BA 370 EXAM 2
Which of the following statements best describes global expansion through a strategic alliance
A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other
Which of the BRIC countries has one of the youngest populations in the world and is increasingly adopting global attitudes
India
Which of the following is currently a negative factor for foreign investment in India
India's infrastructure for supply chain management is not up-to-date
Which statement about India's population is true
India's workforce is highly skilled, particularly in technology
__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents
Reverse engineering
In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers
TRUE
India is one of the fastest-growing markets and has one of the youngest populations in the world
TRUE
It would be logical for bathing suit marketers to use geographic segmentation
TRUE
New-to-the-world products that create new markets can add tremendous value to firms
TRUE
When purchasing a mobile phone, the product you are buying is more than just the phone
TRUE
Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service
equity
Culture affects
every aspect of consumers' purchase decisions
One of the key characteristics of brainstorming sessions is
no idea is immediately accepted or rejected
The old cliché "service with a smile" recognizes the fact that
service providers need to be pleasant even if the customer is not
Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call
service quality
When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling
trade promotions
What type of event exposes retailers to large numbers of new products in a concentrated location
trade shows
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product
unsought product
The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take
TRUE
The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service
TRUE
To determine if a new product is commercially viable, a firm can conduct premarket testing
TRUE
To maximize potential, segments and target markets can and should be defined by more than just geography
TRUE
When Buffalo Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Buffalo Bank's service fell outside customers' zone of tolerance
TRUE
When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the holiday-themed box featuring green and white bells. What Jaclyn is seeing is referred to as the secondary package
TRUE
When consumers see their friends using an innovation, it often persuades them to try it too
TRUE
When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy
TRUE
When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers, it is called "management by walking around."
TRUE
When the iPad Mini came out, Sasha spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Sasha is an innovator
TRUE
When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy
concentrated
Once a firm has done an analysis of the most viable markets for its products, then it must
conduct an internal assessment of its capabilities
Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns
consistent with underlying cultural values in a country
The perceptions of __________ are being measured in a perceptual map
consumers
Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because
consumers may view their roles differently in different countries
Food preparation, lawn maintenance, and housecleaning services are all examples of
household maintenance activities that people increasingly pay others to perform
Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over
how they communicate the services they promise
For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on
how to gain clients while retaining an image of professionalism and integrity
If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are
how we live our lives to achieve our goals
Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie
ideal point
Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is
identifiable
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
instrumental support.
Because services are __________, it is often difficult for marketers to convey the benefits to consumers
intangible
Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality difficult
intangible
When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can
intangible
During the __________ stage of the product life cycle, sales are low and profits are small or negative
introduction
The __________ is a specific price at which manufacturers encourage retailers to sell a product
manufacturer's suggested retail price
Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from
observability
Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows adidas to use a differentiated targeting strategy to
obtain a bigger share of the shoe market
Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation
occasion
Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)
occasion segmentation
Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment
profitability
Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to
profitability
Regina wants to position her financial services company. Regina can position her services according to all of the following except
profitability
Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is
the product history
The diffusion of innovation theory focuses on
the rate at which consumers are likely to adopt a new product or service
Which of the following defines a value proposition
the unique value that a product or service provides to customers
Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
reachable
With access to the Internet nearly universal in the United States, many potential market segments have become more
reachable
Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
the value proposition
The most important consideration when a firm chooses a global product strategy should be
the needs of the target market
After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider
the number of competitors, entry barriers, and product substitutes
Which of these is not one of the main components of a value proposition
the price of the product or service being offered
The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service
the zone of tolerance
Services marketing managers have learned that more employees will support a quality-oriented process if
they are involved in setting the goals
Global marketers typically find distribution in developing countries is more complex because
they must go through many different types of distribution channels
When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because
they were not involved in setting the goals
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation
brainstorming
Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in
alpha testing
Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in
alpha testing
Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in
alpha testing
Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of
an associated service
Brands can be owned by
any firm in the supply chain
A product is __________ that can be offered through a voluntary marketing exchange
anything of value to consumers
Segmentation, targeting, and positioning
are part of a firm's marketing strategy
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used
as a response to perceived unfair trade practices
To determine the market potential for its particular product or service, a firm should use
as many metrics as it can obtain
What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan
associated services
Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions
assurance
The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence
assurance
Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl
because the Super Bowl offers an opportunity to create significant brand awareness
In the case of Band-Aid adhesive bandages, the brand name has
become synonymous with the product itself
The product life cycle is theoretically __________ with regard to sales and profits
bell shaped
The light beer commercial with the slogan "less filling, tastes great" was based on __________ segmentation
benefit
Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation
benefit
Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using
benefit segmentation
If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of
beta testing
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product
beta testing
Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has
brand conceptualization
Today, many developed countries are experiencing __________ population growth
zero or negative
Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store
zone of tolerance
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere
zone of tolerance
When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel
zone of tolerance
When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another 20 minutes. John didn't mind waiting; he had arrived well ahead of the standard check-in time and this wait time fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept
zone of tolerance
"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is not a valid reason?
