chapters 6,7,8,9,10, and 11

Which of the following statements about the branding guidelines for a small business is TRUE? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations.

A) A small business must creatively conduct low-cost marketing research.

________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem. A) Perceived-value B) Value C) Going-rate D) Auction-type E) Markup

A) Perceived-value

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable. A) Position B) Flank C) Preemptive D) Mobile E) Contraction

A) Position

________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization

A) Psychographics

In which of the following does a customer respond to the technical quality of a service? A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks. B) Kathy tries out a new restaurant every week, because she likes to experience the variety. C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and takes the time to listen to Bill. D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful. E) Alex has no interest in theater, but goes often because her best friend loves plays.

A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks.

Apple's iPod Shuffle is an example of ________. A) a sub-brand B) a parent brand C) family brand D) a brand mix E) an umbrella brand

A) a sub-brand

Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance

A) adaptable

Which of the following is most likely to be a valid reason for initiating a price increase? A) anticipated cost inflation B) excess plant capacity C) a drive to dominate the market D) a low-cost strategy E) a market share objective

A) anticipated cost inflation

The failure of Cracker Jack cereal is an example of consumers' ________ dictating that the extensions were inappropriate for the brand. A) brand knowledge B) brand equity C) brand stature D) power grid E) brand salience

A) brand knowledge

When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity

A) brand knowledge

A ________ consists of all products-original as well as line and category extensions-sold under a particular brand. A) brand line B) cobrand C) generic brand D) licensed product E) subbrand

A) brand line

A brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority of an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness

A) clear superiority of an attribute or benefit

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________. A) company's objectives and resources B) effectiveness of the suppliers C) flexibility of legal rules governing the business D) socio-economic infrastructure E) global nature of the product

A) company's objectives and resources

Perdue's cogent reason why a target market should buy its chicken is "More tender golden chicken at a moderate premium price," also known as its ________. A) customer-focused value proposition B) competitive frame of reference C) points-of-parity D) straddle positioning E) perceptual map

A) customer-focused value proposition

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables B) situational factors C) operating variables D) purchasing approaches E) personal characteristics

A) demographic variables

Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________. A) design B) durability C) conformance D) reliability E) performance quality

A) design

Marketers usually identify niches by ________. A) dividing a segment into subsegments B) conducting VALS tests C) allowing consumers to gravitate toward product brands D) examining the demographics section of the handbook of marketing E) producing products that can be used in a variety of ways

A) dividing a segment into subsegments

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market. A) down-market stretch B) up-market stretch C) two-way stretch D) marketing research E) disintermediation

A) down-market stretch

Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand. A) elements B) value propositions C) perceptions D) images E) extensions

A) elements

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage

A) energized differentiation

Not all self-service technologies improve service quality, but they can make service transactions more accurate, convenient, and ________. A) faster B) "high touch" C) interactive D) technical E) internal

A) faster

When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

A) gap between perceived service and expected service

In ________ pricing, the firm bases its price largely on competitor's prices. A) going-rate B) auction-type C) markup D) target-return E) perceived-value

A) going-rate

According to BrandAsset® Valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation

A) high levels of energy, differentiation, relevance, knowledge, and esteem

The stage in the new product process that occurs first is the ________ stage. A) idea generation B) product development C) test marketing D) product soft launch E) concept testing

A) idea generation

Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior? A) inconvenience B) pricing C) response to service failure D) ethical problems E) involuntary switching

A) inconvenience

Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator B) influencer C) decider D) buyer E) gatekeeper

A) initiator

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage B) age C) behavior D) user status E) income

A) life stage

The introduction of Diet Coke by the Coca-Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding

A) line extension

The goal of positioning is to ________. A) locate the brand in the minds of consumers to maximize the potential benefit to the firm B) discover the different needs and groups existing in the marketplace C) target those customers marketers can satisfy in a superior way D) collect information about competitors that will directly influence the firms' strategy E) help the firm anticipate what the actions of its competitors will be

A) locate the brand in the minds of consumers to maximize the potential benefit to the firm

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation B) microsegmentation C) geographic segmentation D) global segmentation E) short-term segmentation

A) macrosegmentation

Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing? A) mixed bundling B) pure bundling C) product line pricing D) captive-product pricing E) two-part pricing

