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One important purpose of a brand is to Select one: a. minimize product line depth needed to be effective. b. inform product packaging. c. sell advertising space. d. meet government regulations. e. increase consumer recognition and awareness of product offerings.

- Brands help consumers know what products are available under that name. The correct answer is: increase consumer recognition and awareness of product offerings

Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in? Select one: a. Marketing helps create value. b. Marketing occurs in many settings. c. Marketing can be performed by both individuals and organizations. d. Marketing is about satisfying customer wants and needs. e. Marketing involves an exchange.

All of these activities were taking place at some level, but Marney was most directly participating in making an exchange—her money for the dress. The correct answer is: Marketing involves an exchange.

Dawn works for a firm that buys products directly from the manufacturer and sells them to retailers, who then sell the products to consumers. Dawn works for a Select one: a. retail distribution center. b. manufacturer's representative. c. store representative. d. retail jobber. e. wholesaler.

Dawn is a wholesaler, a reseller that helps products to flow from manufacturers to retailers. The correct answer is: wholesaler.

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. Select one: a. value-based marketing b. sales-oriented c. retailing-oriented d. production-oriented e. market-oriented

In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising. The correct answer is: sales-oriented

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on? Select one: a. product b. promotion c. place d. price e. planning

c. place Correct

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes Select one: a. the time the product was full price and didn't sell. b. only the actual price they pay at the register. c. the value of their time and energy. d. the savings to the store of not having to display the products neatly on shelves. e. the excitement they experience in finding an item they desire.

c. the value of their time and energy.

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps. Select one: a. marketing plan b. marketing implementation c. marketing channel d. marketing era e. marketing mix

e. marketing mix Correct

Marketing channel management is related to which of the four Ps? Select one: a. product b. price c. production d. promotion e. place

e. place

In an administered vertical marketing system, Select one: a. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain. b. transaction selling is the norm, with the invisible hand guiding the overall functioning. c. independent firms join together formally to decide as a group how the marketing channel will operate. d. no individual participant has control over the others, since a third party administrator oversees the entire supply chain. e. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

A powerful firm can manage a vertical supply chain through its power; this is an administered vertical marketing system. The correct answer is: there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

Many firms with complex products have missionary salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a __________ orientation with their customers. Select one: a. relational b. transactional c. internal d. external e. divisional

A relational orientation refers to the building of relationships and the development of a better understanding of customers' needs and wants. The correct answer is: relational

When conducting a research study attempting to understand what features were most important to automobile consumers, Gary's Research Company used a questionnaire containing __________ questions, with a predetermined set of response options. Select one: a. in-depth interview b. observational c. free-form d. unstructured e. structured

A structured questionnaire consists of closed-ended questions and predetermined response alternatives. The correct answer is: structured

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in Select one: a. smaller states. b. coastal resort areas. c. rural areas. d. Great Lakes agricultural areas. e. New York, Los Angeles, and Chicago.

Although they can be found anywhere, immigrants and foreign-born Americans are found in large numbers in major cities like New York, Los Angeles, Chicago, and San Francisco. The correct answer is: New York, Los Angeles, and Chicag

Which of the following is NOT one of the four criteria used for determining how good a brand is or how much equity it has? Select one: a. perceived value b. brand loyalty c. brand awareness d. brand associations e. brand conceptualization

Brand awareness, brand loyalty, brand associations, and perceived value are the four primary criteria used to evaluate brand equity. The correct answer is: brand conceptualization

Firms spend millions of dollars annually to build brand equity, that recognizing brand equity contributes to Select one: a. perceived brand personality. b. corporate stakeholder relations. c. brand liability. d. product mix breadth. e. profitability.

Brands are assets that can produce profits if brand equity is built successfully. The correct answer is: profitability.

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of Select one: a. a sustainable competitive advantage. b. an opportunity, in SWOT analysis. c. a customer retention program. d. the benefits of a locational excellence strategy. e. customer loyalty.

By refusing to consider competitive offerings and staying in a long-term relationship with the salon, Anita is demonstrating loyalty to her stylist and salon. If the salon has a large number of loyal customers due to the quality of its service, that could be considered a sustainable competitive advantage, but one loyal customer isn't enough to establish that. The correct answer is: customer loyalty.

