Principles of Marketing Midterm Study Guide

"Like a good neighbor, State Farm is there." State Farm Insurance's catchy jingle builds associations via classical conditioning in consumer learning. The hope is that the catchy tune is in a person's head when it's time to buy car or home insurance. A customer can make a quick, one-time insurance payment. A 10-digit key code can be found in the paper bill, and bill notification email. This example shows that beyond the tangible qualities, all of the following describe brand associations EXCEPT: a. Marketers can control every brand association. b. The slogan suggests the company has a worthy mission. c. Every outgoing message from the company to the marketplace should be positive. d. Other associative elements enhance the perceptions of brands.

a. Marketers can control every brand association.

In the marketing framework, which of the following is the most central of the 4Ps? a. Product b. Place c. Price d. Promotion

a. Product

In the marketing framework, which of the following precedes targeting? a. Segmentation b. Branding c. Positioning d. Promotion

a. Segmentation

Todd has a small business that manufactures sportswear. Todd learns that corporate volleyball teams are growing in popularity, and they need team shirts with their logos. Todd feels that his company can provide the shirts with corporate logos and likely be successful. This is an example of: a. Strategic fit b. Perceptual mapping c. Profitability d. Market segmentation

a. Strategic fit

Potential profitability is a function of the current market size, its anticipated growth, current and anticipated levels of competition, and customer behavior and expectations. a. True b. False

a. True

The 5Cs, STP, and 4Ps operate interdependently. a. True b. False

a. True

The basic idea in brand valuation is to derive measures that translate as best as possible into a financial vocabulary. a. True b. False

a. True

The customer segments on a perceptual map offer a diagnostic based on macro-environmental factors. a. True b. False

a. True

With respect to STP in the marketing framework, the positioning process helps a marketer to: a. communicate a product's benefits clearly to the intended target customers. b. evaluate groups of industrial customers who share similar wants and needs. c. analyze the market potential for a product's horizontal diversification. d. choose a niche group segment from a selected set of industrial customers.

a. communicate a product's benefits clearly to the intended target customers.

Ah ling owns a hair salon. She has to pay rent, purchase equipment such as hair dryers, and supplies such as paper towels. Ah ling wonders which of those costs are fixed and which are variable. Ah ling must realize that in services such as retail, a fixed cost would NOT be the ________. a. employees b. equipment c. supplies d. shop

a. employees

At first glance, the Amazon logo looks like it is underlined by a smile but look closer—the smile is actually a kind of arrow! The smile at the bottom of the 'AMAZ' includes an arrowhead, starting at the A and ending with the Z. This conveys that they sell everything you need, from A to Z. The idea that an ad can be shown very quickly, online, on TV, or in the movies, so that it doesn't quite meet the threshold of consciousness, is said to be __________. The message is captured subconsciously, and marketers hope the message will compel action. a. subliminal advertising b. sensation c. perceptual fluency d. a perception map

a. subliminal advertising

Amazon.com looks just like Amazon.co.uk, and Google. com looks like Google.fr. There are corporate efficiencies to using the same brand information, communications, and strategies everywhere. True global brands are those that seek, achieve, and maintain similar positioning in all their markets. Which of the following is NOT true of a global brand? a. A global brand name carries one brand name anywhere it is offered. b. A global brand name seeks, achieves, and maintains different positioning everywhere in the world. c. A global brand name is available in most markets in the world. d. A global brand name carries one logo anywhere it is offered.

b. A global brand name seeks, achieves, and maintains different positioning everywhere in the world.

Which of the following is an example of an intangible service? a. A hair cut b. A massage c. A hair color change d. A tattoo

b. A massage

In the SWOT analysis of a firm, which of the following is an example of a firm's strengths? a. Potential of a firm in a diversified product line. b. A versatile and qualified R&D team in the firm. c. An opening for the firm to add more products into its product line. d. A chance to diversify into an exclusive niche market segment.

b. A versatile and qualified R&D team in the firm.

An actual product is the physical or tangible product which a consumer buys to get the core benefits that this product is offering. For example, if the core benefit that a consumer seeks is reading then a ______ is the actual product. a. quality paper b. book c. bookmark d. an attractive cover

b. Book

In a perceptual map, brands depicted as points close together are those perceived as different brands, whereas brands farther apart are seen as similar brands. a. True b. False

b. False

Which of the following is a pre-purchase behavior exhibited by consumers? a. Deciding on a retail channel b. Searching for possible solutions c. Narrowing the consideration set d. Assessing the purchase process

b. Searching for possible solutions

The Daymont Hotel used a perceptual map to survey loyal travelers (through their frequent-flier program), and the sample was obtained from visitors to all its hotels. The perceptions were those of current, not potential customers. The Daymont is known for being "reasonable" in its rates and attracts younger crowds who don't want to spend lots of money for a room. The Daymont likes having a youthful appeal (or position!) but realizes that it is attracting people outside of the markets it is targeting. The use of a perceptual map has assisted the Daymont in all of the following EXCEPT: a. The Daymont could attract older customers looking for reasonable rates b. The Daymont can be successful in the luxury hotel market c. The customer segments on the perceptual map offer a look at what's going on in the marketplace d. The Daymont's repositioning could include an ad campaign that emphasized reasonable rates

b. The Daymont can be successful in the luxury hotel market

Dollar General is a convenience-store franchise that sells Diet Pepsi. The local Pepsi distributors supply Dollar General based on whether it has heavy sales, medium sales or light sales of Pepsi or Diet Pepsi—big accounts vs. small accounts. This example shows that B2B customers like Pepsi distributors and Dollar General are usually segmented by _______. a. attitudes, b. volume c. demographics d. transactions

b. Volume

Which of the following types of companies is most likely to offer branded services? a. A training institution b. An insurance firm c. An airline d. A consultation agency

c. An airline

Choosing the right market segment is key. It helps a business strategically choose a competitive arena to operate in, which has led Cirque du Soleil to create new industries and the failure to do so has led to the demise of household brands like Sears. The most prominent risk facing local businesses is losing touch with customers or failing to recognize an upcoming demographic to be served. Determining which segments to target depends on an interplay of which two factors? a. Age and gender factors b. Income and household size c. Quantitative and strategic issues d. Geographic and volume factors

c. Quantitative and strategic issues

MIAMI UNIQUE LIMO is a luxury transportation service provider since 2007. The staff works hard to maintain a customer's satisfaction. Fully air-conditioned executive cars or limousines are clean and immaculately presented together with a fully uniformed chauffeur. Chauffeurs are professionally attired, drug screened, and DOT licensed. MIAMI UNIQUE LIMO hires extra drivers during the holiday season because of the increased number of tourists who come to Florida. During slower periods, far fewer chauffeurs are needed. This example shows that services are usually associated with ______. a. more fixed costs for selling goods b. better profitability estimates c. more variable costs than goods d. more manufacturing costs

c. more variable costs than goods

Companies can make the mistake of being _______ when they define their core business, focusing on their product offerings, instead of recognizing that their true goal is offering benefits and value to their customers. a. customer-centered b. price focused c. myopic d. promotion-oriented

c. myopic

Medical Center Hospital is launching a stop-smoking campaign aimed at teenagers. Many teens start smoking in high school to impress their friends and look cool. The campaign is designed to point out dangers of smoking and show testimonials of those who developed lung cancer as a result of smoking. This stop-smoking campaign is an example of _________. a. event planning b. political campaign marketing c. non-profit cause marketing d. theme marketing

c. non-profit cause marketing

The Davidson Company sells lumber and wants to decide how much inventory it will need over the next year. There is a significant amount of new construction going on in the community. To assess the need for lumber, The Davidson Company looked at the data for lumber sales over the past several years and based his assumptions for future on past data. This example shows that it's always a risky to predict growth, but a smart technique is to ________. a. obtain data on the age of potential home buyers b. use the census data to see household trends c. obtain sales data in the industry for several years and draw a conclusion through a moving average d. gather data on the income level of the targeted segment

c. obtain sales data in the industry for several years and draw a conclusion through a moving average