"It's a way to show the position of the company throughout the product's life cycle."
In training service providers, service quality goals should be general to allow for the various needs of consumers
FALSE
All products and services are intangible
FALSE
Global expansion often begins with
exporting of goods
The introduction stage of the product life cycle is characterized by negative or low profits
TRUE
Changes in tariffs and quotas are
government actions that reduce competition from international firms
Changes in _________ have been a driving force for growth in global markets for decades
technology
Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Fiona make on this new segment?
$72,240
__________ segmentation is the segmentation method most directly related to value creation for consumers
Benefit
_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes
Brand associations
__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
Brand dilution
Which country has a large literate population which has helped it move up to become the world's seventh largest economy
Brazil
Which of these is not one of the BRIC countries
Bulgaria
A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool
CRM
One of the major tools used by marketers to meet the needs of loyal customers is
CRM
Which country has a rapidly aging population due to its one-child policy
China
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals
China
With a median age of 36.3 years, ________ is one of the most rapidly aging countries in the world
China
Which of the following is a potential negative factor for foreign investment in China
China's population is aging rapidly
Which of the following statements regarding global segmentation, targeting, and positioning is true
Companies must continually adjust products and marketing strategies to meet the changing needs of global markets
__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach
Demographic
Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country
FALSE
If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension
FALSE
In a joint venture, the burden of ownership, control, and profits is not shared
FALSE
In entertainment licensing, the major risk to licensees is that the brand will become overexposed
FALSE
Which of these trade agreements represents the highest level of integration among participating nations
EU
_________ means allowing employees to make decisions about how service is provided to customers
Empowerment
A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.
FALSE
A company's product line consists of its various product mixes
FALSE
A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive
FALSE
A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization
FALSE
A customized carved cedar wood sign for your house is an example of a convenience product
FALSE
A decrease in a company's product depth will always hurt its marketing efforts
FALSE
A familiar brand name always helps the sales of a product
FALSE
A product label is just a required sticker on a package
FALSE
A value proposition compares the price of a product to its benefits
FALSE
Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services
FALSE
An effective global pricing strategy can be easily established by setting the same prices in every market around the world
FALSE
As it relates to positioning, a self-values map displays the position of products or brands in the consumer's mind
FALSE
As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle. FALSE Typewriters are in the decline stage. Firms with products in the decline stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.
FALSE
Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category
FALSE
Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.
FALSE
Comprised of 28 member countries, the European Union represents the highest level of integration of any trade agreement
FALSE
Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country
FALSE
Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products
FALSE
For a company like Pepsi-Cola, brand dilution occurs when it sells more product than the competition
FALSE
For the average college student, a retirement account would be a shopping product
FALSE
Infrastructure is defined as the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions such as schools, post offices, and prisons
FALSE
Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix
FALSE
Latosha was employee of the month at Jersey Mike's Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension
FALSE
Many services marketers use training and standardization to reduce service perishability
FALSE
NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation
FALSE
On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters
FALSE
On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available
FALSE
One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas
FALSE
Private-label brands are imitations often sold by street vendors
FALSE
Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss
FALSE
Russia lags behind most European countries in use of the Internet.
