known as A. the click-through rate. B. impressions. C. frequency. D. gross rating points. E. reach.

A

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing

A

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process? A. sender B. transmitter C. encoder D. channel E. receiver

A

In the AIDA model, the think stage is the __________ stage. A. awareness B. action C. interest D. desire E. intention

A

In the United States, the regulation of advertising involves a complex mix of laws and informal restrictions designed to A. protect consumers from deceptive practices. B. stimulate domestic demand. C. reduce international competition. D. promote social marketing. E. institutionalize pull strategies.

A

In the early stages of an ad campaign, the objectives are established. To determine if those objectives have been met, the marketer will A. posttest. B. conduct feedback analysis. C. initiate content analysis. D. pretest. E. arrange for peer analysis.

A

Johnny works at an electronics store. In addition to his salary, he receives 2 percent of the sales dollars he brings in each month. This extra 2 percent is called a A. commission. B. salary. C. bonus. D. reward. E. rebate.

A

Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to A. identify the target audience. B. set the advertising objectives. C. determine the advertising budget. D. evaluate and select the media. E. create the advertisements.

A

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis. A. weakness B. opportunity C. threat D. strength E. metric

A

Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. A. surplus B. deficit C. discrepancy D. bonus E. balance

A

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.

A

Marketers __________ an advertising campaign to ensure that various elements of the campaign will work in an integrated fashion and do what they are intended to do. A. pretest B. posttest C. monitor D. flight E. pulse

A

Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries A. that have established a formal agreement to manage trade activities. B. using the same currency. C. with similar cultural shopping patterns. D. located next to each other. E. with similar political views.

A

Maryam phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ___________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

A

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue? A. tangibles B. reliability C. responsiveness D. assurance E. empathy

A

Neville is trying to create an advertising message that tells consumers how his company's cellular and Internet services differ from other alternatives in the market. Neville is trying to create a(n) A. unique selling proposition. B. proportional benefit communication. C. institutional advertising message. D. PSA. E. flighting ad strategy.

A

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked A. procedural fairness. B. variability. C. organizational fairness. D. intangibility. E. explanatory fairness.

A

One difficulty associated with using advertising as part of a marketer's IMC efforts is A. it is hard to break through the clutter of other messages targeted for the same audience. B. it is more expensive than personal selling. C. it works only when communicating to the most uninformed consumers. D. government regulations have significantly decreased allowable advertising frequencies. E. it is considered old-fashioned by many younger consumers.

A

One example of a customer loyalty program is A. a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases. B. a quantity discount offered for large purchases at an office supply store. C. seasonal sales on top-selling items. D. an "everyday low price" policy on all products at a grocery store. E. an extensive customer service training program for new employees at a hair salon.

A

One of the advantages of personal selling over other types of marketing communication is that A. salespeople can build strong relationships with customers. B. personal selling almost always costs less than other marketing communication alternatives. C. personal selling has greater reach than advertising. D. cold calling is easier than direct mail advertising. E. personal selling requires less training than other types of selling.

A

Personal selling is an especially important part of IMC in A. business-to-business markets. B. cause-related marketing. C. event sponsorships. D. stealth marketing. E. web tracking.

A

Public relations is the component of IMC that A. supports other promotional efforts by generating "free" media attention. B. has received the greatest increase in spending. C. converts mass media advertising into direct marketing. D. most effectively uses IMC encoding. E. generates the most gross rating points.

A

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this? A. sales promotion B. direct marketing C. public relations D. mobile marketing E. advertising

A

Reminder advertising is primarily used to A. prompt repurchase of a product. B. create and build brand awareness. C. accelerate market acceptance. D. gather information about consumers. E. persuade consumers to change existing perceptions.

A

Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as A. aided recall. B. unaided recall. C. top-of-mind awareness. D. brand preference. E. brand indifference.

A

Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is A. listen to the customer. B. contact a supervisor. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

A

Services marketing managers have learned that more employees will support a quality-oriented process if A. they are involved in setting the goals. B. perishable services are replaced with tangible services. C. they are required to diverge from existing standards. D. customers are responsible for setting service quality standards. E. the process involves both part-time and full-time employees.

A

Several months ago, Veronica took over the sales territory managed by a very successful salesperson. Veronica should use __________ as a first source of leads. A. current customers B. chamber of commerce gatherings C. trade shows D. census data E. competitor databases

A

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

A

Studies have found that customers are typically ready to make a purchase decision well before salespeople attempt to close the sale. Salespeople can learn when to close the sale by A. listening to customers and paying attention to their body language. B. keeping accurate records regarding how long it took to close sales in the past. C. asking sales personnel to estimate the average time before customers are ready to close. D. using the same selling process for all customers. E. monitoring and mimicking the closing process used by their sales managers.

A

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent? A. mobile marketing B. public relations C. personal selling D. sales promotions E. advertising

A

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey _______, delivering the right services the right way. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

A

The basic goal of integrated marketing communications is to A. communicate the value proposition to the target market. B. create desire. C. manipulate consumers. D. outspend competitors. E. tell the world about your company.

A

The beginning of the sales presentation may be the most important part of the selling process, because this is where the salesperson establishes A. where the customer is in the buying process. B. how much time has been allocated for the presentation. C. which of the alternative products to demonstrate. D. whether to quote a full price or discount price. E. which type of follow-up will be needed.

A

The communication process includes all of the following except A. evaluation. B. the sender. C. the transmitter. D. the communication channel. E. the receiver.

A

The components of a global market assessment include all of the following except A. ethnic analysis. B. infrastructure and technological analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis.

A

The execution style of an advertising message must A. match the medium and the objectives. B. correspond with globally accepted norms. C. include a minimum of puffery and maximum media buy. D. selectively pull retailers into the marketing channel. E. cover new creative ground to be effective.

A

The head of the marketing area told Alex to find the most stringent federal regulations on advertising to create the toughest standards. "If we can pass those, we should be able to get by all regulations." One real problem is A. state regulations are not always consistent with federal standards. B. FCC regulations create a uniform standard that preempt all other regulations. C. European countries have agreed to follow the U.S. standards, so it's a matter of working with the U.S. federal regulations. D. as long as the advertising does not contain sexually explicit content, there are no regulations. E. in most cases, standards are changing almost daily.

A

The most important activity in recruiting salespeople is determining what the salesperson will be doing and A. what personal traits and abilities a salesperson should have to do the job well. B. when they are available to start work. C. whether to pay them on a commission basis, or a salary plus commission. D. how long they are likely to stay. E. their previous level of experience.

A

The new hotel manager asked the chef, "Are you sure you know how to cook Beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about? A. reliability B. responsiveness C. assurance D. empathy E. tangibles

A

The old cliché "service with a smile" recognizes the fact that A. service providers need to be pleasant even if the customer is not. B. smiling is contagious. C. service providers should smile and not think. D. life is too short to be ugly. E. services are perishable but a smile is forever.

A

The sender of an IMC message hopes the receivers are A. the people for whom the message was originally intended. B. the people with the most buying power. C. consumers who are capable of discerning value. D. consumers who have purchased the firm's products in the past. E. the market segment with the most gross rating points.

A

The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence. A. assurance B. reliability C. responsiveness D. empathy E. tangibles

A

Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them there. This is an example of A. reverse innovation. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.

A

Unlike advertising, public relations A. supports promotional efforts by generating "free" media attention. B. accounts for a greater increase in marketing spending. C. converts mass media advertising into direct marketing. D. is considered a human resource function. E. should not be considered part of the marketing area.

A

Using technology and __________ are two ways a delivery gap can be reduced in size. A. empowering employees B. variability analysis C. voice-of-customer analysis D. zone of tolerance analysis E. public relations

A

When Apple's famous 1984 "Big Brother" ad aired during the Super Bowl, it reached an estimated 500 million viewers. It aired only once on commercial television, but was seen in later years in at least 10 television programs recalling great commercials. For its target audience, the frequency of this ad is measured as A. 1. B. 10. C. 500 million. D. one-tenth. E. 5 billion (10 times 500 million).

A

When Barbara realized she didn't have all of the technical information she needed to answer the customer's questions, she made a call to her office. Who would be most likely to provide appropriate assistance? A. sales support personnel B. an order taker C. another salesperson D. her sales manager E. an order getter

A

When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

A

When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another 20 minutes. John didn't mind waiting; he had arrived well ahead of the standard check-in time and this wait time fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

A

When Motorola first entered the Mexican marketplace, the company wanted direct control of salespeople in major urban markets but was not as concerned about control in less populated areas of the country. Motorola probably used _____________ in major urban areas and ______________ in less populated areas of Mexico. A. a company sales force; manufacturer's reps B. manufacturer's reps; customer relationships C. manufacturer's reps; a company sales force D. independent agents; manufacturer's reps E. order takers; selling teams

A

When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of w A. customer excellence. B. operational excellence. C. product excellence. D. promotional excellence. E. global excellence.

A

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were A. 160. B. 1,600. C. 400. D. 40. E. The answer cannot be determined from this information.

A

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as A. exporting. B. franchising. C. a strategic alliance. D. a joint venture. E. direct investment.

A

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. planning B. implementation C. control D. segmentation E. metrics

A

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because A. they were not involved in setting the goals. B. perishable services were being replaced with tangible services. C. they were not allowed to diverge from existing standards. D. customers were required to create service quality standards. E. the process involved both part-time and full-time employees.

A

When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept? A. franchisee B. franchisor C. franchise agent D. franchise partner E. franchised owner

A

When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can. A. intangible B. inseparable C. heterogeneous D. perishable E. replenishable

A

When marketers use a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing—in combination to communicate a value proposition to the customer, it is referred to as A. integrated marketing communications. B. multimedia marketing. C. diverse marketing communications. D. comprehensive promotion. E. managed marketing communications

A

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities A. that build on their strengths relative to those of their competitors. B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.

A

When pursuing a market development strategy, expanding into international markets is generally A. riskier than expansion in domestic markets. B. impossible due to negative attitudes about American products. C. executed with the help of international trade subsidies. D. simplified by creating new products for export markets. E. the only option offering substantial opportunities for growth.

A

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of A. a tariff. B. a boycott. C. overseas consolidation. D. globalization. E. franchising.

A

When the delivery of a service fails to meet customers' expectations, a __________ gap exists. A. service B. quality C. standards D. production E. procedural

A

Which of the following best describes the direct investment global entry strategy? A. With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country. B. Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. C. Direct investment refers to depositing payroll funds in a foreign bank. D. Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period. E. Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.