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors? Select one: a. demographic b. technological c. political d. cultural e. ethical

CDSTEP stands for Cultural, Demographic, Social, Technological, Economic, and Political forces. The correct answer is: ethical

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called Select one: a. stars. b. question marks. c. cash cows d. anchors. e. dogs.

Cash cows are product lines with high relative market share as the result of past investment, but in low-growth markets. They typically generate excess cash that can be used to support other product lines. The correct answer is: cash cows.

When a product is successful in the introductory stage of the product life cycle, Select one: a. marketing costs increase significantly. b. it is most likely to begin to launch spinoffs. c. it moves directly into the maturity stage. d. competition becomes less important. e. it may start to see profits toward the end of this stage.

Correct Feedback A product that is successful in the introductory stage may begin to see profits toward the end of this stage. The correct answer is: it may start to see profits toward the end of this stage.

Which of the following strategies is designed to place products in as many outlets as possible? Select one: a. contractual distribution b. surplus distribution c. exclusive distribution d. selective distribution e. intensive distribution

Correct Feedback Intensive distribution is designed to have as many products in as many outlets as possible. The correct answer is: intensive distribution

Supercenters have become the fastest growing retail category by combining broad assortments of groceries and general merchandise products. __________ dominates this category with the vast majority of supercenters in the United States. Select one: a. Target b. Kroger c. Meijer d. Kmart e. Walmart

Correct Feedback Walmart has thus far made the largest investment in supercenters of any retailer. The correct answer is: Walmart

______________ systems are designed to deliver smaller shipments of merchandise on a more frequent basis to retailers. Select one: a. Cross-docking b. CPFR c. Lead time d. UPC e. JIT Correct

Feedback "Just-in-time" (JIT) and "quick response" both refer to inventory management systems designed to ship smaller quantities more frequently. The correct answer is: JIT

For a brand name to be effective, it needs to be Select one: a. a visual image containing human characters. b. easy for consumers to recognize and remember. c. a catchy, tongue-twisting phrase. d. associated with a sports or movie superstar. e. generic, so it can be applied to as many products as possible.

Feedback A brand name should be memorable and easy to recognize, in general. The correct answer is: easy for consumers to recognize and remember.

Firms use a differentiated targeting strategy because Select one: a. it helps to obtain a bigger share of the market. b. it is easier than mass marketing. c. it is better than focusing on individual or small groups of potential customers. d. banks are more willing to extend credit to companies with this strategic approach. e. most market segments are too small to be profitable.

Feedback A differentiated targeting strategy builds a different marketing mix for each of several market segments. This allows the firm to target a larger portion of the market and gain a greater market share. The correct answer is: it helps to obtain a bigger share of the market.

Bertone's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Bertone's is adopting: Select one: a. exclusive distribution. b. selective distribution. c. a service retailing philosophy. d. a multichannel strategy. e. an extreme value strategy.

Feedback A multichannel strategy is when a company uses multiple sales channels, such as stores, catalogs and the Internet. The correct answer is: a multichannel strategy.

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through Select one: a. category specialist stores. b. convenience stores. c. specialty stores. d. department stores. e. extreme value retailers.

Feedback A specialty store would be the best choice to reach a very specific market segment. The correct answer is: specialty stores.

The owner of A. C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure that most customers had one of three reasons—service, reputation, or location—but wanted to know which was revealed as the most frequent reason for purchasing. A. C. Flora will probably use a survey with __________ questions to address his research problem. Select one: a. observation-based b. unstructured c. closed-ended d. experimental e. open-ended

Feedback A structured questionnaire consists of closed-ended questions and predetermined response alternatives. In this case, A C. Flora simply wants to compare among three possible reasons for choosing a company, so closed-ended questions are an appropriate format. The correct answer is: closed-ended

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to Select one: a. develop a positioning strategy. b. establish her overall objectives. c. decide on a targeting strategy. d. evaluate the attractiveness of each segment. e. categorize each market segment by consumer demographics.

Feedback After identifying potential market segments, the next step is to evaluate the attractiveness of each segment. The correct answer is: evaluate the attractiveness of each segment.