FALSE
Sales of private-label brands continue to decline in the United States, particularly in big-box stores such as Costco
FALSE
Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs
FALSE
The BRIC countries are Bolivia, Russia, Italy, and China
FALSE
The Gaps Model allows systematic examination of all aspects of the product creation process
FALSE
The STP process is made up of strategy, targeting, and promotion
FALSE
The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation
FALSE
The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority, and laggards
FALSE
The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider
FALSE
The marketing of services differs from the marketing of products because services are tangible and separable from the service provider
FALSE
The maturity phase of the product life cycle is characterized by greatly reduced competition
FALSE
The more familiar customers are with a brand, the harder their decision-making process will be
FALSE
There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations
FALSE
Using intermediaries in global distribution networks generally lowers costs and prices for products
FALSE
When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing
FALSE
When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation
FALSE
Among the various international trade agreements, the North American Free Trade Agreement represents the highest level of integration across individual nations
FASLE
The Big Mac Index is a measure of economic health in a country
FASLE
What U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true
Food and Drug Administration
Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is not a disadvantage of franchising
Franchising is the riskiest way to enter a foreign market
The most common measure of market potential of an economy is a country's
GDP.
Which of the following is not one of the major trade agreements affecting global marketing
GNI
The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles
TRUE
Which country's government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases
India
__________ is the process by which ideas are transformed into new products and services that will help firms grow
Innovation
__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap
Instrumental support
__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product
Introductory price promotions
Which of the following is not true regarding secondary packaging
It is of little value to the average consumer
Which of the following is not a characteristic of products in the maturity stage of the product life cycle?
Laggards are a major focus of marketing efforts
__________ are customers who modify existing products according to their own ideas to suit their specific needs
Lead users
__________ is an extreme form of a targeting strategy
Micromarketing
Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico
NAFTA
Which of the following is not one of the five groups in the diffusion of innovation curve
Non-adopters
How is consumer panel data collected during the test marketing phase of a new product introduction
Panelists scan their receipts on a home scanning device
__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings
Positioning
The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase
Price competition with protracted price wars erodes profits
__________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints
Procedural
__________ is the number of items within a product line
Product line depth
The communications gap can be reduced by managing customer expectations
TRUE
According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance and power distance
Russia
Which country is Europe's largest Internet market, with Internet users growing at a rate of 14 percent annually
Russia
Which of the following is currently a negative factor for foreign investment in Russia
Russia is known for corruption, creating ethical dilemmas for firms
If you visit a Kentucky Fried Chicken restaurant in China, along with KFC's regular menu items, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy
Sell totally new products or services
Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is not one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch
Should slotting allowances be given to get the product into stores
________ is another term for private-label brands
Store brands
Which of the following products actually lost market share due to its attempt at sustainable packaging
Sun Chips
The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—is helping it diffuse more quickly
TRUE
The failure rate for new products is high
TRUE
The first step in the STP process is to establish an overall strategy
TRUE
The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country
TRUE
A delivery gap always results in a service failure
TRUE
A delivery gap is the difference between the firm's service standards and the actual service it provides to customers
TRUE
A product is anything that is of value to a consumer and can be offered through a voluntary exchange
TRUE
Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial
TRUE
Brands are assets that can be legally protected through trademarks
TRUE
Brands enable customers to quickly differentiate one firm or product from another
TRUE
China is now the second-largest economy and the third-largest market for U.S. exports
TRUE
Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases
TRUE
Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment it might not get with Diet Coke
TRUE
Colin wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country
TRUE
Direct investment offers the firm complete control over its operations in the foreign country
TRUE
Effective packaging and labels send consumers the signal "Buy me."