Dr. Kim meets with drug reps to learn about the latest, most effective pharmaceutical products for his cardiac patients. He communicates the benefits to his patients when he prescribes them. However, many drug companies used ads that are directly targeted to consumers. The ads are placed on television and on social media websites. As much as direct- to-consumer pharma ads annoy physicians, they attest to the power of marketing because the ads result in ______. a. pharma ads not communicating the benefits of the product b. doctors' not selecting pharmaceuticals based on product distinctions c. patients asking their doctors for specific brand names d. doctors' taking the advice of aggressive drug representatives

c. patients asking their doctors for specific brand names

Vals is a popular tool used in the segmentation of _____ data. a. demographic b. arithmetic c. psychographic d. geographic

c. psychographic

When Eve goes to Amazon.com to purchase a pair of socks, she can just look at a pair and know before buying them whether she will like them. Eve can see the color, the price, the material they're made of, and she can imagine immediately what they'll feel like on her toes. This example shows that ________ qualities are the attributes that may be evaluated prior to purchase as customers like Eve learns about competitive offerings. a. perishable b. credence c. search d. experience

c. search

Pedro works as a marketing manager in a restaurant. He oversees the waiters, makes sure the weekly special is advertised correctly, and keeps the prices competitive. He put a suggestion box in the restaurant so that customers can voice their opinions on the quality of the food and the live of service. Pedro is participating in ________. a. tourist marketing b. image marketing c. services marketing d. experiences marketing

c. services marketing

Laura has a bank account at BB&T because she receives decent rates, a debit/credit card, and she likes the friendly account managers and helpful tellers. The account is the core service, but Laura banks at BB&T because of the ________. a. perishability of the service b. variability of the service c. value-added supplemental services d. credence of the service

c. value-added supplemental services

In the marketing framework, which of the following actions is implemented by a firm during the targeting process? a. Educating the general public about its product's benefits b. Creating a product feature that differentiates the core product from its competitors c. Giving out additional product information to a market segment d. Assessing its product's alignment with a specific market segment

d. Assessing its product's alignment with a specific market segment

Which of the following is an example of positioning? a. McHale, Inc., a camera distributor, restricts its consideration set of customer segments in Houston. b. Bird, Inc., a basketball distributor, supplies basketballs to few sports stores in Boston. c. Carroll Joy, a toy store in Minnesota, decides to identify the age group of kids visiting their store. d. Barry, Inc., a shoe manufacturer, promotes itself as the only existing customized shoe manufacturer in San Antonio.

d. Barry, Inc., a shoe manufacturer, promotes itself as the only existing customized shoe manufacturer in San Antonio.

Which of the following is an example of pure goods? a. Screws b. Paper c. Printer cartridges d. Coal

d. Coal

In the context of types of B2B customers, which of the following is an example of a business service? a. Timber dealers b. Equipment manufacturers c. Rivets manufacturers d. Consulting agencies

d. Consulting agencies

Which of the following is an example of a demographic customer segment? a. Attitudes of female customers b. Awareness of customers c. Expertise of industrial customers d. Earning potential of customers

d. Earning potential of customers

Santos owns a hair salon in Odessa, Texas. He has won many awards for his styling and has designed the haircuts for several Miss Texas award winners. Santos currently markets his hair products to women between 25 and 55 years of age, but sales are flat because many women in this age group order hair-care products online or go to the hair salons at the local mall. If you were advising Santos on a strategy to increase the sale of his products, what strategy would you tell him to use? a. Positioning strategy b. Pricing strategy c. Niche strategy d. Expansion strategy

d. Expansion strategy

Which of the following is not included in the positioning statement? a. Target segment b. Competitive frame of reference c. Brand's USP d. Perceptual map

d. Perceptual map

Apple is considered as the #1 innovative company in the world. The company's strategy involves terrific new products and business models. Apple pioneers into a new business spaces and creates new market niches. The company created game changers such as the iPod, iTunes, iPhone, and iPad. Competitors that chase Apple's latest release find themselves behind when just a few months later Apple introduces its latest and greatest offering. According to Michael Treacy and Fred Wiersema, in The Discipline of Market Leaders, in which of the basic corporate strategies to creating value and achieving market stature does Apple excel? a. Price leadership b. Customer intimacy c. Operational excellence d. Product leadership

d. Product leadership

Which of the following is a characteristic of subliminal ads? a. These ads meet the threshold of liminal recognition. b. Print ads of this type depend on brief periods of exposure. c. These ads meet the threshold of consciousness. d. TV ads of this type depend on brief periods of exposure.

d. TV ads of this type depend on brief periods of exposure.

One perspective is a top-down vision of corporate strategy to answer the question ________. a. Should we take a data-informed approach? b. What is the segment size? c. What is the profitability of the segment? d. What customers make sense for our firm?

d. What customers make sense for our firm?

Laura wants to develop a marketing plan for her new business. She isn't sure where to start, but Laura does know that a company that really listens to its customers will be able to deliver goods and services that please those customers. Laura understands that the best marketers put themselves in the place of their customers. To elaborate on her marketing strategy and develop a particular marketing plan, Laura should start with _____. a. a budget b. a product c. strategic market planning d. a situation analysis

d. a situation analysis

In the marketing framework, "branding" refers to______. a. diversifying a unique product line b. segmenting within a population of consumers c. identifying a unique niche market d. associating a product with a unique portfolio of qualities

d. associating a product with a unique portfolio of qualities

Brad is an avid biker. He rides a stationary bike indoors and an all-terrain bike outdoors. As a result, marketers target Brad with biking products. This is an example of segmentation according to _______. a. age b. geography c. attitudes d. behavior

d. behavior

For ________ products, the marketer just hopes to cut through the noise and clutter—getting customers' attention only long enough to register the brand name in the mind of the customer for sheer familiarity. a. medium involvement b. no-involvement c. high-involvement d. low-involvement

d. low-involvement

Porsche's 911 sells predominantly to men (90%) who are over age 50 with a household income over $300k. To the company's delight, most customers are willing to pay premium prices for a Porsche 911 because they value the brand. Companies use brands or variants of their brands to provide different offerings to satisfy different _________. a. manufacturers b. brand associations c. channel partners d. market segments

d. market segments

The figure above is an example of a _____. a. histogram b. Gantt chart c. PERT chart d. perceptual map

d. perceptual map

STP stands for segmentation, targeting, and _____. a. production b. pricing c. promotion d. positioning

d. positioning

Fausto drives a Toyota Prius, and when his 2007 Prius had over 100,000 miles, Fausto traded it in for a 2019 model. Fausto likes this brand of car because it is reliable, and he is an avid fan of the Prius because his works not just predictably but fabulously. This example shows that brand building is based on ______. a. the product performing with significant variability b. more perceived risk c. the customer's decision making made harder d. the predictability of the item being purchased

d. the predictability of the item being purchased

American Airlines has a rewards program that allows members to earn points which can be redeemed for airline tickets. The core elements—a round trip ticket using frequent flyer miles--have come to be expected. If the frequent flyer program works as advertised, American Airlines doesn't earn praise in the eyes of the traveler, who won't rave to friends about how great American is. However, American uses value-addeds—such as 500-mile upgrades or one bag flies free—to increase a customer's level of satisfaction. This example shows all of the following EXCEPT: a. A core element usually leads to customer satisfaction. b. Value-addeds can kept from switching to competitors. c. A marketer can affect a customer's level of satisfaction through value-addeds. d. Companies often compete on the value-addeds.

a. A core element usually leads to customer satisfaction.

Which of the following statements distinguishes a straight rebuy from a modified rebuy? a. A straight rebuy deals with purchases from the same vendor, while a modified rebuy deals with purchases from a new or different vendor. b. A straight rebuy is analogous to a shopping purchase, while a modified rebuy is analogous to a specialty purchase. c. A straight rebuy deals with intangible purchases, while a modified rebuy deals with tangible purchases. d. A straight rebuy deals with the internal customers of an organization, while a modified rebuy deals with external customers.

a. A straight rebuy deals with purchases from the same vendor, while a modified rebuy deals with purchases from a new or different vendor.