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market. Select one: a. geographic b. psychographic c. demographic d. benefits e. behavioral

Feedback Age, education, social class, and gender are demographic variables. The correct answer is: demographic

Which of the following is LEAST likely to be a source of ideas for new products? Select one: a. licensing technology b. geodemographic segmentation c. brainstorming d. R&D efforts e. consumer research

Feedback All of these but geodemographic segmentation are common sources of new product ideas. The correct answer is: geodemographic segmentation

A major limitation in the use of internal R&D departments for new idea generation is that Select one: a. the costs tend to be quite high. b. few scientists have ideas. c. they tend to be dissolved once sufficient ideas have been generated. d. few scientists have practical ideas. e. they tend to create too many blockbusters.

Feedback Although internal R&D departments are widely used by firms in industries such as pharmaceuticals and computer software, they can be very expensive to maintain. The correct answer is: the costs tend to be quite high.

The CEO of David's firm just came back from a business seminar, and he called David into his office. He stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that Select one: a. his job may be threatened by the answer. b. it is often impossible to identify with precision where a product is in the product life cycle. c. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. d. the idea has been discredited by recent research. e. the product life cycle is not a useful concept

Feedback Although the product life cycle concept can be useful in guiding marketing strategy, it is difficult and often impossible to determine a product's precise stage of the product life cycle. The correct answer is: it is often impossible to identify with precision where a product is in the product life cycle.

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation message by e-mail. Usually within a day or two, a second message arrives stating that the order is in the mail. This second message is a type of Select one: a. RFID tag. b. CPFR requirement. c. vertical contractual notice. d. universal product code report. e. advanced shipping notice.

Feedback An advanced shipping notice is an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment. The correct answer is: advanced shipping notice.

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use aNo ________ strategy. Select one: a. undifferentiated targeting b. benefit segmentation c. lifestyle segmentation d. concentrated targeting e. differentiated segmentation

Feedback An undifferentiated targeting strategy is appropriate for products for which almost anyone can be a target customer, and where customer needs and wants are similar across all groups. In this strategy, a single marketing mix is designed for all customers. The correct answer is: undifferentiated targeting

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of Select one: a. the actual product. b. the product position. c. the core value. d. an associated service. e. product style.

Feedback Associated services are related to the nonphysical aspects of the product such as product warranties. The correct answer is: an associated service.

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? Select one: a. associated services b. product concept c. actual product d. product position e. product style

Feedback Associated services are the nonphysical aspects of the product such as product warranties. The correct answer is: associated services

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation. Select one: a. loyalty b. psychographic c. geographic d. demographic e. occasion

Feedback Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation. The correct answer is: occasion

At the end of a brainstorming session, participants are often asked to Select one: a. defer to management for the final decision. b. identify which ideas each person proposed. c. propose one more new idea each. d. vote on the best ideas. e. identify the worst ideas.

Feedback Brainstorming sessions often end with a vote to identify the best ideas among those that were proposed. The correct answer is: vote on the best ideas.

The basic reason manufacturers spend time and money building their own brands is to Select one: a. maximize product line depth. b. create positioning possibilities for their generic product lines. c. build brand equity. d. offset the power of private label manufacturers. e. create brand awareness.

Feedback Companies invest in brands to build brand equity, which is a corporate asset. The correct answer is: build brand equity.

The firms that work along with the focal firm to provide goods and services to consumers are viewed as Select one: a. corporate partners. b. cultural cohorts. c. cartels. d. customers. e. cooperatives.

Feedback Corporate partners work with the firm to provide goods and services. The correct answer is: corporate partners.

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a __________ in this product category. Select one: a. innovator b. early adopter c. early majority d. late majority e. laggard

Feedback Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders. The correct answer is: early adopter

Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs aNo Select one: a. electronic data interchange system. b. floor-ready bundling system. c. radio frequency identification system. d. vertical conflict reduction system. e. cross-docking

Feedback Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back. The correct answer is: electronic data interchange system

It is almost impossible to watch a sporting event on television without seeing Nike's swoosh check mark, which is Nike's Select one: a. name. b. design. c. term. d. symbol. e. theme.

Feedback The "swoosh" is a brand symbol associated with Nike. The firm has invested a great deal of time and money in making the swoosh one of the most recognizable brand symbols in the world. The correct answer is: symbol.

