Marketing Management Chap 1-5

138) Good marketing plans are usually short and to the point.

FALSE

138) Normally, the lower the market-penetration index, the higher the marketing opportunity in that there is room to grow the brand.

FALSE

139) Demand estimates prepared by companies are based on four different time periods.

FALSE

14) Custom marketing research firms sell field interviewing services to other firms.

FALSE

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

FALSE

142) Marketing expenses and investments as inputs can be quantified only in the long run, whereas the resulting outputs such as broader brand awareness, enhanced brand image, greater customer loyalty, and improved new product prospects manifest themselves in the short run.

FALSE

143) Companies assume that the lower the product-penetration percentage, the lower will be the market potential.

FALSE

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

FALSE

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

FALSE

151) A customer-performance scorecard tracks the satisfaction of various constituencies who have a critical interest in and impact on the company's performance: employees, suppliers, banks, distributors, retailers and stockholders.

FALSE

2) A marketer's only concern is how best to create demand for a new product produced by his/her company. Improving product design is not his/her responsibility.

FALSE

25) Competitive intelligence gathering is inherently illegal and unethical.

FALSE

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

FALSE

26) PlanetFeedback.com is an example of a government-related public resource, which is one of the five main ways marketers can research competitors' product strengths and weaknesses online.

FALSE

27) Marketing goods that are currently in short supply would require significant marketing talent.

FALSE

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

FALSE

28) The traditional view of marketing works best in economies with many diff

FALSE

29) Unwholesome demand occurs when consumers' purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

FALSE

3) Marketers have little information about how consumption patterns vary across and within countries.

FALSE

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

FALSE

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

FALSE

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

FALSE

31) A seller who is at a disadvantage has two alternatives: decrease total customer benefit or increase total customer cost.

FALSE

31) Advertising is the most important element in business marketing.

FALSE

31) The new-offering realization process involves all activities in defining target markets and prospecting for new customers.

FALSE

32) Companies selling their goods to nonprofit organizations often charge a premium over their normal prices because these organizations are largely indiffe

FALSE

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

FALSE

34) Another name for a company's value delivery network is "distribution chain."

FALSE

34) The value proposition is also known as the core positioning of the offering.

FALSE

35) Competitors in a given industry can be identified by the similarities in their core competencies.

FALSE

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

FALSE

36) Customer satisfaction is the only way by which a firm can increase its profitability.

FALSE

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

FALSE

38) When a manager is trying to identify how the company can efficiently create promising new offerings, he is addressing the question of value delivery.

FALSE

40) Conformance quality and performance quality are identical in the marketing sense.

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

65) Activity-based costing does not consider indirect, variable, and overhead costs.

FALSE

72) A new market opportunity generally guarantees success, if the new product is technically feasible.

FALSE

73) Demographic developments are often unpredictable.

FALSE

76) Mission statements that express unrealistic visions are usually unable to inspire employees to achieve their targets.

FALSE

77) Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets.

FALSE

78) Consumers belonging to the same ethnic group have identical tastes and preferences.

FALSE

78) If Xerox Corporation defined its scope of business as "making copying equipment," it can be classified as a marketing definition.

FALSE

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

FALSE

80) Households comprised of single, separated, widowed, and divorced individuals generally demand larger apartments and expensive appliances, furniture, and furnishings.

FALSE

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

FALSE

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

FALSE

82) Industrial economies provide limited marketing opportunities for luxurious goods.

FALSE

83) Markets with a segment of very wealthy consumers, but high income disparity, present few opportunities to marketers.

FALSE

84) If SanDisk demonstrates the benefits of using its flash memory storage/USBs for data storage in addition to music storage as a way to encourage its current customers to buy more of its existing product offering, it is using a diversification strategy.

FALSE

85) Secondary beliefs and values are passed on from parents to children and reinforced by major social institutions, making them very difficult to change by marketers.

FALSE

127) A marketer who is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and demand is focused on capturing marketing insights.

TRUE

127) If a marketing researcher is looking for a contact method that can gather information quickly and allow the interviewer to clarify questions if necessary, he or she will choose the telephone interview method.

TRUE

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

TRUE

129) Online surveys are fast because the survey can automatically direct respondents to applicable questions and transmit results immediately.

TRUE

129) Performance marketing requires understanding the financial and non-financial returns to business and society from marketing activities and programs.

TRUE

13) A good example of a syndicated-service research firm is Nielsen Media Research.

TRUE

130) Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities.

TRUE

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

TRUE

132) Major cell manufacturers have released phones with digital photo and video capabilities and GPS. This is an example of converging industry trends to introduce hybrid products that are new to the market.

TRUE

134) The available market is the set of consumers who have interest, income, and access to a particular offer.

TRUE

134) The ultimate outcome of relationship marketing is a unique company asset called a marketing network, consisting of the company and its supporting stakeholders — customers, employees, suppliers, distributors, retailers, and others.

TRUE

136) Sales forecasts, expense forecasts, and break-even analysis are usually found in the section on financial projections in the marketing plan.

TRUE

136) The absolute limit of company demand is the market potential; the two would be equal if the company captured 100 percent of the market.

TRUE

137) A marketing plan is evaluated on the basis of how simple, specific, realistic, and complete it is.

TRUE

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

A

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

A

64) Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful? A) demonstrate that the products will benefit both customers and the society in the long term B) emphasize benefits to the consumer rather than environmental benefits C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers D) engage in "greenwashing" to highlight the environmental benefits of the product E) explain the rules and regulations laid out by governmental agencies to protect the environment

A

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

A

68) "Truancy should be checked in schools: 1) Strongly disagree, 2) Disagree, 3) Neither agree nor disagree, 4) Agree, 5) Strongly agree." This is an example of a ________. A) Likert scale B) semantic differential C) multiple choice question D) Thematic Appreciation Test (TAT) E) dichotomous question

A

8) The first phase of the value creation and delivery sequence is ________ the value that represents the "homework" marketing must do before any product exists. A) choosing B) providing C) communicating D) considering E) acquiring

A

81) Which of the following is an example of enhancing the growth potential of each customer through cross-selling? A) In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other accessories. B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them. C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. E) 2Wheels encourages customers to send in their suggestions for product improvement.

A

84) Which of the following gains the most benefit from introducing a frequency program? A) the first company to introduce a frequency program in an industry B) the fast follower, the second to introduce a program in an industry C) the industry sales leader D) the niche player in the industry E) the low-cost leader in the industry

A

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

A

86) ________ flash an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds. A) Tachistoscopes B) Audiometers C) Polygraphs D) GPS systems E) Galvanometers

A

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

A

98) The ________ concept holds that consumers will favor offerings with the best quality, performance, or innovative features. A) product B) marketing C) production D) selling E) holistic marketing

A

10) The last step in the value creation and delivery sequence is ________ the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product. A) developing B) positioning C) communicating D) reversing E) researching

C

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

C

103) The ________ market is the part of the qualified available market the company decides to pursue. A) potential B) available C) target D) penetrated E) reserve

C

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

C

108) What are the four broad components of holistic marketing? A) relationship, internal, position, and performance marketing B) integrated, internal, position, and performance marketing C) relationship, integrated, internal, and performance marketing D) integrated, relationship, social responsibility, and position marketing E) relationship, social responsibility, internal, and performance marketing

C

109) The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________. A) primary demand B) market potential C) market minimum D) optimum demand E) market demand

C

111) Which aspect of holistic marketing motivates employees and ensures that everyone in the organization embraces appropriate marketing principles, especially senior management? A) relationship marketing B) integrated marketing C) internal marketing D) network marketing E) performance marketing

C

111) ________ describes the company's optimization of the value of its customer base. A) Customer relationship management B) Behavioral targeting C) Customer value management D) Terminal marketing E) Personalized marketing

C

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

C

130) The Coca-Cola Freestyle dispensing machine, which can dispense 125 sparkling and still drinks that consumers can mix via a touchscreen allowing consumers to create a beverage to suit their particular taste, is an example of permission marketing.

FALSE

131) The marketing mix component called "people" reflects all the creativity, discipline, and structure brought to marketing management.

FALSE

132) The product concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependence.

FALSE

133) Marketing plans are becoming more production oriented because of the high costs of doing business in today's economy.

FALSE

134) A marketing plan should open with a situation analysis.

FALSE

135) Sheth and Sisodia say accessibility is ripest for improvement because most companies are either ineffectual or inefficient at developing it.

FALSE

135) The distance between the market minimum and the market potential shows the overall product penetration percentage.

FALSE

76) Satisfied customers constitute the company's ________. A) customer relationship capital B) customer churn C) target audience D) high-value customers E) customer touch points

A

48) By 2010, only ________ percent of US households were traditional households. A) 20 B) 25 C) 28 D) 31 E) 33

A

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

A

62) Which of the following is the second largest contributor to global warming, accounting for roughly a fifth of carbon emissions? A) transportation B) primary metal production facilities C) electrical power plants D) aerosol cans E) rural cooking fires

A

63) A(n) ________ market definition of a business focuses on selling a product or service to an existing market. A) target B) strategic C) mass D) diff

A

63) Because of its flexibility, ________ are the most common technique of collecting primary data. A) questionnaires B) telephonic interviews C) behavioral research studies D) experimental designs E) focus groups

A

89) If a marketing researcher wishes to reach those people who would not give personal interviews or whose responses might be biased or distorted by interviewers, he or she should use ________. A) mail questionnaires B) telephonic interviews C) online interviews D) focus groups E) observational research

A

91) In ________ interviews, researchers stop people at a shopping mall or busy street corner and request an interview on the spot. A) intercept B) arranged C) group D) structured E) behavioral

A

A) Experimental B) Behavioral C) Observational D) Focus group E) Descriptive

A

136) The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and holistic marketing concept. Evaluate the advantages and disadvantages of each concept. Which concept do you believe is the most effective? Why?

Although students may be expected to research each concept, they should conclude the most effective concept is the holistic marketing concept, where companies need to have a more complete, cohesive approach that goes beyond traditional applications of the marketing concept.

43) Hot Topic, a chain that sells rock-band-inspired clothes for teens, recently launched Torrid to give plus-size teens the same fashion options. Identify the three parts of the value delivery process and their function for Hot Topic.

Answer: The first phase, choosing the value, represents the "homework" marketing must do before any product exists. The second phase, providing the value, is where product features, prices, and distribution are selected. The third phase, communicating the value, utilizes the sales force, sales promotion, advertising, and other communication tools to announce and promote the product.

124) When two service businesses, H&R Block and Hyatt Legal Services, combined their efforts, they also joined marketing forces to create a strong alliance. This would classify as which type of strategic alliance? Explain your

Answer: This alliance is called a product or service alliance where one company licenses another to produce its product, or two companies jointly market their complementary products or a new product.

28) Axis Centre, a department store, has installed CCTV cameras to record consumer actions. Which research approach has been adopted by Axis and why?

Axis has adopted observational research approach to gather fresh data by observing the consumers' actions in the store.

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

B

118) Sites such as Bizrate.com, Shopping.com, and PriceGrabber.com, and Epinions.com and Yelp.com, which let customers share information about their product and service experiences with others, reflect an increase in customer ________. A) ambiguity B) empowerment C) privacy D) diplomacy E) empathy

B

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

B

4) Apex Corporation is one of the best in its industry in terms of costs and performance. Many companies in its industry will probably consider Apex as a ________. A) pioneer B) benchmark C) target for acquisition D) future supplier E) sounding board for ideas

B

41) In the United States, people born between the years ________ are called baby boomers. A) 1978 and 2002 B) 1946 and 1964 C) 1925 and 1945 D) 1965 and 1985 E) 1920 and 1940

B

99) Which of the following categories of goods and services is most likely to require an aggressive use of the selling concept? A) shopping goods B) unsought goods C) necessary goods D) luxury goods E) complementary goods

B

104) The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products. A) production B) selling C) marketing D) product E) holistic marketing

B

104) When a business gets to know market segments intimately and pursues either cost leadership or diff B) focused C) value-added D) competitive advantage E) customer-focused

B

125) Which of the following statements is true of marketing plans? A) They can be independently developed without worrying about other functional areas. B) They provide direction and focus for a brand, product, or company. C) They are usually profit-oriented. D) They are of limited use to nonprofit organizations. E) They are typically five-year plans and they lay out the strategies required to achieve targets in those five years.

B

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

B

41) The marketing research process begins by ________. A) developing a research plan B) defining the problem, the decision alternatives, and research objectives C) analyzing the internal environment D) reading marketing research journals E) contacting a professional research consultant

B

48) A company would like to study the impact of advertising expenditure on sales and sales revenue. This is an example of ________ research. A) prescriptive B) causal C) secondary D) exploratory E) qualitative

B

50) Which of the following economies provide limited opportunities to international marketers to develop product sales? A) capitalist economies B) subsistence economies C) raw-materials-exporting economies D) industrializing economies E) industrialized economies

B

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

B

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

B

73) In which of the following qualitative methods are subjects asked to complete an incomplete stimulus? A) word association B) projective techniques C) visualization D) brand personification E) laddering

B

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

B

22) ________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. A) Performance B) Value C) Quality D) Customer retention E) Customer loyalty

C

57) A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________. A) profitability B) target market feasibility C) opportunity D) continuous improvement E) quality products

C

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

C

130) Marketing ________ are a structured way to disseminate the insights gleaned from the two complementary approaches to measuring marketing productivity within the organization. A) metrics B) decision support systems C) dashboards D) segments E) mix models

C

133) The sales forecasting method of ________ builds sets of equations that describe a system and statistically derives the different parameters that make up the equations statistically. A) time-series analysis B) statistical demand analysis C) econometric analysis D) cost effectiveness analysis E) exponential smoothing

C

46) Abby lives in a suburb of Atlanta with her three children. She is part of the biggest household change this decade, which was ________. A) a growing demand for larger apartments B) a need for smaller-size food packages C) the jump in households headed by women without husbands D) the growth of the gay and lesbian population in the suburbs E) the increase of empty nesters

C

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

C

57) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ are a major market for movies, music, surfing, and camping. A) Makers B) Preservers C) Escapers D) Changers E) Developers

C

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

C

6) ________ goods constitute the bulk of most countries' production and marketing efforts. A) Durable B) Impulse C) Physical D) Luxury E) Intangible

C

66) Of the following, which country received the highest score on the Greendex sustainable consumption index, which suggests they minimize their environmental impact via decisions made about transportation, household energy, resource use, and food/good consumption? A) China B) Brazil C) India D) United States E) France

C

67) A question that respondents can Answer in an almost unlimited number of ways is called a ________ question. A) structured B) closed-end C) completely unstructured D) dichotomous E) multiple choice

C

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

C

A) the situation analysis B) the marketing strategy C) the executive summary D) the financial projections E) the short-term targets

C

example of a ________ research firm. A) custom marketing B) specialty-line marketing C) syndicated-service D) generic marketing E) focused marketing

C

94) The Internet has given today's companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel.