TRUE
Even if products succeed, not all consumers adopt new-to-the-world products at the same time
TRUE
Fashion trends tend to experience short product life cycles
TRUE
Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage
TRUE
Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling
TRUE
For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy
TRUE
Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation
TRUE
Global expansion often begins when a firm receives an order for its product from another country
TRUE
Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing expenditures, benefiting businesses like Coca-Cola
TRUE
Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles
TRUE
Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered a specialty product
TRUE
Listening to the customer is the first step in service recovery
TRUE
Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations
TRUE
Manufacturers, wholesalers, and retailers can all own brands
TRUE
Most Americans tend to take access to global products and services for granted
TRUE
New product development adds value to a firm's products and services through innovation
TRUE
Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products
TRUE
One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality
TRUE
Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be
TRUE
Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products
TRUE
Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer
TRUE
Sophia owns a string of boutiques in Italy. As such she is allowed to have sales only twice a year, in January and June or July
TRUE
The EU recently recommended common guidelines for its member countries regarding advertising to children
TRUE
Which of the following scenarios is not a reason a firm would eliminate an item within a product line
The firm has decided to capture new markets
What is the best situation in the Circles for a Successful Value Proposition framework
The firm's offering overlaps with customer needs/wants but not with competitors' offerings
Which of the following statements regarding brand loyalty is not true
The marketing costs of reaching loyal customers are typically very high
Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta
The same product design and features in all countries, with variations in the promotional campaigns country by country
What do the BRIC countries have in common
They are experiencing significant levels of economic growth
Why should marketers be aware of the BRIC countries
They are likely to be the source of most market growth
What is the problem associated with service quality standards such as "be nice" or "do what the customers want"
They are not specific
How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces
They used social media to complain about the change
Which of the following is the best example of a family brand
Tostitos Multigrain Scoops and Tostitos Chunky Salsa
When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask
Will respondents purchase the software if it becomes available
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask
Will retailers purchase the swimwear if it becomes available
Which of the following best describes the direct investment global entry strategy
With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country
The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created
a brand association
When a company launches a new product line with an existing brand name, this is known as
a brand extension
For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers
a clear, distinctive, and desirable understanding of their products relative to competing products
Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu
a line extension
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of
a tariff
The United States imports more goods from China than it exports to China. This is known as
a trade deficit
Which of the following is not one of the five dimensions used by consumers to determine overall service quality
acceptability
In countries like the United States, services
account for an increasing share of jobs
By providing good customer service, firms __________ their products or services
add value to
Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because
advertising regulations differ in other countries, including advertising to children
Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service
augmented product
Jim wants to position his firm against his competitors. In doing so he should
avoid looking too much like the competitor so that he'd confuse the target segment
One of the reasons service failures need to be addressed quickly is to
avoid negative word of mouth from upset customers
If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable
awareness
Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as
brand dilution
A _______ refers to the use of the same brand in a different product line
brand extension
Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness
brand extension
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
brand extension
When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a
brand extension
Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of
brand loyalty
Efforts to change a brand's focus to target new markets or change the image of a brand are called
brand repositioning
Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer
brand-loyal
Brand dilution occurs when
brands are overextended and customer perceptions about the core brand are adversely affected
The basic reason manufacturers spend time and money building their own brands is to
build brand equity
Pioneer or breakthrough products
can change consumer preferences
A service is any intangible offering that involves a deed, performance, or effort that
cannot be physically possessed
In many cases, pioneers lose their market lead and initial market share to imitators who
capitalize on the pioneers' weaknesses
Which of the following is not one of Hofstede's cultural dimensions
certainty assurance
The first step in the STP process is to
clearly articulate the firm's vision or marketing strategy objectives
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies
concentrated
Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of
co-branding
As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in __________ exist in many African markets
communication
China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy
communication
Dopson's Hardware was in bad financial shape. It owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on backorder and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap
communication
Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations
communication
If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists
communication
In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy
communication
Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service
communication
The __________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less
communication
When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a _______ gap
communications
Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities
compatibility
One of the categories of products for which brand extension is especially logical is
complementary goods
A toothpaste tube is an example of a ________ package
convenience
Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods
convenience
All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except
coordination of delivery and storage
Brands are assets that can be legally protected through
copyrights and trademarks
When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer
core customer value
Sometimes brand names become synonymous with a product itself. If that happens, the brand
could lose its trademark status
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that
countries with high purchasing power today may not continue to show the same growth in the future
By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by
creating diversification and reducing risk
In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n) __________ gap exists
delivery
Exchange control refers to the regulation of a country's
currency exchange rate.