Marketers in the United States are paying increasing attention to ethnic groups because Select one: a. government subsidies assist marketers attempting to communicate value to these groups. b. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. c. country culture is replacing regional culture as a key marketing consideration. d. they are more susceptible to marketing messages. e. they represent a majority of the population in non-urban areas of the country.

Feedback Ethnic groups represent a fast-increasing percentage of the U.S. population. The correct answer is: approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

Benefit-cost analysis in market research weighs Select one: a. the benefit of internal secondary data against the cost of external secondary data. b. the benefits of answering questions against the cost of the research. c. the benefit of a data warehouse against the cost of syndicated data. d. the benefit of primary data research against the cost of secondary data research. e. the benefit of qualitative research against the cost of quantitative research.

Feedback Every research project must be evaluated to ensure that the benefits of obtaining answers exceed the cost of getting those answers. The correct answer is: the benefits of answering questions against the cost of the research.

Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings. Select one: a. primary data mining b. experiments c. industry surveys d. focus groups e. observation

Feedback Focus groups are a good way to collect the feelings or opinions of a group of individuals when you do not need in-depth responses from each individual. The correct answer is: focus groups

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by Select one: a. keeping up in a market where sales come mostly from new products. b. satisfying the changing needs of the technological research staff. c. avoiding market saturation from products that have just been introduced to the market. d. creating diversification and reducing risk. e. spreading out production costs.

Feedback If Microsoft were totally dependent on software sales, a shift away from Windows would damage its sole market. By diversifying into game systems and MP3 players, Microsoft seeks to be less dependent on any one market. The correct answer is: creating diversification and reducing risk.

Marketers with luxury brands use brand extension cautiously to avoid Select one: a. diluting the core brand. b. brand licensing fees. c. private label branding disputes. d. exclusive co-branding arrangements. e. product line extension limitations.

Feedback If brand extensions are not executed carefully, they can dilute the core brand by damaging its associations and equity. The correct answer is: diluting the core brand.

With a pull marketing strategy, Select one: a. it is more difficult to manage conditions of high uncertainty than in a push supply chain. b. orders for merchandise are generated at the store level based on sales data captured at POS terminals. c. inventory management is less responsive to customer demand. d. merchandise is allocated to stores on the basis of demand forecasts. e. there is a greater likelihood of being overstocked or out of stock than in a push supply system.

Feedback In a pull supply chain, stores place orders based on actual sales. In a push supply chain, merchandise is shipped to stores based on sales forecasts, not actual sales. Pull supply chains are generally more sophisticated and more efficient than push supply chains. The correct answer is: orders for merchandise are generated at the store level based on sales data captured at POS terminals.

The product life cycle is theoretically __________ shaped with regard to sales and profits. Select one: a. Y b. circle c. lightning bolt d. flat line e. bell

Feedback In theory, the product life cycle curve is bell shaped with regard to sales and profits. The correct answer is: bell

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to Select one: a. determine which syndicated data warehouse services to purchase. b. build separate marketing programs for different demographic segments. c. understand psychographic motivations. d. create marketing mixes based on consumer self-values. e. find out which competitors its customers purchase from.

Feedback In this case, data mining could be used to identify common purchasing patterns within demographic segments and then design marketing programs according to these patterns and what they reveal about customer needs. The correct answer is: build separate marketing programs for different demographic segments.

Data collection begins Select one: a. after creating the presentation format. b. after analyzing the data. c. only after completing the research design process. d. after determining whether there are any objections. e. whenever the researcher wants to.

Feedback It is important to design the research before data collection begins to ensure that the correct data are collected using appropriate methods. The correct answer is: only after completing the research design process.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? Select one: a. social trends b. dress c. demographics d. symbols e. language

Feedback Language would be an important cultural issue; while both countries speak English, there are many differences in vocabulary. The correct answer is: language

__________ are customers who modify existing products according to their own ideas to suit their specific needs. Select one: a. Concept testers b. Market testers c. Lead users d. Early adopters e. Reverse engineers

Feedback Lead users, who modify existing products to meet their needs, are a particularly good source of new product ideas. The correct answer is: Lead users

How is consumer panel data collected during the test marketing phase of a new product introduction? Select one: a. Panelists scan their receipts on a home scanning device. b. Panelists complete a questionnaire about the product. c. Consumers voluntarily go to a website to record their preferences. d. Focus groups are held in key markets. e. Stores provide sales data to companies.