A

Which of the following is a potential negative factor for foreign investment in China? A. China's population is aging rapidly. B. China drastically restricts the goods it allows U.S. companies to export to China. C. China's standard of living has dropped over the past 30 years. D. China has imported fewer goods from the United States each year for the past decade. E. Chinese consumers are not interested in purchasing products from the United States.

A

Which of the following is least likely to provide a sustainable competitive advantage? A. lowering prices B. having a well-known brand name C. achieving high levels of customer satisfaction D. using patented technology E. creating an efficient supply chain

A

Which of the following is one of the global entry strategies? A. direct investment B. countertrade C. offshoring D. infrastructure development E. trade agreements

A

Which of the following is the best example of a persuasive advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Better than average." D. "Now available—the latest fall fashions." E. "Serving the public since last Tuesday."

A

Which of the following statements regarding global segmentation, targeting, and positioning is true? A. Companies must continually adjust products and marketing strategies to meet the changing needs of global markets. B. Global segmentation, targeting, and positioning activities are far less complicated than the same activities in the domestic market. C. When developing a global STP strategy, it is best to define segments by geography alone. D. Segmentation, targeting, and positioning activities for global markets do not differ substantially from that of domestic markets. E. The "golden rule" for global STP activities for firms is to never alter a firm's marketing mix to serve the needs of global markets.

A

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? A. NAFTA B. EU C. CAFTA D. Mercosur E. ASEAN

A

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee? A. standards gap B. knowledge gap C. performance gap D. communication gap E. recovery gap

A

Yesenia is working on an advertisement to promote consumer awareness of the danger of solar radiation causing skin cancer. Yesenia's first concern will be to A. get consumers' attention. B. enlist creative advertising designers. C. make sure firms producing sunscreen lotions approve. D. collect a petition in support of controls against global warming. E. use public relations to buy advertising space.

A

__________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints. A. Procedural B. Intangible C. Distributive D. Service E. Empowerment

A

__________ refers to the process by which the receiver interprets the sender's message. A. Decoding B. Feedback C. Precoding D. Encoding E. Tracking

A

n the communication process, noise can occur as a result of lack of message clarity, a poor choice of medium, or A. competing messages. B. an extended feedback loop. C. indirect encoding. D. inhibited decoding. E. excessive reach.

A

Evelyn knows that prospective customers are likely to raise reservations about price and quality. She needs to convince customers that her products represent A. time savings. B. a good value. C. the least expensive choice available. D. average quality for an average price. E. an environmental achievement.

B

Firms are willing to offer generous rebates because A. the retailer and manufacturer always split the cost. B. rebates increase sales, but firms may not have to pay off all the rebates offered. C. they are easier for the consumer to use than are coupons. D. rebates are the only type of sales promotion proven to impact sales. E. they tend to generate repeat customers.

B

Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics. A. seniority B. knowledge C. standards D. delivery E. communication

B

Firms can use __________ to bring customers together to share experiences around the products. A. surveys B. social media C. consumer outlets D. brand associations E. public relations

B

Especially for marketers with new products or services, IMC is needed because A. consumers need to know all about the features of new products before making a purchase decision. B. consumers are unlikely to buy products they are not aware of. C. it is impossible for products to sell themselves through word-of-mouth communication. D. pricing decisions cannot be made without IMC. E. new products and services need to be integrated into the supply chain value proposition.

B

Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with A. opening a franchise. B. exporting her products. C. forming a strategic alliance with another company. D. entering a joint venture with a local firm. E. making a direct investment in another country.

B

Medical services, assisted living care, and active senior travel are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will increase the demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

B

Mohinder sells small-business health insurance programs, working on straight commission. Closing the sale is an extremely stressful point in the selling process for him. If he does not close the sale, the most likely outcome will be A. his quota will be increased. B. he will generate no income. C. his quota will be lowered. D. his bonus will not exceed his commission. E. he will get a salary reduction.

B

Once a firm has done an analysis of the most viable markets for its products, then it must next A. determine the competition and develop strategies to overcome it. B. conduct an internal assessment of its capabilities. C. conduct an external analysis of the target market's economy, culture, and regulatory barriers. D. develop a product to meet the needs of those markets. E. achieve success with the product in its home market.

B

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of A. glocalization. B. reverse innovation. C. franchising. D. a strategic alliance. E. purchasing power parity.

B

One of the difficulties in measuring the effectiveness of IMC efforts is the __________, where consumers do not act immediately after receiving a marketing communication. A. decoding decomposition effect B. lagged effect C. noncommittal effect D. viral effect E. click-through delay

B

One reason B2B salespeople spend considerable time qualifying potential customers is that A. they want to have absolutely everything in order before approaching a potential customer. B. it can be costly to prepare and make a presentation to a business customer. C. too many business buyers at trade shows are really people from competing firms trying to obtain competitive information. D. independent agents get the best leads; the company sales representatives need to work harder. E. they want to determine if telemarketing is required.

B

P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used __________ advertising to reposition Tide several times over the product's life cycle, trying to motivate new consumer segments to use the product. A. Informative B. Persuasive C. social marketing D. emotional E. institutional

B

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B

Randall arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Randall was upset because, in his opinion, the hotel's solution did not incorporate A. intangible fairness. B. distributive fairness. C. procedural fairness. D. service fairness. E. empowerment fairness.

B

Rob was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job. A. maintenance schedule B. instrumental support C. emotional support D. service infrastructure E. customer expectation mechanisms

B

Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is A. easy. B. expensive. C. ineffective. D. overrated. E. simple.

B

Sales, profits, orders, and sales ratios are all _________ measures that can be used to evaluate sales representatives. A. subjective B. objective C. uncontrollable D. cooperative E. customer-related

B

Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more important, working the way you did to correct the error could result in __________." A. a smaller empowerment gap B. increased customer purchases and positive word of mouth C. a full refund for the customer D. a larger service gap E. less instrumental support

B

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by A. empowering consumers. B. providing support and incentives for their employees. C. directing zone of tolerance limits for employees. D. doing effective customer screening. E. forcing rude customers to use technology.

B

Since Al's Auto Parts had trouble with its windshield wiper manufacturer in the past, it is requesting a guarantee from the company before it will place another order. Which of the service quality dimensions is being addressed in this scenario? A. ethics B. assurance C. tangibles D. responsiveness E. empathy

B

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize A. that operational excellence is an important macro strategy. B. the lifetime value of customers. C. that product excellence leads to loyal customers. D. the importance of making decisions based on short-term results. E. that as long as customers bring in some revenue, costs do not matter.

B

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which macro strategy? A. customer excellence B. locational excellence C. operational excellence D. product excellence E. purchase excellence

B

The major text portion of a print advertisement that should arouse a desire for the product and move the consumer to action is contained in the A. headline. B. body copy. C. brand elements. D. photo credits. E. subheads.

B

The most common measure of market potential of an economy is a country's A. GNI. B. GDP C. PPP. D. CPI. E. APR.

B

The preapproach stage occurs __________ and extends the qualification of leads procedure. A. after the sales presentation B. prior to the sales presentation C. before closing the sale but after follow-up D. after closing the sale but before follow-up E. at the beginning of the sales presentation

B

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called A. target marketing. B. market segmentation. C. positioning. D. allocation. E. value capture.

B

The process of salespeople creating blogs to draw customers in and generate leads is a process known as A. telemarketing. B. inbound marketing. C. target marketing. D. test marketing. E. team selling.

B

The shift of population from rural to urban areas in countries such as India helps global marketers by A. decreasing pollution. B. simplifying the supply chain needed to make goods and services available. C. increasing the human development index. D. decreasing competition for intellectual capital. E. increasing nonmaterial GDP output.

B

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and A. the number of destinations. B. the number of impressions. C. the cost per click. D. how much time consumers spend viewing the ad or page. E. the total number of clicks recorded by the industry.

B

Today, many developed countries are experiencing __________ population growth. A. slight B. zero or negative C. rapid D. moderate E. significant

B

Tyler runs a parasailing business on Hilton Head Island, South Carolina. Tyler closes his business in winter when the water gets too cold. Tyler should use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

B

U.S.-based global marketers have often found that A. anything goes when advertising outside the United States. B. EU advertising laws are more restrictive than those in the United States. C. children in other countries are less influenced by advertising. D. self-regulatory groups are especially demanding of U.S. advertisers. E. outside the United States, standards are subject to UN approval.

B

Walmart's "Everyday low prices" selling proposition is effective primarily because it is A. unique to the industry. B. meaningful to the consumer. C. variable over time. D. a one-time message. E. generally unsustainable.

B

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"? A. They create low expectations. B. They are not specific. C. They do not allow for the voice-of-customer process. D. Most employees are unwilling to do what customers want. E. They create a delivery gap.

B

When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's A. population control measures. B. legal, banking, and regulatory systems. C. retailing capabilities. D. per capita income estimates. E. climate and culture.

B

When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over 12 hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of A. the variability associated with service quality performance. B. empowerment of employees to meet customers' needs. C. procedural fairness. D. specific service standards. E. public relations to increase puffery.

B

When comparing the various communication channels available to marketing professionals, it becomes apparent that A. consumers prefer advertising over other channels. B. no single channel is better than another channel. C. public relations is the least expensive, but the most successful channel. D. personal selling is the most expensive and the least successful channel. E. online marketing is taking the place of advertising and public relations.

B

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to A. generate cost-based performance ratios. B. evaluate performance and make adjustments. C. increase product excellence without reducing customer excellence. D. develop segmentation strategies. E. choose a business mission.

B

When her salespeople bring in five new customers, Marissa gives them a $1,000 payment. This is an example of a A. commission. B. bonus. C. sales contest. D. nonfinancial reward. E. salary.

B

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. intangible B. inseparable C. heterogeneous D. perishable E. peripheral

B

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of A. perishable value. B. distributive fairness. C. empowerment. D. procedural justice. E. the size of the knowledge gap.

B

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated? A. never, after the first product/service B. once, for each individual product and service C. once, by each management team member D. only when a product is removed from the line E. when the prior year's budget is exceeded

B

Whenever the major beverage companies develop a new product, they advertise it heavily using television and print media. These efforts are designed to A. generate goodwill for the company. B. pull the product into retail stores through consumer demand. C. signal strategy changes to market competitors. D. make it easier to do posttesting. E. push the product into retail stores so customers can purchase it.