A) mixed bundling

When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value? A) naked solution B) discretionary solution C) maximum solution D) pseudo solution E) virtual solution

A) naked solution

Points-of-________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) parity B) difference C) inflection D) presence E) divergence

A) parity

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?" A) performance B) bonding C) advantage D) relevance E) presence

A) performance

Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection

A) points-of-difference

All marketing strategy is built on segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance

A) positioning

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy. A) preemptive B) counteroffensive C) mobile D) flank E) contraction

A) preemptive

Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid? A) presence B) bonding C) relevance D) performance E) advantage

A) presence

When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________. A) promise B) personality C) identity D) position E) revitalization

A) promise

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. A) psychographic lifestyle B) personality C) behavioral occasions D) social class E) demographic

A) psychographic lifestyle

Which of the following methods for new-product development incorporates buyers' preferences in the final design of the product? A) quality function deployment B) market leadership C) cost leadership D) incremental innovation E) disruptive technology

A) quality function deployment

Services high in ________ qualities have characteristics that the buyers can evaluate before purchase. A) search B) experience C) credence D) privacy E) storing

A) search

One way marketers are addressing consumers' desire for convenience in services is by providing ________. A) self-service technologies B) product support services C) perceived service and expected service D) core service failure E) involuntary switching

A) self-service technologies

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

A) single-segment concentration

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

A) single-segment concentration

Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. A) situational factors B) demographic C) purchasing approaches D) personal characteristics E) operating variables

A) situational factors

ConAgra Foods decided its prices had risen too high, so it determined to set a lower price for its products. To make the new price level profitable, ConAgra cut $250 million in costs. What application of cost estimation did this represent? A) target costing B) experience-curve pricing C) ceiling pricing D) the learning curve E) promotional price elasticities

A) target costing

The process of selecting one or more market segments to enter is called market ________. A) targeting B) dominance C) positioning D) segmentation E) research

A) targeting

The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and programs

A) the associations indirectly transferred to the brand by linking it to a place or thing

According to the BrandAsset® Valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge-evidence of past performance-a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem

B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still

The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value

B) identifying and establishing brand positioning

Which of the following is the most constructive response a market leader can make when defending its market share? A) maintain basic cost control B) innovate continuously C) provide desired benefits D) meet challengers with a swift response E) provide expected benefits

B) innovate continuously

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This characteristic of services is known as ________. A) inseparability B) intangibility C) variability D) perishability E) heterogeneity

B) intangibility

When the total market expands, the market ________ usually gains the most. A) challenger B) leader C) follower D) nicher E) entrant

B) leader

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________ pricing. A) value B) loss-leader C) special event D) high-low E) everyday low

B) loss-leader

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________. A) marketing king B) market nicher C) segment king D) guerilla marketer E) strategic clone

B) market nicher

Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. A) market research B) market positioning C) marketing effectiveness D) market segmentation E) market dominance

B) market positioning

When Coca-Cola focused on developing its soft-drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms. A) factor elimination B) marketing myopia C) factor reduction D) category points-of-parity E) reliance on product description

B) marketing myopia

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. A) niche B) mass C) guerrilla D) segmented E) differentiated

B) mass

Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding

B) narrative branding

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy. A) market-penetration B) new-market segment C) geographical-expansion D) niche identification E) blue-ocean

B) new-market segment

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade? A) descending bid B) offset C) barter D) compensation deal E) buyback arrangement

B) offset

Regular maintenance and repair costs are known as ________ costs. A) service contract B) out-of-pocket C) fixed D) facilitating services E) value-augmentation

B) out-of-pocket

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk. A) actual B) perceived C) real D) implied E) stated

B) perceived

The customer service representatives at G.K.'s Heating and Cooling must know as much about the products as possible, so that they can help customers solve their difficulties without sounding hesitant or unsure of themselves. This is an example of a high-quality strategy for ________. A) life-cycle cost B) postsale service C) self-service technologies D) out-of-pocket costs E) expectation management

B) postsale service

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A) function B) product C) benefit D) process E) structure

B) product

In his article, "Innovative Imitation," Theodore Levitt argues that ________. A) imitation is wrong and should be punished B) product imitation might be as profitable as product innovation C) innovation is not possible without substantial imitation D) innovation cannot begin unless dissatisfaction with imitation occurs E) imitation should be against the law because of the intellectual property decision involved