Feedback The consumer panel data is collected by panelists scanning in their receipts using a home scanning device. The correct answer is: Panelists scan their receipts on a home scanning device.

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them. Select one: a. geodemographic segmentation; lifestyle or benefit segmentation b. lifestyle segmentation; geographic segmentation c. loyalty segmentation; demographics d. loyalty segmentation; geodemographics e. undifferentiated targeting; differentiated targeting

Feedback Marketers may start with a segmentation method such as geodemographic segment to identify a segment to target; after that, lifestyle or benefits may be considered when designing the marketing mix to make sure that it meets customers' needs. The correct answer is: geodemographic segmentation; lifestyle or benefit segmentation

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences. Select one: a. confused by questionnaires b. unable to articulate their experiences c. unwilling to participate in research d. interviewed too frequently e. highly educated

Feedback Observation is especially helpful if people are unable to explain their experiences and preferences. Instead of asking them to think about these issues, people's actual behavior can be observed. The correct answer is: unable to articulate their experiences

__________ offer an inconsistent assortment of brand-name merchandise at low prices. Select one: a. Off-price retailers b. Specialty stores c. Department stores d. Full-line discount stores e. Category killers

Feedback Off-price retailers offer an inconsistent assortment of brand name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase closeout merchandise and do not receive special considerations given to traditional retailers. The correct answer is: Off-price retailers

During the research design step of the marketing research process, researchers identify the type of data needed and Select one: a. the identities of research participants in the project. b. the dates when data will be collected. c. the type of research necessary to collect the data. d. the statistical software to be used. e. the forum in which the data will be presented.

Feedback Once the objectives of a research project have been defined, the research can be designed, identifying the type of data needed and the type of research needed to collect the data. The correct answer is: the type of research necessary to collect the data.

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was aNo __________ in the MP3 player market. Select one: a. pioneer b. early adopter c. concept tester d. market tester e. blockbuster

Feedback Pioneer firms establish completely new markets or radically change both the rules of competition and consumer preferences in a market. In this case, the MPMan created the market for MP3 players, even though it was not successful in the long run.The correct answer is: pioneer

Psychographics is the segmentation method that delves into how consumers Select one: a. value their livelihoods. b. allocate scarce incomes to a variety of goods and services. c. adjust to demographic changes. d. describe themselves. e. believe other people see them.

Feedback Psychographics is related to the way we describe ourselves—our self-concept, values, and lifestyle. The correct answer is: describe themselves.

Social media monitoring, in-depth interviews, and focus groups are all __________ research methods. Select one: a. data warehousing b. qualitative c. syndicated marketing d. structured e. quantitative

Feedback Qualitative research methods include observation, in-depth interviewing, focus groups, and social media monitoring. The correct answer is: qualitative

Marketers cater to the ________ cohort with larger fonts in signage and seating options in stores. Select one: a. Baby Boomer b. Gen Y c. Millennials d. Gen X e. Gen Z

Feedback Retailers recognize the buying power of the aging Baby Boomers, so they make concessions for them. The correct answer is: Baby Boomer

In multichannel retailing, what visible element must often be adjusted because of competition faced in different channels? Select one: a. distribution b. place c. pricing d. return policies e. supply chain

Feedback Retailers with stores in multiple markets often set different prices for the same merchandise to compete better with local stores. However, customers expect pricing consistency for the same item across channels. The correct answer is: pricing

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. Select one: a. decline b. growth c. introduction d. maturity e. evaluation

Feedback Sales of vinyl records have been declining even though they are still a viable product. The correct answer is: decline

Which of the following data sources would NOT be considered external secondary data? Select one: a. U.S. census data b. a survey c. newspaper articles d. scanner data e. syndicated data

Feedback Secondary data might come from free or very inexpensive external resources such as census data or newspaper articles, or it can be purchased for a fee (for example, syndicated data). A survey is primary data. The correct answer is: a survey

__________ distribution intensity helps a seller to maintain a particular image and control the flow of merchandise into an area. Select one: a. Endogenous b. Variable c. Collective d. Selective e. Intensive

Feedback Selective distribution intensity, in which a few sellers in a given area are permitted to sell a product, is a good strategy for maintaining an image and controlling the flow of merchandise without resorting to the more extreme solution, exclusive distribution. The correct answer is: Selective

One advantage of a retail store that is NOT shared with an Internet channel is Select one: a. providing meaningful product information. b. accepting cash payments. c. collecting information about how consumers shop. d. price matching competitors. e. offering a greater selection of products.