B

Which of the following actions, if it actually happened, would most likely support and enhance an operational excellence macro strategy? A. Singapore Airlines installing more comfortable seats in the economy-class cabins of its airplanes B. 3M Corporation implementing new software to improve communication with its suppliers C. adidas inviting customer suggestions to guide the design of the next generation of shoes D. Nike opening hundreds of new company stores in high-traffic shopping areas E. McDonald's lowering prices on its coffee drinks

B

Which of the following are the two components of a global marketing strategy? A. understanding foreign currency fluctuations and developing products that can be priced accordingly B. determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage C. understanding the supply chain and distribution networks in foreign markets D. developing culturally appropriate advertising messages and cultivating "domestic" habits among foreign consumers E. adapting to foreign regulations and targeting as many people as possible

B

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

B

Which of the following is currently a negative factor for foreign investment in India? A. India's population is fairly old and aging fast. B. India's infrastructure for supply chain management is not up-to-date. C. India prevents foreign investors from entering into joint ventures. D. India has no shopping malls or other large commercial centers. E. India lacks a skilled workforce.

B

Which of the following is not a public relations tool? A. donating a portion of profits to a charitable cause B. coupons and rebates C. event sponsorships D. news releases E. websites

B

Which of the following is not one of Hofstede's cultural dimensions? A. power distance B. certainty assurance C. masculinity D. individualism E. time orientation

B

Which of the following is not one of the steps in the AIDA model? A. awareness B. intention C. action D. desire E. interest

B

Which of the following is the best example of a reminder advertising message? A. "Buy now, pay later." B. "Doing business in Peoria since 1848." C. "Buy one, get one free." D. "Now available—the latest fall fashions." E. "New and improved!"

B

Which of the following is the best way to build a sustainable competitive advantage using product excellence? A. being the first to offer customers desired features, even if competitors can copy them easily B. positioning the product using a clear, distinctive brand image C. having the most features on each model D. focusing on being cutting edge and continually eliminating older features that are still in use by customers E. copying the market leader's features, but at a lower cost

B

Which of the following is the least common emotional appeal for advertisers? A. fear B. anger C. humor D. love E. nostalgic

B

Which of the following is the third step in the marketing planning process? A. define the business mission B. identify and evaluate opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. perform situation analysis

B

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. an extended feedback loop. E. a flaw in the medium.

C

A ____________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

C

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's A. financial statements, to investigate current and past profits. B. brand awareness study, to assess national levels of awareness. C. implementation programs, to see if the promotion was handled consistently in the different stores. D. mission statement, to see if it needs adjusting. E. analysis of national trends in vitamins and herbal supplements, to help predict future sales.

C

A(n) ___________ is a group of products that consumers may use together or perceive as similar in some way. A. business matrix B. STP C. product line D. market segment E. promotional service

C

Abercrombie & Fitch, a clothing retailer, includes a "SHARE" link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C

Actor Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was probably objecting to a __________ arrangement the film company had made with an advertiser. A. promotional deal B. mass media buy C. product placement D. loyalty program E. sampling

C

Adrienne decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

C

After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to A. throw the customer out of the restaurant. B. assume the server provoked the attack and respond accordingly. C. provide emotional support to the server. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

All of the following statements regarding marketing metrics are true except A. they can be used at various levels in an organization. B. they assist in comparing results among SBUs. C. they cannot be used to project the future. D. they quantify a trend, dynamic or characteristic. E. they help a firm make appropriate adjustments to its marketing plan.

C

Along the service-product continuum, which of the following would be considered the most service dominant? A. grocery store B. apparel specialty store C. doctor's office D. bookstore E. restaurant

C

Although a sales representative may skip a step in the personal selling process or might sometimes have to go back and repeat steps, there is logic in the sequence. Which of the following would not be appropriate in the personal selling process? A. Before a salesperson can work through the preapproach, leads must be qualified. B. The customer's reservations must be addressed before closing the sale. C. Closing the sale is the final—and most satisfying—part of the process. D. Carefully working through the preapproach will make the next step—the sales presentation—more effective and efficient. E. Follow-up may include additional sales for the representative.

C

An emotional appeal aims to satisfy consumers' __________, while an informational appeal speaks to consumers' __________. A. needs; desires B. institutional focus; personal focus C. emotional desires; utilitarian needs D. top-of-the-mind awareness; bottom-of-the-mind reactions E. cost-consciousness; imaginations

C

As marketing manager for a newly created software company, Katrina is deciding whether or not to hire a company sales force. To make this decision, Katrina needs to consider whether or not A. her firm should attend trade shows. B. her firm has a "hot" product. C. having a sales force is worth more than it costs. D. she will be able to find an effective supply chain manager. E. online advertising will work.

C

As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and A. currency differences. B. antidiscrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities. Global segmentation, targeting, and positioning (STP) is complicated because differences in country culture, politics, or the economy may lead consumers to view their roles differently, and these differences can be hard for an entering company to understand.

C

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.

C

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds. A. government regulations B. Better Business Bureau guidelines C. high costs D. accounting concerns E. well-publicized liability cases

C

Because services are __________, it is often difficult for marketers to convey the benefits to consumers. A. heterogeneous B. inseparable C. intangible D. perishable E. substantial

C

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call A. service perceptions. B. service efforts. C. service quality. D. service aspirations. E. service feedback.

C

Before approaching a potentially major B2B customer, a salesperson will usually A. conduct an initial sales presentation to lower-level personnel. B. estimate the potential commission associated with making the sale. C. try to find out everything possible about the firm and its needs. D. ask competitors what they know about the prospect. E. assess the corporate climate.

C

Bhakti was recently promoted to a sales management position. She had been an effective representative, but her strengths and educational background were in management. She was about to begin her first salesperson recruitment campaign. The most important thing Bhakti can do to ensure that she recruits the right people is to A. check references to determine why the job candidate was leaving his or her current position. B. run a credit check to ensure that the recruit does have any hidden problems. C. determine exactly what the salesperson will be doing and what traits and abilities job candidates will need to succeed. D. make sure the application forms are filled out correctly. E. make sure her boss is happy with the number of candidates interviewed.

C

Brent is working on an advertising campaign to promote downtown businesses. He knows the increasing number of advertising communication channels available and changes in consumers' media usage A. will force him to use PSAs. B. increases consumers' preference for high-pressure persuasive advertising. C. makes his job more difficult. D. makes it easier to select media E. makes budgeting more important and creativity less important

C

By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap. A. seniority B. knowledge C. standards D. delivery E. communication

C

Changes in tariffs and quotas are A. business actions stimulating imports. B. corporate strategies designed to maximize profits. C. government actions that reduce competition from international firms. D. efforts to stimulate choices among government agencies. E. a means of slowing outsourcing.

C

Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this A. selective recall. B. free association. C. aided recall. D. recall mapping. E. top-of-mind awareness.

C

Cora will be a bridesmaid next summer and has purchased her dress online. The next time she turned on her computer, Cora was surprised to see special offers for matching accessories. This is an example of which marketing strategy? A. sales promotions B. media advertising C. direct marketing D. personal selling E. public relations

C

Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website—users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent? A. product and value creation B. price and value capture C. place and value delivery D. promotion and value communication E. positioning and value promotion

C

Dopson's Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap. A. knowledge B. empowerment C. communication D. standards E. tangibility

C

During the preapproach stage, a salesperson usually conducts additional research about prospects and A. assists the prospect through the buying process. B. decides what role to play during the handling reservations stage. C. develops plans for meeting with the customer. D. offers initial concessions to gain the sale. E. determines which members of the customer's buying support team need to be present at the sales presentation.

C

Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing everyone well during the holiday season. This is an example of _________ advertising. A. informative B. persuasive C. reminder D. discussive E. institutional

C

Effective salespeople anticipate and handle A. external environmental changes. B. corporate takeovers. C. buyers' reservations about the product. D. role-playing conflict. E. supply chain problems.

C

Empowerment becomes more important when the service is A. institutionalized. B. repetitive. C. individualized. D. routine. E. standardized.

C

Estella is trying to create an advertising message that communicates the tangible features of her company's laptop computers, telling consumers about the relative advantages of her products as compared to other offerings in the market. Estella is trying to create a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

C

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive. A. advertising campaign B. plan to evaluate results C. sustainable competitive advantage D. set of performance metrics E. SWOT analysis

C

Experts estimate that the average cost of a single B2B sales call is about A. $50. B. $190. C. $600. D. $1,000. E. $1,500.

C

First Lady Michelle Obama has recorded an ad encouraging parents to teach their children good nutrition habits to stem the increase in child obesity. This message is an example of A. product-focused advertising. B. consumer-generated advertising. C. a public service announcement. D. reminder advertising. E. a flighting campaign.

C

Food preparation, lawn maintenance, and house cleaning services are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will decrease the demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

C

For an advertiser, the target audience can be understood as A. consumers who currently use or like the product. B. consumers who do not use the product. C. consumers whom its research designates as its target market. D. consumers who prefer the competitor's product. E. consumers who are unaware of the product.

C

For salespeople who practice __________, an unsuccessful close one day may lay the groundwork for a successful close during the next meeting. A. role playing B. sales support promotion C. relationship selling D. delayed preapproach E. transactional selling

C

Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta? A. The same product design and features, and the same basic promotional campaign, used in all countries. B. Variations in the product design country by country, with the same basic promotional campaign used in all countries. C. The same product design and features in all countries, with variations in the promotional campaigns country by country. D. Variations in the product design and the promotional campaign country by country. E. The same marketing mix for all of the four Ps used in all countries.

C

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have A. identical marketing mixes. B. customer excellence. C. a sustainable competitive advantage. D. achieved product excellence. E. violated laws governing competition.

C

Fred sells health insurance packages for small businesses. He has been given the names of 10 new businesses in his town. During the qualifying leads stage of the selling process, Fred will likely try to assess which of the 10 businesses A. would respond best to a sales contest. B. are closest to his office. C. need health insurance packages and can afford them. D. have order getters and order takers. E. are willing to meet with him.

C

GDP is defined as A. the value of a country's exports minus its imports. B. the difference between two country's exchange rates. C. the market value of goods and services produced in a country in a year. D. national income minus national taxes. E. the gross purchasing power of domestic goods and services plus international income.

