Marketing Management

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. a) True b) False

a) True

Coca-Cola launched Coke Zero to attract new customers in a segment it might not get with Diet Coke. a) True b) False

a) True

Price should be based on the value that the customer perceives. a) True b) False

a) True

A __________ growth strategy employs the existing marketing offering to reach new market segments. a) product proliferation b) market development c) market penetration d) diversification e) product development

b) market development

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called a) target marketing. b) market segmentation. c) positioning. d) allocation. e) value capture.

b) market segmentation.

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 a) substantial. b) responsive. c) identifiable. d) reachable. e) quantifiable.

b) responsive.

The "Milk Life" advertising campaign, designed to increase consumption of milk, was intended to help market a(n) a) service. b) firm. c) industry. d) organization. e) specific product.

c) industry.

__________ segmentation is the segmentation method most directly related to value creation for consumers. a) Geographic b) Demographic c) Psychographic d) Benefit e) Geodeomographic

d) Benefit

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? a) planning phase b) implementation phase c) evaluation phase d) control phase e) strategy phase

b) implementation phase

Micromarketing is also referred to as a) loyalty marketing. b) one-to-one marketing. c) undifferentiated marketing. d) concentrated marketing. e) differentiated marketing.

b) one-to-one marketing.

The RFP stage of the B2B buying process is not required for a) a new buy. b) a modified rebuy. c) a straight rebuy. d) either a new buy or a modified rebuy. e) an adapted buy.

c) a straight rebuy.

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________. a) obsessive personality; laissez-faire approach b) formal search function; casual search function c) increased search anxiety; decreased search anxiety d) internal locus of control; external locus of control e) focused sense of information; unfocused sense of information

d) internal locus of control; external locus of control

Upscale men's and women's clothing stores, like Nordstrom, Neiman Marcus, or Saks Fifth Avenue, are more likely to appeal to consumers' __________ needs. a) functional b) postpurchase c) safety d) psychological e) situational

d) psychological

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n) a) weakness. b) opportunity. c) strength. d) threat. e) asset.

d) threat.

Consumers involved in habitual decision making engage in little conscious decision making. a) True b) False

a) True

A wholesaler is an example of a a) reseller. b) merchandiser. c) reference group. d) manufacturer. e) retailer.

a) reseller.

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in a) target marketing. b) situation analysis. c) diversification. d) positioning. e) market penetration estimation.

a) target marketing.

Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation. a) True b) False

b) False

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process. a) True b) False

b) False

In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision. a) True b) False

b) False

Marketing is an activity that only large firms with specialized departments can execute. a) True b) False

b) False

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation. a) True b) False

b) False

The consumer decision process begins with a comparison of available alternatives. a) True b) False

b) False

To build a sustainable competitive advantage, companies should focus on a single strategy. a) True b) False

b) False

After purchasing an expensive pair of shoes, you may question whether or not the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance. a) True b) False

a) True

Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit. a) True b) False

a) 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. a) True b) False

a) True

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations. a) True b) False

a) True

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

a) True

Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence. a) True b) False

a) True

The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be. a) True b) False

a) True

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

a) a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases.

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

a) enables firms to make appropriate adjustments.

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. a) geodemographic b) benefit c) psychographic d) loyalty e) geographic

a) geodemographic

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about a) its value. b) the environment. c) the cost to manufacture the product. d) the economic outlook. e) the product's new advertising campaign.

a) its value.

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? a) market-oriented b) sales-oriented c) production-oriented d) value-based marketing e) economics-oriented

a) market-oriented

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is a) offering an exchange. b) behaving unethically. c) hoping to receive feedback. d) implementing a CRM program. e) overstepping its role.

a) offering an exchange.

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? a) planning b) implementation c) control d) segmentation e) metrics

a) planning

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? a) price b) place c) promotion d) product e) prototype

a) price

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

a) product development

Melanie works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. a) production-oriented b) sales-oriented c) market-oriented d) value-based marketing e) retailing-oriented

a) production-oriented

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 a) providing classes at convenient times and offering online courses. b) discount pricing for students taking more than twelve credit hours. c) the higher average salaries earned by college graduates. d) the great variety of classes offered. e) the number of Nobel Prize winners on the faculty.

a) providing classes at convenient times and offering online courses.