Feedback Stores are the only channel that accepts cash payments. Some customers prefer to pay with cash because it is easy, resolves the transaction immediately, and does not result in potential interest payments. The correct answer is: accepting cash payments.

Which of the following is NOT a social trend listed in the text? Select one: a. technological advances b. thrift c. health and wellness d. greener consumers e. privacy concerns

Feedback Technological advances are not social trends. The correct answer is: technological advances

Which of the following is NOT one of the five groups in the diffusion of innovation curve? Select one: a. Innovators. b. Late majority. c. Non-adopters. d. Early adopters. e. Early majority.

Feedback The five groups in the diffusion of innovation curve are innovators, early adopters, early majority, late majority, and laggards. The correct answer is: Non-adopters.

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies. Select one: a. global b. benefit-based c. concentrated d. geographic e. economic

Feedback The four targeting strategies are micromarketing, undifferentiated, differentiated, and concentrated. The correct answer is: concentrated

In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain? Select one: a. A manufacturer will send and receive information from buyers, stores, and distribution centers. b. Customers will send and receive information from stores and manufacturers. c. Distribution centers will send and receive information from stores and manufacturers. d. Buyers will send and receive information from stores and manufacturers. e. Stores will send and receive information from manufacturers, buyers, distribution centers, and customers.

Feedback The information flows in the supply chain do not include customer participation. The correct answer is: Customers will send and receive information from stores and manufacturers.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. Select one: a. early adopter b. innovator c. laggard d. late majority e. early majority

Feedback The late majority is the last large group of consumers to adopt a new product. The correct answer is: late majority

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? Select one: a. The market may become saturated because nearly all potential customers have adopted the product. b. Marketing costs increase as firms defend their market share. c. Laggards are a major focus of marketing efforts. d. To increase the customer base, firms consider entry into new markets and new market segments. e. Price competition is intense.

Feedback The late majority, not laggards, should be the focus of marketing efforts in the maturity stage. The correct answer is: Laggards are a major focus of marketing efforts.

What is the lipstick effect? Select one: a. discrimination against women in the workplace b. favoritism for women in the workplace c. treating oneself to a small luxury like lipstick and forgoing a luxury vacation d. a tendency to buy clothing one has seen on beautiful models e. the tendency of women to buy more expensive items when they are wearing nice clothes and makeup

Feedback The lipstick effect relates to spending less on luxuries without forgoing ALL luxuries. The correct answer is: treating oneself to a small luxury like lipstick and forgoing a luxury vacation

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is Select one: a. external. b. the same as the immediate environment. c. internal. d. easier to understand. e. easier to control.

Feedback The macroenvironment consists of factors external to the firm. The correct answer is: external.

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis? Select one: a. The percentage of parents in the area who can both afford to send their child or children to day care and who are willing to do so. b. The price she would charge minus the variable cost of providing service to each child. c. The fixed costs of operating the center. d. The average number of school-age children in families sending a child to the day care center. e. The number of children needing day care in the immediate area.

Feedback The number of children needing day care and the percentage of parents able and willing to send a child to day care are factors that will help to determine the segment size. The fixed costs and price minus variable cost will help to determine costs and profit margin. School-age siblings of day care center children are not relevant to the calculation unless the day care center also has an after-school program of some sort, and the question does not mention any such program. The correct answer is: The average number of school-age children in families sending a child to the day care center.

Which of the following would NOT be part of the launch of a new product? Select one: a. educational efforts for complex or conceptually new products b. technical support staff for technical products c. starting to make preliminary decisions about the target market d. determining the price for the product e. incentives for distributors

Feedback The target market should already have been identified before the product launch stage; at this point the firm might confirm the target market choice. The correct answer is: starting to make preliminary decisions about the target market

Sophie made pies and sold them from her food trailer at businesses. This is an example of aNo Select one: a. direct marketing channel. b. indirect marketing channel. c. wholesale operation. d. simplified transaction. e. distribution center.