C

George wants to increase the number of visits to his insurance firm's website, which specializes in rental insurance for college students. George decides to target Internet browsers who use the terms apartment, insurance, and student. Which of the following will be most helpful to George? A. Twitter B. corporate blog C. Google AdWords D. Google Chrome E. Google Analytical Thinking

C

Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

C

Global pricing strategies should strive to be consistent with A. offshore distribution facilities. B. the cost of materials. C. positioning strategies D. domestic pricing. E. trade surplus guidelines.

C

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through A. product. B. price. C. promotion. D. place. E. cost-based measures.

C

Greg is planning an advertising campaign to promote his kayak tour company. The success of his ad campaign depends on A. the quality of his kayaks. B. how much money he spends. C. how well he can identify his target audience. D. how much consumers like him. E. whether he can gain commitments from manufacturers for complementary products.

C

Gretchen has just started as a fashion marketing intern for an up-and-coming design firm. She expected to begin right away implementing the four Ps she had learned about in class. Instead, she was asked to work on a project identifying important events where celebrities might wear the fashions. Gretchen soon realized that this activity was part of __________, directly related to marketing. A. sales promotions B. cause-related marketing C. public relations D. press release development E. a push-pull strategy

C

Gwen recognizes that one of her roles as a company sales rep is to be the firm's frontline emissary. As such, she strives to A. use whatever means necessary to capture every possible sale. B. focus on short-term results. C. build long-term relationships with customers. D. disparage competitors' offerings. E. shift organizational control from production to marketing.

C

Gypsy just bought a gift and jewelry store on Main Street. She knows from the previous owner that almost 60 percent of her sales take place during the Christmas holiday season, with the other 40 percent of sales evenly distributed over the rest of the year. Gypsy will probably use a __________ advertising schedule. A. continuous B. flighting C. pulsing D. penetrating E. purposeful

C

If a firm promises more than it can deliver, A. it has created an empowerment gap. B. consumers will have a knowledge gap. C. it creates a communication gap. D. it needs to enact a voice-of-customer program. E. perishability becomes a problem.

C

If a firm wants to develop a sustainable competitive advantage, it should A. begin an aggressive campaign to buy up competitors. B. copy the innovative features of other firms that are attractive to customers. C. examine its operations and customer relations to identify significant things competitors cannot easily copy. D. increase its marketing budget so that it outspends its competitors. E. arrange to meet with competitors to discuss how to avoid direct competition.

C

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

C

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars. A. weakness B. threat C. opportunity D. operational advantage E. locational advantage

C

In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n) __________ gap exists. A. knowledge B. quality C. delivery D. standards E. empowerment

C

In the AIDA model, awareness leads to A. intention, which hopefully leads to desire and then action. B. integration, which hopefully leads to desire and then action. C. interest, which hopefully leads to desire and then action. D. intention, which hopefully leads to desire and then attention. E. interest, which hopefully leads to determination and then action.

C

In the communication process, the __________ encodes the marketing communication message. A. instructor B. sender C. transmitter D. communication channel E. receiver

C

In the movie Field of Dreams, one of the memorable phrases is, "If you build it, he will come." The AIDA model would suggest that after marketers "build" a product or service and create awareness among consumers, they need to A. determine the level of desire needed to sustain action. B. promote sufficiently to gain global attention. C. create interest among consumers, persuading them to investigate further. D. offer discounts to increase purchase intentions. E. take steps to encourage immediate purchase.

C

In value-based marketing, the promotion element of the four Ps communicates the ________ to customers through a variety of media. A. mission statement B. operational excellence strategy C. value proposition D. relative market value E. target market definition

C

India, like some other countries, may require entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses A. franchises B. export promotions C. joint ventures D. direct investments E. strategic alliances

C

Integrated marketing communications represents the __________ element in the four Ps of a firm's marketing mix. A. Pricing B. product C. promotion D. place E. partnering

C

Jamara knows that his spring break travel packages are the best deal on campus. He also knows his competitor is sloppy, often waiting until the last minute to provide the needed tickets and documents to students buying his island packages. Jamara wants to develop an advertising message that emphasizes the key benefits he provides. He will develop a(n) __________ appeal. A. emotional B. niche marketing C. informational D. institutional E. reminder

C

Jim was asked to determine the impressions for an ad campaign. He will determine A. how often the audience was exposed to the communication. B. the percentage of the target population exposed to the communication. C. the number of times the ad appeared in front of the user. D. how useful the ad message is to the consumer. E. the advertising cost and the total communications expenditures.

C

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she determines the cost for each product to be promoted. Julie is using the __________ method of establishing an IMC budget. A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

C

Kevin is recognized by his friends as an activist on many fronts. He prefers to buy products from firms that will donate part of the total purchase price to organizations he supports. Marketers recognize that this approach can be an important competitive tool; it is called A. social activist marketing. B. voluntary premium pricing. C. cause-related marketing. D. business/social responsibility. E. the do-gooder syndrome.

C

Kyle is preparing for an important sales presentation. He knows that customers are more likely to ___________ during his presentation than during other stages of the selling process. A. be identified as qualified leads B. agree with everything he says C. raise objections D. offer advice E. return unacceptable merchandise

C

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining A. how Disney World crowds will impact his business. B. which employees to promote or fire. C. how to allocate resources among his four stores. D. what new government regulations might create opportunities or threats. E. when new government regulations might create opportunities or threats

C

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's __________ strategy. A. product excellence B. targeting C. positioning D. segmentation E. customer excellence

C

Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to A. ban abusive customers from their restaurants. B. reward service providers based solely on the speed of service. C. provide emotional support and concern for their employees. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms' A. business mission. B. market segmentation strategy. C. positioning strategy. D. customer excellence strategy. E. target market.

C

Miles worked selling products to industrial users, and he spent most of his time working on customers' new buy and modified new buy situations. Miles was primarily a(n) A. new business specialist. B. prospector. C. order getter. D. order taker. E. sales support rep.

C

Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C

Most customers want to achieve a fair solution following a service failure. Which of the following is not a factor that affects a person's perceptions of "fairness" in these kinds of situations? A. the nature or severity of the service failure B. the customer's experience with other firms C. the firm's policy on service recovery D. observed treatment of other customers E. stories of service recovery told by friends and family

C

Naomi is the IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm's IMC efforts, her goals are likely to include A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

C

Often, advertisers will employ a variety of media to deliver their message. When using different media, advertisers need to deliver A. value-based posttesting. B. niche media emotional appeals to the mass market. C. a consistent and compelling message. D. selective, continuous pulsing. E. mild puffery.

C

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from A. "I want it" to "I like it." B. action to desire. C. "I like it" to "I want it." D. interest to awareness. E. feeling to thinking.

C

One of the advantages of niche media is it often allows marketers to A. reach a larger audience than mass media. B. use major events like the Super Bowl. C. focus on narrow audience segments. D. sell cooperative advertising space to cosponsors. E. spend fewer advertising dollars

C

One of the disadvantages associated with personal selling is A. cold calling is easier than direct mail advertising. B. a salesperson often changes the message based on consumers' needs. C. it is expensive. D. it can be directed toward those customers with the highest potential. E. it is structured and finite.

C

One of the reasons service failures need to be addressed quickly is to A. minimize the zone of tolerance. B. increase empowerment zones. C. avoid negative word of mouth from upset customers. D. avoid a situational ethics conflict. E. keep management from finding out what happened.

C

Persuasive advertising is often used when competition A. is nonexistent. B. is cooperating. C. is most intense. D. is declining. E. is ineffective.

C

Retail salespeople should not __________ and assume that a person in the store cannot afford to purchase the store's products based on appearances. A. assume Murphy's Law is true B. "run for the roses" C. "judge a book by its cover" D. "let sleeping dogs lie" E. attempt to "keep up with the Joneses"

C

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of __________ marketers use to assess the effectiveness of their IMC efforts. A. decoding B. pretesting C. feedback D. simulations E. encoding

C

Salespeople should be evaluated and rewarded only for those activities and outcomes that A. generate the most income. B. increase the number of customers. C. fall under their control. D. reduce manufacturing costs. E. cut into competitors' sales.

C

Taking steps to encourage customer loyalty is the focus of developing the macro strategy of _______ excellence. A. operational B. locational C. customer D. product E. service

C

Taylor loves the lifestyle associated with being a salesperson, allowing her to take a day off during the week and making it up on the weekend. She most likely values the __________ associated with creating her own schedule. A. structure B. rigidity C. flexibility D. selling team approach E. compensation

C

The Gaps Model is designed to highlight those areas where A. service providers provide the best possible service. B. manufacturers are cutting corners on product quality. C. customers believe they are getting less or poorer service than they should. D. service providers know more than their customers. E. delivered service exceeds expected service.

C

The __________ is the combination of media used and the frequency of advertising in each medium. A. media plan B. media buy C. media mix D. communications tactical plan E. communications operational plan

C

The additional sales that can be attributed to an advertising campaign are known as A. payload. B. impact. C. lift. D. the campaign increment. E. ROI.

C

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to convey ____________ by guaranteeing his work in writing. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

C

The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service. A. voice-of-customer programs B. empowerment C. the zone of tolerance D. standards analysis E. quality gap analysis

C

The effectiveness of an advertising campaign is assessed during the campaign by A. pull strategies. B. push strategies. C. tracking. D. flighting. E. pretesting.

C

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. the primacy effect. B. aided recall. C. top-of-mind awareness. D. category dominance. E. elevated awareness.

C

The idea of value-based marketing requires firms to charge a price that A. covers costs and generates a modest profit. B. includes the value of the effort the firm put into the product or service. C. captures the value customers perceive that they are receiving. D. prioritizes customer excellence above operational excellence. E. matches competitors' prices.

C

The manufacturer of Beats by Dr. Dre headphones decides to advertise in the "lifestyles" sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? A. The message was decoded incorrectly. B. The message was not transmitted. C. The message was not received by its intended audience. D. The message was encoded incorrectly. E. The sender was not clearly identified.

C

The most important consideration when a firm chooses a global product strategy should be A. opportunities for countertrade. B. the effectiveness of the marketing team. C. the needs of the target market. D. the overall cost of the strategy. E. WTO regulations.

C

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are A. intangible. B. perishable. C. heterogeneous. D. portable. E. viable.

C

The only formal regulation of children's advertising appears in A. the FCC regulations regarding children. B. the provisions of the Children's Television Act of 1990. C. the Better Business Bureau's Children's Advertising Review Unit guidelines. D. the federal GAO regulations on advertising. E. the Food and Drug Administration guidelines.