B) product imitation might be as profitable as product innovation

A ________ is the set of all products and items a particular seller offers for sale. A) product line B) product mix C) product extension D) product system E) product class

B) product mix

A market-penetration pricing strategy is most suitable when ________. A) a low price slows down market growth B) production and distribution costs fall with accumulated production experience C) a high price dissuades potential competitors from entering the market D) the market is characterized by inelastic demand E) a low price encourages actual competition

B) production and distribution costs fall with accumulated production experience

Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________. A) retailer convenience B) profit tiers C) psychographic characteristics D) social influence E) customer preference

B) profit tiers

Which of the following is an example of a pure service? A) air travel B) psychotherapy C) baby oil D) a laptop E) a restaurant meal

B) psychotherapy

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use? A) quality control processes B) quality function deployment C) rapid prototyping D) marketing control E) control system formation

B) quality function deployment

Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures? A) giving customers exclusive primary service packages B) redesigning processes to simplify service encounters C) using differential pricing and shared services D) minimizing service intangibility E) working with more customers at the same time

B) redesigning processes to simplify service encounters

When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price. A) markup B) reference C) market-skimming D) accumulated E) target

B) reference

Which of the following is the first step in setting a pricing policy? A) selecting a pricing method B) selecting the pricing objective C) determining demand D) estimating cost E) analyzing competitors' costs, prices, and offers

B) selecting the pricing objective

The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered. A) immunity B) tolerance C) reliability D) assurance E) flexibility

B) tolerance

Which of the following will help a service provider overcome the limits imposed by the inseparability of services? A) using differential pricing B) working with larger customer groups C) providing complementary services D) concentrating on physical evidence and presentation E) standardizing the service process

B) working with larger customer groups

The airline and hospitality industries use ________, by which they offer discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires. A) special-customer pricing B) yield pricing C) cash rebates D) location pricing E) customer-segment pricing

B) yield pricing

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product. A) $18.10 B) $18.23 C) $20.25 D) $20.70 E) $25.50

C) $20.25

________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field

C) Category membership

________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence

C) Competitive advantage

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What does this image pricing suggest about these consumers? A) They process prices from left to right. B) They use the price as an indicator of quality. C) They are rounding up the price. D) They are remembering an external frame of reference. E) They are breaking the price into smaller units.

B) They use the price as an indicator of quality.

________ are formal statements of expected product performance by the manufacturer. A) Insurances B) Warranties C) Bonds D) Invoices E) Balance sheets

B) Warranties

The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition

B) a customer-focused value proposition

When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy? A) pure tangible good B) basic product C) augmented product D) potential product E) generic product

B) basic product

Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions

B) brand extensions

Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings-in effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping

B) cannibalizing

SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes

B) comparing to exemplars

A Japanese firm is ready to sell its recent technological innovation to the U.S. government. But it has asked for 80 percent in cash and the rest in mica. The Japanese firm is looking to enter into a(n) ________ with the U.S. government. A) functional discount B) compensation deal C) buyback arrangement D) offset agreement E) barter deal

B) compensation deal

Using the market approach, ________ are defined as companies that satisfy the same customer need. A) communities B) competitors C) trendsetters D) industries E) task groups

B) competitors

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________. A) reliability B) conformance quality C) durability D) compatibility E) interoperability

B) conformance quality

If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? A) personal characteristics B) demographic variables C) situational factors D) operating variables E) purchasing approaches

B) demographic variables

General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro

B) differentiated

Which of the following are tangible goods that normally survive many uses? A) generic goods B) durable goods C) core benefits D) convenience goods E) unsought goods

B) durable goods

Services high in ________ qualities have characteristics that the buyer can evaluate after purchase. A) privacy B) experience C) credence D) search E) stock

B) experience

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack. A) frontal B) flank C) guerrilla D) encirclement E) bypass

B) flank

A ________ offering consists of two parts: a naked solution and discretionary options. A) differentiated market B) flexible market C) rigid market D) vertical market E) horizontal market

B) flexible market

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack. A) guerilla B) frontal C) encirclement D) bypass E) flank

B) frontal

Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________. A) promotional marketing B) functional quality C) technical quality D) search qualities E) external marketing

B) functional quality

Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied. B) A segment is unattractive if buyers possess strong or growing bargaining power. C) A segment is attractive when there are actual or potential substitutes for the product. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

B) A segment is unattractive if buyers possess strong or growing bargaining power.

Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)? A) It offers limited guidance for go-to-market strategies. B) It has quantifiable measures of financial performance. C) It ignores the advantages of creating a strong brand. D) It overlooks the option value of brands. E) It does not fully account for social network effects or word-of-mouth.

B) It has quantifiable measures of financial performance.

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________. A) the imported brand will not survive the competition from Maytag B) Maytag has positive customer-based brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Maytag washing machine has better features than the imported brand

B) Maytag has positive customer-based brand equity

________ auctions let would-be suppliers submit only one bid; they cannot know the other bids. A) Descending bid B) Sealed-bid C) English D) Dutch E) Reverse

B) Sealed-bid

Which of the following is a characteristic of a service? A) The service is essentially tangible. B) The service does not result in the ownership of anything. C) The service's production is tied to a physical product. D) Services are typically produced and consumed at different times. E) A client's presence is not required for rendering a service.

B) The service does not result in the ownership of anything.

________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers. A) Interactive B) Internal C) External D) Promotional E) Direct

C) External

________ are offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing, and record keeping. A) Consumer promotions B) Quantity discounts C) Functional discounts D) Seasonal discounts E) Trade-in allowances

C) Functional discounts

WD40 offers a Smart Straw version of its popular multipurpose lubricant with a built-in straw that pops up for use. This is an example of which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region.

C) Offer the core product in new formats or versions.

________ reward dealers for participating in advertising and sales support programs. A) Functional discounts B) Trade discounts C) Promotional allowances D) Rebates E) Quantity discounts

C) Promotional allowances

Which of the following best describes a car company's value proposition? A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets.

C) We sell the safest, most durable wagon.

With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright

C) a slogan

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. A) life stage B) gender C) age D) income E) social class

C) age

Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability

C) announcing category benefits

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved? A) buyback arrangements B) offsets C) barter D) sealed bids E) compensation deals

C) barter

A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience. A) sensory B) affective C) behavioral D) intellectual E) social

C) behavioral

Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) equity B) awareness C) benefits D) architecture E) extensions

C) benefits

A marketing manager has decided to "leapfrog" the competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack. A) flank B) encirclement C) bypass D) guerrilla E) frontal

C) bypass

Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence

C) category points-of-parity

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step? A) commercializing the product B) performing concept testing C) conducting beta testing with customers D) creating a marketing strategy for the product E) performing business analysis

C) conducting beta testing with customers

In ________ marketing, the firm operates in several market segments and designs different products for each segment. A) individual B) undifferentiated C) differentiated D) concentrated E) niche

C) differentiated

Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands

C) endowing products and services with the power of a brand

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in? A) awareness B) adoption C) evaluation D) trial E) interest

C) evaluation

Matt's retail store offers all products at $2 less than its competitors. The store never runs promotional campaigns or offers special discounts. Matt's retail store is following a(n) ________ pricing policy. A) auction-type B) target-plus C) everyday low D) high-low E) going-rate

C) everyday low

Using an established brand to introduce a new product is called brand ________. A) harmonization B) valuation C) extension D) positioning E) parity

C) extension

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a market ________. A) challenger B) leader C) follower D) nicher E) entrant

C) follower

Which of the following is a purpose of product mapping? A) studying market matrices B) integrating target markets C) identifying market segments D) educating consumers E) integrating target matrices

C) identifying market segments

A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand

C) industry

If demand hardly changes with a small change in price, the demand is said to be ________. A) strained B) marginal C) inelastic D) flexible E) unit elastic

C) inelastic

The decline in the average cost of production with accumulated production experience is called the ________. A) demand curve B) supply chain C) learning curve D) value chain E) indifference curve

C) learning curve

A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________ cost. A) service warranty B) out-of-pocket C) life-cycle D) facilitating services E) value-augmentation

C) life-cycle

When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price had come down to $399. What kind of a pricing did Apple adopt? A) loss-leader pricing B) market-penetration pricing C) market-skimming pricing D) target-return pricing E) value pricing