Feedback There are no intermediaries between the buyer and seller in a direct marketing channel, as in this example. The correct answer is: direct marketing channel.

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product. Select one: a. Loss leaders b. Market skimming incentives c. Push prices d. Distribution rebates e. Introductory price promotions

Feedback These are introductory price promotions, used to convince retailers to try stocking the product. The correct answer is: Introductory price promotions

The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called Select one: a. inflation. b. foreign currency fluctuations. c. interest destabilization. d. recession. e. global financial impact.

Feedback This is the definition of foreign currency fluctuations. The correct answer is: foreign currency fluctuations.

When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling. Select one: a. trade discounts b. trade shows c. trade promotions d. trade-in allowances e. trade budgets

Feedback Trade promotions are promotions to wholesalers or retailers to get them to purchase the new products, often combining introductory price promotions, special events, and personal selling. The correct answer is: trade promotions

Traditionally, retailers treated all their customers ________, but today, successful retailers ________. Select one: a. based on demographics; treat customers based on share of wallet b. based on demographics; provide more value to mobile commerce customers c. identically; base customer attention on demographics d. based on share of wallet; treat all customers identically e. identically; provide more value to their best customers

Feedback Traditionally, before the advent of CRM programs, most retailers treated all customers the same. Today the most successful retailers concentrate on providing more value to their best customers. The correct answer is: identically; provide more value to their best customers

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT Select one: a. reachable. b. responsive. c. realistic. d. profitable. e. substantial.

Feedback When evaluating a segment's attractiveness, we consider whether the segment is substantial, responsive, profitable, reachable, and identifiable. The correct answer is: realistic.

__________ is the process by which ideas are transformed into new products and services that will help firms grow. Select one: a. Innovation b. Reverse engineering c. Competition d. Concept testing e. Beta testing

Feedback Without innovation, firms would have only two choices: to continue to market current products to current customers or to take the same products to other markets. New product development opens up greater opportunities. The correct answer is: Innovation

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can only market to his current customers or Select one: a. focus on concept testing. b. expand his early adopter market segment. c. market the same products to similar customers. d. intensify his prototyping. e. diversify.

Feedback Without innovation, firms would have only two choices: to continue to market current products to current customers or to take the same products to other markets. New product development opens up greater opportunities. The correct answer is: market the same products to similar customers.

Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a Select one: a. linked supply chain. b. shared mission statement. c. common marketing system. d. corporate vertical marketing system. e. partnering relationship.

Felicia's customer is proposing a partnering relationship, in which she and the customer will look for opportunities that are mutually beneficial and will seek to maintain the relationship over the long term. The correct answer is: partnering relationship.

When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise. Select one: a. just-in-time b. horizontal channel c. quick response d. repurposed e. floor-ready

Floor-ready merchandise is merchandise that is ready to be placed on the selling floor. The correct answer is: floor-ready

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of Select one: a. supply chain management. b. a transactional marketing orientation. c. typical production era marketing practices. d. C2C marketing. e. customer relationship management.

Franco's system is one element of a customer relationship management system, in that it tracks customers and seeks to meet their specific needs to build loyalty. The correct answer is: customer relationship management.

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. Select one: a. segmentation strategy b. market development strategy c. set of metrics d. diversification strategy e. macro, or overarching, strategy

Gerald's Tire Store has a macro strategy focusing primarily on customer excellence, based on the quality of customer service mentioned in the question. The correct answer is: macro, or overarching, strategy

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence. Select one: a. product b. place c. operational d. locational e. customer

Getting customers the merchandise they want, when they want it, in the required quantities, and at a lower price are all elements of operational excellence. The correct answer is: operational

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and Select one: a. are removed from traditional marketing alternatives. b. the ability to negotiate discounts. c. the ability to buy them. d. knowledge of competing products. e. a thorough knowledge of his brand messages.

If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix. The correct answer is: the ability to buy them.