Companies can operate a powerful new information and sales channel, the Internet, with augmented geographical reach to inform and promote their businesses and products worldwide. By establishing one or more Web sites, a company can list its products and services, its history, its business philosophy, its job opportunities, and other information of interest to visitors. This provides consumers with a direct access to the company. Almost all Web sites include a "contact us" section that enables consumers to put forth their queries and interact with the company directly. This in turn allows marketers to be aware of people's opinions and preferences.

155) Simpsons, a manufacturer of air conditioners, finds that its sales potential is less than its market potential even when it spends a sufficient amount on advertisements and after sale services. What is the basic reason behind such an observation by the marketers of Simpsons?

Company sales potential is less than the market potential, even when a company's marketing expenditures increase considerably because each firm has a set of loyal consumers unresponsive to other companies' efforts to woo them.

119) A ________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors. A) sales budget B) market demand C) company demand D) company sales potential E) market potential

D

122) Activists used ________ to populate the Internet with unflattering information about Nike. A) banner ads B) YouTube videos C) goodwill D) search engine optimization E) brand studies

D

38) A ________ is a "large social, economic, political, and technological change that is slow to form, and once in place, influences us for some time — between seven and ten years, or longer." A) fad B) fashion C) trend D) megatrend E) style

D

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

D

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

D

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

D

59) Which of the following would be the best illustration of a secondary belief or value? A) belief in work B) belief in giving to charity C) belief in getting married D) belief in getting married early E) belief in being honest

D

132) Which of the following refers to the set of measures that helps firms to quantify, compare, and interpret their marketing performance? A) marketing diagnostics B) marketing information systems C) marketing simulation D) marketing intelligence E) marketing metrics

E

60) The most scientifically valid research is ________ research. A) observation B) focus group C) survey D) behavioral E) experimental

E

and environmental conditions. A) company demand B) market demand C) company sales potential D) sales quota E) total market potential

E

inventory expenditure extremely low and to pass these savings on to consumers in the form of low prices. Walmart's strategy is best described as ________. A) a focused approach B) integrative growth C) diff

E

110) In applying MBO (management by objectives) all objectives are treated as being equally important.

FALSE

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

FALSE

119) Safeway supermarket's scanner data shows that high-income people don't necessarily buy the more expensive brands. This is an example of survey research.

FALSE

126) A marketer who wants to position his line of cameras as the "Cadillac" of all cameras is focused on connecting with customers.

FALSE

132) The overall rate of ad blocking on Web browsers is 22 percent.

FALSE

140) The penetrated market is the set of consumers who have an interest in a market offer but do not have the accessibility.

FALSE

157) Suppose the brand development index of the detergent manufactured by Fasclean in Boston is 90 and in Austin is 48. Compare the marketing opportunity of Fasclean detergent in the two cities.

Fasclean has a greater marketing opportunity for its detergent in Austin than it has in Boston.

91) Goodwin's Grocery has decided to purchase a meat-processing plant to gain more control of its beef supply and improve its profits. Which form of integrative growth strategy has Goodwin's employed?

Goodwin's has selected a backward integration strategy.

48) Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Keiko can reduce the price or cost of ownership and maintenance, simplify the ordering and delivery process, or absorb some buyer risk by offering a warranty.

119) Explain what happens in a SWOT analysis during the strategic planning process.

SWOT (strengths, weaknesses, opportunities, and threats) monitors the external and internal environment by examining key macroeconomic and microeconomic forces and actors that have an impact on the organization's business and industry.

125) Probability sampling allows confidence limits to be calculated for sampling error and makes the sampling more representative.

TRUE

107) Keeping a survey short and simple and contacting customers no more than once a month are two keys to drawing people into the data collection effort.

TRUE

149) Relative perceived quality is an example of an external marketing metric.

TRUE

process model.

TRUE

96) The United States has one of the world's highest percentages of college-educated citizens. What can be the possible implications of this observation to the marketing environment of a US firm?

The high percentage of college-educated citizens in the United States suggests that there would be high demand for quality books, magazines, and travel. It also implies that there would be a high supply of skilled potential employees. Students can point out other implications.

158) Suppose Redbus, a player in the small car market, is planning to launch its new range of hybrid cars. It decides to estimate the future demand for its new car before launching it in the market. If interviewing consumers is not practical, what alternative technique might it resort to?

When buyer interviewing is impractical, Redbus may ask its sales representatives to estimate the future sales or use expert opinions.

100) A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by successful companies to improve the value of their customer base.

Winning companies improve the value of their customer base by excelling at the following five strategies: 1. Reducing the rate of customer defection 2. Increasing the longevity of the customer relationship 3. Enhancing the growth potential of each customer through "share-of-wallet," cross-selling, and up-selling 4. Making low-profit customers more profitable or terminating them 5. Focusing disproportionate effort on high-value customers

154) Suppose 100 million people consume black tea every year, and an average consumer consumes 8 kgs of tea at an average price of $3 per kg. Compute the total market potential for tea.

$2,400 million

102) Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

2Wheels can encourage unprofitable customers to buy more or in larger quantities, forgo certain features or services, or pay higher amounts or fees. It can also use cross-selling or up-selling techniques.

101) Bicycle store 2Wheels wants to maximize sales from each customer. The marketing team suggests that 2Wheels uses cross-selling techniques. How can the company implement this technique?

2Wheels can use cross-selling techniques by stocking products related to bicycles, such as cycling gear, bottles, lamps, and other accessories.

112) Financial accountability and social responsibility marketing are elements of ________ marketing. A) performance B) relationship C) internal D) social E) mass

A

115) After being frustrated by the lack of detailed, reliable, and up-to-date information available to help him decide where to go on a Mexican holiday, Stephen Kaufer founded ________ in 2001. A) TripAdvisor B) Wanderfly C) EveryTrail D) Starwood E) Expedia

A

138) A ________ scorecard records how well the company is doing year after year based on measures such as the average perception of the company's product quality relative to its chief competitor. A) customer-performance B) stakeholder-performance C) marketing balanced D) vendor E) generic

A

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

A

7) AT&T, GE, Samsung, Shell Oil, and others have engaged in a(n) ________ exercise by sponsoring the Innovation Challenge, where top MBA students compete in teams to address company problems. A) crowdcasting B) syndication C) net monitoring D) product-preference E) advertising evaluation

A

71) If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore ________ strategy first because it is easier to improve an existing business than to build a new one. A) market-penetration B) market-development C) diversification D) product-development E) exclusive

A

71) The Body Shop, Timberland, and Patagonia incorporate ________ as a way to differentiate themselves from competitors, build consumer preference, C) globalization D) collaboration E) goodwill

A

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

A

77) The John Deere brand might make someone think of a rugged, Midwestern male who is hardworking and trustworthy, which the brand management folks would learn through ________ research. A) brand personification B) projective technique C) visualization D) laddering E) Zaltman Metaphor Elicitation Technique

A

102) Abbot Laboratories warehouses and delivers 3M's medical and surgical products to hospitals across the United States. The best description of this form of alliance would be a(n) ________. A) product alliance B) logistics alliance C) pricing collaboration D) indirect collaboration E) promotional alliance

B

105) When one company licenses another to produce its offerings, or two companies jointly market their complementary offerings, it is called a ________. A) pricing collaboration B) product or service alliance C) promotional alliance D) logistics collaboration E) total quality management

B

127) Suppose Concrete Express, a cement manufacturing firm, finds that its sales have increased by 3 percent this year, while industry sales have increased by 5 percent. This implies that ________. A) Concrete Express has acquired additional market share in relation to the cement industry B) Concrete Express is losing its relative standing in the cement industry C) other players in the industry are losing market share D) the absolute market share of Concrete Express has declined E) Concrete Express's position in relation to the industry has remain unchanged

B

130) Which financial projections include three estimates (optimistic, pessimistic, and most likely)? A) sales forecasts B) risk analyses C) expense forecasts D) break-even analyses E) per-unit variable costs

B

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

B

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

B

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

B

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

B

78) LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________. A) trying to increase the retention rate for low-profit customers B) terminating the relationship with low-profit customers C) enhancing the growth potential of each customer through up-selling D) increasing the longevity of the customer relationship E) reducing the rate of customer defection

B

80) Which of the following is an example of focusing disproportionate effort on high-profit customers? A) In addition to bicycles, 2Wheels sells biking gear such as helmets, bottles, jackets and other accessories. B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them. C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. E) 2Wheels encourages customers to send in their suggestions for product improvement.

B

81) Which of the seven main metaphors in the ZMET reflects changes in substance and circumstance? A) Balance B) Transformation C) Journey D) Container E) Control

B

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

B

96) Which of the following holds that consumers prefer products that are widely available and inexpensive? A) the product concept B) the production concept C) the selling concept D) the performance concept E) the marketing concept

B

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

B

139) Identify the pros and cons of using behavioral targeting for marketing.

Behavioral targeting allows firms to match its ads to prospects based on the online behavior or target customers. Firms use cookies and codes to match their identities with their Web-browsing activities, and users' names and e-mail addresses, along with other personal details, are passed on to third-party companies. Advertising clients can target customers based on behavior, making ads more relevant to consumers. Firms gain higher click-through rates. More ad revenue is generated to support content development. However, consumers have concerns and feel that self-regulation is inadequate. Consumers would like to know what information is being collected and shared.

31) Greenfoods, a manufacturer of ready-to-eat foods, conducts over 60,000 customer surveys each month through its retail outlets. What risk is Greenfoods likely to face by putting out so many surveys each month?

By putting out so many surveys each month, Greenfoods may run the risk of creating "survey burnout" and seeing response rates drop sharply.

45) Over the past 10 years, Cisco Systems has drastically reduced its number of suppliers and aligned itself more closely with its remaining suppliers for each of its product-based teams. How might this have helped Cisco improve its new-offering realization process?

By reducing the number of suppliers it uses, Cisco is able to work more closely with its few remaining suppliers, involving them in new-product development and tapping their expertise in improving overall product quality and supplier relationship.

112) Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________. A) market minimum B) market share C) market forecast D) market potential E) company demand

C

121) Which of the following was NOT part of the British Airways "Know Me" program? A) centralization of information about frequent fliers into a single database B) identification of each customer's seating location and previous flight, meal, and complaint history C) infiltration of coach class by mystery shoppers D) generation of 4,500 daily messages to recognize passengers E) distribution of 2,000 iPads to crew members and ground staff to aid information dissemination and stimulate passenger recognition

C

130) Time-series analysis based on past sales breaks past time series into four components — trend, cycle, seasonal, and ________. A) regular B) annual C) erratic D) recurring E) periodic

C

141) According to marketing consultant Pat LaPointe, the ________ metrics measurement pathway of the marketing dashboard focuses on how well marketing expenditures are achieving short-term returns. A) customer B) unit C) cash-flow D) brand E) productivity

C

113) Companies are recognizing that much of their market value comes from ________, particularly their brands, customer base, employees, distributor and supplier relations, and intellectual capital. A) variable assets B) value propositions C) intangible assets D) market offerings E) industry convergence

C

114) Holistic marketing incorporates ________ marketing, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities. A) internal B) cultural C) social responsibility D) relationship E) integrated

C

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

C

118) A ________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period. A) sales budget B) market demand C) company demand D) company sales potential E) market potential

C

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

C

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

C

123) The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases. A) group-discussion B) market-test C) market-buildup D) brand development index E) multiple-factor index

C

42) Firms find "reverse innovation" advantage by introducing a commodity in a ________. A) developed country and then distributing it globally B) developing country and then distributing it in other developing countries C) developing country and then distributing it globally D) developed country and then distributing it in developing countries E) developed country and then distributing it in other developed countries

C

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

C

5) A social definition of marketing says ________. A) effective marketing requires companies to remove intermediaries to achieve a closer connection with direct consumers B) a company should focus exclusively on achieving high production efficiency, low costs, and mass distribution to facilitate the broadest possible access to the company's products C) marketing is the process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others D) marketing is the process of extracting the maximum value from consumers to facilitate corporate growth E) marketing is the process of aggressive selling and promotion to encourage the purchase of products that might otherwise be unsought by the consumer

C

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

C

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

C

53) Primary data can be collected in several ways. Installing CCTV cameras in a retail store whereby consumers' actions can be recorded is an example of ________ research. A) focus group B) survey C) observational D) behavioral E) experimental

C

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

C

59) Which of the following is one of the five major characteristics of good mission statements? A) They focus on a large number of goals. B) They expand the range of individual employee discretion. C) They define the major competitive spheres within which the company will operate. D) They take a short-term view. E) They are long and comprehensive to ensure that all critical concepts are included.

C

61) Which of the following is the largest contributor to global warming, contributing almost a quarter of the carbon dioxide in the environment? A) transportation B) industrial production facilities C) electrical power plants D) aerosol cans E) rural cooking fires

C

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

C

66) A strategic-planning gap can be corrected by ________. A) changing the company's mission B) adjusting its core values C) choosing integrative growth strategies D) redefining organizational culture E) increasing resource use

C

70) If a marketing researcher chooses to use word associations, the researcher is using ________ questions. A) closed-end B) Likert scale C) open-end D) rating scale E) semantic differential

C

74) Which of the following is NOT one of the 4 As customers most value? A) acceptability B) affordability C) affability D) accessibility E) awareness

C

74) ________ requires people to create a collage from magazine photos or drawings to depict their perceptions. A) Brand personification B) Projective technique C) Visualization D) Laddering E) Zaltman Metaphor Elicitation Technique

C

75) During his research about people's perceptions of Broadway musicals, Gerry asked people to create collages, on their own, out of magazine photos, which is a technique called ________. A) brand personification B) projective technique C) visualization D) laddering E) transformation

C

77) Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and books for children. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________. A) reducing the rate of customer defection B) increasing the longevity of the customer relationship C) enhancing the growth potential of each customer through cross-selling D) making low-profit customers more profitable E) terminating low-profit customers

C

8) A field-service firm is a ________ research firm. A) custom marketing B) syndicated-service C) specialty-line marketing D) consumer marketing E) social marketing

C

83) During a focus-group session, one set of participants indicated that Dell computers reminded them of a surfer, Apple computers of a mad scientist, and IBM was equated to Ebenezer Scrooge from Charles Dickens's tale, "A Christmas Carol." Which of the following qualitative research approaches relates to the approach described above? A) projective techniques B) visualization C) brand personification D) laddering E) brand architecture

C

9) Which of the following is the first step in customer value analysis? A) Examine how customers in a specific segment rate the company's performance. B) Assess the company's and competitors' performances on the different customer values against their rated importance. C) Identify the major attributes and benefits that customers value. D) Monitor customer values over time. E) Assess the quantitative importance of the different attributes and benefits.