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 a) substantial. b) responsive. c) profitable. d) reachable. e) identifiable.

a) substantial.

Shipping companies such as UPS, FedEx, and DHL support other firms' __________ marketing goals. a) supply chain management b) value communication c) value capture d) retail management e) promotion

a) supply chain management

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by a) using segmentation, targeting, and positioning. b) offering everything to everyone. c) trying lots of options to find out which one works. d) doing continual test marketing. e) focusing exclusively on its Pink brand.

a) using segmentation, targeting, and positioning.

The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process. a) vendor negotiation b) product specification c) need recognition d) vendor performance assessment e) RFP

a) vendor negotiation

A local art gallery keeps information on its customers regarding their preferences for certain artists as well as the style of art that interests them. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using _______ to build loyalty among its customers. a) value cocreation b) customer relationship management c) transactional marketing d) B2B marketing e) the supply chain

b) customer relationship management

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which macro strategy? a) customer excellence b) locational excellence c) operational excellence d) product excellence e) purchase excellence

b) locational excellence

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of a) communicating the value proposition. b) managing the supply chain. c) creating value. d) capturing value. d) cocreating value.

b) managing the supply chain.

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

b) market development

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. a) product proliferation b) market development c) market penetration d) diversification e) product development

b) market development

Marketers fear negative word of mouth because when consumers are dissatisfied, they a) are less likely to say something than when they are satisfied. b) often want to complain to many people. c) buy more of the product to prove they were correct in their criticism. d) often file a lawsuit. e) don't buy any of the company's other products.

b) often want to complain to many people.

A value proposition compares the price of a product to its benefits. a) True b) False

b) False

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

b) attract a different market segment.

The basic difference between a good and a service is that a good a) provides intangible benefits. b) can be physically touched. c) is always less expensive than a corresponding service. d) generates greater interest among consumers. e) is more quickly forgotten by consumers.

b) can be physically touched.

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

c) a sustainable competitive advantage.

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect? a) developing a promotional plan b) managing the exchange function of marketing c) making product decisions d) deciding where and how to sell the product e) pricing the product

c) making product decisions

Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to a) get themselves into the universal set. b) reduce the cost of postpurchase advertising. c) minimize negative word of mouth and rumors. d) extend decision rules to the customer complaint desk. e) offset performance risk with financial risk.

c) minimize negative word of mouth and rumors.

In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars. a) weakness b) threat c) opportunity d) operational advantage e) locational advantage

c) opportunity

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

c) product line

Which of the following is not one of the four major growth strategies marketers typically utilize? a) market penetration b) market development c) segment development d) diversification e) product development

c) segment development

"Black Friday," as the day after Thanksgiving has come to be known in the United States, is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "doorbusters," which are designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process. a) the purchase situation b) lifestyle c) setting high expectations d) perception e) learning

c) setting high expectations

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

c) sustainable competitive advantage

In the Circles for a Successful Value Proposition framework, the value proposition is represented by a) the intersection between customer needs/wants and competitors' benefits. b) the intersection between the firm's benefits and competitors' benefits. c) the intersection between customer needs/wants and the firm's product's benefits. d) the intersection between all three of the circles. e) the part of the firm's benefits that doesn't overlap with anything.

c) the intersection between customer needs/wants and the firm's product's benefits.

In delivering value, marketing firms attempt to find the most desirable balance between a) the need for value and the perception of value. b) explicit versus implicit value. c) the need to provide benefits to customers and keep down costs. d) the desire to satisfy customers and the desire to satisfy employees. e) the need for product improvement and the need for advertising.

c) the need to provide benefits to customers and keep down costs.

In value-based marketing, the promotion element of the four Ps communicates the ________ to customers through a variety of media. a) mission statement b) operational excellence strategy c) value proposition d) relative market value e) target market definition

c) value proposition

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. a) B2C b) C2B c) B2B d) C2C e) underground

d) C2C

The first objective in the evaluate performance phase of the marketing planning process is to a) determine whether to raise or lower prices. b) adjust advertising allocations. c) find ways to cut costs. d) review implementation programs and results using metrics. e) consider changing the target market.

d) review implementation programs and results using metrics.