C

The right communication channel to use in IMC is A. the traditional channel used in that particular retail sector. B. network advertising, local newspapers, and regional radio stations. C. the one that will connect to the desired recipients. D. the one with the best encoding capabilities. E. the one that maximizes decoding difficulty.

C

The sender of an integrated marketing communication A. must work with the advertising specialists to ensure all recipients interpret the message accurately. B. can assess the manner in which receivers interpret the message through gross rating points. C. has little control over what meaning any individual receiver will take from the message. D. controls the meaning all receivers take from the message. E. should attempt to control how the message is received.

C

The three elements of any IMC strategy are the consumer, the channels, and A. the receiver. B. the product. C. evaluation of the results. D. the company. E. event sponsorship.

C

Thomas had conducted a thorough pretest before the new ad campaign, so he was fairly sure the elements would work together. A lot was riding on the success of the ad campaign, so he couldn't wait until the campaign was over to see how well it did. During the campaign, he will be monitoring the sales volumes on a daily basis as part of his A. cause-related marketing. B. pulsing. C. tracking. D. flighting. E. lifting.

C

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC channel. E. the reach/frequency ratio.

C

To meet or exceed customers' expectations, marketers must A. know where customers live. B. know how often consumers buy their products. C. determine what those expectations are. D. recognize that expectations are tangible. E. empower customers to meet their own expectations.

C

Trade shows are a particularly good source of B2B sales leads because A. they are open to the general public. B. they are almost always sanctioned by the government. C. people who attend are interested in the products and services being offered. D. consumers tell retailers which shows to attend. E. they are an inexpensive way to generate leads.

C

Traditionally, marketers have seen the role of __________ as generating short-term results, whereas the goal of __________ was to lead to long-term results. A. public relations; institutional advertising B. advertising; personal selling C. sales promotion; advertising D. advertising; public relations E. corporate blogs; public relations

C

Using the BCG portfolio analysis, a "dog" should be phased out unless A. its marketing manager is a champion of the product. B. additional resources could increase its relative market share slightly. C. it complements or boosts the sales of another product. D. the market has a small chance of rebounding. E. none of these. Dogs should be phased out.

C

Von told the sales rep he wasn't buying his product because it cost too much. In terms of the personal selling process this is called A. an excuse. B. a ruse. C. a reservation. D. a rebuttal. E. a rebuff.

C

When Microsoft introduces a new version of its Windows operating system, it typically uses selected magazine, Internet, and direct mail advertising. This combination of advertising outlets represents Microsoft's A. niche buy. B. advertising plan. C. media mix. D. product placement. E. supply chain messaging.

C

When Pat was talking with his customer about the new accounting system, his customer mentioned that she thought the new system was not going to fit into their budget. Pat explained that once her people were trained on it, it would require less time to process orders, and therefore save her money in payroll. Which part of the sales presentation is demonstrated in this example? A. generating and qualifying leads B. the presentation C. overcoming reservations D. the preapproach E. follow-up

C

When a firm pools its resources with that of a local firm to enter a new market, they create a(n) A. franchise. B. export promotion. C. joint venture. D. direct investment. E. strategic alliance.

C

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish A. an operational excellence macro strategy. B. a market penetration growth strategy. C. a sustainable competitive advantage. D. an efficient supply chain. E. product efficiency.

C

When developing an advertising message, the message should focus on A. the producer. B. the advertising environment. C. solving problems for consumers. D. creating investment opportunities. E. niche media balance.

C

When discussing the marketing planning process, STP stands for A. strategies, tactics, and plans. B. strategize, target, and promote. C. segmentation, targeting, and positioning. D. situation analysis, trend spotting, and planning. E. sustaining, trending, and positioning.

C

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. heterogeneous D. perishable E. viable

C

Whether or not a salesperson will go through all five steps of the selling process depends on the sales situation and A. the use of sales representatives versus independent reps. B. the effectiveness of role playing. C. the buyer's readiness to purchase. D. the number of sales support personnel available. E. how the person was trained.

C

Which country has a large literate population which has helped it move up to become the world's seventh largest economy? A. Russia B. China C. Brazil D. India E. United States

C

Which country's government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases? A. Brazil B. Russia C. India D. China E. Mexico

C

Which of the BRIC countries has one of the youngest populations in the world and is increasingly adopting global attitudes? A. Russia B. Brazil C. India D. Italy E. China

C

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

C

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other? A. franchising B. joint venture C. strategic alliance D. direct investment E. equity partnership

C

Which of the following is a key hallmark of advertising? A. It is more effective in reaching consumers than other forms of promotion. B. It is almost always used in conjunction with consumer satisfaction surveys. C. It is a paid form of marketing communication. D. It is designed to remind, rather than persuade consumers. E. It is designed for small, targeted audiences only.

C

Which of the following is currently a negative factor for foreign investment in Russia? A. The Russian population is poorly educated. B. Russian consumers have little interest in online shopping. C. Russia is known for corruption, creating ethical dilemmas for firms. D. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. E. Few Russians have access to the Internet due to heavy regulation.

C

Which of the following is not one of the five dimensions used by consumers to determine overall service quality? A. assurance B. reliability C. acceptability D. responsiveness E. empathy

C

Which of the following is not one of the four major growth strategies marketers typically utilize? A. market penetration B. market development C. segment development D. diversification E. product development

C

Which of the following is not one of the major trade agreements affecting global marketing? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

C

Which of the following is not one of the steps in the B2C personal selling process? A. generate and qualify leads B. preapproach C. request for proposal D. closing the sale E. follow-up

C

Which of the following is the best example of puffery? A. "Take two and call us in the morning." B. "Happy hour every Friday." C. "You have tried the rest, now try the best." D. "All natural ingredients." E. "Northwestern, the quiet company."

C

Which statement about India's population is true? A. With a median age of 61, India has one of the oldest populations in the world. B. India's young people mostly live in rural areas in large families. C. India's workforce is highly skilled, particularly in technology. D. India claims more than 25 percent of the world's population. E. Most Indian citizens shop in large retail outlets.

C

While ethical and legal issues are associated with all aspects of marketing, personal selling presents unique issues because A. salespeople tend to be unethical. B. sales managers are the only people in most sales organizations who worry about ethics. C. salespeople interact directly with customers and are, therefore, more visible. D. laws regulating personal selling are detailed, complex, and often mistakenly ignored. E. customers tend to expect unethical behavior from salespeople.

C

Why should marketers be aware of the BRIC countries? A. They are a microcosm of the rest of the world. B. They represent almost half the world's population. C. They are likely to be the source of most market growth. D. They have the most dramatic changes in culture and consumer buying patterns. E. They have stable population growth, which makes them easier to study.

C

Yana has identified the target audience for her line of Russian jewelry. For optimum success, she is creating an advertising plan that will A. allow her to skip the assessment stage at the end of the campaign. B. offer discounts to media as an incentive to carry out her plan. C. clarify the specific goals that the advertising is designed to accomplish. D. encapsulate her unique selling proposition. E. maximize puffery.

C

__________ are special incentives or excitement-building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs. A. B2B programs B. Trade incentives C. Sales promotions D. Push programs E. Targeted leader items

C

__________ involves the planning, direction, and control of personal selling activities, including recruitment, selection, training, motivation, compensation, and evaluation of members of the sales force. A. Human resource management B. Integrated marketing communications management C. Sales management D. Marketing management E. Sales administration

C

__________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service. A. Product familiarity B. Brand association C. Brand awareness D. Marketing recall E. Cognitive association

C

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap. A. Service infrastructure B. Quality mechanics C. Instrumental support D. Dynamic support E. Customer interface architecture

C

A major factor contributing to the growth in the use of direct marketing IMC efforts is A. reduced government regulation of deceptive advertising practices. B. expanded use of personal selling. C. a shift from objective-and-task to rule-of-thumb budgeting. D. increased use of credit and debit cards, and online shopping by consumers. E. the reduction in IMC noise, allowing for a decreased lagged effect.

D

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm's target markets E. a product plan

D

Advertising slogans such as "Don't text and drive" and "Buy flood insurance before it is too late" are examples of ads designed to A. provide information. B. remind consumers. C. recruit employees. D. persuade consumers to take action. E. generate goodwill.

D

After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to __________, __________, or __________ potential and/or existing students. A. create; stimulate; ignore B. beg; borrow; steal C. pay; buy; entertain D. inform; persuade; remind E. push; pull; sell

D

After using market research to identify the target audience for his advertising campaign, Jorge will next use this information to A. develop creative advertising copy. B. assess the potential effectiveness of his ad campaign. C. buy advertising time. D. set explicit and measurable objectives for the campaign. E. develop PSAs for distribution in lieu of advertising.

D

All of the following are interactive elements of an IMC strategy except A. personal selling. B. consumer contests. C. mobile marketing. D. public relations. E. online marketing.

D

An advertising plan is crucial to an ad campaign because it A. is the basis for sales commissions. B. is required by the accounting department. C. offers insights into the creative leadership of mass media buyers. D. will later be used to measure the success or failure of the campaign. E. stimulates demand for a product category.

D

Anita has gone to the same hair salon for the past 10 years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

D

Anne's Pita Bread Chips offers free POP (point-of-purchase) displays to retailers ordering its product. Anne's is using a __________ strategy. A. pull B. puffery C. publicity D. push E. posttesting

D

Ashley was nervous about making the ___________. She knew it was likely to be the largest expense in the advertising budget. A. publicity plan B. media flight plan decision C. media mix choice D. media buy E. monitoring and evaluation plan decision

D

Because PSAs are a special class of advertising, FCC rules require A. consumers to listen to them. B. court approval before they are aired. C. all advertisers to contribute to them. D. broadcasters to devote a specific amount of free airtime to them. E. that they use only the informative or reminder advertising appeals.

D

Because it was able to deliver merchandise overnight, in the required quantities, and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence. A. product B. place C. customer D. operational E. locational

D

Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies. A. intangible B. inseparable C. heterogeneous D. perishable E. accountable

D

Boris tells a colleague about a major prospect he plans to call on in the next few days and asks the colleague to pretend to be a customer while he makes his sales presentation. Boris and his colleague are engaged in A. requalifying leads. B. approach dynamics. C. closing the sale. D. role playing. E. cold calling.