Marketing provides the critical function of __________ when companies expand globally. Select one: a. evaluating government stability b. managing personnel c. forecasting economic growth d. managing production efficiency e. understanding customers

Marketing is the part of the organization in the best position to understand customers in all situations. The correct answer is: understanding customers

Marketing enriches society by Select one: a. recognizing that the firm can do very little by itself, so it should stay focused on its own core competencies. b. sponsoring charitable events. c. focusing solely on maximizing profits. d. coordinating marketing functions with other functional areas in the company. e. facilitating the smooth flow of goods through the supply chain.

Marketing techniques can be applied to social causes as well as to profit-making enterprises, and the firm's employees can support these causes as well. The correct answer is: sponsoring charitable events.

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. Select one: a. product line depth b. brand equity c. product mix depth d. product mix breadth e. product line breadth

Product line depth is the number of items in a product line. Zappos promises its customers a huge selection, and so it must maintain great product line depth. The correct answer is: product line depth

The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating aNo __________ for these companies. Select one: a. clear mission statement b. sustainable competitive advantage c. operational advantage d. diversification strategy e. strategic marketing plan

Satisfied customers, if this satisfaction leads to loyalty, is a source of sustainable competitive advantage. The correct answer is: sustainable competitive advantage

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

Serena is attempting to understand her customers' perceptions of value. The correct answer is: value-based

Which of the following is LEAST likely to provide a sustainable competitive advantage? Select one: a. lowering prices b. having a well-known brand name c. achieving high levels of customer satisfaction d. creating an efficient supply chain e. using patented technology Incorrect Feedback

Simply cutting prices is probably the easiest strategic move for a competitor to copy. In contrast, creating an efficient supply chain that lowers your costs, allowing you to pass those savings on to customers in the form of price cuts, can create a sustainable competitive advantage. The correct answer is: lowering prices

For consumers, shopping in a retail store instead of online offers the unique benefits of participating in a social experience and Select one: a. viewing price matching by competitors. b. viewing a greater selection of products. c. receiving meaningful product information. d. receiving personalized offers. e. obtaining immediate gratification.

Stores have the advantage of allowing customers to get the merchandise immediately after paying for it. The correct answer is: obtaining immediate gratification.

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. Select one: a. retail management b. value capture c. value communication d. supply chain management e. promotion

Supply chain management includes the shipment/delivery of products, so these companies can be an important part of the supply chain. The correct answer is: supply chain management

To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis. Select one: a. competitive intensity b. market growth rate c. market size d. sales dollars e. market profit potential

The BGC matrix uses market growth rate on one axis and relative market share on the other. The other factors are not unimportant--they are simply not part of BGC portfolio analysis. The correct answer is: market growth rate

The primary purpose of the __________ plan is to specify the marketing activities for a specific time. Select one: a. business b. marketing c. organizational d. strategic e. resource

The marketing plan specifies the marketing activities for a specific period of time. A business plan is a formal statement of a set of business goals that are believed to be attainable. The correct answer is: marketing

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

The paintings are goods; appraisals are services. The correct answer is: expanding from offering just goods to also offering services.

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

The process of dividing the market into groups of customers with different needs, wants, or characteristics--who therefore might appreciate products or services geared especially for them--is called market segmentation. The correct answer is: market segmentation.

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about Select one: a. green marketing. b. increased costs of air travel. c. federal restrictions on advertising. d. the time-poor society. e. privacy of communications.

The time-poor society leaves consumers with less time to consume traditional media like TV, radio, newspapers, and magazines, so marketers are increasingly trying nontraditional alternatives that consumers may see while going about their busy lives. The correct answer is: the time-poor society.

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a __________ marketing orientation. Select one: a. value driven b. external c. internal d. relational e. transactional

This behavior demonstrates a transactional orientation, where the seller seeks to make a quick profit and is not concerned about long-term relationships. The correct answer is: transactional

In the broadest terms, the marketplace refers to Select one: a. the four Ps. b. wholesale and retail environments. c. channels that are accessible to a given customer. d. brick-and-mortar stores and the Internet. e. the world of trade.

Using the broadest terms, the marketplace refers to the world of trade. The correct answer is: the world of trade.

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy. Select one: a. market development b. product development c. product penetration d. market penetration e. diversification

While some of the new products may attract new markets (which would represent diversification), the initiative described is aimed primarily at developing new products to serve current customers, and so represents a product development strategy. The correct answer is: product development

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

While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers. The correct answer is: create value.