C

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

C

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

C

99) A ________ has been defined as a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. A) marketing metric B) marketing channel system C) marketing decision support system D) marketing research system E) database management system

C

123) Michael Porter draws a firm distinction between operational effectiveness and a strategy. Briefly describe this distinction and identify when a company can claim that it has a strategy.

Competitors can quickly copy the operationally effective company using benchmarking and other tools, thus diminishing the advantage of operational effectiveness. Porter defines strategy as "the creation of a unique and valuable position involving a diff

30) Copra, a manufacturer of cigarettes, conducts a survey before launching its new range of herbal cigarettes. What is the basic purpose of undertaking such a survey by Copra?

Copra undertakes the survey to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population.

42) Describe the characteristics a core competency should possess.

Core competency has three characteristics. They are: 1. it is a source of competitive advantage 2. it has applications in a wide variety of markets 3. it is difficult for competitors to imitate

67) What technique is used for customer profitability analysis?

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called activity-based costing (ABC). ABC accounting tries to identify the real costs associated with serving each customer — the costs of products and services based on the resources they consume. The company estimates all revenue coming from the customer, less all costs. With ABC, the costs should include the cost not only of making and distributing the products and services, but also of taking phone calls from the customer, traveling to visit the customer, paying for entertainment and gifts — all the company's resources that go into serving that customer. ABC also allocates indirect costs like clerical costs, office expenses, supplies, and so on, to the activities that use them, rather than in some proportion to direct costs. Both variable and overhead costs are tagged back to each customer.

10) The final step of customer value analysis is to ________. A) identify the major attributes and benefits that customers value B) assess the company's and competitors' performances on the different customer values against their rated importance C) examine how customers in a specific segment rate the company's performance D) monitor customer values over time E) assess the quantitative importance of the different attributes and benefits

D

105) Identify the concept that emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy. A) the product concept B) the production concept C) the selling concept D) the marketing concept E) the holistic marketing concept

D

78) If a researcher asks a consumer why s/he wants to buy a Nokia cell phone, and learns, "They look well built" (attribute); then asks "Why is it important that the phone be well built?" and learns "It suggests Nokia is reliable" (a functional benefit); then asks "Why is reliability important?" and learns "Because my colleagues or family can be sure to reach me" (an emotional benefit), the researcher is using a technique called ________. A) brand personification B) projective technique C) visualization D) laddering E) Zaltman Metaphor Elicitation Technique

D

87) ________ attached to television sets in participating homes now record when the set is on and to which channel it is tuned. A) Tachistoscopes B) Polygraphs C) GPS systems D) Audiometers E) Galvanometers

D

89) Each of the following is true about the Internet's impact on the way business is conducted today, EXCEPT one. Identify the exception. A) It has facilitated high-speed communication among employees. B) It has empowered consumers with easy access to information. C) It can be used as a powerful sales channel. D) It has facilitated mass marketing but not the sale of customized products. E) It enables marketers to use social media to advertise their products.

D

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

D

9) You are the marketing research director of a medium-sized manufacturing firm and you would like to engage an outside marketing research firm to conduct field interviews. Which of the following categories of marketing research firms should you use? A) syndicated-service research firms B) custom marketing research firms C) global research management firms D) specialty-line marketing research firms E) brand management specialty research firms

D

94) Which of the following is an advantage of online research? A) Samples are generally representative of the target population. B) Members of online panels and communities tend to have low turnover. C) Online research is relatively free of technological problems and inconsistencies. D) People tend to be honest and thoughtful online. E) Online research is slow but gathers detailed information.

D

95) Qantas, the Australian national airline carrier, introduces flights to the Middle East. This is an example of ________. A) product development B) diversification C) market development D) market penetration E) diff

D

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

D

92) Discuss the concept of disintermediation and provide an example.

Disintermediation grew out of the rush to embrace the dot-coms and e-commerce. Essentially, the dot-coms removed many of the traditional intermediaries by encouraging consumers to deal directly with the company via the Internet. "Brick-and-click" businesses eventually brought some of the intermediaries back through a process called reintermediation.

92) From its origins as an animated film producer, Walt Disney Company has moved into licensing characters for merchandised goods and developed theme parks and vacation and resort properties. What strategy best describes Disney's growth?

Disney has employed a diversification growth strategy, taking advantage of opportunities outside its original animated film business, leveraging the strength of its characters in new businesses.

117) A ________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment. A) sales budget B) company sales forecast C) sales quota D) company sales potential E) market potential

E

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

E

55) Which of the following is NOT true regarding impressions? A) They are useful for tracking the scope of a communication. B) They are useful for tracking the breadth of a communication's reach. C) They can be compared across all communication types. D) They represent a less active response than engagement. E) They provide insight into the results of viewing the communication.

E

68) Which of the three transformative forces mentioned in the chapter is associated with the number of mobile phones in India recently exceeding 500 million and Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"? A) demographics B) accountability C) social responsibility D) globalization E) technology

E

88) Which of the following statements about telephone interviewing is true? A) It usually takes a long time to gather information through telephone interviews. B) The interviewer is unable to clarify questions if respondents do not understand them. C) The response rate for telephone interviews has been typically lower than for mailed questionnaires. D) The US government generally encourages telemarketing by firms. E) Telephone interviewing in the US is getting more difficult because of consumers' growing antipathy toward telemarketers.

E

95) Discuss the impact of tougher environmental regulations on businesses, citing examples whenever possible. Also, point out opportunities, if any, presented by these regulations.

Environmental regulations adversely affect certain industries. They increase the cost of production for a range of industries. For instance, steel manufacturing units and firms which generate electricity are required to install pollution control equipment. Automobile companies are required to develop and use cleaner technology in their vehicles. However, businesses can also achieve significant savings in their energy and gas bills by moving to environmentally friendly ways to heat or cool their offices and run their manufacturing facilities. A shift to paperless communication can cut costs and pollution. Plus, new business opportunities are opening up in the "green" sectors as is evident in the companies that manufacture and sell emission-control equipment and sell services to help companies adopt environmentally friendly practices.

133) Before rolling out a new marketing communications campaign, employees went to a rally and received training on why the company was changing directions and what it would mean to their customers, which is an example of relationship marketing.

FALSE

146) Marketing-mix modeling focuses on baseline sales or long-term effects instead of incremental growth.

FALSE

89) All companies should practice one-to-one marketing.

FALSE

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

FALSE

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

FALSE

91) Digital technology is fueling massive reintermediation, like when Apple, Sony, and Samsung released a stream of entertainment devices from smart phones to LED TVs and tablets.

FALSE

91) Regulation of technological changes has been relaxed by the US government over recent years.

FALSE

93) Crocs clogs, Elmo TMX doll, and Pokemon gifts and toys are examples of megatrends, which are unpredictable, short-lived, and without social, economic, and political significance.

FALSE

93) Profit rate tends to decrease over the life of the retained customer due to increased purchases, referrals, price premiums, and increased operating costs to service.

FALSE

95) Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

FALSE

values.

FALSE

80) A company seeking to expand the number of existing products sold to its current markets, would be using a "market-penetration strategy."

FALSE ??? TRUE

133) Identify ways in which companies facing customer complaints can recover customer goodwill.

Given the potential downside of having an unhappy customer, it is critical that marketers deal with negative experiences properly. Beyond that, the following procedures can help to recover customer goodwill. 1. Set up a 24/7 toll-free "hotline" to receive and act on customer complaints. 2. Contact the complaining customer as quickly as possible. 3. Accept responsibility for the customer's disappointment 4. Use customer-service people who are empathic. 5. Resolve the complaint swiftly and to the customer's satisfaction.

25) As a marketing researcher of Matrix Private Limited you have been asked to forecast the demand for your new range of body wash if a discount of 10 percent is offered on each unit sold. Identify the research category into which this market research falls.

Here the researcher needs to study the effect of the discount on the demand for body wash. The objective of this research is to establish the cause and effect relationship between the discount and the demand for body wash. Therefore, this can be categorized as causal research.

26) Highspeed Motors is planning to introduce its new sports bike into the market. It collects data on prices, designs, features, and performance of sports bikes manufactured by other companies from their respective Web sites. What type of data is being used by Highspeed motors in this case?

Highspeed Motors is using secondary data for its research.

45) Explain total customer satisfaction.

In general, satisfaction is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance (or outcome) to expectations. If the performance falls short of expectations, the customer is dissatisfied. If it matches expectations, the customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted. Customer assessments of product performance depends on many factors, especially the type of loyalty relationship the customer has with the brand. Consumers often form more favorable perceptions of a product with a brand they already feel positive about.

32) As a marketing researcher of a firm, you plan to conduct behavioral research to develop marketing insight. What procedure would you follow in this case?

In order to conduct behavioral research, the marketing researchers need to develop consumer insight by analyzing store scanning data, catalog purchases, and customer databases.

143) Explain how risk analysis is used to estimate profits.

In risk analysis, we obtain three estimates (optimistic, pessimistic, and most likely) for each uncertain variable affecting profitability, under an assumed marketing environment and marketing strategy for the planning period. The computer simulates possible outcomes and computes a distribution showing the range of possible rates of returns and their probabilities.

137) Define internal marketing and its role in the company. Outline how various departments within the company can demonstrate a customer focus.

Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. Internal marketing must take place on two levels. At one level, the various marketing functions must work together. At the second level, other departments must embrace marketing and a "think customer" attitude.

14) Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly and accurately?

It is necessary for the firms to execute the steps of the order-to-payment cycle quickly and accurately because customers favor firms that can promise timely delivery.

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

Major characteristics of mission statements include the following: • focus on a limited number of goals • stress on the company's major policies and values • definition of the major competitive spheres within which the company will operate (e.g., industry, products and applications, competence, market segment, vertical, and geographical) • a long-term view • should be as short, memorable, and meaningful as possible

44) What are the steps in a customer value analysis?

Managers conduct a customer value analysis to reveal the company's strengths and weaknesses relative to those of various competitors. The steps in this analysis are: 1. Identify the major attributes and benefits that customers value. 2. Assess the quantitative importance of the different attributes and benefits. 3. Assess the company's and competitors' performances on the different customer values against their rated importance. 4. Examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis. 5. Monitor customer values over time.

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

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

97) Suppose the people of Greenworld, an island in the southwest Pacific, are primarily involved in the direct procurement of edible plants and animals from the wild, foraging and hunting without significant recourse to the domestication of either. On the contrary people in Newland, a country rich in petroleum resources, export petroleum to the industrial countries. Which of the two countries mentioned above is likely to offer greater marketing opportunities for luxurious goods and why?

Newland is likely to produce greater marketing opportunities for luxurious goods as people in this country are likely to have greater affordability than the people in Greenworld.

95) Discuss how companies can use the Internet to build their brands. Give an example of a company that has done so.

Online marketing activities can be used to build brands by increasing consumer exposure to the brand and creating an interactive experience between the customer and the brand, giving consumers access not only to company-created information but also consumer-generated content. For example, Carnival Connections, an online cruise-booking site, made it easy for cruise fans to compare notes on cruise destinations and onboard entertainment.

50) Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

Periodic surveys can track customer satisfaction directly and ask additional questions about the quality of customer service. Berry's can hire mystery shoppers to pose as potential buyers and report on strong and weak points experienced in buying the company's and competitors' products.

142) Linda Evans has been given the task of developing the product element of her company's marketing mix. List the components that will likely be included in this element of the marketing mix.

Product variety, quality, design, features, brand name, packaging, sizes, services, warranties, and returns are the key elements of the product portion of the marketing mix.

98) Why do companies need to search for practical means to harness renewable sources of energy like wind and water?

Prolonged exploitation of the conventional sources of energy like oil has led to an acute shortage of these resources resulting in their prices increasing over time. Firms face substantial cost increase as these resources are depleted, hence they need to search for means to harness the infinite renewable resources.

20) Explain qualitative research and why it might be useful to marketers. What are its major drawbacks?

Qualitative research techniques are relatively unstructured measurement approaches to permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. Because of the freedom it affords both researchers in their probes and consumers in their responses, qualitative research can often be an especially useful first step in exploring consumers' brand and product perceptions. It is indirect in nature, so consumers may be less guarded and reveal more about themselves in the process. Qualitative research does have its drawbacks. Marketers must temper the in-depth insights that emerge with the fact that the samples are often very small and may not necessarily generalize to broader populations. And different researchers examining the same qualitative results may draw very different conclusions.

35) The Bledsoe Marketing Research group has been hired to administer a series of questions to shoppers in a local mall. If questions on the survey questionnaire have only two possible responses (such as "yes/no"), what type of questions are these?

Questions of this type are closed-end questions that are dichotomous in nature.

121) What questions would typically be asked during a market opportunity analysis (MOA)?

Questions would typically be: • Can the benefits involved in the opportunity be articulated convincingly to a defined target market(s)? • Can the target market(s) be located and reached with cost-effective media and trade channels? • Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits? • Can the company deliver the benefits better than any actual or potential competitors? • Will the financial rate of return meet or exceed the company's required threshold for investment?

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

Responses to this question should include: • a substantial increase in buying power • a greater variety of available goods and services • a great amount of information about practically anything • greater ease in interacting and placing and receiving orders • an increased ability to compare products and services.

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

Responses to this question should include: • changing technology • globalization • deregulation • privatization • customer resistance • heightened competition • industry convergence • retail transformation • disintermediation • network information technology • consumer buying power • consumer information • consumer participation • consumer resistance

15) Describe the steps in the order-to-payment cycle.

Sales representatives, dealers, and customers send orders to the firm. The sales department prepares invoices, transmits copies to various departments, and back-orders out-of-stock items. Shipped items generate shipping and billing documents that go to various departments.

94) Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique.

Scenario analysis consists of developing plausible representations of a firm's possible future that make diff Answers may vary on why to use the concept but Answers should be mindful of the definition given. Students should try to anticipate the problems that are likely to aggravate in the energy industry and how scenario analysis may help the companies to anticipate the future and be prepared to adjust their processes accordingly.

34) How do the distributors, retailers, and other intermediaries help a company to improve the quantity and quality of its marketing intelligence?