D

By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal. A. insurmountable B. invisible C. empowerment D. measurable E. inseparable

D

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. perform situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

D

Changes in _________ have been a driving force for growth in global markets for decades. A. infrastructure B. demographics C. population D. technology E. ethical standards

D

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both __________ and __________. A. product uses; currency rates B. language; trading blocs and social structure C. potential tariffs; symbols D. visible artifacts; underlying values E. verbal communication; logistics

D

Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality difficult. A. quantifiable B. substantial C. unequally distributed D. intangible E. inconsequential to customers

D

Compared to other IMC alternatives, advertising is extremely effective for A. closing a sale. B. decoding messages efficiently. C. reducing the potential for noise. D. creating awareness and generating interest in a product. E. repositioning consumers in the AIDA model.

D

Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global _________ strategy. A. communication B. product C. promotion D. distribution E. pricing

D

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is not a disadvantage of franchising? A. The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. B. The franchisee might end up becoming a competitor. C. Franchising limits profit potential, since profits will have to be split with the franchisee. D. Franchising is the riskiest way to enter a foreign market. E. All of these are disadvantages a firm must consider.

D

Even the best marketing communication can be wasted if the sender does not first A. generate consumer action. B. offer testimonials from past consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. stimulate interest among stealth marketing consumers.

D

Florida Heat Pump Manufacturing Company is offering a free, all-expenses-paid trip to Las Vegas for HVAC dealers that sell at least 20 units this year. Florida Heat Pump is using a __________ promotional strategy. A. pull B. puffery C. publicity D. push E. posttesting

D

For salespeople, __________ provide(s) a major contact point with customers in the follow-up stage of the selling process and an opportunity to build and improve relationships. A. trade shows B. cold calls C. preapproaches D. complaints E. telemarketing

D

For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary A. mission statement. B. positioning. C. SBU. D. target market segment. E. sustainable competitive advantage.

D

Generally, which of the following media outlets relies on a mix of visual and auditory techniques and is typically very expensive? A. Internet B. newspaper C. radio D. television E. billboards

D

Gross national income equals GDP A. minus net consumer spending. B. plus government spending on international trade. C. minus purchasing power parity. D. plus the net investment income earned from abroad. E plus gross domestic international investment.

D

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n) A. weakness. B. opportunity. C. strength. D. threat. E. asset.

D

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they travel. By working to make the network available in more locations, cellular service companies are focusing on __________ value creation. A. product B. price C. promotion D. place E. financial

D

In the communication process, the __________ is the medium that carries the message. A. feedback loop B. sender C. transmitter D. communication channel E. receiver

D

In very simple words, advertising is really about A. improving brand image. B. personal selling. C. linking emotions with products. D. getting consumers' attention. E. being creative.

D

Integrated marketing communications include all of the following except A. personal selling. B. advertising. C. public relations. D. supply chain management. E. direct marketing.

D

Introducing newly developed products or services to a market segment the company is not currently serving is called A. product development. B. market development. C. market penetration. D. diversification. E. product proliferation.

D

Jennifer has worked for many years reviewing and approving print ads for her firm. She has memorized a checklist of key points to review. Which of the following would not be on her checklist? A. headline B. body copy C. brand elements D. photo credits E. subheads

D

Katerina is told by her sales manager, "Do whatever you need to do to get the sale," yet the company has ethical selling standards. Katerina faces the ethical problem of A. customer relationship management. B. sales force compensation inequity. C. limited commission reinforcement. D. mixed signals from her sales manager. E. unqualified lead generation.

D

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

D

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns A. with low individualism symbolism when confronted with a time-oriented culture. B. that use uncertainty avoidance to reduce power distance. C. with significant power distance. D. consistent with underlying cultural values in a country. E. with more consistent time orientation.

D

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can A. persuade stores to refuse to carry competitors' products. B. use their power within the supply chain to force weaker firms to accept less favorable pricing. C. control prices and lock in margins. D. create a sustainable competitive advantage. E. justify charging higher prices than their competitors.

D

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in A. a product development growth strategy. B. an operational advantage. C. opportunities for diversification. D. increased long-term profits. E. more clearly defined market segments.

D

NCD Company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market. A. franchising B. exporting C. a joint venture D. direct investment E. a strategic alliance

D

National manufacturers and retailers often pay a service provider to monitor television ads around the country to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. a flaw in the medium. E. an extended feedback loop.

D

Naven knows that he needs to ask a series of questions early in his sales presentation, but he also knows that he A. should take control of the conversation. B. should ask questions only if he already knows the answers. C. needs to first determine whether the customer is an order getter or order taker. D. needs to listen carefully to the answers. E. should follow a strict structure with his questions.

D

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' __________, the difference between what her customers want and what they will accept before going elsewhere. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. D. a sustainable competitive advantage. E. producer excellence.

D

Often the best way to handle customers' reservations is to relax, listen, and A. reassess your preapproach strategy. B. consider outsourcing. C. immediately call your sales support team. D. ask questions to clarify the issues. E. reevaluate your expected order.

D

Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing A. a business mission statement. B. a strategic vision. C. team-building exercises. D. a marketing strategy. E. competitive assessments.

D

Personal selling can take place in all of the following situations except A. face-to-face. B. over the Internet. C. by telephone. D. through newspaper ads. E. video conferencing

D

Reaching the right audience with marketing communications is becoming more difficult because A. consumers are bored. B. government regulations are constraining free speech. C. personal selling is becoming less expensive, making it more competitive with advertising. D. the media environment has become more complicated. E. the AIDA model no longer represents how marketing communication works.

D

Regardless of the objective of an advertising campaign, each campaign's objectives must be A. sincere and emotional. B. consistent with those of the available media. C. either informative or persuasive but not both. D. specific and measurable. E. designed for use in both a pull and a push strategy.

D

Regina has made the same sales presentation twice a day for almost a month. At first, the presentation seemed to flow nicely but lately it has not seemed as effortless as it initially was. Regina might ask another sales rep to participate in __________ and critique her presentation. A. requalifying leads B. approach dynamics C. closing the sale D. role playing E. cold calling

D

Regina just bought a gourmet bagel store. She is working with a freelance graphic artist who is designing her logo and print advertisements. Regina is spending days looking over the various designs and color options. She needs to remember that the creative aspect of advertising design A. is everything. B. will determine pretesting and posttesting options. C. dictates tracking alternatives. D. should not overshadow the message. E. should always include coupons.

D

Sales representatives are often compensated, at least in part, on a percentage of the sales revenue. This percentage is known as a A. bonus. B. sales increment. C. base salary. D. commission. E. finder's fee.

D

Sally has been having a difficult time working with a particular buyer while using the personal selling process, and she has asked her manager, Chris, for some ideas about how to close the sale effectively. Chris asks her a number of questions to help sort out the difficulties. Which of the following questions would Chris be least likely to ask? A. "What does the buyer's body language tell you about her readiness to buy?" B. "Did you skip any steps in the process?" C. "Are there any reservations that have not been addressed to the buyer's satisfaction?" D. "Have you completed the follow-up to ease the buyer's mind?" E. "Should you go back to an earlier stage in the process and start the process over from there?"

D

Saltdust Grill is known as the premier restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality. A. knowledge B. communication C. standards D. delivery E. empowerment

D

Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as A. intangibility. B. professional competence. C. perishability. D. inseparability. E. heterogeneity.

D

Several personal traits are listed in the text as being important for successful sales careers. Harvey is a go-getter. He gets up early every morning to check his schedule and arrives at appointments early so he can get in the right mental frame of mind. Which of the traits listed in the text does Harvey exhibit? A. personality B. optimism C. resilience D. self-motivation E. empathy

D

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, "Ask your doctor about (our medicine)." In addition to creating awareness about their drugs, the companies are most likely hoping to A. reduce deceptive advertising. B. signal encoding symbols to simplify the feedback loop. C. offer objective-and-task marketing communications. D. stimulate interest, persuading consumers to investigate further. E. promote public interest communications.

D

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

D

Special in-store displays for magazines and chewing gum are most likely to be effective if located A. near the entrance to the store. B. near the restrooms. C. along the aisle or wall to the far right of the customer as he or she enters the store. D. near the checkout counter. E. in the window at the front of the store.

D

Sue spends much of her time checking inventories, processing straight rebuys, and making sure that everything is going smoothly. Sue is primarily a(n) A. business development specialist. B. caretaker rep. C. order getter. D. order taker. E. sales support rep.

D

Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely A. exporting. B. a strategic alliance. C. a joint venture. D. direct investment. E. franchising.

D

Tasha was selling siding and her boss told her that she could hide an extra charge for trim in the total, even though the customer was told he would not be charged for trim. Tasha was told this was standard practice for the siding company. If the customer takes legal action for this, who is most likely liable? A. the customer for not checking the order more carefully B. Tasha only, because she wrote the order C. Tasha's boss only, since he told her to do it D. both Tasha and the siding company, because both intentionally misled the customer E. no one, because this would be considered a victimless crime

D

The California Raisin Advisory Board used to run ads featuring "The California Raisins," a fictitious R&B musical group composed of dancing raisins that boogied to the song "I Heard It Through the Grapevine." The ads, which were hugely popular and which gave rise to a line of raisin-themed merchandise, were designed to encourage raisin consumption. This campaign was an example of A. product-focused advertising. B. consumer-generated advertising. C. public service announcements. D. institutional advertising. E. push strategies.

D

The International Consumer Electronics Show is an example of a(n) A. vendor conference. B. product demonstration. C. industry convention. D. trade show. E. consumer meeting.

D

The United States imports more goods from China than it exports to China. This is known as A. gross national income (GNI). B. a trade surplus. C. gross domestic product (GDP). D. a trade deficit. E. an import imbalance.

D

The advertising message "People are not looking for quarter-inch drill bits; they are looking for quarter-inch holes" suggests that advertising messages need to A. emphasize technology. B. focus on quality. C. inform consumers about opportunities. D. focus on solving problems. E. engage in mild puffery.

D

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) ________ for these companies. A. strategic marketing plan B. clear mission statement C. operational advantage D. sustainable competitive advantage E. diversification strategy

D

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap. A. knowledge B. standards C. social expectations D. delivery E. communications

D

The first objective in the evaluate performance phase of the marketing planning process is to A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.

D

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? A. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. B. Nike should consider exiting the athletic shoe market. C. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. D. Nike's athletic shoe business still requires some investment, but is likely to produce excess resources that can be invested in other divisions of the company. E. Nike should invest in the athletic shoe market only if it helps boost the sales of other products in fast-growing markets.