An exchange relationship exists between a firm and its customers in marketing. a. True b. False

a. True

If customers are willing to pay premium prices for brands they value, they are less price sensitive. a. True b. False

a. True

In the context of variability between goods and services, services are said to be more variable. a. True b. False

a. True

Niche marketing is a type of segmentation in which the company strategically focuses on a smaller market. a. True b. False

a. True

On a continuum from "mass marketing" to "one-to-one marketing," market segmentation is in the middle. a. True b. False

a. True

Perceptual maps show customers' perceptions of a firm's strengths with respect to its competitors. a. True b. False

a. True

Target is a customer-centered company which tries to put the customer first in every aspect of the company. The CMOs at Target feel that principles of marketing are so important that everyone's job entails some marketing—namely, every Target employee has to think about the customer. This example shows that marketing is more of a philosophy that incorporates all of the following EXCEPT ____. a. a company mind-set "to build a better mouse trap" b. a way to think about business c. a way to identify customers' needs and wants d. a view that goes beyond production and sales

a. a company mind-set "to build a better mouse trap"

Philippe wants to replace his iPhone. He is considering getting the iPhone 12, the latest model. Before buying the new iPhone, Philippe needs to do some research and give the purchase some serious thought. This is an example of _________. a. a high involvement product b. a shopping item c. a convenience item d. a low-involvement product

a. a high involvement product

A positioning statement: a. communicates succinctly the parameters of a product's position to a number of audiences. b. encourages brand dilution by helping a firm launch multiple products under a single brand. c. is a customized communication statement about a product's position for different audiences. d. aggregates groups of customers based on different demographic factors.

a. communicates succinctly the parameters of a product's position to a number of audiences.

The central players in a marketing exchange are: a. customer and company. b. context and market concentration. c. collaborators and competitors. d. price and promotion.

a. customer and company.

A market segment is a: a. customer group whose members share similar inclinations toward a brand. b. complete customer population at a marketplace. c. homogenous customer group broken down into groups that are heterogeneous. d. group of industrial customers with variable wants and needs.

a. customer group whose members share similar inclinations toward a brand.

Pioneer Petroleum Company reorders its subscription to Word 365 from Best Buy, an approved vendor. However, Pioneer wants to alter some elements: features, design, packaging, quantity, or delivery times. This change reflects the changes in Pioneer's requirements or Best Buy's lease program. Pioneer has a desire to consider a vendor other than Best Buy. This buying situation is an example of a _________. a. modified rebuy b. new buy c. straight rebuy d. specialty buy

a. modified rebuy

Typically, a firm's product line varies in depth not in width. a. True b. False

b False

In the SWOT analysis of an organization, opportunities and threats characterize the organization itself. a. True b. False

b. False

Positioning has many perceptual elements, but even more physical ones. a. True b. False

b. False

Risk is a measure of reliability. a. True b. False

b. False

The "core" of a firm's market offering helps enhance customer satisfaction. a. True b. False

b. False

The STP helps systematically frame the general analysis of the entire business situation. a. True b. False

b. False

The goal of heterogeneity in customers' likes or dislikes is more likely to be achieved as the segment size gets smaller. a. True b. False

b. False

Entrepreneurs should forgo ego and choose brand names that ______. a. has no inherent meaning b. convey information to customers about the benefits of the brand c. is the name of the founder such as Christian Dior or Yves Saint Laurent d. show little creativity in marketing

b. convey information to customers about the benefits of the brand

One-to-one marketing occurs when: a. the public is educated about a product's pay off. b. each customer serves as his or her own segment. c. information about a product is provided to a niche segment. d. people are segregated into specific groups.

b. each customer serves as his or her own segment.

A terrific online source of U.S. demographic data is the census which provides data on all of the following categories EXCEPT _______. a. income b. lifestyle c. age d. location of residence

b. lifestyle

Skinner studied pigeons pecking at a target, or rats pressing a bar, to receive food pellets. The pigeons (and rats) learned the desired behavior by being rewarded. The behavior is said to be positively reinforced. This method is called _________. a. classical conditioning b. operant conditioning c. perceptual fluency d. brand association

b. operant conditioning

_____ is the strategic use of a brand's equity, in which the marketer leverages the brand's good name to get customers to buy something new. a. Store branding b. Ingredient branding c. Brand extension d. Co-branding

c. Brand extension

A very general way marketers have approached the analysis of a market is by estimating the purchase decision-making process which includes all of the following elements EXCEPT: a. Trial b. Awareness c. Positioning d. Repeat

c. Positioning

The consumer's perception of brand influences their buying decision in sports industry, so Nike always has been able to position to customer's expectation and athletic fantasy that is endorsed by real athletes. "For serious athletes, Nike gives confidence that provides the perfect shoe for every sport." This positioning statement from Nike is simple, direct, and tangible. It speaks to their target audience in a clear and concise manner. Positioning has many physical elements, but even more perceptual ones. What is positioning? a. Who your brand is in the eyes of the manufacturer b. What price point is appropriate for Nike shoes c. Who your brand or company is in the marketplace vis-à-vis the competition d. What age group is targeted by Nike

c. Who your brand or company is in the marketplace vis-à-vis the competition

With respect to the segmentation of businesses, _____ is an example of a demographic segment. a. a manufacturer b. price sensitivity c. an account's size d. risk tolerance

c. an account's size

Companies should group their customers and _____. Then they should create a position in the marketplace. a. figure out pricing which advertising to use b. decide what price is best for a product c. figure out which group to target d. decide what features their product should offer

c. figure out which group to target

Gillette produces razors "Fusion" and "Mach" for men and "Venus Divine" for women. The razors have the same number of blades, but the XY version is blue or black, and the XX version is pink. This example shows that _________. a. mass customizations provides for quality control b. mass customization is effective c. identical products can be positioned differently to different segments d. identical products cannot be positioned differently

c. identical products can be positioned differently to different segments

In the context of a positioning matrix, assuming that promotion is categorized as "heavy" vs. " light," and distribution is categorized as "wide" vs. "exclusive," a "niche" product would mean: a. heavy promotion and exclusive distribution b. light promotion and wide distribution c. light promotion and exclusive distribution d. heavy promotion and wide distribution

c. light promotion and exclusive distribution

Juan plans to start a landscape business and provide lawnmowing, landscape design, shrub, tree, and flower planting, and landscape maintenance. Juan wants to choose which market segments to target. He should do all of the following EXCEPT ________. a. check the upper and lower bounds of his predictions b. vary the numbers in the scenarios c. loosely define the target market d. do some what-if-scenarios

c. loosely define the target market

A perceptual map is a visual technique that shows how the average target market consumer understands the positioning of the competing products in the marketplace. In other words, what information does a perceptual map NOT gain the marketer with respect to targeting? a. Given that price is their strength, a competing firm would react swiftly. b. A segment will be attuned to price sensitivity if it owns a specific price point identity. c. New unidentified segments could add to the competition in the marketplace. d. If a segment targeted is price sensitive, our firm must be wary that a competitor will react.

c. new unidentified segments could add to the competition in the marketplace.

With respect to the 5Cs in the marketing framework, which of the following is an example of "context"? a. A firm's stock product b. A firm's complementary good c. A firm's natural resources d. A firm's stockholder

d. A firm's stockholder

All product-related issues become more complicated when we broaden our scope to include not just a particular brand of focus, but the company's larger portfolio. All of the following can be said about a product mix EXCEPT: a. Product lines can vary in width. b. Product lines can vary in depth. c. A product mix is composed of several product lines. d. A product mix is comprised of one product line.

d. A product mix is comprised of one product line.

Business segmentation includes all of the following categories EXCEPT: a. Company size b. NAICS industry c. Account size d. Age and education

d. Age and education

Marketers begin with some knowledge base about the marketplace to include all of the following EXCEPT: a. Customers b. Company strengths c. Competitors d. Customer perspective

d. Customer perspective

_____ is the process by which brand associations get past the sensory and perception stages into short-term memory, and then with repetition and elaboration, long-term memory. a. Motivation b. Need recognition c. Self-efficacy d. Learning

d. Learning

In branding of products and services, which of the following indicates the difference between reliability and variability? a. Reliability deals with perishable services, while variability deals with imperishable goods. b. Reliability implies the experience attributes of a product, while variability implies the search attributes of a product. c. Reliability deals with intangible products, while variability deals with intangible services. d. Reliability implies a product's consistency, while variability implies a product's inconsistency.

d. Reliability implies a product's consistency, while variability implies a product's inconsistency.