Since marketing intermediaries are often closer to the customer, they can offer helpful insights to the company to improve its marketing intelligence system.

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

Suppose a customer wants to buy a car. The five types of customer needs with respect to this example are: 1. stated needs — the customer wants an inexpensive car 2. real needs — the customer wants a car whose operating cost, not its initial price, is low 3. unstated needs — the customer expects good service from the dealer 4. delight needs — the customer would like the dealer to include an onboard navigation system 5. secret needs — the customer wants to be seen by friends as a savvy consumer.

12) When companies engage students to design and carry out projects, the payoff to the students is experience and visibility; the payoff to the companies is a fresh sets of eyes to solve problems at a fraction of what consultants would charge.

TRUE

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

TRUE

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

TRUE

146) Sales reps might have better insight into developing trends than any other group, and forecasting might give them greater confidence in their sales quotas and more incentive to achieve them.

TRUE

112) Contrary to popular belief, it is not possible to maximize sales and profits simultaneously.

TRUE

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

TRUE

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

TRUE

78) Industry boundaries are blurring at an incredible rate as companies are recognizing that new opportunities lie at the intersection of two or more industries.

TRUE

79) An intensive growth strategy involving marketing current products to new markets is a market-development strategy.

TRUE

79) Of all illiterate adults in the world, two-thirds are women.

TRUE

80) The proliferation of targeted media and communication channels has allowed marketers to become much more aware of their target consumers' preferences and to customize both products and messages for individual consumers.

TRUE

81) The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability.

TRUE

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

TRUE

83) When ESPN found new products for its existing markets by expanding into 10 cable channels, a Web site, and a magazine, it was using a product-development strategy.

TRUE

84) Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents, backpacks, and accessories.

TRUE

86) Environmental regulations enforced by the government adversely affect automobile and steel manufacturing companies.

TRUE

87) Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans.

TRUE

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

TRUE

88) When the brand manager for John Deere sets up advertising, sales promotions, events, and public relations to communicate about the value embodied in its products, she is participating in the "communicating value" management function.

TRUE

99) Assume that you are a marketing manager for a youth clothing manufacturer that has just read about the megatrend of the "rising Hispanic influence" in the United States. Explain this megatrend and indicate why it might be important to your company.

The Hispanic population grew by 43 percent, from 35.3 million to 50.5 million, in the last ten years. Hispanics are having a huge impact on the food US consumers eat and the clothing, music, and cars they buy. Companies are refining their products and marketing to reach this fastest-growing and most influential consumer group.

22) What is the chief advantage of using each of the following contact methods: mail questionnaire, telephone interview, and personal interview?

The chief advantage of each contact method mentioned is 1) mail questionnaire — the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviews, 2) telephone interviews — the best method for gathering information quickly and the interviewer is also able to clarify questions if respondents do not understand them, and 3) personal interview — the most versatile method because they can ask more questions and record additional observations about the respondent.

142) Briefly list the contents of a marketing plan.

The contents of a marketing plan include: • an executive summary and table of contents • a situation analysis • marketing strategy • financial projections • implementation controls

152) If the ratio between current and potential levels of market demand is close to one, what can you infer about the industry's market-penetration index and the growth potential of the firms in the industry?

The industry has a high market-penetration index and there is a negligible growth potential for all the firms in the industry.

152) What are the major shortcomings of marketing-mix modeling?

The major shortcomings of marketing-mix modeling are: • Although marketing-mix modeling helps to isolate effects, it is less effective at assessing how different marketing elements work in combination. • Marketing-mix modeling focuses on incremental growth instead of baseline sales or long-term effects. • The integration of important metrics such as customer satisfaction, awareness, and brand equity into marketing-mix modeling is limited. • Marketing-mix modeling generally fails to incorporate metrics related to competitors, the trade, or the sales force.

85) Indicate the diff

The marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at two levels: strategic and tactical. The strategic marketing plan lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service.

65) Distinguish between the concepts of value and satisfaction.

The offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings on the basis of his or her perception about which product will deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service, and price (called the customer-value triad). Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or outcome) in relation to his or her expectations.

33) A questionnaire used in a survey contains a question such as: "Retail-R-Us offers the best everyday prices" and the responses that the respondents can opt for are: "Strongly Disagree," "Disagree," "No opinion," "Agree," "Strongly Agree." Identify and define the type of closed-end question that has been exemplified in this case.

The question mentioned above is a Likert Scale question. A Likert Scale is a statement with which the respondent shows the amount of agreement or disagreement.

38) A marketing research firm has instructed its research associates to collect primary data by stopping people at a shopping mall or busy street corner and request an interview on the spot. Which contact method is being used by the researchers in this case? What probable risk may the researchers face while using this method?

The researchers are using intercept interviewing method for collecting primary data in this case. The researchers run the risk of including nonprobability samples while using this method.

46) Identify the elements of a tactical marketing plan for a new kind of cola.

The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. For a new kind of cola, the tactical marketing plan might include the packaging size and shape, the flavor, the kinds of advertising used (print, television, buzz marketing), how to price the new cola relative to other colas currently on the market, and where to sell the new cola (grocery stores, gas stations, vending machines, sandwich shops).

99) Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Describe those three steps.

The three steps that a company can take to reduce defection are: 1. The company must define and measure its retention rate. 2. The company must distinguish the causes of customer attrition and identify those that can be managed better. 3. The company must compare the lost profit equal to the customer lifetime value from a lost customer to the costs to reduce the defection rate.

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

The traditional four Ps are: 1. Product (product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns) 2. Price (list price, discounts, allowances, payment period, credit terms) 3. Promotion (sales promotion, advertising, sales force, public relations, direct marketing) 4. Place (channels, coverage, assortments, locations, inventory, transportation). However, given the breadth, complexity, and richness of marketing, as exemplified by holistic marketing, these 4 Ps are not the whole story anymore. Updating them to reflect the holistic marketing concept, researchers in this field arrived at a more representative set that encompasses modern marketing realities: people, processes, programs, and performance.

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

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

17) List the challenges faced to conduct a good focus group discussion.

There are many challenges to conducting a good focus group. Some researchers believe consumers have been so bombarded with ads, they unconsciously parrot back what they've already heard instead of what they really think. There's always a concern that participants are just trying to maintain their self-image and public persona or have a need to identify with the other members of the group. Participants also may not be willing to acknowledge in public — or may not even recognize — their behavior patterns and motivations. And the "loudmouth or know-it-all" problem often crops up when one highly opinionated person drowns out the rest of the group.

93) When Yahoo! began to flounder in 2001, CEO Terry Semel imposed a more conservative atmosphere on the freewheeling Internet start-up. At the new Yahoo!, spontaneity is out and order is in. Identify this organizational phenomenon.

This could be described as a change in corporate or organizational culture. Corporate culture has been defined as "the shared experiences, stories, beliefs, and norms that characterize an organization."

141) According to IBM, what do firms need to do to exploit the power of social media?

To successfully exploit the potential of social media, companies need to design experiences that deliver tangible value in return for customers' time, attention, endorsement, and data. According to these IBM analysts, that "tangible value" includes discounts, coupons, and information to facilitate purchase. They also note that many businesses overlook social media's most potent capabilities for capturing customer insights, monitoring the brand, conducting research, and soliciting new-product ideas.

147) What does total market potential mean? How can it be estimated?

Total market potential is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions. A common way to estimate total market potential is to multiply the potential number of buyers by the average quantity each purchases, times the price. A variation on this method is the chain-ratio method, which multiplies a base number by several adjusting percentages.

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

TRUE

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

TRUE

75) There is a global trend toward an aging population.

TRUE

90) A growing portion of US R&D expenditures goes to the development as opposed to the research side.

TRUE

91) For a magazine, subscription renewal rate is a good measure of retention.

TRUE

46) During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________ markets. A) target B) capital C) tertiary D) demographic E) developing

A

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

A

106) Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ market for this product. A) potential B) available C) target D) projected E) penetrated

A

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

TRUE

44) In the first two-and-a-half years of the iPad's existence, Apple sold ________ million units worldwide. A) 97 B) 45 C) 63 D) 112 E) 91

A

92) Environmental laws imposed by the government may at times create new business opportunities.

TRUE

96) Frequency programs are designed to reward customers who buy often and in substantial amounts.

TRUE

44) The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________. A) segmentation B) integration C) disintermediation D) cross-selling E) customization

A

47) The traditional household consists of ________. A) a husband, wife, and children (and sometimes grandparents) B) a group of related persons living together C) two or more families living together D) a man and a woman living together (whether married or not) E) related or unrelated persons who share living arrangements

A

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

A

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

TRUE

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

A

107) ________ marketing is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns. A) Relationship B) Permission C) Database D) Internet E) Horizontal

B

48) Of the four organizational levels, the corporate level is likely to make which of the following decisions? A) entering a new market B) resource allocation for each product C) strategic plan for individual business units D) choosing specific suppliers for each business unit E) marketing plan for each product

A

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

A

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

A

54) Which of the following plans would most likely include directions for implementing and addressing daily challenges and opportunities in product features, promotion, merchandising, pricing, sales channels, and service areas? A) the tactical marketing plan B) the target marketing plan C) the deployment plan D) the product-launch plan E) the product-development plan

A

56) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually eat, dress, and live well. A) Makers B) Escapers C) Seekers D) Changers E) Developers

A

65) A characteristic of a ________ unit is that it can be a single business or collection of related businesses that can be planned separately from the rest of the company. A) strategic business B) subsidiary C) merged D) niche market E) specialized business

A

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

A

9) By equipping its sales force with handheld devices with barcode readers and Internet connections to speed inventory assessment, TaylorMade allows sales executives to have significantly more time to interact with their consumers. This is an example of the use of technology in improving ________. A) sales information systems B) payroll systems C) cookies D) cohort segmentation E) competitive intelligence gathering

A

106) The marketing concept holds that ________. A) a firm should find the right products for its customers, and not the right customers for its products B) customers who are coaxed into buying a product will most likely buy it again C) a new product will not be successful unless it is priced, distributed, and sold properly D) consumers and businesses, if left alone, won't buy enough of the organization's products E) a better product will by itself lead people to buy it without much effort from the sellers

A

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

A

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

A

11) Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT? A) by absorbing some risk by offering a warranty B) by improving the functional aspects of the products C) by augmenting the psychological benefits of the products D) by training service personnel to improve their skills E) by investing in brand building for the products

A

11) In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________. A) experience B) service C) event D) organization E) good

A

110) A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships. A) customer database B) customer mailing list C) customer-performance scorecard D) customer profitability analysis E) customer-value hierarchy

A

110) The distance between the market minimum and the market potential shows the overall ________. A) marketing sensitivity of demand B) market share of the firm C) market forecast of the firm D) product-penetration percentage E) sales quota

A

115) Design is at the root of ________. A) acceptability B) affordability C) affability D) accessibility E) awareness

A

116) A ________ is a conservative estimate of the expected volume of sales for a business, primarily for making purchasing, production, and cash flow decisions. A) sales budget B) company sales forecast C) sales quota D) company sales potential E) market potential

A

118) ________ combined with affordability determines the product's value proposition. A) Acceptability B) Affluence C) Affability D) Accessibility E) Awareness

A

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

A

13) Sales of woolen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand. A) irregular B) declining C) impulse D) latent E) negative

A

140) According to marketing consultant Pat LaPointe, the ________ metrics measurement pathway of the marketing dashboard reflects how prospects become consumers. A) customer B) unit C) cash-flow D) brand E) productivity

A

16) With respect to core business processes, the ________ process includes all the activities involved in gathering external information, disseminating it within the organization, and acting on the information. A) market-sensing B) market research C) target marketing D) market pulse E) deployment

A

18) ________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others. A) Periodic surveys B) Mystery shoppers C) Customer loss rates D) Customer focus statements E) Sales summary reports

A

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

A

22) A ________ has three characteristics: (1) a source of competitive advantage making a significant contribution to perceived customer benefits; (2) has applications in a wide variety of markets; and (3) is diff C) corporate social responsibility effort D) strategic business unit E) philanthropic endeavor

A

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

A

36) A ________ is "unpredictable, short-lived, and without social, economic, and political significance." A) fad B) fashion C) trend D) megatrend E) style

A

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

A

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

A

43) A(n) ________ need is a need that the consumer explicitly verbalizes. A) stated B) affirmative C) unsought D) delight E) secret

A

43) ________ refer to groups of individuals who are born during the same time period and travel through life together. A) Cohorts B) Populations C) Clans D) Societies E) Ethnic groups

A

5) What is a marketing information system (MIS)? From what sources is the MIS developed?

A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. A marketing information system is developed from internal company records, marketing intelligence activities, and marketing research.

31) What is a marketing intelligence system? How can marketing intelligence data be collected?

A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment. The marketing intelligence system supplies happenings data. Marketing managers collect marketing intelligence in a variety of different ways, such as by reading books, newspapers, and trade publications; talking to customers, suppliers, and distributors; monitoring social media on the Internet; and meeting with other company managers.

141) What would be the marketing network elements for a motorcycle company such as Harley-Davidson?

A marketing network consists of the company and its supporting stakeholders. These stakeholders for Harley-Davidson are its customers, employees, suppliers, distributors, retailers, repair services, ad agencies, lobby groups, and motorcycle support clubs. The operating principle is simple: Build an effective network of relationships with key stakeholders, and profits will follow.

141) Describe a marketing plan.

A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. It contains tactical guidelines for the marketing programs and financial allocations over the planning period.

38) Selling is not the most important part of marketing. Explain why not.

According to Peter Drucker, "There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available."

37) Jane is a marketing researcher of a cellular service providing firm. She is conducting market research before the firm decides to launch its 4G services. After deciding on the research approach and instruments, what is the next step that Jane should follow? What are the three things that she is required to consider in this step?

After deciding on the research approach and instruments, Jane must design a sampling plan. In order to design the plan, Jane has to decide upon the sampling unit (whom she should survey?), the sample size (how many people should she survey?), sampling procedure (how should she choose the respondents?).

27) Ryan has been appointed by Target Internationals, a hardware manufacturing firm, as a marketing researcher and has been asked to conduct marketing research to produce new insights of consumer attitude on its vacuum tubes. Ryan begins the research process by defining the problem, the decision alternatives, and research objectives. Mention the next step that Ryan will follow to continue with the research.

After defining the problem, the decision alternatives, and research objectives, the researcher develops the most efficient plan for gathering the needed information, and will estimate the cost of conducting the research.

44) Critics of Nike often complain that its shoes cost almost nothing to make, yet are priced so high. Identify the elements of providing and communicating value that add to Nike's cost structure and result in the high price of Nike shoes.