C) market-skimming pricing

Which of the following is the most elementary pricing method? A) value pricing B) going-rate pricing C) markup pricing D) target-return pricing E) perceived-value pricing

C) markup pricing

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved. A) branding synergy B) increased advertising dollars C) multiple brands D) bundled package E) pure bundling

C) multiple brands

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here? A) first entry B) blunt entry C) parallel entry D) late entry E) exchange entry

C) parallel entry

Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the doctor had already begun with the next patient. This illustrates the ________ of services. A) variability B) heterogeneity C) perishability D) intangibility E) homogeneity

C) perishability

A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables

C) personal characteristics

A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) architecture B) position C) portfolio D) extension E) image

C) portfolio

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product. A) consumption B) expected C) potential D) augmented E) basic

C) potential

Which of the following is an example of self-service technologies? A) calling for a pizza delivery B) buying a service contract for a computer C) printing tickets from a home computer D) visiting a parts-and-service department E) offering secondary service features

C) printing tickets from a home computer

With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) imagery B) judgment C) resonance D) salience E) performance

C) resonance

Dean recently had a BRZ broadband connection installed. However, the connection was poor, and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior? A) involuntary switching B) competition C) response to service failure D) service encounter failures E) inconvenience

C) response to service failure

In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. A) need-based segmentation B) segment identification C) segment attractiveness D) segment profitability E) segment "acid test"

C) segment attractiveness

A major advantage of a ________ strategy is that if the product fails, the company has not tied its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization

C) separate family brand name

Packaging includes all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package. A) retailer B) design C) shipping D) consumer E) supplier

C) shipping

A firm that is plagued with overcapacity, intense competition, or changing consumer desires would do better if it pursues ________ as its major objective. A) market skimming B) product-quality leadership C) survival D) profit maximization E) market penetration

C) survival

From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development

C) the initial choices for the brand elements or identities making up the brand

Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place

C) the product and all accompanying marketing activities and supporting marketing programs

Johnson Controls reached beyond selling climate-control equipment and components by selling the service of managing facilities in a way that optimizes energy use in heating and cooling. This is an example of providing ________. A) facilitating services B) a primary service package C) value-augmenting services D) service contracts E) service warranties

C) value-augmenting services

Service quality depends on who provides them, when and where they are provided, and to whom they are provided. Thus, services are highly ________. A) inseparable B) tangible C) variable D) perishable E) intangible

C) variable

Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are selective, confident, and impatient. C) Gen Xers are socially conscious and concerned about the environment. D) Gen Xers prize self-sufficiency and are pragmatic. E) Technology is a barrier for Gen Xers.

D) Gen Xers prize self-sufficiency and are pragmatic.

Which of the following statements about market segmentation is TRUE? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy? A) It should analyze its competitors' costs, prices, and offers. B) It should select its pricing method. C) It should select its final price. D) It should determine the demand for its product. E) It should estimate the cost of its product.

D) It should determine the demand for its product.

During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) Step 2-segment identification B) Step 3-segment attractiveness C) Step 6-segment "acid test" D) Step 1-needs-based segmentation E) Step 7-marketing-mix strategy

D) Step 1-needs-based segmentation

Which of the following statements about brand mantras is TRUE? A) They guide only major decisions; they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors.

D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.

Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10 percent premium on our chicken.

D) We sell tender golden chicken at a moderate price.

The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. A) measurable B) substantial C) differentiable D) accessible E) actionable

D) accessible

Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases

D) additional brand extension opportunities

The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." A) copyright B) trademark C) slogan D) brand E) logo

D) brand

When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products with which a brand competes and which function as close substitutes, it is determining Dasani's ________. A) customer-focused value proposition B) points-of-parity C) points-of-difference D) category membership E) brand mantra

D) category membership

The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis

D) competitive frame of reference

In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension

D) customer equity

The five product levels add more customer value, and together they constitute a(n) ________. A) core benefit B) basic product C) augmented product D) customer-value hierarchy E) expected product

D) customer-value hierarchy

The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability

D) desirability, deliverability, differentiability

Brand mantras typically are designed to capture the brand's points-of-________. A) conflict B) parity C) inflection D) difference E) presence

D) difference

If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

D) differentiable

For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence. A) conformance quality B) performance quality C) repairability D) durability E) style