D

The individual elements of an IMC strategy can be viewed on two axes: __________ (from the consumer's perspective) and ________. A. passive and interactive; tangible and intangible B. mobile marketing and direct marketing; tangible and intangible C. offline and online; low cost and high cost D. passive and interactive; offline and online E. static and changing; offline and online

D

The marketing of services differs from product marketing because services are all of these except A. intangible. B. inseparable. C. heterogeneous. D. renewable. E. perishable.

D

The strategic marketing planning process A. is a five-step process that should always be completed in order. B. is frequently used in reverse. C. begins with establishing specific, measurable outcomes. D. is not always sequential. E. forces marketing managers to think rationally.

D

To determine how attractive a particular market is using the BCG portfolio analysis, __________ is(are) established as the vertical axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential

D

To get us to remember their ad and the product or brand in the ad, advertisers must first A. use persuasion. B. offer incentives. C. create effective PSAs. D. get our attention. E. vary between flighting and pulsing scheduling.

D

Today, almost every sales rep can immediately check the company's inventory and production schedule electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through A. access to a wide variety of services. B. greater control by customers over service delivery. C. increased zone of tolerance. D. greater ability to obtain information. E. saving customers time.

D

Training service providers to know exactly what a "good job" entails is setting service A. knowledge. B. quality. C. delivery. D. standards. E. empowerment.

D

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

D

Value creation through place decisions for a consumer product involves A. putting the product in the front of the store. B. designing creative displays to capture consumers' attention. C. pricing products differently at different stores. D. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. E. focusing exclusively on Internet sales to reduce supply chain costs.

D

When confronted with an angry and emotional customer, the best first step toward service recovery is to A. call security in case it is necessary to escort the person from the building. B. match the person's voice in intensity and volume to gain control of the confrontation. C. gently but firmly tell the person you will not tolerate being addressed in that tone of voice and turn away until he or she calms down. D. listen carefully and with empathy until the customer feels he or she has been heard. E. ask a coworker to take over handling the complaint to get a neutral perspective.

D

When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh. A. production capacity B. pricing C. advertising D. infrastructure E. cultural

D

Which of the following is most effective in building brand image, listing details about retail locations and educating customers about products and services? A. corporate blog B. faxed newsletter C. Super Bowl ad D. corporate website E. Twitter

D

Which of the following is not a major consideration in determining an advertising budget? A. role of advertising in overall promotional objectives B. the product life cycle C. the nature of the market D. the budgeting method used E. the nature of the product

D

Which of the following is not a recommended strategy for service recovery? A. listening to the customer B. finding a fair solution C. resolving problems quickly D. silencing an irate customer before the individual makes any angry outbursts E. following procedural fairness when solving problems

D

Which of the following is not considered typical financial compensation for sales representatives? A. commissions B. salaries C. bonuses D. extra vacation days E. sales contests

D

Which of the following is not one of the federal agencies that regulate advertising activities? A. FDA B. FCC C. FTC D. FRS E. USPS

D

Which of the following is not true about public relations? A. PR has become increasingly important as costs of other forms of marketing communications continue to increase. B. Consumers have become increasing skeptical of marketing claims made in conventional media. C. Media coverage generated by PR is seen as more credible than paid advertising. D. Because of its high cost, the use of PR waned in recent years E. public relations activities often support other promotional efforts

D

Which of the following is the best example of a mass media advertising channel? A. Weight Watchers Magazine B. Red State Talk Radio (WRS) C. Home and Garden TV (HGTV) D. USA Today E. The Golf Channel

D

Which of the following is the least interactive IMC strategy? A. personal selling B. mobile marketing C. online marketing via social media D. direct marketing via catalog E. direct marketing via telemarketing

D

Which statement best describes personal selling? A. It involves a larger audience than advertising. B. It is primarily indirect communication. C. It is primarily informational communication, not persuasive communication. D. It is the two-way flow of communication between a buyer and a seller. E. It involves encoding while advertising involves only decoding.

D

Yara has identified an attractive potential customer for her biodiesel home power system. She knows the customer is concerned about the environment and has considerable financial resources. The customer is also a respected leader among wealthy environmentalists in the area. Next Yara will A. evaluate alternative systems available from competitors to see which is best for the customer. B. send the customer a list of frequently mentioned objections and responses to each. C. decide if she wants to contact the customer. D. establish goals for meeting with the customer. E. call the customer and offer a first-time discount.

D

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established A. customer loyalty. B. locational excellence. C. a diversification growth strategy. D. a sustainable competitive advantage. E. a related diversification opportunity.

D

_______ channels are used to reach a broad audience; _______ channels are used to reach a narrower segment of consumers. A. Niche media; mass media B. Media mix; media buy C. Media buy; media mix D. Mass media; niche media E. Promotion; institutional

D

________ training is excellent for communicating selling and negotiation skills, because managers can observe the sales trainees in real selling situations and provide instant feedback. A. Role-play B. Internet-based C. Simulation D. On-the-job E. Distance learning

D

_________ means allowing employees to make decisions about how service is provided to customers. A. Endorsement B. Quality control C. Standardization D. Empowerment E. Authorization

D

__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy

D

__________ is a method of prospecting in which salespeople telephone or visit potential customers without appointments. A. Qualified lead calling B. Integrated sales support C. Relationship selling D. Cold calling E. Role reversal selling

D

__________ is a particularly good advertising medium for groceries and fast food. A. Television B. Internet C. Direct mail D. Radio E. Newspaper

D

__________ is a sales philosophy and process that emphasizes a commitment to maintaining and investing in long-term, mutually beneficial business relationships. A. Organizational buying B. Cold calling C. Psychographic selling D. Relationship selling E. Sales management

D

__________ is any interference in the communication process. A. Translation B. Looping C. Excessive reach D. Noise E. Feedback

D

The sender of an integrated marketing communication controls the meaning individual receivers take from the message. T/F

FALSE

Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves. A. consultants B. middle managers C. corporate executives D. production control managers E. frontline employees

E

Exchange control refers to the regulation of a country's A. comparative inflation rate. B. countertrade exchange. C. quota rate of exchange. D. exchange tariffs. E. currency exchange rate.

E

Firms achieve ___________ through efficient procedures and excellent supply chain management. A. customer excellence B. locational excellence C. customer loyalty D. value-based pricing E. operational excellence

E

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication

E

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through A. promotional excellence. B. product excellence. C. operational excellence. D. global excellence. E. customer excellence.

E

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________ macro strategy to create and deliver value and to develop a sustainable competitive advantage. A. supply chain excellence B. locational excellence C. product excellence D. diversification excellence E. customer excellence

E

Global marketers are under constant pressure to shorten distribution channels in order to A. improve promotion efficiency. B. reduce trade deficits. C. afford tariffs. D. meet trade agreement guidelines. E. reduce costs.

E

If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

E

If you visit a Kentucky Fried Chicken restaurant in China, along with KFC's regular menu items, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy? A. Sell the same products in both the home country market and the host country. B. Sell only products native to the home country. C. Sell a product similar to that sold in the home country, but include minor adaptations. D. Sell only products native to the various global markets. E. Sell totally new products or services.

E

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy. A. market development B. market penetration C. operational excellence D. customer excellence E. product development

E

In countries like the United States, services A. have almost all been replaced by technology. B. are a small portion of GDP relative to manufacturing. C. are replacing property taxes as a source of government revenue. D. will decrease in demand as the population ages. E. account for an increasing share of GDP.

E

In integrated marketing communications, encoding involves A. converting consumers' ideas into value propositions. B. differentiating noncommercial speech from commercial speech. C. converting the decoder into the receiver. D. interpreting click-through rates. E. converting the sender's ideas into a message.

E

In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process. A. perform situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission

E

In simple terms, the AIDA model is also known as the __________ model. A. intention, action, interest B. stop, look, listen C. want, need, desire D. inform, persuade, act E. think, feel, do

E

In the communication process, the __________ is the person who reads, hears, or sees and processes the message being communicated. A. medium B. sender C. transmitter D. communication channel E. receiver

E

In the selling process, the saying "It ain't over till it's over," refers to the _______ stage of the process. A. generating and qualifying leads B. preapproach C. sales presentation D. closing the sale E. follow-up

E

Independent Publisher's Group is a distributor of books for small publishers. It doesn't have its own sales force, but uses ________ on a contract basis to sell its product on commission. A. order takers B. order getters C. sales support personnel D. in-house telemarketers E. independent agents

E

Jami is managing an extended advertising campaign for a local convenience store chain. The campaign includes a series of television, radio, and print messages. As part of monitoring the campaign, which of the following offers a good indicator of advertising effectiveness? A. the cost of the media buy B. past economic conditions C. planned store expansions in similar markets D. new advertising concepts E. the daily and weekly sales volume

E

When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future. A. intangible B. inseparable C. heterogeneous D. durable E. perishable

E

The strategic planning process always proceeds sequentially through the five steps. TRUE/FALSE

FALSE

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of A. rejection of advertising. B. subliminal advertising. C. product underwhelm. D. IMC strategy. E. the lagged effect.

E

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will A. empower customers to meet their own service needs. B. establish a broad zone of intolerance to reduce customer complaints. C. narrowly define a knowledge gap. D. separate intangibles from tangibles. E. set specific, measurable goals based on customers' expectations.

E

Lars wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, as he knows most people enjoy them. Although he is not sure about specific products, Lars heads directly for a store selling Godiva Chocolates, because he knows this is a high-end brand. Lars can be said to have A. brand recall. B. aided recall. C. brand preference. D. brand image. E. brand awareness.

E

Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Frazer will immediately try to create interest in his company's product and establish A. which type of follow-up will be needed. B. how much time has been allocated for the presentation. C. which of the alternative products to demonstrate. D. whether to quote a full price or discount price. E. where the customer is in the buying process.

E

Loretta would like to know which, if any, of her firm's IMC efforts are working. She could use all of the following except __________ to provide feedback from her efforts. A. sales data B. complaints C. compliments D. coupon redemption rates E. the channel

E

Many product-dominant firms use quality service A. as a way to minimize the cost of production. B. to support a standards gap. C. as a way to increase the perishability of their products. D. to install a voice-of-customer program. E. to maintain a sustainable competitive advantage.

E

Marketers who design and offer new products and services to their existing customers are pursuing a _________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

E

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of A. intangibility. B. part-time employees. C. perishability. D. inseparability. E. heterogeneity.