Although the raw materials and manufacturing costs of a sneaker are relatively low, marketing the product to the consumer is quite expensive. Providing value includes R&D costs and the costs associated with shipping to retail locations as well as the retailers' overhead. Communicating value includes obtaining celebrity endorsement and extensive advertising. Nike must also pay for a sales force that communicates the product's value to retailers and helps ensure that products are available in retail locations convenient to end consumers.

18) What are the relative advantages of online and in-person focus groups?

An area of increasing interest is online focus groups. These may cost less than a fourth of a traditional, in-person focus group. Online focus groups also offer the advantages of being less intrusive, allowing geographically diverse subjects to participate, and yielding fast results. They are useful at collecting reactions to focused topics such as a specific new product concept. Proponents of in-person focus groups, on the other hand, maintain that in-person focus groups allow marketers to be immersed in the research process, get a close-up look to people's emotional and physical reactions, and ensure that sensitive materials are not leaked. Marketers can also make spontaneous adjustments to the flow of discussion and delve deeply into more complex topics, such as alternative creative concepts for a new ad campaign.

66) Ford Motor Company knows that to reach its target markets three kinds of marketing channels may be used. What are these three marketing channels and how might Ford use each of them?

Answer: The three marketing channels are communication, distribution, and service channels. Ford uses advertising to position its products and convey a certain message to consumers (communication channel). The delivery of cars to end consumers would require a distribution channel, such as a car dealership, and the company can have tie-ups with insurance companies to provide car insurance (service channel).

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

B

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

B

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

B

45) Which of the following is NOT one of the reasons consumers are concerned about privacy? A) Consumers worry that they will be robbed or cheated. B) Consumers worry that their information will be used to customize their offers. C) Consumers believe private information will be used against them. D) Consumers believe they will be bombarded by solicitations. E) Consumers believe that children will be targeted by ads.

B

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

B

51) The marketing plan, the central instrument for directing and coordinating the marketing effort of a company, operates at the ________ levels. A) functional and operational B) strategic and tactical C) corporate and operational D) customer and expenditure E) corporate and division

B

61) While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ definition tends to focus on selling a product or service to a current market. A) strategic market B) target market C) cognitive D) product E) tactical

B

7) Today, the "mass market" is actually splintering into numerous segments, each with its own wants, perceptions, preferences, and buying criteria. This implies that ________. A) the traditional marketing approach would be the best approach to follow B) the producers must consider themselves as a part of the value-chain process C) the producers should focus on niche markets D) all market segments are equally profitable E) target market strategies are no longer effective

B

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

B

96) The first step in the business unit strategic-planning process deals with which of the following? A) formulate goals B) define business mission C) implement strategies D) execute programs E) conduct SWOT analysis

B

97) After computing averages and measures of dispersion for the major variables and applying advanced statistical techniques and decision models in the hope of discovering additional findings from the gathered information, researchers ________. A) define the problem, the decision alternatives, and the research objectives B) present findings relevant to the major marketing decisions facing management C) evaluate the costs associated with data collected D) analyze the appropriateness of the data sources used E) develop the research plan

B

99) After analyzing their company's strengths and weaknesses, top managers at Loan Bright decided that they would serve individual loan officers who typically only wanted to purchase small sets of homebuyer data, rather than bigger institutional clients. To meet the needs of this segment, Loan Bright simplified its sales contract, restructured its advertising efforts to focus on Google ads, and created a separate customer-service department. Loan Bright's strategy is best described as a(n) ________ strategy. A) overall cost leadership B) focus C) diff

B

1) Which of the following is true for the modern company organization chart? A) Frontline employees are less important than top management. B) Customers are at the top of the pyramid. C) Top management is at the top of the pyramid. D) Customers are less important than middle management. E) Frontline employees are at the top of the pyramid.

B

1) Which of the following statements about marketing is true? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is more important for bigger organizations than smaller ones. E) It is seldom used by nonprofit organizations.:

B

100) As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a ________ orientation. A) selling B) production C) product D) marketing E) social

B

101) Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace? A) production orientation B) product orientation C) selling orientation D) marketing orientation E) holistic marketing orientation

B

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

B

107) ________ marketing is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. A) Niche B) Holistic C) Relationship D) Supply chain E) Demand-centered

B

111) A low market-penetration index indicates ________. A) it will be expensive for the firms to attract the few remaining prospects B) substantial growth potential for all firms C) the rival firms try to capture greater market share by lowering their product price D) the profit margins of the firms decline E) the firms cannot raise demand substantially by raising its market expenditure

B

112) ________ focuses on the analysis of individual data on prospects and customers to develop marketing strategies to acquire and retain customers and drive customer behavior. A) Permission marketing B) Customer value management C) Behavioral targeting D) Customer relationship management E) Terminal marketing

B

113) A company can expect to expand its market share to a large extent when ________. A) it has a high market-penetration index B) its share-penetration index is low C) its share-penetration index is high D) its product-penetration percentage is high E) it has a low market potential

B

116) ________ helps companies manage and monitor online reviews using a process called device fingerprinting. A) Gawker B) Bazaarvoice C) Metacritic D) Angie's List E) Technorati

B

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

B

126) Which of the following is true of the various elements of the multi-factor index method of estimating area market potentials? A) Zip+4 code centers generally have stable boundaries and a population of about 4000. B) The weights in the buying-power index are somewhat arbitrary. C) Normally, the lower the BDI, the less room there is to grow the brand. D) Census tracts are a little larger than neighborhoods. E) This method is primarily used by business marketers.

B

132) ________ measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level. A) Time-series analysis B) Statistical demand analysis C) Econometric analysis D) Cost effectiveness analysis E) Exponential smoothing

B

133) London Business School's Tim Ambler believes the evaluation of marketing performance can be split into two parts: ________. A) long-term results and changes in brand equity B) short-term results and changes in brand equity C) long-term results and changes in consumer perceptions D) short-term results and changes in profitability E) changes in market share and changes in profitability

B

136) Marketing ________ analyze(s) data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. A) metrics B) mix models C) forecasting D) intelligence databases E) decision systems

B

139) If a company actively tracks the satisfaction of its suppliers, banks, and distributors, it is using what is called a ________ scorecard. A) customer-performance B) stakeholder-performance C) marketing balanced D) vendor E) generic

B

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

B

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

B

16) When consumers share a strong need that cannot be satisfied by an existing product, it is called ________ demand. A) negative B) latent C) declining D) irregular E) nonexistent

B

17) With respect to core business processes, the ________ process includes all the activities involved in developing and launching high-quality products quickly and within budget. A) market-sensing B) new-offering realization C) fulfillment management D) customer acquisition E) customer relationship management

B

19) A company can take several steps to improve the quality of its marketing intelligence. Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards? A) training and motivating the sales force to spot and report new developments B) motivating intermediaries to pass along important intelligence C) networking externally D) purchasing information from outside research firms and vendors E) using the sales information system to get accurate sales reports

B

2) What is the traditional view of marketing? A) Firms should just focus on production because if the products are good then they will automatically sell. B) Firms should just focus on production and selling because marketing occurs as a part of the selling process. C) Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them. D) Firms should price their products as low as possible so that marketing them becomes easy. E) Firms should remember that promotion is the most important of the four Ps.

B

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

B

23) Core competencies tend to refer to areas of special technical and production expertise, whereas ________ tend to describe excellence in broader business processes. A) process benchmarks B) distinctive capabilities C) distributive capabilities D) facultative benchmarks E) concentric capabilities

B

23) When two brands of the same basic product deliver their respective promised quality, they are delivering ________. A) performance quality B) conformance quality C) unique quality D) accuracy quality E) customer support

B

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

B

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

B

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

B

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

B

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

B

50) During Jill's market research study, many customers indicated that traditional oven mitts made it very diffthe cook from burns. This is an example of the ________ element of the holistic marketing framework. A) integrated marketing B) value creation C) negative demand D) value networking E) value focus

B

51) Which of the following represents a raw-material-exporting economy? A) Papua New Guinea B) Democratic Republic of Congo C) India D) Egypt E) Philippines

B

51) ________ data are data that were collected for another purpose and already exist. A) Primary B) Secondary C) Primitive D) Cross-sectional E) Ordinate

B

52) Before Sandra opened her florist shop she read all she could about the floral industry. She also consulted several published research reports to understand growth patterns in the local area with particular interest in the location of florists throughout the city. This ________ helped her to decide on the location of her store. A) primary data B) secondary data C) primitive data D) tertiary information E) licensed information

B

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

B

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

B

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

B

54) Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' views of ________. A) others B) organizations C) themselves D) the universe E) society

B

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

B

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

B

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

B

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

B

65) Which of the following is true of qualitative research? A) It is a structured measurement approach that permits a range of possible responses. B) It is indirect in nature, so consumers may be less guarded. C) It requires large sample sizes. D) Its results can be easily generalized to broader populations. E) It generally results in similar results and conclusions across researchers.

B

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

B

69) By 2025, annual consumption in emerging markets will total $30 trillion and contribute more than ________ percent of global GDP growth. A) 65 B) 70 C) 78 D) 81 E) 85

B

71) An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers. A) human rights B) consumerist C) environmental D) self-determination E) materialistic

B

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

B

10) Companies can practice targeted marketing by using ________, which are records of Web site usage stored on personal browsers. A) plug-ins B) black swans C) cookies D) trolls E) honey-pots

C

101) The demand estimates of an organization comprise five space levels: world, country, region, territory, and ________. A) zone B) organization C) customer D) product E) input

C

102) Rick Johnson trains his company's sales force to target the consumer. He repeatedly asks his team to bear in mind the fact that it is the sales team's responsibility to rouse the consumer's interest and make the consumer feel that he or she needs the product. A true salesman is one who can convert an indiffe C) selling D) marketing E) social responsibility

C

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

C

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

C

19) Field Grocery wants to learn the strengths and weaknesses in customer service at all the Field Grocery stores. Which of the following methods can it use for this? A) group buyers B) buyer brokers C) mystery shoppers D) personal shoppers E) buying agents

C

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

C

37) A ________ is a direction or sequence of events that has some momentum and durability; it reveals the shape of the future and can provide strategic direction. A) n B) fashion C) trend D) megatrend E) style

C

57) Why must researchers avoid generalizing from focus group participants to the whole market? A) Participants' responses are not reliable. B) Most of the participants are likely to be ignorant about the topic of discussion. C) The size of the group is too small and the sample is not drawn randomly. D) Most of the participants are likely to exhibit similar tastes and preferences. E) The participants usually come from diverse backgrounds.

C

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

C

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

C

72) The question "What is your opinion of the measures taken by the government to control inflation?" is an example of a ________ question. A) semantic differential B) word association C) completely unstructured D) story completion E) dichotomous

C

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

C

82) During a ZMET study, Chloe selected images that, when entered into the computer program, suggested the metaphor related to the meeting of past, present, and future, or the ________ metaphor. A) Balance B) Transformation C) Journey D) Container E) Control

C

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

C

85) ________ measure the interest or emotions aroused by exposure to a specific ad or picture. A) Tachistoscopes B) Polygraphs C) Galvanometers D) Audiometers E) GPS systems

C

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

C

10) A(n) ________ is a gathering of 6 to 10 people carefully selected by researchers based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length. A) target group B) pilot group C) focus group D) customer base E) ethnographic group

C

128) For which of the following categories of products will demand forecasting be easiest? A) commodities which are in the initial stage of their product life cycles B) products which have many close substitutes in the market C) goods which are produced in an oligopoly market D) products whose sales fluctuate widely E) products whose consumers are highly sensitive to change in price

C

129) Novamalt Inc., a manufacturer of health drinks, plans to introduce its new range of health drinks for women into the market. It involves a specialized marketing research firm to forecast the sales of this product. The research firm analyzes past buying behavior of customers and uses time-series analysis for making the sales forecasts. Which of the following information bases is being used by the research firm in this scenario? A) what people say B) what people do C) what people have done D) what people will do E) what people speculate

C

13) Michael Porter's value chain would identify which of the following as a support activity? A) shipping out final products B) marketing products C) procurement D) servicing products E) operations

C

131) Pegasus writes about its target market and demographics in the ________ section of its marketing plan. A) executive summary B) implementation C) situation analysis D) strategy E) tactics

C

131) Two complimentary approaches to measure marketing productivity are ________ and marketing-mix modeling. A) quality ratios B) salesperson satisfaction rates C) marketing metrics D) retailer satisfaction indices E) customer feedback surveys

C

17) When demand is ________, it implies that more customers would like to buy the product than can be satisfied. A) latent B) irregular C) overfull D) full E) negative

C

19) Organizations catering to the ________ market need to price their offerings carefully because these markets usually have limited purchasing power. A) business B) global C) nonprofit D) consumer E) exclusive

C

2) ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. A) Marketing communications B) Internal marketing C) Marketing research D) Market segmentation E) Marketing planning

C

20) A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence. A) sales-force surrogates B) intermediaries C) external networks D) advisory panels E) customer feedback systems

C

25) As Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography. Thus, it is moving away from the production of film roll cameras. This would be an example of which of the following value creation steps? A) abandoning current product lines B) changing the corporate vision C) repositioning the company's brand identity D) redoing the corporate logo E) realigning core competencies

C

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

C

40) A growing population does not mean growing markets unless ________. A) the people are under a democratic system of government B) there is common ownership of all resources C) people have sufficient purchasing power D) there is adequate governmental intervention in the market E) the government has a budget surplus

C

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

C

84) Showrooming is associated with which of the following new consumer capabilities? A) Consumers can tap into social media to share opinions and express loyalty. B) Consumers can actively interact with companies. C) Consumers can use the Internet as a powerful information and purchasing aid. D) Consumers can reject marketing they find inappropriate. E) Consumers can communicate on the move.

C

86) Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________. A) cross-selling program B) value delivery system C) club membership program D) activity-based costing program E) up-selling program

C

67) ________ Americans, the second-largest Asian population in the United States, is generally affluent, well-educated, and attractive to marketers. A) Korean B) Japanese C) Chinese D) Filipino E) Indian

E

43) Explain customer-perceived value.

Customer-perceived value (CPV) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer benefit is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image. Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychological costs. Customer-perceived value is thus based on the difference between benefits the customer gets and costs he or she assumes for different choices. The marketer can increase the value of the customer offering by raising economic, functional, or emotional benefits and/or reducing one or more costs.