An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is
customer complaints
Companies that develop customized-business software often work closely with their users when installing their products. This close contact often creates new product ideas through
customer input
The Gaps Model is designed to highlight those areas where
customers believe they are getting less or poorer service than they should
Marketers can take advantage of the variable nature of services by
customizing services to meet customers' needs
During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market
decline
Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle
decline
Your text notes that global markets are the result of several fundamental changes. Which of the following is not one of those changes
declining fuel costs allowing cost-effective shipping to global markets
For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation
decreasing product mix breadth
A __________ gap can be closed by getting employees to meet or exceed service standards
delivery
A __________ gap is the difference between the firm's service standards and the service it provides to customers
delivery
A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it
delivery
Saltdust Grill is known as the premier restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality
delivery
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap
delivery
Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market
demographic
Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation
demographic
Television advertising has recently expanded to include "mini-ads," which are short ads lasting 5 to 10 seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in __________ segmentation
demographic
The National Hockey League redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were female. This is an example of __________ segmentation
demographic
Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them
demographics and geography; lifestyle or benefit segmentation
Psychographics is the segmentation method that delves into how consumers
describe themselves
To meet or exceed customers' expectations, marketers must
determine what those expectations are
Which of the following are the two components of a global marketing strategy
determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage
Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by
developing brand names that have no preexisting meaning in any known language
Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because
differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets
As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and
differences in the way consumers see themselves and in the way they see products and services
In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company
differentiated its product
Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy
differentiated targeting
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation
Marketers with luxury brands use brand extension cautiously in order to avoid
diluting the core brand
NCD Company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market
direct investment
Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely
direct investment
Which of the following is one of the global entry strategies
direct investment
Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global _________ strategy
distribution
Randall arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Randall was upset because, in his opinion, the hotel's solution did not incorporate
distributive fairness
When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of
distributive fairness
Along the service-product continuum, which of the following would be considered the most service dominant
doctor's office
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small
early adopter
Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category
early adopter
As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group
early majority
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them
early majority
The value of a brand is often calculated by assessing the
earning potential of the brand over the next 12 months
After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider
ease of accessing or developing distribution channels and brand familiarity
For a brand name to be effective, it needs to be
easy for consumers to recognize and remember.
