Marketing True/False

Global branding and standardization result in reduced costs from economies of scale.

TRUE

A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia

FALSE

Although do-not-call legislation has hurt parts of the consumer telemarketing industry, inbound and outbound consumer telemarketing remain strong and growing

FALSE

Barnacles are customers who are potentially profitable but not loyal.

FALSE

Club marketing programs reward customers who buy frequently or in large amounts.

FALSE

Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements.

FALSE

Customer equity is a measure of the past value of a company's customer base.

FALSE

Customer relationship management focuses on retaining existing customers but not on acquiring new customers.

FALSE

Foreign-based production facilities offer many advantages to an investing company if the foreign market is small

FALSE

In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships

FALSE

In the global value delivery network, the second link between the sellers and the final buyers moves products from points of production to the borders of countries within which they are sold.

FALSE

Management contracting consists of one company joining forces with foreign investors to create a local business in which they share possession and control

FALSE

Market offerings are limited to physical products

FALSE

Marketers use inbound telephone marketing to sell to customers directly.

FALSE

Marketing is primarily concerned with engaging customers and secondarily with managing profitable customer relationships

FALSE

Mobile ads rarely create substantial customer engagement and impact.

FALSE

Mobile marketing is an unsuitable tool for triggering an immediate purchase from a consumer.

FALSE

Most of the retailing in the United States is done by small, independent retailers.

FALSE

Price escalation is caused by transportation costs, tariffs, importer margin, wholesaler margin, and retailer margin. As a result, foreign prices are typically lower than domestic prices for comparable products.

FALSE

Printed catalogs hold very little importance to marketers in the digital era.

FALSE

Similar consumer needs around the world suggest that a strategy of adapted global marketing is appropriate for most international firms.

FALSE

Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform

FALSE

Social media marketing is a traditional direct marketing tool.

FALSE

Straight product extension into international markets is often successful

FALSE

Telemarketing is infrequently used as a fundraising tool for nonprofit and political groups

FALSE

The European Union restricts trade opportunities to European firms

FALSE

The first step for most firms that are venturing into online marketing involves sending promotional e-mails.

FALSE

The marketing results from direct mail are difficult to measure.

FALSE

The more loyal a firm's profitable customers, the lower its customer equity.

FALSE

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

FALSE

When backed by buying power, wants become needs

FALSE

When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia

FALSE

Whereas space is limited in an online catalog, print catalogs can offer an almost unlimited amount of merchandise

FALSE

Xenon Corp. releases frequent updates to improve its expensive software products. This marketing approach used by the firm is most likely based on the production concept

FALSE

A blocked currency is one whose removal from the country is restricted by the buyer's government

TRUE

A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

TRUE

A branded community Web site aims to present content that engages consumers rather than sell products to them

TRUE

A joint venture involves a company entering foreign markets by partnering with foreign companies to produce or market a product or service.

TRUE

A market is a segment of potential consumers who share a common need or want.

TRUE

A multinational company may face nontariff trade barriers that include biases against its bids, restrictive product standards, or excessive host-country regulations

TRUE

Amazon.com targets opt-in customers with a limited number of helpful "we thought you'd like to know" messages based on their expressed preferences and previous purchases. This is referred to as permission-based e-mail advertising.

TRUE

An advantage of direct mail marketing over digital forms is that it provides something tangible for people to hold and keep and it can be used to send samples

TRUE

As the weakened global economy has slowed, many companies are shifting their sights to include a new target — the so-called "bottom of the economic pyramid."

TRUE

Barter involves the direct exchange of goods and services.

TRUE

Blogs are online forums where people post their thoughts and other content, usually on a narrowly defined topic.

TRUE

Companies like Coca-Cola and Facebook deliver customer satisfaction by spreading happiness and connecting individuals through shared experiences

TRUE

Customer-perceived value is defined as a customer's evaluation of the perceived difference between all the benefits and all the costs of a market offering relative to those of competing offers.

TRUE

Digital marketing through online, mobile, and social media provides a sense of brand engagement and community

TRUE

Direct marketing has undergone a dramatic transformation due to rapid advances in digital technologies

TRUE

Direct marketing is characterized by narrowly defined segments or individual buyers

TRUE

Direct-response television (DRTV) marketing takes one of two major forms: direct-response television advertising and interactive TV (iTV) advertising

TRUE

For inbound telephone marketing, the company provides a toll-free phone number so it can receive orders solicited by television, print ads, direct mail, and catalogs

TRUE

Global companies recruit management from many countries, buy components and supplies where they cost the least, and invest where the expected returns are greatest.

TRUE

In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers.

TRUE

Management contracting is an unwise choice if a domestic firm can make greater profits by undertaking a whole venture

TRUE

Market offerings include entities such as people, places, information, and ideas.

TRUE

Most international companies strive to adapt global brands to local needs.

TRUE

Often, companies form joint ownership ventures to merge their complementary strengths in developing a global marketing opportunity

TRUE

Organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing.

TRUE

Product, price, place, and promotion make up the elements of a firm's marketing mix.

TRUE

Properly designed and targeted telemarketing provides many benefits, including purchasing convenience and increased product and service information.

TRUE

Regardless of how companies go about pricing their products, their foreign prices will most likely be higher than their domestic prices for comparable products

TRUE

Retailing practices among countries can vary widely.

TRUE

Stephanie Archer has been saving her money to buy a BMW convertible. Archer has spent hours on the BMW Web site choosing the exterior and interior colors and studying the various options and models. In this case, Archer has been using BMW's marketing Web site

TRUE

Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.

TRUE

Tariffs and duties are often used to force favorable trade behaviors from other nations.

TRUE

The Internet is forcing companies toward more standardized international pricing

TRUE

The National Do Not Call Registry is managed by the Federal Trade Commission.

TRUE

The blogosphere is cluttered and difficult to control

TRUE

The marketing concept is a customer-centered, sense-and-respond philosophy.

TRUE

The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features

TRUE

Through consumer-generated marketing, consumers themselves are playing a bigger role in shaping their own brand experiences and those of others.

TRUE

To overcome the problem of price escalation when selling to less-affluent consumers in developing countries, many companies make simpler or smaller versions of their products that can be sold at lower prices.

TRUE

Viral marketing involves creating videos, ads, and other marketing events that are so infectious that customers will seek them out or pass them along to others

TRUE

iTV lets viewers interact with television programming and advertising using their remote controls.

TRUE