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

D

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

D

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

D

18) In the case of ________ demand, consumers dislike the product and may even pay a price to avoid it. A) nonexistent B) overfull C) irregular D) negative E) declining

D

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

D

49) Which of the following is likely to occur during economic downturns? A) People tend to spend more on luxury goods. B) Consumption of necessary goods decline. C) Long-term credit is available at concessional rates of interest. D) The purchasing power of the population declines. E) The level of investment in the economy rises.

D

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

D

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

D

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

D

69) A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ growth strategy. A) diversification B) intensive C) target D) integrative E) conglomerate

D

69) An item in a questionnaire states that "most politicians cannot be trusted." Respondents are required to provide their Answers by choosing any one of the following options: 1) Strongly disagree, 2) Disagree, 3) Neither agree nor disagree, 4) Agree, 5) Strongly agree. This is an example of a ________. A) semantic differential B) word association question C) Thematic Appreciation Test (TAT) D) Likert scale E) dichotomous question

D

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

D

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

D

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

D

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

D

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

D

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

E

85) The drugstore chain CVS uses loyalty-card data to better understand what consumers purchase, the frequency of store visits, and other buying preferences, which is associated with which technology-enhanced company capability? A) Companies can reach consumers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information. B) Companies can improve purchasing, recruiting, and internal and external communications. C) Companies can improve cost efficiency. D) Companies can collect fuller and richer information about markets, customers, prospects, and competitors. E) Companies can use the Internet as a powerful sales channel.

D

88) When eBay and Amazon.com cut out the majority of middlemen that normally would participate in the exchange process, it is an example of ________. A) deregulation B) reverse auctioning C) reintermediation D) disintermediation E) diversification

D

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

D

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

D

100) Companies can prepare as many as ________ different types of demand estimates. A) 6 B) 30 C) 60 D) 90 E) 150

D

103) Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc. follows the ________ concept in doing business. A) production B) product C) selling D) marketing E) social responsibility

D

104) The ________ market is the set of consumers who are buying the company's product. A) potential B) available C) target D) penetrated E) reserve

D

106) Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________. A) reports from mystery shoppers B) survey data from customers who have defected C) market research D) individual account information E) demographic trend data

D

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

D

109) ________ marketing aims to build mutually satisfying long-term collaboration with key constituents, such as customers, employees, suppliers, distributors, and other marketing partners, in order to earn and retain their business. A) Integrated B) Demand-based C) Direct D) Relationship E) Internal

D

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

D

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

D

117) A Forrester study of 10,000 consumers of Amazon.com's electronics and home and garden products found that ________ percent found negative reviews helpful. A) 20 B) 30 C) 40 D) 50 E) 60

D

117) Incorporating the holistic view of marketing, the four Ps of the marketing mix can be updated to ________. A) product, positioning, people, and price B) people, processes, place, and promotion C) product, processes, price, and people D) people, processes, programs, and performance E) product, price, promotion, and people

D

134) Which of the following is an external marketing metric that companies need to monitor? A) resource adequacy B) staffing or skill levels C) active innovation support D) market share E) relative employee satisfaction

D

14) Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for goods and services that use sustainable processes to help control pollution. This is an example of ________ for pollution. A) declining demand B) nonexistent demand C) latent demand D) negative demand E) unwholesome demand

D

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

D

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

D

19) ________ management allows the company to discover who its target markets are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to diff C) Marketing D) Customer relationship E) Total quality

D

2) In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid? A) sales B) top management C) front-line people D) customers E) middle management

D

22) Jorge drinks two liters of soda each day. He is aware of the negative impacts of sugary drinks on his health and the potential for the empty bottles to add to pollution. His demand state is best characterized as ________ demand. A) overfull B) latent C) irregular D) unwholesome E) nonexistent

D

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

FALSE

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

D

3) In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment. A) top management B) marketing department C) middle management D) frontline people E) lower management

D

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

D

49) Most large companies consist of four organizational levels: the corporate level, the ________ level, the business unit level, and the product level. A) board of director B) major stakeholder C) management team D) division E) strategic

D

49) The marketing manager needs to know the cost of the research project before approving it. During which stage of the marketing research process would such a consideration most likely take place? A) defining the problem B) analyzing the information C) drafting the report D) developing the research plan E) collecting information

D

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

D

52) When its monitoring software spotted a Twitter post that went to 10,000 followers from an upset consumer who couldn't redeem a prize from a MyCoke rewards program, Coke quickly posted an apology on his Twitter profile and offered to help resolve the situation. This is an example of which of the following? A) mystery shopper actions B) consumer panel data C) purchasing outside information D) acting on marketing intelligence E) conducting a sentiment analysis

D

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

D

55) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing. A) Makers B) Escapers C) Seekers D) Changers E) Developers

D

58) Mission statements are at their best when they reflect a ________. A) market B) strength C) competency D) vision E) value

D

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

D

59) Orville Redenbacher popcorn yielded deep consumer insights from its ________ research, which suggested that the essence of popcorn was that it was a "facilitator of interaction." A) cognitive B) inductive C) archaeological D) ethnographic E) deductive

D

6) The Nielsen Company and IRI are examples of ________, or firms that gather consumer and trade information which they sell for a fee. A) customer marketing research firms B) internal marketing insights departments C) qualitative marketing intelligence agencies D) syndicated-service research firms E) specialty-line marketing research firms

D

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

D

60) Each society contains ________, groups with shared values emerging from their special life experiences or circumstances. A) stakeholders B) cliques C) consumer bundles D) subcultures E) behavioral niches

D

63) Firms whose products require ________ resources — oil, coal, platinum, zinc, silver — face substantial cost increases as depletion approaches. A) infinite B) near finite C) finite renewable D) finite nonrenewable E) perishable

D

64) Which of the following is best described as a market-oriented business definition? A) Missouri-Pacific Railroad: We run a railroad. B) Xerox: We make copying equipment. C) Standard Oil: We sell gasoline. D) Encyclopedia Britannica: We distribute information. E) Columbia Pictures: We make movies.

D

65) When a company is said to have engaged in "greenwashing," it means that the ________. A) company has significantly changed its business processes to incorporate a greener, more environmentally friendly philosophy B) company has moved its production facilities to countries where environmental laws and regulations are less rigorous C) company has changed its "green" image in order to appeal to a different, usually older, demographic D) company's products are not nearly as green and environmentally beneficial as its marketing might suggest E) company has undertaken a campaign to lobby for tougher environmental regulations for the industry

D

66) A scale that connects two bipolar words is called a ________. A) dichotomous question B) multiple-choice question C) Likert scale D) semantic differential E) word association

D

67) Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies. A) concentric growth B) conglomerate C) horizontal D) intensive growth E) integrative growth

D

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

E

68) Which of the following is true about the technology trends that marketers should monitor? A) A growing portion of US R&D expenditures are going toward the research side as opposed to the development side. B) Today, the time between idea and implementation is expanding. C) More single companies rather than consortiums are directing research efforts toward major breakthroughs. D) The pace of change is accelerating today. E) The government has decreased regulation of technological change.

D

69) Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles this situation? A) Government makes reforestation mandatory for lumbering firms leading to a rise in timber production. B) Government restricts industries from purchasing farmland thereby increasing agricultural produce. C) Government subsidizes export of beef to promote production of beef cattle. D) Government pollution control norms increase the production of pollution control equipment. E) Government restricts unfair trade practices to promote international trade.

D

70) Which of the following is an example of intensive growth? A) a company improves its market share with its current products in the current markets B) a company enters a new market with current products C) a company develops new products for its existing markets D) a company improving sales by integrating backward E) a company developing new products for new markets

D

71) In which of the following types of tests is a picture presented and respondents are asked to make up a story about what they think is happening or may happen in the picture? A) semantic differential test B) word association test C) story completion test D) thematic apperception test E) picture test

D

98) Why do firms employ more than one persona to gather information about target consumers? A) Within a group, consumers usually exhibit similar tastes and preferences. B) The distribution of income and wealth are more or less equal across different customer segments. C) Although customers have unique needs, essentially their basic needs and requirements are the same. D) Any target market may have a range of consumers who vary along a number of key dimensions. E) The firms want to provide consumers with a greater number of product choices.

D

The Marketing Funnel (Scenario) Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers. 74) Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned. A) aware B) open to trial C) most often used D) nonrejecter E) regular user

D

101) McDonald's has often teamed up with Disney to offer products related to current Disney films as part of its meals for children. The best description of this form of alliance would be a ________. A) product alliance B) logistics alliance C) pricing collaboration D) network alliance E) promotional alliance

E

98) It's often easier to re-attract ex-customers than to find new ones because the company knows their names and histories.

TRUE

121) The type of open-ended question where a picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture is word association.

FALSE

122) The marketing concept stresses finding the right customers for the company's products.

FALSE

122) When a market researcher asks increasingly more specific "why" questions to reveal consumer motivations and deeper, more abstract goals, s/he is using visualization.

FALSE

123) The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

FALSE

123) The selling concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

FALSE

124) A customer touch point is when the customer makes a purchase.

FALSE

126) One of the key themes of integrated marketing is that there are very few marketing activities that can effectively communicate and deliver value.

FALSE

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

FALSE

103) MasterCard and Visa may team up with university alumni associations to offer affinity credit cards that typically display an iconic image associated with the university on the card itself and may include an incremental donation program associated with purchases made using the card. The best description of this form of alliance would be a ________. A) product alliance B) logistics alliance C) pricing collaboration D) network alliance E) promotional alliance

E

128) A good illustration of what is called the arranged interview occurs when interviewers stop people in a shopping mall or on a busy street and solicit information necessary to their research effort.

FALSE

128) Integrated marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

FALSE

105) When the government of any country restricts the sale of a particular commodity to certain groups — for example, restricting sales of alcohol to individuals of age 21 and over — the eligible consumers who have income, interest, access, and qualification constitute the ________ market. A) accessible B) target C) potential D) qualified potential E) qualified available

E

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

E

128) Loyal customers are the best ambassadors for a brand.

FALSE

116) McCarthy classified marketing activities into the four Ps of the marketing mix. These four Ps stand for ________. A) product, positioning, place, and price B) product, production, price, and place C) promotion, place, positioning, and price D) place, promotion, production, and positioning E) product, price, promotion, and place

E

119) Sheth and Sisodia say ________ is ripest for improvement because most companies are either ineffectual or inefficient at developing it. A) acceptability B) affordability C) affability D) accessibility E) awareness

E

119) Which of the following is NOT a touch point for a hotel? A) reservations B) frequent-stay programs C) room service D) laundry service E) All of the above are touch points.

E

12) Janet is very upset that she can't get tickets to the Rolling Stones concert because they are sold out. Which of the following demand states applies to Janet's situation? A) nonexistent demand B) latent demand C) full demand D) unwholesome demand E) overfull demand

E

129) Customers who load up with personalized options in their BMWs — generating more profitability for BMW and its dealers — are less loyal.

FALSE

120) A company's sales potential would be equal to market potential if ________. A) the marketing expenditure of the company is reduced to zero B) industry marketing expenditures approach infinity for a given marketing environment C) the market is non-expandable D) market minimum is equal to market potential E) the company gets 100 percent share of the market

E

13) Mailing of a new offer to a handful of selected customers instead of all customers reduces the response rate to the offer.

FALSE

115) Partner relationship management is now considered as a core skill fundamental to the development and maintenance of strategic alliances.

TRUE

125) Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential? A) a firm that manufactures auto parts B) a firm that provides facility management services to large offices C) a company that provides Web site development services for small businesses D) a company that manufactures diagnostic machines for hospitals E) a firm that manufactures fashionable clothes for teenagers

E

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

E

129) How does a marketing plan affect relationships? A) It influences how marketing staff work with each other. B) It influences how marketing staff work with other departments. C) It affects how the company works with suppliers. D) It influences the company's dealings with other stakeholders. E) All of the above

E

131) ________ projects the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter. A) Time-series analysis B) Statistical demand analysis C) Econometric analysis D) Cost effectiveness analysis E) Exponential smoothing

E

116) Firms directing the same strategy to the same target market constitute a strategic group.

TRUE

135) Which of the following is an internal marketing metric that companies need to monitor? A) market share B) consumer satisfaction C) relative perceived quality D) total number of customers E) relative employee satisfaction

E

137) When the marketers of a mobile phone manufacturing company want to determine the impact of individual media such as television and online display ads on sales as well as that of trade activities like every day low price, off-shelf display and so on, they usually use ________. A) marketing metrics B) market segmentation strategies C) market capitalization techniques D) market basket analysis E) marketing-mix models

E

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

E

117) Visualization requires people to create a collage from magazine photos or drawings to depict their perceptions.

TRUE

118) When Bank of America followed female baby boomers at home and while they shopped to observe things the shoppers might not have been able to articulate, they were using ethnographic research.

TRUE

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

E

15) The fulfillment management process includes all the activities in ________. A) gathering and acting upon information about the market B) researching, developing, and launching new high-quality offerings quickly and within budget standards C) defining target markets and prospecting for new customers D) building deeper understanding, relationships, and offerings to individual customers E) receiving and approving orders, shipping the goods on time, and collecting payment

E

96) After collecting the relevant information, the next step in the marketing research process is to ________. A) develop the research plan B) define the problem and research objectives C) present the project report D) make the final decision E) analyze the acquired data

E

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

TRUE

151) Suppose the Belgian government prohibits sale of cigarettes to people below 20 years of age. Who are likely to comprise the qualified available market for Dunhill, a manufacturer of herbal cigarettes in Belgium?

Eligible adults (i.e., people above 20 years of age), who have interest and affordability constitute the qualified available market for the cigarettes in Belgium.

27) Properties are tangible rights of ownership to either real property (real estate) or financial property (stocks and bonds).

FALSE

29) In the communication stage of the value creation and delivery sequence, marketing must determine specific product features, prices, and distribution channels.

FALSE

29) Total customer cost consists of only the non-monetary costs in evaluating, obtaining, using, and disposing of the given market offering.

FALSE

36) A firm's core competency has applications only in the specific market in which the firm operates.

FALSE

77) Regulation of industries has created greater competition and growth opportunities because the playing field has been leveled.

FALSE

17) Which of the following is true for customer satisfaction? A) Satisfaction is a deeply held commitment to rebuy or repatronize a preferred product despite situational influences. B) Consumers often form more favorable perceptions of a product with a brand that is new. C) The ultimate goal of a customer-centered firm is to create high customer satisfaction. D) Only increased customer satisfaction can help a company increase its profits. E) Greater customer satisfaction has also been linked to higher returns and lower risk in the stock market.

E

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

FALSE

104) Secondary data are data freshly gathered for a specific purpose or for a specific research project.