The potential benefits of brand extension do not include
eliminating competition
Empowerment of employees helps address the delivery gap because
employees directly involved with the customer can respond effectively at the moment the problem occurs
Using technology and __________ are two ways a delivery gap can be reduced in size
empowering employees
When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over 12 hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of
empowerment of employees to meet customers' needs
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
establishing an early market share lead
One of the potential benefits to a firm of introducing new-to-the-world products or services is
establishment of a completely new market
Effective service recovery entails all of the following except
estimating the damage
The components of global market assessment include all of the following except
ethnic analysis
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment
Which of the following is not a stage in the product life cycle
evaluation
According to purchasing power parity theory, if __________ is(are) in equilibrium, products will cost the same in each country
exchange rates
When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who
export goods to other countries
When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as
exporting
When entering a foreign market, the least risky strategy is
exporting
Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with
exporting her products
When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
facilitates purchasing
Which of the following is not a reason listed in your text for the high failure rate of new products
failing to introduce lower-priced alternatives
Firms can measure the success of a new product by all of the following factors except
fewer competitors in the market
Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of
glocalization
Globalization refers to the processes by which goods, services, capital, people, information, and ideas
flow across national borders
When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept
franchisee
Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will most likely use a(n) __________ strategy
franchising
Many of the best-known American retailers, like Starbucks and McDonalds, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using
franchising
Airlines were among the first retailers to embrace loyalty segmentation when they created
frequent-flyer programs
Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves
frontline employees
Marketers often create a special marketing mix for loyalty segments because these segments are
generally profitable
Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation
geodemographic
PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation
geodemographic
Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community
geodemographic
The phrase "birds of a feather flock together" captures the idea of __________ segmentation
geodemographic
Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations
geodemographic segmentation
Which of the following is least likely to be a source of ideas for new products
geodemographic segmentation
Differences in weather and climate create opportunities for
geographic segmentation
Today, almost every sales rep can immediately check the company's inventory and production schedule electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through
greater ability to obtain information
Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer
greater perceived value
Of the five strategies for entering new markets, direct investment creates the
greatest potential risk
Along the service-product continuum, which of the following would be considered the most product dominant
grocery store
During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors
growth
During the __________ stage of the product life cycle, there are few but an increasing number of competitors
growth
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle
growth
Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G
has greater control over its marketing strategy
The decision to delete a product is never taken lightly because, generally, manufacturers
have made substantial investments in product development and manufacturing
Concept testing is important because it can
help a firm avoid the costs of unnecessary product development
Innovators are a critical group of new product adopters because they
help the product gain market acceptance
Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of
heterogeneity
One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate
heterogeneity
The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are
heterogeneous
When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another
heterogeneous
Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds
high costs
The term trade deficit refers to
higher levels of imports than exports
Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to
identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis
In a competitive market, perceived value is determined by consumers mostly
in relationship to the value of competitors' offerings
One important purpose of a brand is to
increase consumer recognition and awareness of product offerings
Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more important, working the way you did to correct the error could result in __________
increased customer purchases and positive word of mouth
Effective service recovery efforts can lead to all of the following except
increased dependence on technology to prevent future service failures
Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as
individual brands
Empowerment becomes more important when the service is
individualized
When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh
infrastructure
Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve
innovator
During the introduction stage of a product's life cycle, typical consumers are
innovators
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve
innovators, early adopters, early majority, late majority, laggards
Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as
inseparability
When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time
inseparable
Rob was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job
instrumental support
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
is a more expensive method for identifying potential customers
A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy
is likely more costly than an undifferentiated strategy
Brand extension is a popular marketing strategy because
it allows the firm to spend less on creating brand awareness and associations
One key feature of the value of a strong brand is that
it can protect the firm from competition
If a firm promises more than it can deliver
it creates a communication gap
Firms use a differentiated targeting strategy because
it helps obtain a bigger share of the market
Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because
it is based on underlying reasons why people make choices
Marketers with successful brands sometimes hesitate to expand their brands because
it is costly to maintain many product lines, and it might weaken the brand's meaning
The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that
it is often impossible to identify with precision where a product is in the product life cycle
When a product is successful in the introductory stage of the product life cycle
it may start to see profits toward the end of this stage
When a firm pools its resources with that of a local firm to enter a new market, they create a(n)
joint venture
India, like some other countries, may require entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses
joint ventures
Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of
keeping up in a market where sales come mostly from new products
Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonald's, the Golden Arches reduce marketing costs because people (including young children)
know what the Golden Arches brand symbol means
A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations
knowledge
David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap
knowledge
Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics
knowledge
For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing
knowledge
Jackson manages an upscale French restaurant in the Washington, DC, area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his servers to report comments and requests for items that have previously been offered only as specials. Jackson uses this information to reduce the __________ gap in services marketing
knowledge
Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process
laggard
When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones
laggard
By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group
late majority
The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service
late majority
When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group
late majority
Which of the following adopter categories refers to the last large group of buyers to enter a new product market
late majority
Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products
lead users
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's
legal, banking, and regulatory systems
Generally, firms entering foreign markets begin with
less risky strategies first.