With respect to STP in the marketing framework, which of the following statements distinguishes segmentation from targeting? a. Segmentation deals with tangible goods, while targeting deals with intangible services. b. Segmentation identifies the customers and collaborators of a company, while targeting deals with the competitive factors in an industry. c. Segmentation identifies the marketing effort required for a macro-environment group, while targeting identifies the marketing effort required for a micro-environment group. d. Segmentation identifies groups with similar wants or needs, while targeting deals with the marketing efforts required for an identified group.

d. Segmentation identifies groups with similar wants or needs while targeting deals with the marketing efforts required for an identified group.

Brooke has a small, special occasion, yard sign business. She paints birthday, anniversary, and graduation signs with the recipient's name included and rents the sign for $75. Brooke delivers and picks-up the sign. Even though Brooke doesn't advertise, Word-of-mouth, usually from one parent to another celebrating a child's birthday, has made Brooke's business grow. This is an example of: a. Niche marketing b. Mass marketing c. Image marketing d. Experiences marketing

a Niche marketing

Brand building is based fundamentally on the predictability of the item being purchased. a. True b. False

a True

Which is an example of a brand extension that is aiming for breadth? a. Amazon has famously extended from books and CDs to drugstore goods, computers, furniture, jewelry, services (e.g., registries)—just about everything. b. Häagen-Dazs has different flavors of ice cream: apricot and cream, cappuccino truffle, dark chocolate orange, green tea, rum raisin, strawberry cheesecake. c. Oscar Meyer has different-length hotdogs for different-length buns and makes Lunchables and bacon, all with the Oscar Meyer name. d. Cheerios rolls out different flavors—apple cinnamon, honey nut, frosted—but all are called Cheerios.

a. Amazon has famously extended from books and CDs to drugstore goods, computers, furniture, jewelry, services (e.g., registries)—just about everything.

Which of the following is an example of an industry marketing itself? a. An ad encouraging the consumption of eggs. b. An ad encouraging the consumption of a Snickers bar. c. An ad encouraging the purchase of a Firefox mountain bike. d. An ad introducing Pizza Hut's new menu.

a. An ad encouraging the consumption of eggs.

Ace Hardware sells snow-blowers and all the replacement parts for snow-blowers throughout its stores nationwide. When evaluating the level of sales, Ace's management realizes that snow-blowers tend to sell better in the North than in the South because of the heavy snow and ice during the winter months. On the other hand whereas the reverse is true for chlorine and patio furniture, which produce a greater number of sales at Ace Hardware in the South. This example shows that: a. Geographic distinctions among customers are used to segment markets. b. Education shapes consumer preferences (e.g., opera vs. opry). c. Income facilitates certain consumer choices (e.g., Four Seasons vs. Motel 6). d. There can be cultural differences within a country.

a. Geographic distinctions among customers are used to segment markets.

In the SWOT analysis of a firm, which of the following is an example of a firm's weakness? a. High employee turnover over rate in the firm's marketing department b. Two main competitors joining hands to evaluate an expansion opportunity c. Increase in the variable cost of the firm's primary raw material d. Entry of a well-known manufacturer into the firm's primary market segment

a. High employee turnover over rate in the firm's marketing department

Mailchimp is an all-in-one Marketing Platform for small business. We empower millions of customers around the world to start and grow their businesses with our smart marketing technology, award-winning support, and inspiring content." This positioning statement shows all of the following EXCEPT: a. How Mailchimp has a lower price that the competition b. How Mailchimp is better for small businesses c. How Mailchimp it unique d. How Mailchimp has a competitive advantage

a. How Mailchimp has a lower price that the competition

Marketers consider all of the following when evaluating a sementation plan EXCEPT: a. Inactionable b. Data for identify segments c. Fit with corporate goals d. Databases to access segments

a. Inactionable

Which of the following examples should be categorized at the bottom of a brand value hierarchy? a. Drumstick, a brand of lip balm, uses vitamin E in its lip balms. b. Capello, a lip balm brand, plans to introduce strawberry flavored lip balms. c. Droopy is a brand of lip balm that can be used as a pain relief balm on cuts and minor burns. d. Ruby, a brand of lip balm, is less expensive than the other competing brands in the market.

Capello, a lip balm brand, plans to introduce strawberry flavored lip balms.

Mass marketing occurs when: a. all customers are treated in the same manner. b. a product is marketed as a large entity. c. a group of services are bundled together. d. customers are segregated based on their earning potential.

a. all customers are treated in the same manner.

The tangibility levels in services are high. a. True b. False

b False

Carol owns an interior design company in Utah. She markets her services throughout the state. As a marketer, Carol is motivated to translate her company's progress into financial terms. Carol realizes that technology and data are increasingly offering her more opportunities to capture valuable data. Carol utilizes a Customer Relationship Management program (CRM) for all of the following reasons EXCEPT ______. a. CRM allows marketers to track clickstream Web data b. CRM allows marketers to design products c. CRM allows marketers to assess a new promotion d. CRM allows marketers to determine the most attractive product combinations

b. CRM allows marketers to design products

Evelyn has an online cookie cutter business, and when she advertises her cookie cutters, she announces that delivery is within three weeks. Since slow delivery time is a weakness for Evelyn, what should she do? a. Evelyn should use market research to assess the number of competitor's in the market. b. Evelyn should be motivated to make changes to address this shortcoming. c. Evelyn should advertise about her company's strength—quality cookie cutters. d. Evelyn should look for new opportunities.

b. Evelyn should be motivated to make changes to address this shortcoming.

All the elements in the positioning statement must be explicitly stated. a. True b. False

b. False

Goods are dominated by experience and credence qualities, while services are mostly comprised of search and experience qualities. a. True b. False

b. False

Great marketing is an art based on an individual's soft skills and instincts. a. True b. False

b. False

If customers are known for their expertise and involvement in a category, and if they've demonstrated a willingness to share information and give advice, they will be perceived by others as early adopters. a. True b. False

b. False

The positioning process precedes the segmenting process in the marketing framework. a. True b. False

b. False

The second stage of the decision-making process is conducted by non-compensatory mechanisms. a. True b. False

b. False

Typically in brand extensions, the firm's name has to be leveraged in the same product category. a. True b. False

b. False

With respect to the 5Cs in the marketing framework, "context" includes the backdrop of micro-environment factors. a. True b. False

b. False

With respect to the segmentation of businesses, sales force coverage is an example of the attitudes segment. a. True b. False

b. False

_____ is a primary form of co-branding in which one of the companies and its product is the primary host, and the other company and its product add value to the host product. a. Global branding b. Ingredient branding c. A house of brands d. Umbrella branding

b. Ingredient branding

In the context of the USP, what does SP indicate? a. Static pricing b. Product category c. Bouncing rate d. Selling period

b. Product category

Jack sells lumber to construction companies that build apartment complexes. As a B2B customer, Jack's business is classified according to what he sells. What is Jack's classification? a. Accessories (e.g., computers to help run the office) b. Raw materials (e.g., lumber, plastics) c. Components (processed items that are components in a later finished product) d. Business services (e.g., insurance, legal, consulting)

b. Raw materials (e.g., lumber, plastics)

What is one of the characteristics of a good positioning statement? a. Long b. Succinct c. General d. Unemotional

b. Succinct

Santos Industries, a furniture manufacturing company, purchases lumber from a company called Josh Timbers. Lumber is an example of a(n) _____. a. installation b. raw material c. accessory d. component

b. raw material

Which of the following is an example of a price-sensitive product? a. Designer watches b. Medical treatments c. Notebooks d. Salt

c. Notebooks

A shopping purchase is analogous to a _____ in a B2B setting. a. specialty buy b. straight rebuy c. modified rebuy d. new buy

c. modified rebuy

Susan dropped her iPhone and went online to Amazon.com to order a replacement case. Susan is an Amazon Prime customer so her email, credit card number, billing and mailing address are already stored electronically. When the iPhone case arrived, it didn't fit Susan's iPhone because she ordered the wrong size. Susan went back to Amazon.com and clicked on "return merchandise" and she received a bar code to facilitate the return at a UPS store. The iPhone case was returned via UPS at no charge. Susan reordered the correct size iPhone 6S case which will arrive in two days. This example shows all of the following EXCEPT: a. Information on prices and product attributes is easier online. b. An online purchase is a mix of the tangible and the intangible. c. An online purchase is a mix of goods and services. d. The AI of shopping bots makes online shopping more difficult.

d. The AI of shopping bots makes online shopping more difficult.