D) durability

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________. A) natural products B) component materials C) operating supplies D) equipment E) processed materials

D) equipment

Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________. A) payment equity B) value-augmenting services C) differential pricing D) facilitating services E) a primary service package

D) facilitating services

When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ consumption of the brand. A) amount of B) level of C) dedication to D) frequency of E) awareness

D) frequency of

Most new-product activities are devoted to ________. A) changing the target markets B) developing new-to-the-world products C) introducing backward integration D) improving existing products E) changing the existing market dynamics

D) improving existing products

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services. A) perishability B) intangibility C) heterogeneity D) inseparability E) variability

D) inseparability

A firm that is based in France designs jewelry and takes custom orders from around the world. They design up to 15 pieces of jewelry in a year and ensure that each design uses distinctive stones and is unique. Such nichemanship is an example of ________ specialist role. A) customer-size B) product C) product-feature D) job-shop E) quality-price

D) job-shop

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry. A) strategic pay off B) parallel C) balancing D) late E) compensating

D) late

AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work

D) linking internal and external marketing

Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for ________ services. A) complementary B) perishable C) variable D) unbundled E) shared

D) unbundled

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits

D) user status

Brand ________ is the job of estimating the total financial worth of the brand. A) tracking B) auditing C) equity D) valuation E) harmonization

D) valuation

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even? A) 1,819 B) 5,500 C) 18,000 D) 27,500 E) 55,000

E) 55,000

________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies

E) Brand-tracking studies

Which of the following is a possible trap of a price-cutting strategy? A) Low prices usually achieve increases in both market share and market loyalty when customers switch. B) The company might need additional business because it has excess plant capacity. C) The company can initiate price cuts to dominate the market through lower costs. D) Consumers might not demand price concessions in the future. E) Competitors that match low prices might have longer staying power because of deep cash reserves.

E) Competitors that match low prices might have longer staying power because of deep cash reserves.

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance. A) Frequently purchased products B) High-moving goods C) Inexpensive products D) Commodity products E) Infrequently purchased products

E) Infrequently purchased products

________ marketing describes the employees' skill in serving the client. A) External B) Internal C) Promotional D) Direct E) Interactive

E) Interactive

Despite its weaknesses, markup pricing remains popular for which of the following reasons? A) Sellers can determine demand much more easily than they can estimate costs. B) By tying the price to cost, the pricing task becomes more sophisticated. C) When all firms in the industry use markup pricing, price competition flourishes. D) Sellers take advantage of buyers when the latter's demand becomes acute. E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

Which of the following is TRUE regarding services? A) Services are typically produced, stored, and then consumed. B) Services are generally low in experience and credence qualities. C) Service providers develop similar marketing programs for personal services and business services. D) There is less risk associated with the purchase of services than with the purchase of goods. E) Provider-client interaction is a special feature of services marketing.

E) Provider-client interaction is a special feature of services marketing.

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts? A) a Dutch auction with one buyer and many sellers B) an English auction with one seller and many buyers C) an ascending bid auction D) a sealed-bid auction E) a Dutch auction with one seller and many buyers

E) a Dutch auction with one seller and many buyers

What would a consumer's lower price threshold signal? A) the use of everyday low pricing B) a discounted price for a high-value product C) a fair price D) a price below which the product is considered to be a good value E) a price below which the product is assumed to be of unacceptable quality

E) a price below which the product is assumed to be of unacceptable quality

For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

E) actionable

When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________. A) a complementary service B) payment equity C) a service blueprint D) differential pricing E) an extended warranty

E) an extended warranty

In markets that are characterized by products that are highly homogeneous, how should a firm react to a competitor's reduction in price? A) shrink the amount of the product available B) substitute expensive materials or ingredients C) reduce product features D) reduce product services E) augment the product

E) augment the product

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements. A) convenience item B) flagship product C) staple item D) potential product E) basic platform

E) basic platform

A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid. A) advantage B) relevance C) presence D) performance E) bonding

E) bonding

Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles. A) optional-feature B) two-part C) by-product D) product line E) captive-product

E) captive-product

The dimensions in the VALS framework are consumer resources and ________. A) marketer resources B) product innovation C) consumer maturity D) impulsiveness E) consumer motivation