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 a) differentiate his product line. b) consider future customer loyalty. c) create a perceptual map. d) select a target market. e) divide geographic segments into lifestyle groups.

d) select a target market.

To develop psychographic segments, the marketer must understand consumers' a) age, income, and education. b) gender, race, and religion. c) disposable personal income, benefit perceptions, and alternative egos. d) self-values, self-concept, and lifestyles. e0 buying patterns and behaviors.

d) self-values, self-concept, and lifestyles.

Yvonne uses her customer relationship management (CRM) system to predict when her business customers will need more of her company's packaging materials. When she thinks a customer should be ready to make another order, she contacts them. Yvonne is using CRM to encourage customers to engage in a(n) a) new buy. b) modified rebuy. c) adapted buy. d) straight rebuy. e) generic buy.

d) straight rebuy.

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

d) target market segment.

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena most likely operates in the __________ era of marketing. a) production-oriented b) sales-oriented c) market-oriented d) value-based marketing e) retailing-oriented

d) value-based marketing

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

e) product excellence

Business-to-business marketing involves buying and selling goods or services by all of the following except a) manufacturers. b) consumers. c) retailers. d) producers. e) wholesalers.

b) consumers.

A familiar brand name always helps the sales of a product. a) True b) False

b) False

The fundamental goal of marketers when creating goods, services, or combinations of both is to a) defeat the competition. b) serve all consumers. c) operate according to government regulations. d) stimulate short-term sales. e) create value.

e) create value.

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

b) the lifetime value of customers.

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

d) Nike's athletic shoe business still requires some investment, but is likely to produce excess resources that can be invested in other divisions of the company.

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

d) Positioning

The consumer buying process begins when a) a consumer enters a store. b) consumers' functional needs are greater than their psychological needs. c) a consumer's performance risk is minimized. d) a consumer recognizes an unsatisfied need. e) learning follows perception.

d) a consumer recognizes an unsatisfied need.

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

d) a sustainable competitive advantage.

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

d) a sustainable competitive advantage.

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets. a) unpredictable b) external c) internal d) controllable e) global

d) controllable

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. a) benefit b) geodemographic c) psychographic d) demographic e) geographic

d) demographic

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with a) an evoked set. b) psychological needs. c) social concerns. d) evaluative criteria. e) biased information.

d) evaluative criteria.

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is a) expanding from offering just services to also offering goods. b) implementing a market segmentation strategy. c) capturing value through multiple pricing strategies. d) expanding from offering just goods to also offering services. e) increasing customer value through inflated appraisal evaluations.

d) expanding from offering just goods to also offering services.

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie. a) point of parity b) strategic target c) PRIZM cluster d) ideal point e) target position

d) ideal point

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy a) is the cheapest option. b) requires the use of advanced advertising techniques. c) rarely works. d) is likely more costly than an undifferentiated strategy. e) is ineffective without multiple brand names.

d) is likely more costly than an undifferentiated strategy.

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

d) it is not easily duplicated.

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

e) She should seek more information about why the stores had different results before making a decision.

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

e) define the business mission

What is the focus of a firm that develops a relational orientation with its customers? a) relating product knowledge to customers' interests b) gaining profit from each customer transaction c) generating profits quickly before customers shop elsewhere d) working with competitors to simplify product offerings for customers e) gaining lifetime profitability from customer relationships

e) gaining lifetime profitability from customer relationships

Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a(n) __________ for the purchase of these medical services. a) decider b) initiator c) influencer d) user e) gatekeeper

e) gatekeeper

Demographic segmentation is segmentation based on all of the following except a) age. b) gender. c) education. d) income. e) lifestyle.

e) lifestyle.

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's a) strengths and weaknesses. b) sales history. c) pension plan. d) product specifications. e) opportunities and threats.

e) opportunities and threats.

Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? a) locational excellence b) customer excellence c) operational excellence d) product excellence e) planning excellence

e) planning excellence

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

e) product development

Marketers who design and offer new products and services to their existing customers are pursuing a _________ growth strategy. a) product proliferation b) market development c) market penetration d) diversification e) product development

e) product development

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

e) the company provides products with a high perceived value.