Going to the symphony is an example of _____. a. tangibility marketing b. credence attributes c. search concepts d. experience marketing

d. experience marketing

Typically, marketers at _____ create ads that are related to "Drinking responsibly." a. departmental stores b. breweries c. bars d. government agencies

d. government agencies

Credence attributes in products are those: a. factors distinguishable to the human senses. b. that need some trial or consumption before evaluation. c. that are evaluated prior to a purchase. d. that are difficult to analyze even post-consumption.

d. that are difficult to analyze even post-consumption.

Nike makes athletic shoes, sports jerseys, gym bags, and other products, all of which bear the same company brand name and swish logo. Canon's cameras and photocopiers say Canon. GE puts its corporate brand on its diverse lines of appliances, lighting, financial services, and engines. A company like Nike or Canon that attaches the same brand name to all of its products is using (a)n _______ approach. a. brand equity b. house of brands c. brand-association d. umbrella branding

d. umbrella branding

Which of the following statements distinguishes convenience purchases from specialty purchases? a. Convenience purchases are fairly mindless staple purchases, while specialty purchases require more thought. b. Convenience purchases are commonly B2B purchases, while specialty purchases are mostly B2C. c. Convenience purchases usually generate word-of-mouth referrals, while specialty purchases do not. d. Convenience purchases are purchases internal to an organization, while specialty purchases are external purchases.

a. Convenience purchases are fairly mindless staple purchases, while specialty purchases require more thought.

Typically, automated services are introduced to reduce error variability. a. True b. False

a. True

Typically, products' benefits and attributes are whittled down to price and quality. a. True b. False

a. True

The Toyota Prius competes with other hybrids, other cars, and other means of transportation such as the local metro or the airplane. Marketers at Prius realize just how broadly competition can be defined in the minds of customers. This example shows that marketers at Toyota have to ask all of the following questions EXCEPT: a. What do our shareholders want? b. Who is our competition? c. What benefits do we want to provide to the consumer? d. What is our business?

a. What do our shareholders want?

Themed retail outlets, such as Crayola Café, Build-a-Bear, ESPN Zone, and Lego stores, are as much about creating a shopping experience for its customers as they are about selling merchandise. Cirque du Soleil promises a circus and acrobatic performance that is one-of-a-kind. MotorTrend.com offers car enthusiasts an opportunity to try out their favorite cars through virtual road tests and simulations. These are examples of ______. a. experience marketing b. image marketing c. cause marketing d. services marketing

a. experience marketing

In the _____ strategy, firms give a unique brand name to every major product line. a. house of brands b. brand extension c. umbrella brand d. product line extension

a. house of brands

Product lines can be pruned _____. a. if customers see no distinctions between brands or lines b. if the company can make new brands or lines better than competitors c. the company recognizes an opportunity for producing something that customers will value d. if the company can make the new brands or lines easily

a. if customers see no distinctions between brands or lines

When customers say that a brand like Campbell's is sincere, they mean partly the soups (e.g., made from quality ingredients) and partly the company (e.g., the ingredients come from fair trade sources). Consumers consider the product and the company part of the brand's ______. a. personality b. logo c. community d. name

a. personality

All of the following are true in regards to ways a brand achieves consistency for services except _______________. a. service providers do not use experience flowcharts to note metrics. b. service providers aim for consistency across customer-employee interactions. c. service providers have clear strategies for service recovery. d. services providers seek high-quality employees.

a. service providers do not use experience flowcharts to note metrics.

Marriott hotels offer customers free breakfasts, free coffee in the room, free WiFi, and a rewards program for customers who earn points towards a free-night's stay. Other featured amenities include express check-out, dry cleaning/laundry services, free self- parking, and a 24-hour front desk. The basic product is a hotel room, but services are added _______. a. to differentiate Mariott from the competition b. to reduce the number of customer service employees c. to allow Mariott to charge high room rates d. to attract high-maintenance customers

a. to differentiate Mariott from the competition

Ben & Jerry's slogan is: We make the best possible ice cream in the best possible way. This catchy slogan grabs the attention of ice cream lovers. Ben & Jerry's distinguishes itself from competitors because of its high-quality ice cream manufactured in a sustainable way. Ingredients are sourced locally, assisting the local dairy farmers in Vermont. Taking care of the environment is an important factor for Ben & Jerry's customers. This is an example of a(n) ________. a. unique selling proposition b. customer intimacy c. operational excellence d. mission statement

a. unique selling proposition

Marketers believe that brands have value above and beyond the benefits of the product itself. It's not just that Coca-Cola is a well-known name; it's that the name immediately invokes certain images: the shape of the coke bottle, the logo, the red color, and some of the ads. This example shows that a brand is all of the following EXCEPT: a. Logos that come to be associated with the brand b. Brand associations that are not under the company's control c. Logos that become shorthand for the brand itself d. A portfolio of qualities associated with that name

b. Brand associations that are not under the company's control

When Honda puts its name on a car, a motorcycle, or a lawnmower, it's saying, "We're proud to offer these products. These are ours." And with time, the brand name has gained status among consumers as being high quality ("Honda is a good brand"); that is, anything that comes from the house of Honda will be good. This example shows that all of the following are reasons for branding EXCEPT: a. Brands convey information to customers. b. Brands signal inconsistent quality. c. Brands confer status. d. Brand names identify company production and ownership.

b. Brands signal inconsistent quality.

In the marketing framework, the positioning process precludes distributor relationships. a. True b. False

b. False

Ingredient branding implies symmetry between two brands, whereas in co-branding, one brand dominates the other. a. True b. False

b. False

The intangibility index of a firm rises with expansive capital expenditure. a. True b. False

b. False

Which of the following is a characteristic of perceptual fluency observed in ads? a. It is found in ads that are subliminal and conscious in nature. b. It is found in the cues of ads that are subtle in nature. c. It is found in ads that are dependent on brief periods of exposure. d. It is the result of ignoring the secondary information of an ad.

b. It is found in the cues of ads that are subtle in nature.

Lowe's is a $48.8 billion home improvement chain with 1,725 stores. Lowe's recently changed its motto from "Let's Build Something Together" to its new motto "Do it Right for Less." The new motto imparts the message that shoppers are in good hands and will be guided through all stages of their home improvement in a cost-effective manner if they shop at Lowe's. This example shows all of the following about a position statement EXCEPT: a. It can serve as a guiding principle for decision making. b. It offers specific product details. c. It can serve as the foundation of communications to customers. d. It can serve to keep all managers aligned.

b. It offers specific product details

During the COVID-19 pandemic, airline travel decreased dramatically. To encourage people to fly, Southwest airlines has positioned itself as the low fare, friendly carrier. Southwest is offering 65,000 frequent flyer miles for a limited time plus 3,000 anniversary points, plus double points on Southwest purchases and points for a companion pass. Southwest doesn't charge change fees or baggage fees as opposed to competitors like American Airlines. According to Michael Treacy and Fred Wiersema, in The Discipline of Market Leaders, in which of the basic corporate strategies to creating value and achieving market stature does Southwest excel? a. Product leadership b. Operational excellence c. Customer intimacy d. Technology

b. Operational excellence

"Payhip is an e-commerce platform that enables anyone to sell digital products or memberships directly to their fans and followers. You can embed Payhip directly into your website or you can use our storefront to sell your work. Payhip takes care of everything. We're an all-in-one e-commerce solution for creators." This position statement answers the question: a. Who is our market segment? b. What is our product? c. Should we expand our business? d. Who is our competition?

b. What is our product?

Chipotle is a restaurant franchise that promises "Food with Integrity". Chipotle provides premium, real ingredients for customers looking for delicious food that's ethically sourced and freshly prepared. Chipotle's dedication to cultivating a better world by cutting out GMOs and providing responsibly raised food sets them apart in the food industry. Chipotle's positioning statement appeals to those who care about ethically sourced food. Chipotle's positioning statement answers which of the following questions? a. What is your competitive advantage? b. Who is your target segment? c. Who are you competing with? d. What is your product category?

b. Who is your target segment?