E

Most manufacturing and retailing marketers worry constantly about whether or not their IMC efforts are paying off. They assess various forms of __________ to determine what is working and what is not. A. noise B. pretesting C. precoding D. encoding E. feedback

E

Often, inexperienced salespeople mistakenly believe that during the sales call, they should A. listen carefully to the customer. B. pay attention to body language. C. note the office environment. D. act positively. E. do all the talking.

E

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate. A. intangibility B. inseparability C. spendability D. perishability E. heterogeneity

E

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service. A. knowledge B. empowerment C. delivery D. standards E. communication

E

Sales representatives add value for customers by doing all of the following except A. educating them about the firm's products. B. providing advice on solving business problems. C. saving them time. D. simplifying communication with the firm. E. reducing the firm's marketing costs.

E

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's A. strengths and weaknesses. B. sales history. C. pension plan. D. product specifications. E. opportunities and threats.

E

Sarah goes through the newspaper looking for coupons to help reduce her living expenses. Her roommate Paige doesn't read newspapers, let alone look through them for coupons. But Paige filled out a form from inside a cereal box entering her in a drawing for free exercise equipment. What kind of sales promotion reached Paige? A. loyalty program B. contest C. deal D. premium E. sweepstakes

E

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy. A. customer excellence B. global excellence C. locational excellence D. operational excellence E. product excellence

E

When purchasing books on Amazon.com, customers are shown other books and a message saying "Customers who purchased (your book) also purchased... " This is an example of A. mass media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from 2 to 5 percent over last year's sales at Stores 1 and 2, but fell 2 percent at Store 3. Based on this information, which of the following is the best course of action as to how Marcia should reward (or punish) her store managers? A. She should give bonuses to the managers of Stores 1 and 2, and put the Store 3 manager on probation. B. She should ignore the sales data; they are not an appropriate marketing metric. C. She should give each manager a raise, tied to the store results. D. She should review at least 10 years of sales data about her stores' performance before making a decision. E. She should seek more information about why the stores had different results before making a decision.

E

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's _____________ in an attempt to create value for students and recent graduates. A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy E. product value

E

Telemarketing and cold calls have become less popular as sales tools because of all of the following reasons except A. their success rate is low. B. they can be expensive. C. they are impacted by state and federal laws prohibiting them under certain conditions. D. during cold calls, the salesperson is not able to establish the customer's needs ahead of time. E. they require appointments, which takes time away from the actual selling of the product.

E

Thanh is starting a career in selling, but he eventually wants to become a senior manager. A selling career may help Thanh achieve that goal by providing A. structure. B. scheduling flexibility. C. job security. D. income E. visibility to management

E

The _____________ loop allows the receiver to communicate with the sender in the IMC process. A. decoding B. pretesting C. precoding D. encoding E. feedback

E

The attitudes that Ryan's customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to demonstrate the ____________ dimension of service quality by showing consistently well-maintained yards with neat, professional personnel. A. reliability B. responsiveness C. assurance D. empathy E. tangibles

E

The best way for sales managers to instill ethical behavior in the sales force is to A. provide extensive ethical training. B. use only straight salary and no commissions. C. employ a sales ethics forecaster. D. never use telemarketing. E. lead by example.

E

The goal of any marketing communication is to A. maximize personal selling. B. increase public relations click-through rates. C. overwhelm negative publicity with commercial speech. D. replace cause-related marketing with non-cause-related marketing. E. get the right message to the right audience through the right media.

E

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations and has contributed to the rapid growth in A. media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. A. promotional discounts B. zone of tolerance allowances C. perishability gap analysis D. point-of-purchase displays E. satisfaction guarantees

E

The proliferation of new media alternatives has led many firms to shift their promotional budgets from A. publicity to public relations. B. personal selling to advertising. C. integrated marketing communications to disintegrated marketing communications. D. indirect marketing to viral marketing. E. advertising to direct marketing and website development.

E

The term trade deficit refers to A. a country that exports more goods than it imports. B. an indicator of the quality of life in a country. C. a level of population growth that impacts exports. D. the sum of all goods and services handled in a country. E. higher levels of imports than exports.

E

Though a picture may be worth a thousand words, the most important facet of encoding is A. who draws the picture. B. the self-visualization process. C. not what is received, but rather what is sent. D. the sponsor rather than the receiver. E. not what is sent, but rather what is received.

E

To determine the market potential for its particular product or service, a firm should use A. GDP data. B. unemployment data. C. purchasing power parity data. D. inflation data. E. as many metrics as it can obtain.

E

To maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the ________—that is, the amount of information a customer feels comfortable providing. A. privacy bubble B. information limit C. communication tolerance level D. privacy zone E. information comfort zone

E

What do the BRIC countries have in common? A. They participate together in a trading bloc. B. They have suffered more than most other countries in the recent recession. C. They are Asian countries experiencing explosive population growth. D. They are the four countries known for the highest levels of bribery in business and government. E. They are experiencing significant levels of economic growth.

E

When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's global ________ strategy. A. communication B. pricing C. distribution D. exchange E. product

E

When a plumbing contractor drove up to Bill's house in a brand-new Mercedes, Bill decided this person would be too high-priced even before the plumbing contractor offered his bid. Bill made the mistake of A. assuming Murphy's Law is true. B. anticipating his preapproach. C. not overcoming reservations. D. closing the sale too early. E. making an assumption of cost based on appearances.

E

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for __________ data. A. parity and affordability B. sales and promotion C. attitude change D. rule-of-thumb E. frequency and reach

E

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening. A. intangible B. inseparable C. heterogeneous D. durable E. perishable

E

Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss. TRUE/FALSE

FALSE

Product penetration is one of the four major growth strategies. TRUE/FALSE

FALSE

Public relations is the component of IMC that has received the greatest increase in aggregate spending. T/F

FALSE

The sales process always proceeds through each of the five steps. TRUE/FALSE

FALSE

The three general objectives of advertising are to select, target, and promote. TRUE/FALSE

FALSE

After seeing advertisements for the Toyota Prius, Joel becomes interested and does some Internet research. However, after seeing the price for a new model, he decides to purchase a Ford Fusion instead. This is an example of the lagged effect. T/F

FALSE

Among the various international trade agreements, the North American Free Trade Agreement represents the highest level of integration across individual nations. TRUE/FALSE

FALSE

An effective global pricing strategy can be easily established by setting the same prices in every market around the world. TRUE/FALSE

FALSE

An iPad mini advertisement appearing in the New York Times is an example of using a niche media channel. TRUE/FALSE

FALSE

As the number of communication media has increased, the task of understanding how best to reach target customers has become easier. T/F

FALSE

Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable. T/F

FALSE

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years. TRUE/FALSE

FALSE

Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness. TRUE/FALSE

FALSE

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country. TRUE/FALSE

FALSE

Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products. TRUE/FALSE

FALSE

Geraldine is in NEC's sales training program. She will probably be taught that all a salesperson needs to do is ask questions. TRUE/FALSE

FALSE

Glenn is trying to promote his new, self-published financial guidebook. By directly promoting it to readers in the Wall Street Journal, he is using a push strategy TRUE/FALSE

FALSE

Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country. TRUE/FALSE

FALSE

Gross rating points (GRP) measure how often the audience is exposed to a communication within a specified period of time. T/F

FALSE

If the marketing communication has piqued the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from "I want it" to "I like it." T/F

FALSE

In a joint venture, the burden of ownership, control, and profits is not shared. TRUE/FALSE

FALSE

In training service providers, service quality goals should be general to allow for the various needs of consumers. TRUE/FALSE

FALSE

Integrated marketing communications (IMC) represents the product element of the four Ps. T/F

FALSE

Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy. TRUE/FALSE

FALSE

It is the company's responsibility, not the salesperson's, to ensure that all dealings with the customer are ethical and legal. TRUE/FALSE

FALSE

Latosha was employee of the month at Jersey Mike's Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension. TRUE/FALSE

FALSE

Manufacturers' representatives are a firm's senior sales employees. TRUE/FALSE

FALSE

Many services marketers use training and standardization to reduce service perishability. TRUE/FALSE

FALSE

Most marketing executives believe that salespeople are born, not made. TRUE/FALSE

FALSE

Online sales training is used to replace the one-on-one interaction of on-the-job training for advanced selling skills. TRUE/FALSE

FALSE

Personal selling can be successful only through the use of print, newspapers, and radio. T/F

FALSE

Potential customers are called marks. TRUE/FALSE

FALSE

A television ad showing a crowd holding candles and singing "I'd like to teach the world to sing," followed by the words "Happy Holidays from your Coca-Cola bottler," is an example of reminder advertising TRUE/FALSE

TRUE

Almost everyone is engaged in some form of selling. TRUE/FALSE

TRUE

Although it is usually brief, the role of the subhead in print advertisements is to provide additional product information. TRUE/FALSE

TRUE

An advertisement stating "Buy now: no money down" is a persuasive-type ad. TRUE/FALSE

TRUE

An advertising campaign's objectives should be specific and measurable TRUE/FALSE

TRUE

Betty is assessing the effect of her firm's marketing communications. She should remember that the ultimate goal is to drive the receiver to action. T/F

TRUE

Beverage companies often pay movie producers to have their products used and shown in movies. This is an example of product placement. TRUE/FALSE

TRUE

China is now the second-largest economy and the third-largest market for U.S. exports. TRUE/FALSE

TRUE

Colin wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country. TRUE/FALSE

TRUE

Contests and sweepstakes are both forms of sales promotions, but a contest requires some sort of skill or effort, while a sweepstakes is a drawing of entrants' names. TRUE/FALSE

TRUE

Direct investment offers the firm complete control over its operations in the foreign country. TRUE/FALSE

TRUE

Each element of an integrated marketing communication (IMC) strategy must have a well-defined purpose and support, and extend the message delivered by all the other elements. T/F

TRUE

Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both. T/F

TRUE

Ethical and legal issues are likely to arise between the sales force and corporate policy when the salespeople become conflicted between doing what they believe is ethical and what their company asks them to do in order to make a sale. TRUE/FALSE

TRUE

Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer. T/F

TRUE

Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition. TRUE/FALSE

TRUE

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage. TRUE/FALSE

TRUE

Firms that use personal selling do so because the benefits exceed the costs. TRUE/FALSE

TRUE

Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling. TRUE/FALSE

TRUE

Frequency describes the percentage of the target population exposed to a specific marketing communication, such as an advertisement, within a specified period of time. T/F

TRUE