A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee
licensed
Demographic segmentation is segmentation based on all of the following except
lifestyle
When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's
lifestyle
Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation
lifestyle; macromarketing
Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product
line extension
When confronted with an angry and emotional customer, the best first step toward service recovery is to
listen carefully and with empathy until the customer feels he or she has been heard
Because customers have different needs and expectations, the key to distributive fairness in service recovery is to
listen to the customer
Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to
listen to the customer
For marketers, one of the benefits of having achieved brand loyalty is
lower marketing costs associated with reaching loyal customers
One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and
lower overall risk
When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation
loyalty
Frequent buyer/user award programs are used to
maintain contact with loyal customers
Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to
make purchase decisions
Tariffs protect domestic producers by
making imported products more expensive
Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts
market segments
Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or
market the same products to similar customers
When selecting a target market, firms will be most successful if they
match the firm's competencies with a market segment's attractiveness
Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only
material output
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle
maturity
Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle
maturity
During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense
maturity
In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle
maturity
By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal
measurable
"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) __________ targeting strategy
micromarketing
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of
micromarketing
When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in
misguided geographic segmentation
Another name for a manufacturer's brand is a(n) __________ brand
national
Even if they succeed, new-to-the-world products are
not adopted by everyone at the same time
Where on a product's packaging would one most likely find nutrient content and country of origin
on the label
Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to
open a McDonald's franchise.
For new product marketers, early adopters are important because they tend to be
opinion leaders
In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because
other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals
Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
people already know what the brand means
Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer
perceived value
A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds
perceptual map
In the product development process, what takes place between concept testing and market testing
performing product development
Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies
perishable
When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future
perishable
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening
perishable
The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market
pioneer
Gross national income equals GDP
plus the net investment income earned from abroad.
Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over 20 years. Donald is __________ his business relative to his competition
positioning
Global pricing strategies should strive to be consistent with
positioning strategies
The diffusion of innovation theory is useful to marketers in helping them
predict which types of customers will buy their product immediately and later
In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as
premarket testing
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in
premarket testing
Tariffs, quotas, and currency exchange policies affect global
pricing strategies
Because services like cruises and car rentals are perishable, many marketers use
pricing strategies to match supply with demand
A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product
primary; secondary
Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing
private-label brand
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked
procedural fairness
When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's global ________ strategy
product
We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on
product attributes
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
product development
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix
product launch
A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products
product line
Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line
product line depth
A university that has separate graduate and undergraduate admission offices recognizes that these are distinct
product lines
For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product miX
product lines
The complete set of all products offered by a firm is called its
product mix
Which of the following is not part of the "actual product" level of the product offer
product warranty
Which of the following is not one of the important functions of labels on products and packages
protecting against damage to the product
Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product
prototypes
Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to
provide emotional support and concern for their employees
After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to
provide emotional support to the server
Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it
provides a way for a firm to differentiate its product offerings from competitors
A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus on
providing classes at convenient times and offering online courses
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
providing support and incentives for their employees
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation
psychographic
VALS is the most widely used __________ segmentation tool
psychographic
Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation
psychographic; demographic
Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market
psychographics
The Big Mac Index is a novel measure of
purchasing power parity
A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products
quota
College students can be a less __________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment
reachable
Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market
real estate values by subdivision
Chris is gathering information about the general economic environment in Nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and
real income
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is attractive relative to all of the following except
realistic
Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been
rebranded
Another name for brand repositioning is
rebranding
Global marketers are under constant pressure to shorten distribution channels in order to
reduce costs
Which of the following is not one of the benefits to a firm of new product development
reducing the costs of production
Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is
refrigerators
Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their
relative advantage
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
relative advantage
Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions
reliability
The new hotel manager asked the chef, "Are you sure you know how to cook Beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about
reliability
The marketing of services differs from product marketing because services are all of these except
renewable
For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be
responsive
The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one "happy hour" special but few members showed up. The manager did not have a grasp of what would make his target market
responsive
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings
responsive
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is
responsive
When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions
responsiveness
Brands that are owned by ___________ are called private-label brands
retailers
Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood
retailers
Private-label brands are developed and managed by
retailers
Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them there. This is an example of
reverse innovation
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
reverse innovation
One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of
reverse innovation.