McDonald's sells hamburgers in India that are made with plant-based meat rather than beef. McDonald's does not sell beef in India because it is as Hindu country, and Hindus do not eat beef due to religious beliefs. In Europe, however, McDonald's sells hamburgers made with beef because many Europeans eat beef. This example shows that when a large, heterogeneous market is segmented into smaller markets as in the case of McDonald's, a company can do all of the following EXCEPT _______. a. form a more homogeneous market b. appeal to everyone c. create something that is closer to what those customers want d. meet the demands of one or two of the groups

b. appeal to everyone

In an umbrella branding approach, firms ______. a. introduce a new brand name for every major product line b. attach the same brand name for every major product line c. unite with firms from a different industry to brand a product line d. unite with firms from the same industry to brand a product line

b. attach the same brand name for every major product line

When customers' passion for a certain brand brings them together with other like-minded customers, _____ are formed. a. brand extensions b. brand communities c. co-brands d. brand equities

b. brand communities

During the COVID-19 pandemic, most people were not flying and the airlines suffered huge financial losses. Companies like Delta, American, and United had to cancel flights and leave the middle seat on most flights vacant to allow for social distancing. When an airplane leaves the ground with some seats vacant, the airliner cannot recoup those empty seats during rush traffic. This example shows the characteristic of _______ of services. a. tangibility b. perishability c. experience d. credence

b. perishability

Intangibility index is defined as the: a. aggregate of tangible product cost and intangible product cost. b. ratio of R&D costs to capital spending. c. product of variable costs and fixed costs. d. ratio of inventory to products-in-transit handling.

b. ratio of R&D costs to capital spending.

Medical Center Hospital set up a vaccination program that vaccinated over 3,000 people in one day in the parking lot of the high school football stadium. Local citizens registered online and were given a vaccination time. Then they waited in line in their cars to go through the registration, vaccination, post-vaccination check, and a follow-up appointment. The vaccinations were offered free of charge to anyone over the age set during the month of March, 2021. This is an example of ethical marketing because Medical Center Hospital is offering _____. a. confusing and exploitative financial instruments to older adults b. similar health care services to all segments c. marked-up goods and services to socioeconomically disadvantaged groups d. sugary cereals and junk food to kids

b. similar health care services to all segments

Mourners in Egypt wear yellow, yet yellow implies courage in Japan and the opposite, cowardice, in the United States. This example shows all of the following EXCEPT: a. Marketers frequently use color to convey information. b. Simple colors imbue brand associations. c. Colors cannot be integral to brand identities. d. The symbolism of colors varies across cultures.

c. Colors cannot be integral to brand identities.

Positioning requires all of the following EXCEPT: a. Pricing your product so it's profitable b. Building distributor relationships c. Communicating to the manufacturer d. Designing a product with benefits that the target segment will value

c. Communicating to the manufacturer

_____ care about new developments in their product category and seek out new products. a. Innovators b. Market mavens c. Early adopters d. Opinion leaders

c. Early adopters

In the SWOT analysis of a firm, which of the following is an example of an opportunity? a. Ability to attract the most efficient type of marketers b. Method used to control the flow of raw materials c. Explore the trend in an emerging economy d. Flexibility to adapt to constant internal change

c. Explore the trend in an emerging economy

Katrina has an online jewelry business which sells trendy one-of-a-kind items, which are fun to wear. In addition to jewelry, Katrina sells t-shirts with funny messages such as "permanently tired." Katrina wishes to use social media to target potential customers in the 18-29, year old age group. Which platform should Katrina use? a. Instagram b. Snapchat c. Facebook d. Linked-In

c. Facebook

Paul is going to a smoking cessation class that has a life coach available for individual counseling sessions. Paul has been smoking for decades and really wants to lead a healthier lifestyle, but he realizes that he can't stop smoking without help. Paul decided to talk to and get advice from the life coach and received a bill in the mail for the service he received. What characteristic of a service does this example exhibit? a. Inseparable b. Tangible c. Intangible d. Perishable

c. Intangible

In positioning, which of the following is a weakness of a perceptual map? a. It looks into the tangible factors of a firm, not its intangible factors. b. It looks into a firm's threats, not its weaknesses. c. It looks into just two attributes necessitating the study of many plots. d. It does not express competitors' profiles of perceptual data.

c. It looks into just two attributes necessitating the study of many plots.

Katrina is a new grad with a degree in Communication. She wants to work for a local television station in her community. She prepares for her interview by watching videos on interviewing techniques and also sets up practice interviews with a friend. The friend offers feedback so Karen can hone her interviewing skills. This example shows that _______. a. Katrina is preparing for political marketing b. Katrina follows the product marketing philosophy c. Katrina is marketing herself d. Katrina is participating in services marketing

c. Katrina is marketing herself

An energy drink like Red Bull is usually not considered a competitor of coffee brands such as Nespresso or Starbucks. However, since both coffee and energy drink fulfill a similar need (i.e., staying awake/getting energy), customers might switch from one to another if they feel that prices increase too much in either coffee or energy drinks. This will ultimately affect an industry's profitability. Michael Porter, in his books on competitive strategy, discusses generic strategies driven by keeping costs down and prices competitive. Using a positioning matrix, what should Red Bull map? a. High price vs. high quality b. Heavy users vs. high quality c. Low price vs. high quality d. Substitute products vs. high prices

c. Low price vs. high quality

Emily, a mother of two small children, decided to buy Subaru because she wants a car that is really safe when she drives her boys to school. When Emily consulted Consumer Reports, she found that the Subaru ranked very high on safety. Emily lives in Atlanta where there is heavy traffic so she is driving in a highly congested area and wants to feel at ease when she is behind the wheel. On Maslow's hierarchy of needs, what need is Emily trying to fulfill? a. Need for affiliation b. Need for respect c. Need for security d. Need for self-esteem

c. Need for security

With reference to perishability, which of the following statements differentiates a product from a service? a. Products are said to be more variable than services. b. Credence attributes play a role in a product's consumption, while search attributes play a role in a service's consumption. c. Production and consumption of a product are separable, while production and consumption of a service are inseparable. d. Products tend to be more perishable than services.

c. Production and consumption of a product are separable, while production and consumption of a service are inseparable.

With reference to a product's attributes, which of the following statements explains the difference between experience and search attributes? a. Search attributes of a product relate to its intangible factors, while experience attributes relate to its tangible factors. b. Search attributes of a product relate to its positioning process, while experience attributes relate to its targeting process. c. Search attributes are evaluated prior to a purchase, while experience attributes are evaluated post-consumption of a product. d. Search attributes are proportional to the strengths of a firm, while experience attributes relate to the opportunities of a firm.

c. Search attributes are evaluated prior to a purchase, while experience attributes are evaluated post-consumption of a product.

Which of the following is the reason for the existence of knock-off products of prestigious brands? a. These products satisfy quality standards. b. These products have high performance predictability. c. These products serve as status symbols. d. Risk of choice associated with these products is low.

c. These products serve as status symbols.

As part of their overall marketing strategy, a company needs to answer all of the following important branding questions EXCEPT: a. What are the purposes of brand extensions, line extensions, and co-branding? b. Will the company offer multiple products under the same brand name or roll them out with distinct brand names? c. What is a brand loyalty program? d. How are brands best rolled out globally?

c. What is a brand loyalty program?

Typically, a firm creates a perceptual map by: a. assessing its performances against a set of performance standards. b. analyzing its performances with respect to a successful historical data set. c. assessing its corporate strengths relative to its competitors. d. evaluating its corporate strengths against absolute measures.

c. assessing its corporate strengths relative to its competitors.

Dr. Harris is an Ob/gyn physician who has practiced in Texas for over three decades. He has delivered several generations of babies and is highly respected for his years of service and willingness to get up in the middle of the night and rush to the hospital to deliver a baby. Dr. Harris accepts patients from all backgrounds, giving excellent medical care to all patients. The women in his community trust that he will care for them in a highly professional manner. This aspect of a service is called ______. a. experience b. intangibility c. credence d. variability

c. credence

Brooke is a millennial who wears a Rolex watch. She can tell time by using her cell phone or her Apple Watch, but she prefers the Rolex because the prestige of the Rolex bolsters her self-image. Brooke thinks it's luxurious to own a Rolex because the price is out of reach for many consumers, and affording a Rolex shows that Brooke is financially successful. This example shows that many brands serve as ______. a. symbols of variability b. symbols of reliability c. status symbols d. symbols of predictability

c. status symbols

Best Buy is not performing well in Europe because of the European preference for smaller retail stores over big-box stores. Starbucks is not performing as well in Australia because locals prefer their own coffee shops' hospitality and boutique feeling. Repositioning global brands may be necessary for profitability. The positioning matrix helps marketers make decisions in many marketing scenarios. Best Buy and Starbucks should consider all of the following decisions EXCEPT: a. Do we go low price? b. Do we go heavy promotion? c. Do we go wide availability? d. Do we leave the market?

d. Do we leave the market?