E) consumer motivation

A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, its product category, or its market. A) value B) personality C) trait D) character E) contact

E) contact

Services high in ________ qualities are those services that have characteristics that the buyer normally finds hard to evaluate even after consumption. A) trial B) search C) experience D) privacy E) credence

E) credence

Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability

E) deliverability

Which of the following is most closely related with the organic growth of an organization? A) acquiring a product or service brand B) entering new market places C) increasing the operational profitability D) increasing productivity of employees E) developing new products from within

E) developing new products from within

Joseph, a student of Columbia University, found that many of his classmates had purchased an iPad tablet from Apple. Several months after the product's launch, realizing that the iPad was widely considered to be useful and that many students in the United States had rated it highly, Joseph also decided to purchase an iPad. Which of the following is the adopter group to which Joseph belongs? A) early adopter B) innovator C) late majority D) laggard E) early majority

E) early majority

In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand. A) second-degree price discrimination B) third-degree price discrimination C) psychological discounting D) special-customer pricing E) first-degree price discrimination

E) first-degree price discrimination

JJ's Hair Salon pays overhead each month, including bills for rent, heat, interest, and salaries. These payments are examples of ________ costs. A) total B) average C) activity-based D) variable E) fixed

E) fixed

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? A) differentiated marketing B) affiliate marketing C) guerrilla marketing D) affinity marketing E) grassroots marketing

E) grassroots marketing

In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) personalized marketing B) mass customization C) globalized marketing D) relationship marketing E) integrated marketing

E) integrated marketing

A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables? A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables

E) operating variables

Smith & Adams Poultry set up a computer system so that its customers (restaurants and hotels) can directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of ________. A) customer relationships B) customer training C) installation D) delivery ease E) ordering ease

E) ordering ease

A(n) ________ is an elaborated version of a product idea expressed in consumer terms. A) test brand B) alpha product C) beta product D) business schedule E) product concept

E) product concept

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________. A) product type B) product class C) need family D) product variant E) product line

E) product line

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________. A) disruptive technologies B) incremental innovation C) complex innovations D) discontinuous innovations E) radical innovations

E) radical innovations

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty? A) salience B) imagery C) feelings D) judgments E) resonance

E) resonance

Belling Hotels provides a complimentary breakfast buffet to all guests. This is an example of a ________. A) primary service package B) service interface C) service support D) service frequency E) secondary service feature

E) secondary service feature

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. A) segment "acid test" B) segment attractiveness C) segment profitability D) need-based segmentation E) segment identification

E) segment identification

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition. A) not known B) different C) inferior D) equivalent E) superior

E) superior

To which of the following categories of services does a cell phone belong? A) major service with accompanying minor services B) major service with accompanying minor goods C) pure service D) pure tangible good E) tangible good with accompanying services

E) tangible good with accompanying services

Consumers are less price sensitive when ________. A) they buy high cost items B) they frequently change their buying habits C) there are more substitutes D) there are more competitors E) they do not readily notice higher prices

E) they do not readily notice higher prices

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers? A) being willing to pay for price for valued offerings B) being turned off by overt marketing practices C) being pragmatic and prizing self-sufficiency D) wanting to purchase online E) wanting to turn back the hands of time

E) wanting to turn back the hands of time

Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines. A) type B) length C) class D) mix E) width

E) width

Bank customers try to reduce uncertainty by drawing inferences from the ________, such as the design of the building's exterior and interior, the layout of the desks, and the length of waiting lines. A) people B) symbols C) equipment D) place E) communication material

D) place

Brown & Smith, Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here. A) conjoint analysis B) perceptual mapping C) virtual reality testing D) rapid prototyping E) digital fabrication

D) rapid prototyping

The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately. A) empathy B) assurance C) responsiveness D) reliability E) tangibles

D) reliability

For a new manufacturer managing product support for its equipment, what is usually the first strategy for postsale service? A) letting customers hire their own service people to work on-site B) letting independent services handle repairs and maintenance C) pricing equipment high and charging low prices for service D) running the company's own parts-and-service department E) switching maintenance services to authorized distributors

D) running the company's own parts-and-service department

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________. A) trade discounts B) quantity discounts C) functional discounts D) seasonal discounts E) trade-in allowances