When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage
sales would be low and profits nonexistent, but he would attract golf equipment innovators
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services
satisfaction guarantees
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of
satisfying the changing needs of current and new customers
Which of the following would not be used in calculating the profitability of a segment?
segment perceptions
Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated
segmentation, targeting, and positioning
Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
select a target market
Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me."
self-concepts
Overriding desires that drive how we live our lives are called
self-values
To develop psychographic segments, the marketer must understand consumers
self-values, self-concept, and lifestyles
When the delivery of a service fails to meet customers' expectations, a __________ gap exists
service
Medical services, assisted living care, and active senior travel are all examples of
services an aging population will increase the demand for
Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will
set specific, measurable goals based on customers' expectations
Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product
shopping
When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product
shopping
Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy
shopping
When testing new products, most firms consider the question of whether testing products on animals
should be done when the new product does not contribute to the health and well-being of human users
Which of the following is not a recommended strategy for service recovery
silencing an irate customer before the individual makes any angry outbursts
The shift of population from rural to urban areas in countries such as India helps global marketers by
simplifying the supply chain needed to make goods and services available
A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products
slotting allowance
Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good
specialty; convenience
Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely
spread positive word of mouth to other physicians
Which of the following is not one of the four product life cycle stages
stagnation
By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap
standards
If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists
standards
Training service providers to know exactly what a "good job" entails is setting service
standards
Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee
standards gap
Which of the following would not be part of the launch of a new product
starting to make preliminary decisions about the target market
Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other
strategic alliance
Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
substantial
Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets
surplus
According to your text, _______ packaging is product packaging that is ecologically responsible
sustainable
It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's
symbol
Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using
symbols
Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instruct employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions
tangibles
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue
tangibles
A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area
test marketing
When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in
test marketing
Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries
that have established a formal agreement to manage trade activities.
Which of the following was not a new-to-the-world product or service when it was introduced
the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs
Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
the average number of school-age children in families sending a child to the day care center
A major limitation in the use of internal R&D departments for new idea generation is
the costs associated with an internal R&D department tend to be quite high
Most customers want to achieve a fair solution following a service failure. Which of the following is not a factor that affects a person's perceptions of "fairness" in these kinds of situations
the firm's policy on service recovery
One of the reasons marketers use loyalty segmentation is
the high cost of finding new customers
In the Circles for a Successful Value Proposition framework, the value proposition is represented by
the intersection between customer needs/wants and the firm's product's benefits
GDP is defined as
the market value of goods and services produced in a country in a year
Many product-dominant firms use quality service
to maintain a sustainable competitive advantage
As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product
trialability
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products
trialability
Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country
underlying values
Global businesses often find it particularly difficult to understand the __________ of a country's culture
underlying values
For products like clothes pins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.
undifferentiated targeting
In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents
unmet customer needs/wants
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along to replace it
When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by
using segmentation, targeting, and positioning
Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both __________ and __________.
visible artifacts; underlying values
A systematic ____________ program collects customer inputs and integrates them into managerial decisions
voice-of-customer
Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings
voice-of-customer
At the end of a brainstorming session, participants are often asked to
vote on the best ideas
When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars
were not compatible with European market conditions
Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider
what the target market would consider the most important features
While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
what their customers need
Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except
why it took her so long to consider the new product line