FALSE

2) The company's marketing information system should be a mix of what managers think they need, what managers really need, and ________. A) what the marketing research department is able to do B) what consumers are willing to consume C) what the government policies allow D) what is acceptable at the industry level E) what is economically feasible

E

106) Researchers should generalize findings from focus group participants to the whole market.

FALSE

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

E

109) Behavioral research is the most scientifically valid research.

FALSE

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

FALSE

112) Qualitative research techniques are relatively structured measurement approaches that permit limited possible responses.

FALSE

113) A questionnaire should contain sophisticated and uncommon words.

FALSE

114) A firm employing a focus strategy concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market.

FALSE

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

E

115) A dichotomous question is a question with three or more Answers.

FALSE

20) Which of the following is true of business markets? A) Buyers are usually not skilled at comparing competitive product offerings. B) Buyers have limited purchasing power. C) Property rights, language, culture, and local laws are the most important concerns. D) Products sold in such markets are usually highly standardized. E) Business buyers purchase goods to make or resell a product to others at a profit.

E

116) A scale that describes the respondent's intention to buy a particular product is called a rating scale.

FALSE

118) The final step in the business unit strategic-planning process is strategy formulation.

FALSE

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

E

23) Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n) ________. A) independent customer goods and service review forum B) public blog C) customer complaint site D) combo site offering customer reviews and expert opinions E) distributor or sales agent feedback site

E

23) P&G sells cosmetics, laundry detergent, and products like Pringles to the ________ market by establishing strong brand images, developing superior products, ensuring their availability, and backing them with engaging communications and reliable performance. A) business B) governmental C) global D) nonprofit E) consumer

E

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

FALSE

25) Justin conducts a survey on behalf of his firm, Komatsu. In the survey, he asks prospects to rate Caterpillar and Komatsu branded tractors on their performance on attributes that are important to the customer. In which step in the customer value analysis is Justin engaged? A) Examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis. B) Assess the quantitative importance of the different attributes and benefits. C) Identify the major attributes and benefits customers value. D) Monitor customer values over time. E) Assess the company's and competitors' performances on the different customer values against their rated importance.

E

120) A question that respondents can Answer in an almost unlimited number of ways like "What is your opinion of Cracker Barrel?" is a completely unstructured question.

TRUE

153) How does the marketing environment determine the position of the market demand function?

During economic prosperity the market demand function shifts up as every dollar spent in stimulating demand leads to a greater market demand. Whereas during recession the market demand function shifts downward as an equal increase in marketing expenditure leads to a smaller increase in market demand.

100) All of the following are considered to be among the seven characteristics of good marketing research EXCEPT ________. A) the scientific method B) research creativity C) multiple methods D) ethical marketing E) independence of models and data

E

124) An efficient method of estimating area market potentials makes use of the ________, developed by the US Bureau of the Census in conjunction with the Canadian and Mexican governments. It classifies all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit, hierarchical structure. A) Nielsen Media Research B) Multiple-Factor Index Method C) Brand Development Index D) Market Buildup Method E) North American Industry Classification System

E

24) Amber oversees the activities at a consumer packaged goods firm that include researching, developing, and launching new, high-quality shampoos, quickly and within budget. With which process is her job most closely aligned? A) the fulfillment management process B) the market-sensing process C) the customer acquisition process D) the customer relationship management process E) the new-offering realization process

E

4) Identify the correct statement about marketing management. A) It is primarily concerned with the systematic gathering, recording, and analysis of data about issues related to marketing products and services. B) It focuses mostly on monitoring the profitability of a company's products and services. C) It focuses solely on attaining an organization's sales goals in an efficient manner. D) It is defined as the field that deals with planning and managing a business at the highest level of corporate hierarchy. E) It occurs when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

E

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

E

46) When American Airlines asked how many first-class passengers would purchase in-flight Internet service at $25, they were conducting ________ research. A) causal B) exploratory C) secondary D) ethnographic E) descriptive

E

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

E

55) The goal of ethnographic research is to ________. A) capture cause-and-effect relationships by eliminating competing explanations of the observed findings B) understand consumers' behavior by observing a sample group discussing various topics of interest at length C) study demographic variables such as age, gender, income, education, and so on, in relation to consumer buying patterns D) analyze customers' purchasing behavior through catalog purchases and customer databases E) immerse the researcher into consumers' lives to uncover unarticulated desires that might not surface in any other form of research

E

55) Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters? A) defining the corporate mission B) establishing strategic business units C) assigning resources to each SBU D) assessing growth opportunities E) deciding sales channels

E

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

E

62) Which of the following rules must be kept in mind while framing a questionnaire? A) Use broad and loosely defined words in the questions. B) Avoid using response bands. C) Ensure that fixed responses overlap. D) Frame hypothetical questions. E) Allow for the "other" in fixed-response questions. Answer "other" in fixed-response questions.

E

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

E

71) Which of the following is NOT a way to make online brand communities more effective? A) set appointed times for topic discussion B) keep the focus on the topic C) make it easy for users to express themselves D) launch contests E) set limits on length of responses

E

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

E

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

E

76) The primary purpose of ________ is to identify the range of possible brand associations in consumers' minds. A) experimental research B) dashboarding C) laddering D) semantic differentials E) word associations

E

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

E

80) Which of the seven main metaphors in the ZMET reflects a sense of mastery, vulnerability, and well-being? A) Balance B) Transformation C) Journey D) Container E) Control

E

84) According to the concept of ________, a series of increasingly more specific "why" questions can reveal consumer motivation and consumers' deeper, more abstract goals. A) word association B) projection C) visualizing D) brand personification E) laddering

E

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

E

92) Which of the following is an advantage of personal interviews? A) It is a relatively inexpensive method of gathering information. B) The possibility of interviewer bias is minimized. C) Participants can choose to respond at their own convenience. D) It facilitates anonymous responses. E) Interviewers can record additional observation about the respondent such as body language.

E

93) Which of the following is one of the key disadvantages of online market research? A) Online research is expensive. B) Online research is time consuming. C) People tend to be dishonest online. D) Online research lacks versatility. E) Samples can be small and skewed.

E

95) The ________ phase of marketing research is generally the most expensive and the most prone to error. A) contact B) research planning C) questionnaire design D) interview design E) data collection

E

94) What are the different income-distribution patterns? How does income distribution in the economies affect the marketing decision of the firms?

Marketers often distinguish countries using five income-distribution patterns: 1. very low incomes 2. mostly low incomes 3. very low, very high incomes 4. low, medium, high incomes 5. mostly medium incomes The market would be very small in countries with type 1 or 2 income patterns and will be considerably large in the countries with income patterns 3 and 4. In countries which have a marked inequality in income distribution, companies tend to produce goods which are consumed by the mass as well as produce certain luxurious goods to cater to the richer section.

83) Identify three specific ways globalization has affected the marketing environment.

New transportation, shipping, and communication technologies have made it easier for us to know the rest of the world, to travel, to buy and sell anywhere. Globalization has made countries increasingly multicultural. US minorities have much economic clout, and their buying power is growing faster than that of the general population. Globalization changes innovation and product development as companies take ideas and lessons from one country and apply them to another.

156) Two major methods of computing area market potential are market build-up method and multiple factor-index method. Which of these methods will Nexus Enterprises, a manufacturer of auto parts implement to estimate its market potential?

Nexus Enterprise will implement market-build up method to estimate its area market potential as this method is primarily used by business marketers such as Nexus.

24) Mars Group is a market research firm that sells field interviewing services to a software development firm. Can Mars Group be categorized as a custom market research firm? Give reasons to support your Answer.

No, Mars group is a specialty-line marketing research firm as it sells field interviewing services, whereas a custom marketing research firm is hired to carry out specific projects.

140) Are complaints a good indicator of customer satisfaction? Why or why not?

No. Studies show that while customers are dissatisfied with their purchases about 25 percent of the time, only about 5 percent complain. The other 95 percent either feel complaining is not worth the effort or don't know how or to whom to complain. They just stop buying.

134) Explain permission marketing.

Permission marketing is the practice of marketing to consumers only after gaining their expressed permission and is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns. Marketers can develop stronger consumer relationships by respecting consumers' wishes and sending messages only when they express a willingness to become more involved with the brand. However, permission marketing, like other personalization approaches, presumes consumers know what they want.

39) Aromas is a popular brand of cosmetic products. During the last quarter, the company suffered a drop in sales of some of its more popular offerings. In an attempt to find out the problem, Aromas designed an online questionnaire for its existing customers, who can fill out the questionnaire and also leave their comments and suggestions for improvement. What are the problems that Aromas is likely to face by using this method of contacting its customers?

Student Answers will vary. Aromas is using online contact method to gather customer feedback. The major problems of using this method are: • samples may be small and skewed • online panels and communities can suffer from excessive turnover • such online market research can suffer from technological problems and inconsistencies

23) Give reasons to justify that online research is versatile.

Student Answers will vary. Increased broadband penetration offers online research even more flexibility and capabilities. For instance, virtual reality software lets visitors inspect 3-D models of products such as cameras, cars, and medical equipment and manipulate product characteristics. Even at the basic tactile level, online surveys can make Answering a questionnaire easier and more fun than paper-and-pencil versions. Online community blogs allow customer participants to interact with each other.

154) As a marketing controller of a company you have been asked to develop a customer-performance scorecard for your company's toy division. List three measures you might include.

Student Answers will vary. The three measures that might be included are: 1. percentage of new customers to average number of customers 2. percentage of lost customers to average number of customers 3. percentage of win-back customers to average number of customers

29) As a marketing manager of Kids Care, a manufacturer of baby soaps, Tim plans to analyze customer attitudes by using the focus group research approach. How will he conduct the research in this case?

Student Answers will vary. Tim selects 8 first-time mothers who can adequately represent the users you want to target. He also appoints a skilled moderator to facilitate the discussion among these women to ensure everyone participates and stays on track. The moderator provides questions based on the "script" prepared by Tim. The discussions are recorded for further analysis.

36) As a marketing researcher, if you plan to conduct your research using qualitative measures like brand personification, what are you likely to ask the respondents in order to elicit their impression on your brand?

Student Answers will vary. When the marketing researcher uses the brand personification approach to get inside consumers' minds and find out what they think or feel about brands and products, he is likely to ask the respondents what kind of person they think of when the brand is mentioned.

103) To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who want to participate in activities join the club. What can it do to ensure this?

Student Answers will vary. 2Wheels can institute membership fees and membership conditions to ensure that only members with a lasting interest join the club.

136) Give an example of how a hotel can generate customer loyalty at a "customer touch point."

Student Answers will vary. An example of a customer touch point would be when a hotel offers its guests something to drink upon arrival before they check in, or when the staff places chocolates on pillows and face towels twisted into the shape of animals on beds.

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

TRUE

135) Berry's is a chain of shoe stores. The company recently reviewed its customer relations strategy and suggested that the brand communication be consistent across all customer touch points. What are the various touch points for Berry's?

Student Answers will vary. Berry's touch points can include the stores' sales staff, point-of-purchase advertising, the company Web site, the packaging of the products, the company's advertising, and promotional messages.

47) Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?

Student Answers will vary. Keiko can increase total customer benefit by improving economic, functional, and psychological benefits of its product, services, people, and image. It can reduce LZT's non-monetary costs by reducing the time, energy, and psychological investment. It can also further reduce its product's monetary cost.

138) The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?

Student Answers will vary. Keiko can supply LZT with special equipment or computer links that help them manage orders, payroll, and inventory. Customers are less inclined to switch to another supplier when it means high capital costs, high search costs, or the loss of loyal-customer discounts.

49) Create a value proposition for cell phone manufacturer LZT.

Student Answers will vary. LZT's value proposition could include good quality, reliable battery life, excellent design, and style.

51) Give an example of two products that have different performance quality but are of equal conformance quality.

Student Answers will vary. Performance quality is the quality of the product's attributes. Conformance quality is the extent to which the product delivers the performance quality promised to consumers. A Sony Ericsson mobile cell phone provides higher performance quality than a Nokia. The Sony Ericsson mobile has more features and lasts longer than a Nokia mobile cell phone. Yet both would deliver the same conformance quality if both delivered their respective promised quality.

137) Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?

Student Answers will vary. Using permission marketing, the practice of marketing to consumers only after gaining their expressed permission, Berry's can develop stronger consumer relationships by respecting consumers' wishes and sending messages only when they express a willingness to become more involved with the brand.

90) In the central role of strategic planning, only a handful of companies stand out as master marketers — Procter & Gamble, Southwest Airlines, Nike, Disney, Nordstrom, Walmart, and McDonald's to name a few. From a consumer's perspective why do you think they stand out? Explain.

Student Answers will vary, but should explain that these companies focus on the customer and are organized to respond effectively to changing customer needs. They all have well-staffed marketing departments, and all their other departments — manufacturing, finance, research and development, personnel, purchasing — also accept the concept that the customer is king.

35) Suppose Canon and Nikon are the only players in the digital camera industry. What can Canon do to acquire marketing intelligence?

Student Answers will vary. Canon can network externally to find out more about its competitor Nikon. It can purchase Nikon's products, attend open houses and trade shows, read reports published by the rival firm, attend stockholders' meetings, talk to employees, collect competitors' ads, consult with suppliers, and look up news stories about Nikon.

16) List three examples of how companies are using Big Data.

Student Answers will vary. Examples from the text include: UK supermarket giant Tesco collects 1.5 billion pieces of data every month to set prices and promotions; US kitchenware retailer Williams-Sonoma uses its customer knowledge to customize versions of its catalog. Amazon reports generating 30 percent of its sales through its recommendation engine ("You may also like"). Bank of America is tracking spending and demographic data and tailoring promotions — for example, offering back-to-school deals to cardholders with children. JPMorgan Chase has improved communications to new cardholders to gain more engagement. On the production side, GE set up a team of developers in Silicon Valley to improve the efficiency of the jet engines, generators, locomotives, and CT scanners it sells.

148) Atlas camera division produces a range of professional quality 35mm and consumer-friendly digital cameras. The 35mm market is rapidly declining and the faster-growing digital camera segment is saturated with competition, so Atlas is struggling with sales. Identify the marketing tasks the management team would need to address to make Atlas competitive in the digital camera space.

Student Answer should include several of these: • Capture marketing insights to monitor the marketing environment, assess market potential, and forecast demand • Develop a dependable marketing research system that helps managers make basic decisions about expenditures, activities, and budget allocations • Create value for chosen target markets and develop strong, profitable, long-term relationships with customers • Gain an understanding of how organizational buyers buy, train the sales force in presenting product benefits, and take changing global opportunities and challenges into account • Build strong brands by segmenting the market and targeting those it can best serve with a positioning that will resonate with them • Consider growth strategies while paying close attention to competitors, anticipating their moves and knowing how to react quickly and decisively • Create value through the firm's tangible offering to the market (product quality, design, features, and packaging) • Initiate new-product development, testing, and launching as part of its long-term view • Decide on a price that matches the offer's perceived value • Decide how to deliver the value to the target market • Decide how to communicate the value to the target market • Create successful long-term growth by considering feedback and implementing controls to understand the efficiency and effectiveness of marketing activities.