D) seasonal discounts

If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. A) needs-based segmentation B) segment identification C) segment profitability D) segment "acid test" E) marketing-mix strategy

D) segment "acid test"

If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test"

D) segment positioning

Everyday low pricing is most suitable if ________. A) consumers are willing to perform activities such as clip coupons to avail of discounts B) consumers tend to associate price with quality C) customers are insensitive to changes in price D) the cost of conducting frequent sales and promotions is high E) consumers have sufficient time to find the best prices

D) the cost of conducting frequent sales and promotions is high

Prices that end in 9 are most appropriate when ________. A) customers have substantial knowledge about quality B) customers process prices right to left C) there is a mental price break at the lower, rounded price D) the marketer wants to suggest a discount or bargain E) the marketer wants to convey a high-price image

D) the marketer wants to suggest a discount or bargain

For price discrimination to work ________. A) the market must be segmentable and the segments must show similar intensities of demand B) members in the lower-price segment must be able to resell the product to the higher-price segment C) competitors must be able to undersell the firm in the higher-price segment D) the practice must not breed customer resentment and ill will E) the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market

D) the practice must not breed customer resentment and ill will

________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation

A) Flanker

Galaxy chocolate has successfully competed with Cadbury by positioning itself as "your partner in chocolate indulgence" and featuring smoother product shapes, more refined taste, and sleeker packaging, which represents which of the following main strategies for growing the core of the business? A) Make the core of the brand as distinctive as possible. B) Drive distribution through both existing and new channels. C) Offer the core product in new formats or versions. D) Increase costs and revenue. E) Expand to another geographic region.

A) Make the core of the brand as distinctive as possible.

Which of the following is an example of a gap between service delivery and external communications? A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well. B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered. C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design. D) Clearwater Spa attendants are well trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service. E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

B) Amanda chose to shop at Alison's Fashions because the store's website offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered.

________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products. A) Cross B) Ingredient C) Equity D) Family E) Generic

B) Ingredient

Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization? A) It makes the company almost bulletproof to competitors' actions. B) It diversifies the firm's risk. C) It creates synergy between markets. D) It is a low-cost strategy. E) It treats all buyers the same and, therefore, lowers promotion costs.

B) It diversifies the firm's risk.

The Caesar Park Hotel generally caters to business customers during the week, so weekends are relatively quiet. The hotel has decided to promote mini-vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do? A) It is implementing premium pricing. B) It is trying to cultivate nonpeak demand. C) It is promoting complementary services. D) It is putting reservation systems in place. E) It is implementing differential pricing.

B) It is trying to cultivate nonpeak demand.

Which of the following is TRUE regarding price elasticity? A) The higher the elasticity, the lesser the volume growth resulting from a one-percent price reduction. B) Long-run and short-run price elasticity may differ, delaying the impact of a price change. C) If demand is elastic, sellers assume that lowering the price will decrease total revenue. D) Price elasticity does not depend on magnitude and direction of the contemplated price change. E) When demand is inelastic, sellers should lower prices in order to increase total revenue.

B) Long-run and short-run price elasticity may differ, delaying the impact of a price change.

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. A) perceived value pricing B) third-degree price discrimination C) first-degree price discrimination D) second-degree price discrimination E) psychological discounting

B) third-degree price discrimination

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. A) hard-core loyals B) split loyals C) shifting loyals D) switchers E) antiloyals

B) split loyals

To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program. A) measurable B) substantial C) accessible D) differentiable E) actionable

B) substantial

Which of the following would NOT be a consumer's reference price? A) the advertised price per month B) the actual future price C) a price the consumer remembers D) a posted "regular retail price" E) the manufacturer's suggested price

B) the actual future price

Which of the following is an example of a gap between management perception and the service-quality specifications? A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting. B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong. C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters. D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed. E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.

________ testing is a customer test that involves placing the product within the firm to see how it performs in different applications. A) Beta B) Research C) Sales-wave D) Alpha E) Simulated

D) Alpha

Which of the following questions is answered during the business analysis of ideas? A) Does the product meet a need? B) Do we have a technically and commercially sound product? C) Can we find a cost-effective, affordable marketing strategy? D) Can this product meet sales expectations? E) Can we find a good concept consumers say they would try?

D) Can this product meet sales expectations?

________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference

D) Category points-of-parity