As a manufacturer of exercise bikes, Peloton uses technology and design to connect the world through fitness, empowering people to be the best version of themselves anywhere, anytime. Peloton's positioning statement is not related to the direct competition of exercise bikes. It was broader: inspiring and energizing fitness experiences. This meant that the brand could compete not just against other exercise bikes, but against fitness classes in gyms. This example shows that: a. Peloton's target market consists only of bike riders. b. Peloton's target market consists only of those who work out in gyms. c. Peloton cannot compete with lower-priced exercise bikes. d. Peloton's positioning strategy is to appeal those interested in fitness.

d. Peloton's positioning strategy is to appeal those interested in fitness.

Regarded as one of the supreme achievements in the history of Western music, Beethoven's Ninth is one of the most performed symphonies around the world. Based on Schiller's poem Ode to Joy, it finishes with a celebration of the unity and dignity of human -kind, a theme as relevant today as it was in 1824 when Beethoven wrote the symphony. Even though the notes are the same, performances of Beethoven's Ninth by the New York Philharmonic, the Atlanta Symphony, and Los Angeles Philharmonic are not. Different conductors highlight different aspects of the work even though Beethoven left clear directives as to dynamics and rhythm. This example shows all of the following EXCEPT: a. Services are customized and tailored. b. Services are more variable. c. Heterogeneity across experiences is due to the "people" component of services. d. Services are tangible.

d. Services are tangible.

"To maximize value to our shareholders, we should charge different prices to different customer segments." This perspective believes that "the end justifies the means." a. Deontological ethics b. Fairness c. Human rights ethics d. Teleological ethics or consequentialism

d. Telelogical ethics or consequentialism

Mac users use their Apples for anything a PC can do and wouldn't consider getting a Dell, Lenovo or any other brand of computers. Likewise, young executives drive BMW 3-series cars to show that they are on the road to great achievements. These examples show that the key brand associations include all of the following EXCEPT: a. The extent to which the customer relates to the brand b. The expression of the customers' ideal selves c. The selves to which customers aspire d. The market segment

d. The market segment

To determine if the market potential is big enough to be attractive, the estimation process follows all of the following basic steps EXCEPT _______. Some data inputs will seem like pretty good estimates (e.g., population and sub-group sizes from Census.gov). For other data inputs, it is worth doing some sensitivity analyses a. get all the data you can. b. think hard about segment differences. c. make your assumptions clear. d. decide on which media to use.

d. decide on which media to use.

The USP element in a positioning statement: a. differentiates the firm's B2B customers from its B2C customers. b. alienates the firm's stock product from its product mix. c. distinguishes the firm's intangible services from its tangible goods. d. expresses clearly the firm's brand's strengths as compared to its competitors.

d. expresses clearly the firm's brand's strengths as compared to its competitors.

A perceptual map helps a firm to: a. identify a new raw materials supplier. b. pinpoint a customer group in a large set. c. identify a new customer base. d. identify the closest substitute products.

d. identify the closest substitute products.

Alan reads all the time. He rarely watches television because he prefers reading novels on his Kindle. He buys novels from Amazon.com every week and uses his Kindle because of the back-lighting on the screen and the ability to change the font size. Alan also likes the portability of the Kindle. It is lightweight and replaces carrying around heavy books. Alan's behavior shows that if marketers know consumers are avid readers, they know what they enjoy, their social orientation, and the categories of purchases they'd be easily enticed to make. This is why marketers are interested in _________. a. age demographics b. country of origin c. household composition d. psychological and lifestyle choices

d. psychological and lifestyle choices

A small business's target market is the group of people it targets with advertising. These people are the consumers who are most likely to use the company's products and services. Marketers use different variables when determining their target markets, including demographics, personal interests and the times in which consumers shop. Target markets can vary by size. But a company's target market generally must be large enough. The basic idea of targeting is _________. a. niche marketing b. brand preferences c. profitability d. selection

d. selection

Singapore highlights its blend of modernity, boasting a strong economy and a luxurious hospitality industry, with a setting that is perceived as an exotic destination for many tourists. Macau, barely a dot on the map 20 years ago, has one of the world's richest economies due to its gambling revenues, which surpass those of Las Vegas. It is now seeking to make a name for itself in medical tourism, differentiating itself from China, for example, as a safer alternative. These examples show that ______. a. destinations seek more tourism and branding helps b. a unique positioning can be claimed on the basis of historical, social, or cultural values c. branding cities and countries is becoming increasingly popular d. some brands need re-positioning even if they are well-known

d. some brands need re-positioning even if they are well-known

At the Rodriquez law firm, the office manager, Catherine, is in charge of making sure that all the office machines—such as computers, fax machines, scanners, and videoconferencing equipment is in good working order. If one of these valuable IT tools malfunctions, it is Catherine who contacts the IT support firm and has the problem addressed. According to the roles in a buying center, an office manager like Catherine who notices that one of the photocopiers/scanner in the office is frequently breaking down is fulfilling the ______ role. a. initiator b. buyer c. influencer d. user

a. initiator

In the SWOT analysis of an organization, strengths and weaknesses are said to be considerations external to the organization. a. True b. False

b. False

In the context of Vals segments, based on people's motivations, self-expression people are guided by knowledge and principles. a. True b. False

b. False

In the context of the marketing framework, corporation is one of the elements in the 5Cs. a. True b. False

b. False

In the context of the marketing management framework, the 4Ps precede STP. a. True b. False

b. False

Loyalty programs are based on the theory of classical conditioning. a. True b. False

b. False

Which of the following is an example of a post-purchase behavior exhibited by consumers? a. Eddie could not decide whether to pick up a sports game or a strategy game for his son, Nathan. b. Peter was happy with the car audio system he purchased from RadioShack. c. Barlow decided to buy a new Sony PS3 as the Nintendo Wii was too expensive. d. Brad wanted to own an apartment in New York, just like Michael.

b. Peter was happy with the car audio system he purchased from RadioShack.

In the SWOT analysis of a firm, which of the following is an example of a threat? a. Failure to renew a contract with its primary supplier b. Restrictions imposed by the government on the use of kids in ads c. Lack of effort to cash in on a growing product segment d. Lack of ability to retain entry-level marketers

b. Restrictions imposed by the government on the use of kids in ads

At Disney World, when Rocket escapes, he commandeers a gantry lift and enlists your help on a harrowing mission to rescue his fellow Guardians. Prepare to unleash intergalactic mayhem from the top of the fortress to the bottom, as one of Star-Lord's awesome mixtapes blasts a classic tune! With incredible special effects, appearances by popular characters, music inspired by the soundtracks from the movies, thrilling free-fall drop sequences and 6 different storylines to experience, this adventure breaks out all the big thrills! This example shows that ________. a. marketing excludes the sale of services b. marketing includes experiences c. marketers handle only tangible goods d. marketing is confined to the sale of products

b. marketing includes experiences

If you have an idea for a custom car but aren't sure how to make your dream a reality, Kaucher Kustoms has the solution. They work with clients to create actual buildable blueprints and three-dimensional models from sketches. You can then take those blueprints to a custom car builder and see your dream car in person. Some car manufacturers are experimenting with letting customers design their own models. This is an example of ________. a. mass marketing b. one-to-one marketing c. heterogeneous marketing d. market segmentation

b. one-to-one marketing

With reference to Maslow's hierarchy of needs, which of the following refers to the achievement of our ideal self with no excessive wants? a. Belonging needs b. Self-actualization needs c. Physiological needs d. Esteem needs

b. self-actualization needs

Some museums believe they don't need marketing. They think people should appreciate their exhibits and, if they don't, it's because the public is not very sophisticated. During the pandemic, many museums closed while others tried to put exhibits online using Zoom. Some museums offered live-streamed concerts to expand their membership base through marketing. It can be said that marketing has helped some museums _________. a. communicate effectively with the manufacturer b. stay competitive c. use aggressive sales techniques d. minimize brand equity

b. stay competitive

Franco is developing a marketing segmentation plan for his designer eyeglass company. His eyeglasses are pricey compared to the competition, so Franco wants to appeal to a high-income marketing segment. He plans to use census data to identify his potential customers. When Franco prepares his marketing segmentation plan, he must make sure that ______. a. the segments are small b. the segments are well-defined c. the promotion describes product distinctions d. the advertising is bi-lingual

b. the segments are well defined

John is a recent college graduate, who works as a paralegal for the state of Georgia. One rainy morning, John's car broke down. John is the fourth owner of his current vehicle. The previous owners were his dad and two older siblings. When John got the car, it had 196,000 miles. Now, John is at a critical decision-making crossroads—purchase decisions. Specifically, when making a purchasing decision, there are stages that consumers like John carry out. All of the following are true about purchase behavior EXCEPT: a. Customers go through predictable stages in making a purchase. b. Critics say that marketers create desires in people that they didn't already have. c. In the pre-purchase phase, buyers assess their purchase. d. In the pre-purchase phase, the customer identifies that something is lacking.

c. In the pre-purchase phase, buyers assess their purchase.