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

TRUE

124) Samples of less than 1% of a population can often provide good reliability, with a credible sampling procedure.

TRUE

36) Discuss the eight demand states with respect to bifocal lenses for glasses.

Student Answers will vary, but a possible Answer includes the following: • negative demand — many people don't want to admit they need bifocals • nonexistent demand — when bifocal lenses were first introduced, people didn't know they existed • latent demand — before they were introduced, many people thought such a product would be nice, but didn't think it would ever exist • declining demand — this will occur when something better and more convenient is invented • irregular demand — the consumer perceives a need for eye care devices only periodically, possibly when they begin to have trouble with their vision • full demand — the manufacturers of the lenses are making all they possibly can • overfull demand — the manufacturers of the lenses can't make enough and inventories are low • unwholesome demand — seeking alternatives that can lead to undesirable consequences.

89) Identify and give examples of the four major categories of strategic alliances.

Student examples will vary. The four major categories of strategic alliances include: 1. product or service alliances, where one company licenses its product, or two companies jointly market their complementary products or a new product 2. promotional alliances, where one company agrees to carry a promotion for another company's product or service 3. logistics alliances, where one company offers logistical services for another company's product 4. pricing collaboration, where one or more companies join in an agreement on coordinated pricing.

37) Provide an example of a company that is adapting and thriving in these changing times. Be specific about how it has adapted its marketing strategy to adjust to the times.

Student responses will vary, but may include the American Express, BMW, Corning, or P&G examples from the text. Look for information about the marketing strategy (4 Ps, 4 As) in the response.

142) Provide an example of a big company that fought back against an unjustified complaint.

Student responses will vary. When Taco Bell began to attract negative buzz online after rumors and a consumer lawsuit alleged that its taco mixture consisted of more filler than meat, it leaped into action with full-page newspaper ads headlined, "Thank you for suing us." There and in Facebook postings and a YouTube video, the company pointed out that its taco mixture was 88 percent beef, with ingredients such as water, oats, spices, and cocoa powder added only for flavor, texture, and moisture. To help spread the word, Taco Bell marketers bought the key words "taco," "bell," and "lawsuit" so that its official responses appeared as the first link on Yahoo!, Google, and Bing searches.

88) Outline the steps involved in business unit strategic-planning process.

Students should describe (in order) the business mission, SWOT analysis, goal formulation, strategy formulation, program formulation and implementation, and feedback and control.

140) Increasingly, a key goal of marketing is to develop deep, enduring relationships with all entities that directly or indirectly affect the success of the firm. Discuss the merits of relationship marketing. From your experience as a consumer, describe the relationship marketing efforts undertaken by a company of your choice.

Students should understand that the relationship between any supplier and customer is not just in the mechanics of the transaction, but more importantly how the customer is treated during the transaction. The better the relationship, the more the likelihood of the customer remaining loyal. They should pick a company that has served them well and made them feel special each and every time.

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

TRUE

57) Demands are wants for specific products backed by an ability to pay.

TRUE

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

TRUE

89) The time between introduction of products and peak production is shrinking.

TRUE

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

TRUE

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

TRUE

105) The goal of ethnographic research is to immerse the researcher into consumers' lives to uncover unarticulated desires that might not surface in any other form of research.

TRUE

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

TRUE

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

TRUE

108) Internal analysis in SWOT involves analyzing the possible opportunities and threats that can come from the market.

TRUE

11) Good marketing insights often form the basis of successful marketing programs.

TRUE

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

TRUE

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

TRUE

111) Owing to its greater flexibility, a questionnaire is by far the most common instrument used to collect primary data.

TRUE

113) A firm that is always working to improve its product offerings such that consumer needs are addressed more efficiently is following a diff

TRUE

114) If a marketing researcher decides to use a Likert scale, the researcher has chosen a technique wherein the respondent reviews a statement that shows the amount of agreement/disagreement with some product, service, or concept.

TRUE

125) Attracting a new customer costs far more than retaining an existing one.

TRUE

137) If a cheese factory was interested in estimating the market potential for a new light cheese and estimated the potential by multiplying a base number (population) by several adjusting percentages (e.g., personal discretionary income per capita, average percentage of discretionary income spent on food, etc.), it would be using the chain-ratio method to estimate market potential.

TRUE

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

TRUE

141) Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.

TRUE

143) Marketing-mix modeling is used to estimate causal relationships and measure how marketing activity affects outcomes.

TRUE

144) Marketing accountability means that marketers must more precisely estimate the effects of different marketing investments.

TRUE

145) Especially popular with such companies as Procter & Gamble, marketing-mix modeling is used to allocate or reallocate expenditures.

TRUE

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

TRUE

147) Atlas's marketing group is concerned about a macroenvironment that includes demographic, economic, physical, technological, political-legal, and social-cultural forces that affect sales and profits.

TRUE

147) Management can assemble a summary set of relevant internal and external measures in a marketing dashboard for synthesis and interpretation.

TRUE

148) A stakeholder-performance scorecard tracks the satisfaction with the company and its products and services among such entities as suppliers, banks, and stockholders.

TRUE

150) Willingness to change is an internal marketing metric.

TRUE

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

TRUE

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

TRUE

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

TRUE

27) Customer-perceived value is based on the difference between benefits the customer gets and costs he or she assumes for different choices.

TRUE

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

TRUE

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

TRUE

28) One of the ways to find relevant online information on competitors' strengths and weaknesses might be to frequent distributor or sales agent feedback sites.

TRUE

29) The competitive intelligence function works best when it is closely coordinated with the decision-making process.

TRUE

30) When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand.

TRUE

32) Companies including Amazon.com, BMW, Disney, eBay, LEGO, Nike, and Toyota are examples of master marketers.

TRUE

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

TRUE

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

TRUE

37) Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers.

TRUE

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

TRUE

39) The marketing plan is the central instrument for directing and coordinating the marketing effort.

TRUE

4) Companies with superior information enjoy a competitive advantage.

TRUE

58) Contrary to popular belief, marketers do not create needs.

TRUE

60) A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver a physical product or service to a buyer or user.

TRUE

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

TRUE

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

TRUE

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

TRUE

63) In the statement, "Volvo develops its cars for buyers to whom safety is a major concern, positioning the vehicles as the safest a customer can buy," buyers to whom safety is a major concern is the target market.

TRUE

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

TRUE

74) Population growth is highest in countries and communities that can least afford it.

TRUE

41) The firm's success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct core business processes. List and briefly describe the five core business processes.

The core business processes include: 1. the market-sensing process — all the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information 2. the new-offering realization process — all the activities involved in researching, developing, and launching new high-quality offerings quickly and within budget 3. the customer acquisition process — all the activities involved in defining target markets and prospecting for new customers 4. the customer relationship management process — all the activities involved in building deeper understanding, relationships, and offerings to individual customers 5. the fulfillment management process — all the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment

122) For an MBO system (manage by objectives) to work, the business unit attempting to implement the process must meet four criteria. What are those criteria?

The criteria are: 1. they must be arranged hierarchically, from the most to the least important 2. objectives should be stated quantitatively whenever possible 3. goals must be realistic 4. objectives must be consistent

35) Marketers should be skilled in stimulating demand for a company's products. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level, timing, and composition of demand to meet the organization's objectives. List and briefly describe the eight diffe

The eight different demand states are: 4. declining demand — consumers begin to buy the product less frequently or not at all 5. irregular demand — consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis 6. full demand — consumers are adequately buying all products in the market 7. overfull demand — more consumers would like to buy the product than can be satisfied 8. unwholesome demand — consumers may be attracted to products that have undesirable social consequences.

87) During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap.

The first option is to identify opportunities to achieve further growth with current businesses (intensive growth opportunities). The second option is to identify opportunities to build or acquire businesses that are related to current businesses (integrative growth opportunities). The third is to identify opportunities to add attractive businesses that are unrelated to the existing businesses (diversification growth opportunities).

33) Briefly describe the five main ways in which marketers can find relevant online information on competitors' strengths and weaknesses.

The five ways are: 1. independent customer goods and service review forums 2. distributor or sales agent feedback sites which are built by the distributors themselves to describe their experience and level of satisfaction on products or services 3. combo sites offering customer reviews and expert opinions mainly on financial services and high-tech products that require professional knowledge 4. customer complaint sites designed mainly for dissatisfied customers, which allows customers to express their dissatisfaction in certain firms or products 5. public blogs offering personal opinions, reviews, ratings and recommendations on virtually any topic

148) Suppose a cotton-textile company wants to estimate the area market potential for its high quality fabrics in Houston. List the possible steps that the marketers will follow to compute the area market potential.

The marketers may follow the following steps: Identify all the potential buyers of textile in the area, primarily the firms manufacturing readymade garments in that area. In order to do that, the company may compile a list from a directory of all manufacturing establishments in the area. Then it can estimate the quantity of fabrics each firm might purchase to produce garments worth $1 million. Compiling the quantity required by each of the firms, the marketers can estimate the area market potential of the fabric produced by the textile company.

34) Suppose, as a marketing manager of a firm, you plan to conduct market research using qualitative measures. For the purpose of developing consumer insight you have distributed among the respondents a picture of a man and woman in a coffee shop, and have asked the respondents to make up a story about what is happening in the picture. Identify and define the type of question used in this case.

The marketing manager has used Thematic Apperception Test in this case. In Thematic Apperception Test, a picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture.

149) Briefly describe the methods of forecasting future demand on the basis of past sales.

The methods are: 1. Time-series analysis, that breaks past time series into four components (trend, cycle, seasonal, and erratic) and projects them into the future 2. Exponential smoothing, that projects the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter 3. Statistical demand analysis, which measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level 4. Econometric analysis, which builds sets of equations that describe a system and statistically derives the different parameters that make up the equations statistically.

150) Organix Internationals LLC is planning to introduce its new range of breakfast cereals. List the different product levels that it considers while formulating the demand estimates for the new product.

The six different product levels that Organix needs to consider to formulate the demand estimates for its new range of cereals are all sales, industry sales, company sales, product line sales, product from sales, and product item sales.

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

The six steps are: 1. define the problem and research objectives 2. develop the research plan 3. collect the information 4. analyze the information 5. present the findings 6. make the decision

15) Discuss the different ways that can be adopted by small manufacturing firms to conduct market research.

The small firms can adopt the following ways to conduct market research: • They can engage students or professors to design and carry out projects • They can collect considerable information at very little cost by examining competitors' Web sites, monitoring chat rooms, and accessing published data • The owners of small business firms can routinely visit competitors to learn about changes they have made • By tapping into marketing partner expertise

various constituencies who have a critical interest and impact your company's performance. List four constituencies that might be included.

The stakeholder-performance scorecard could track the satisfaction of employees, suppliers, banks, distributors, retailers, and stockholders.

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

The steps are: 1. a company can train and motivate the sales force to spot and report new developments 2. a company can motivate distributors, retailers, and other intermediaries to pass along important intelligence 3. a company can network externally 4. a company can set up a customer advisory panel 5. a company can take advantage of government data resources 6. a company can purchase information from outside suppliers 7. a company can use online customer feedback systems to collect competitive intelligence

33) Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing

The student should demonstrate his or her understanding that the marketer must use data to understand customer needs and translate this understanding into properly designed products and services. This requires application of state-of-the art tools and techniques. It is also an art as marketers try to find creative solutions to consumer needs.

42) Compare and contrast the typical traditional organization chart for an organization against the modern customer-oriented organization chart.

The traditional organization chart is a pyramid with the president at the top, management in the middle, and frontline people and customers at the bottom. In this case, the top management is the most important part of an organization. Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart obsolete. In the modern customer-oriented organization chart, customers are at the top, followed by frontline people, then middle management, and, lastly, top management.

40) Briefly summarize the two views of the value delivery process that may be followed by organizations.

The traditional view of marketing is that the firm makes something and then sells it. Companies that subscribe to this view have the best chance of succeeding in economies marked by goods shortages where consumers are not fussy about the quality, features, or style. If abundant choices are present, this view does not work well. Another view emphasizes the organization's role in the value delivery process. Strategic and tactical marketing are used to choose the value, provide the value, and communicate the value to consumers and channel partners. The value delivery process begins before there is a product and continues through development and after launch.

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

The types of entities that are marketed are: • goods — physical goods • services — hotels and car rental services • events — time-based events such as trade shows • experiences — Walt Disney's Magic Kingdom • persons — celebrity marketing • places — cities, states, regions, and even whole nations • properties — intangible rights of ownership of either real property or financial property • organizations — corporate identity • information — information produced and marketed as a product • ideas — marketing the basic idea of a market offering.

21) Give an example of the different technological devices that have been developed to provide insight into the consumers' behavior to the researchers.

There has been much interest in recent years in various technological devices. Galvanometers can measure the interest or emotions aroused by exposure to a specific ad or picture. The tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds. After each exposure, the respondent describes everything he or she recalls. Eye cameras study respondents' eye movements to see where their eyes land first, how long they linger on a given item, and so on.

139) Arthur Jones has decided to start a business. He wants to manufacture lawn mowers and believes in the production concept. If this approach is taken, what will be Mr. Jones' primary areas of concentration as he builds his business?

This orientation holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. Jones will also want an efficient production process in place. This approach is also used when a company wants to expand the market. Students may use these facts as they design their Answer.

149) Identify and briefly describe each of the four As. What distinctive roles are they based on? Which role is missing? Why does it matter?

• Acceptability is the extent to which a firm's total product offering exceeds customer expectations. • Affordability is the extent to which customers in the target market are able and willing to pay the product's price. It has two dimensions: economic (ability to pay) and psychological (willingness to pay). • Accessibility, the extent to which customers are able to readily acquire the product, has two dimensions: availability and convenience. • Awareness is the extent to which customers are informed regarding the product's characteristics, persuaded to try it, and reminded to repurchase. It has two dimensions: brand awareness and product knowledge. Sheth and Sisodia base the 4 As framework on the four distinctive roles a consumer plays in the marketplace — seeker, buyer, payer, and user. A fifth consumer role — evangelizer — captures the fact that consumers often recommend products to others and are increasingly critical with the advent of the Internet and social media platforms.