Marketers make the fewest forecasting mistakes if they assume that _________. a. consumers buy the brand that has the lowest price b. consumers buy the brand that is bundled with other products c. consumers buy the same brand this time as they did last time d. consumers try a new brand if they have a coupon

c. consumers buy the same brand this time as they did last time

Ali is running to an interview and the strap on his backpack breaks. Ali realizes he needs a new backpack and orders a new one online. When it arrives, he likes the looks, the pocket for his water bottle and other features. The price was fair. Ali is pleased with his purchase. This situation is an example of _______. a. post-purchase behavior b. pre-purchase behavior c. the complete buying process d. purchase behavior

c. the complete buying process

In the SWOT analysis of a firm, which of the following explains the difference between weaknesses and threats? a. Weaknesses relate to a firm's inability to satisfy customers' physiological needs, while threats relate to a firm's inability to satisfy customer's social needs. b. Weaknesses relate to the segmenting process of a firm, while threats relate to the positioning process of a firm. c. Weaknesses are dependent on the subliminal characteristics of a firm, while threats are dependent on the perceptual fluency characteristics of a firm. d. Weaknesses are dependent on the micro-environment characteristics of a firm, while threats are dependent on the macro-environment characteristics of a firm.

d. Weaknesses are dependent on the micro-environment characteristics of a firm, while threats are dependent on the macro-environment characteristics of a firm.

Imperfect competition occurs when: a. the marketplace is homogeneous. b. companies indulge in unfair trade practices. c. the demand is not equal to the supply of goods. d. consumers have unique needs and desires.

d. consumers have unique needs and desires.

According to the Marketing Framework, the context includes all of the following EXCEPT: a. Economic b. Legal constraints c. Environmental factors d. Global collaborators

d. global collaborators

Felix is opening up a jewelry shop. He is evaluating how frequently customers purchase jewelry, how much customers typically spend, and how price sensitive are jewelry customers. Felix also wants to know the growth potential for his business. With this information, Felix can evaluate which segment to pursue. Felix realizes that small segments can be highly profitable. This example shows that when evaluating segments, smarter information about a segment is _______. a. stability of the segment b. frequency of purchase c. segment size d. profitability

d. profitability

Isabella loves to cook and is trying a new recipe from a cookbook for dinner. As she reads the instructions, someone is watching television in the background, and the noisy washing machine is running. Despite the distractions, Isabella still manages to read and follow the cookbook. She is able to do this because of _______ which refers to choosing to consider certain stimuli and effectively screening out others. a. a positioning statement b. the symbolism of colors c. a perceptual map d. selective attention

d. selective attention

PRIZM assumes that similar households in the same neighborhood share similar characteristics such as demographic data (i.e., age, race, education level, marital status, etc.), and variables such as lifestyle, attitudes, and behaviors. PRIZM works by assigning all households in each neighborhood to a neighborhood group. Households are grouped into one of 68 demographic and behavioral segments. PRIZM combines geographic and demographic information to form all of the following segments with labels and profiles EXCEPT ______. a. affluent, home owners, 45-60 years old b. affluent, 25-44 year old, suburbanites c. less affluent, renters, 25-44 years old d. some college, 18-24 years old, rural

d. some college, 18-24 years old, rural

Ali is a brand manager at the Sports Are Fun sporting goods company. Part of his responsibility is to hire employees who will excel in their jobs and generate sales for the company. Ali's CEO has given hiring advice on how to be successful in his job. What would that advice most likely be? a. Understand the needs and wants of the wholesaler. b. Try to determine the weaknesses of the firm. c. Put yourself in the shoes of your customers. d. See your brand from the perspective of the manufacturer.

c. Put yourself in the shoes of your customers.

In the context of SWOT analysis, which of the following reflects the difference between strengths and opportunities? a. Strengths depend on the entire functioning of the firm, while opportunities depend on the functioning of a specific department in the firm. b. Strengths relate to the tangible products of a firm, while opportunities relate to the intangible services of a firm. c. Strengths relate to the internal factors of a firm, while opportunities relate to the external factors of a firm. d. Strengths depend on the B2B products of a firm, while opportunities depend on the B2C products of a firm.

c. Strengths relate to the internal factors of a firm, while opportunities relate to the external factors of a firm.

In the marketing context, what does 80:20 mean? a. 80% of a company's customers give 20% importance to the product design. b. 80% of niche marketers give primary importance to the price of a product, while 20% give importance to their customers. c. 80% of a marketplace is segmented, while 20% is untapped. d. 80% of a company's sales come from 20% of its customers.

d. 80% of a company's sales come from 20% of its customers.

Which of the following statements distinguishes a modified rebuy from a new buy? a. In a modified rebuy, products are broken down into small units for easy handling, while in a new buy the customer buys the product as a whole. b. In a modified rebuy, the customer purchases the product from an approved seller, while the customer in a new buy chooses a brand new seller in the market. c. In a modified rebuy, the customer is mainly concerned with purchasing raw materials, while the customer in a new buy is interested in business services. d. In a modified rebuy, the customer is familiar with the product attributes to be considered, while in a new buy scenario the customer is not aware of the product's attributes.

d. In a modified rebuy, the customer is familiar with the product attributes to be considered, while in a new buy scenario the customer is not aware of the product's attributes.

In B2B, big, expensive purchases can be complicated because it's not just one person making the decision. Each purchase involves several roles in a buying center: The initiator who notices that that the WiFi is not working; the user: who tries to get online; the influencer who prefers a different provider; and the buyer who selects the WiFi provider. The decision to get a better WiFi system is complicated by the fact that each of these B2B-buyer roles seeks slightly different attributes EXCEPT: a. Negotiation of installation dates b. Features c. Price d. No follow-up customer service

d. No follow-up customer service

Trader Joe's is a high-end grocer whose customers are committed to a healthy lifestyle. They want produce that is free of pesticides, and they want to make sure that those who supply the produce are fairly treated and fairly compensated. Trader Joe's customers feel strongly against child labor and animal testing. Trader Joe's knows their shoppers want organic produce AND fair- trade coffees AND cosmetics that have not been animal tested. This is an example of a _________. a. tailored strategy: customizing for segments b. breadth strategy: reaching multiple segments c. several segments in the marketplace d. depth strategy: serving one segment well

d. depth strategy: serving one segment well

With respect to STP in the marketing framework, the targeting process helps: a. provide additional information about a product to the public. b. create an image of the product in the mind of a selected customer. c. select a group of customers from a set of identified groups. d. educate customers about a product's benefits and values.

d. educate customers about a product's benefits and values.

Debbie has been hired as a marketinng consultant for a sporting goods company. Debbie is an avid soccer player who has played on a local team for several years. As an athlete, Debbie often buys athletic sportswear. Even though Debbis is a consumer of athletic products, her point of view has changed since she has become a marketing consultant. Debbie now needs to understand marketing from the _______. a. manufacturer's point of view b. supply chain view c. consumer's point of view d. firm's point of view

d. firm's point of view

Positioning statements can also serve as the foundation of the communications offered to all of the following external audiences EXCEPT: a. Employees b. Shareholders c. Existing customers d. Potential customers

a. Employees

A positioning statement includes the specification of the target segment. a. True b. False

a. True