Final Exam Marketing

Advertisers can determine how effective their media mix has been in reaching their target audience by calculating __________ of the advertising schedule. Select one: a. the total GRP b. the media mix c. the conversion rate d. the USP e. the click rate

A Advertisers can determine how effective their media mix has been in reaching their target audience by calculating the total GRP (reach times frequency) of the advertising schedule.

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars Select one: a. were not compatible with European market conditions. b. did not provide benefits that were observable. c. provided equivalent relative advantage for both European and U.S. customers. d. involved technology that was too complex. e. could not be easily tried by consumers.

A Feedback SUVs were compatible with U.S. drivers' behavior and lifestyles, but the high cost of gas and the smaller roads made them incompatible under European standards.

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be Select one: a. U.S. census data. b. focus group interviews. c. syndicated data. d. door-to-door surveys. e. sales invoices at public libraries.

A Feedback She could purchase syndicated data, but census data should address Caroline's need for income and age distribution information

One of the advantages of selling specialty goods and services is that when consumers want them, they will Select one: a. search for them. b. expect them to be offered conveniently. c. perceive greater performance risk. d. question the price. e. consider many alternatives.

A Feedback Specialty products are those for which customers show such a preference that they will invest effort in finding them.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to Select one: a. brainstorm and evaluate alternatives. b. promote the firm's corporate social responsibility efforts. c. identify issues that need to be addressed. d. gather information and identify stakeholders. e. choose a course of action.

C Feedback Identifying potential ethical issues is the first step in the ethical decision-making process.

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through Select one: a. global excellence. b. product excellence. c. promotional excellence. d. customer excellence. e. operational excellence.

D Feedback Superior service is a key facet of a customer excellence strategy.

Tweens are part of which generational cohort? Select one: a. Baby Boomers b. Generation Z c. Generation X d. Generation Y e. Generation W

D Feedback Tweens are the youngest component of Generation Y.

What is Google+? Select one: a. a site offering analytical information about website usage b. an experimental, advanced search engine c. a video sharing site intended for businesses d. a social networking site e. a website where users can work together to create documents

D Google+ is a social networking platform designed to compete with Facebook.

Social media first began to get more professional and offer more to users Select one: a. when Apple launched the first App Store. b. just after its invention phase in the early 1990s. c. in 2011-2012, when the market became flooded with smartphones. d. in the past few years, during its entrepreneurial phase. e. at the turn of the twenty-first century.

E At the turn of the twenty-first century, sites recognized that they had to offer surfers something exciting, educational, or experiential if they were to keep them coming back.

If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of Select one: a. credible commitments. b. mutual trust. c. a contractual arrangement. d. open communication. e. common goals.

A Feedback A strategic relationship cannot succeed unless each relationship partner is willing to make a genuine, credible commitment to the relationship. The behavior described in the question does not demonstrate such a commitment.

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

A Feedback By restricting the ability of lawyers and other professionals to easily expand their businesses across state lines, states are preventing these professionals from selling existing services to new customers. These would be market development opportunities.

Americans often equate bigger with better, and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process. Select one: a. psychological b. financial c. social d. physiological e. performance

A Feedback Choosing larger items may make us feel more powerful and increase status, reducing psychological risk for consumers who may otherwise feel powerless.

The number of customers who discontinue their use of a service divided by the average number of total participants is called Select one: a. churn. b. customer loyalty. c. cancellation cost. d. customer retention. e. customer lifetime value.

A Feedback Churn is the number of participants who discontinue their use of a service divided by the average number of total participants. It is a measure of how much turnover a company experiences in its customer base.

In general, prices should not be based on costs because Select one: a. consumers make their purchase decisions based on perceived value. b. customers are always right. c. producers need to avoid creating a cost competitive parity debate. d. producers rarely know what their costs are. e. consumers are cost-conscious.

A Feedback Consumers choose to buy a product, or not, based on their assessment of value. To price solely based on cost is to ignore this key factor.

Marketers with successful brands sometimes hesitate to expand their brands because Select one: a. it is costly to maintain many product lines, and it might weaken the brand's meaning. b. Federal Trade Commission regulations limit the number of products that can be marketed under an individual brand name. c. it is often difficult to get additional marketing communications coverage for the brand. d. the current economy can only support a limited number of product options. e. manufacturing divisions usually control brand expansion and are often in conflict with the marketing division.

A Feedback Each product line involves some additional cost, and if too many product lines are associated with the same brand, it can weaken the brand's meaning and reputation.

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. Select one: a. satisfaction guarantees b. perishability gap analysis c. zone of tolerance allowances d. point-of-purchase displays e. promotional discounts

A Feedback Inseparability refers to the fact that services are produced and consumed at the same time. This makes trial in advance of purchase difficult and often impossible. One solution is to offer satisfaction guarantees to minimize the risk of an initial purchase.

Which of the following is most likely to be characterized by pure competition in the United States? Select one: a. soybeans b. soft drinks c. cereal d. fast food restaurants e. computer operating systems

A Feedback Pure competition refers to a market in which firms provide similar, undifferentiated products. This includes commodities like soybeans, salt, and sugar.

Quantitative research offers a means to confirm ideas through Select one: a. surveys or experiments. b. informal analysis. c. in-depth interviews. d. qualitative research. e. data mining.

A Feedback Quantitative research produces data that can be used to confirm ideas through statistical testing.

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and Select one: a. establishing an early market share lead. b. not having to pay advertising expenses. c. not needing to do test marketing. d. using prototypes to dominate the market. e. motivating laggards to buy their products.

A Feedback The first firm offering a new-to-the-world product often becomes the market leader due to its position as the first, and, for a time, only firm in the market.

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, she also tries to meet with several students to get their feedback on textbooks. She passes this feedback to her managers to guide the development of the publisher's future textbooks. The students are the __________ in the buying center. Select one: a. users b. initiators c. gatekeepers d. deciders e. influencers

A Feedback The students are users of the selected textbooks. If their feedback were used by the faculty to choose books, they would also be influencers, but in this case their feedback is being used by the publisher, not by the faculty who make the decision.

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and did a recall. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models? Select one: a. choose a course of action b. identify issues c. gather information and identify stakeholders d. brainstorm and evaluate alternatives e. assess risk

A Feedback When using the Ethical Decision-Making Framework, the first step is to identify the issues. The next three steps are to gather information, brainstorm/evaluate alternatives, and finally to choose a course of action. Toyota, in its recall, had chosen a course of action.

Manufacturers use wholesalers and retailers because Select one: a. they create value for customers through convenience and cost savings. b. most manufacturers are not familiar with logistics. c. they have no other choice. d. they do not cost much. e. wholesalers control retailers.

A Feedback Wholesalers and retailers assist manufacturers by adding value for customers by making it more convenient and less expensive to purchase merchandise.

For an advertiser, the target audience can be understood as Select one: a. consumers whom its research designates as its target market. b. consumers who are unaware of the product. c. consumers who do not use the product. d. consumers who currently use or like the product. e. consumers who prefer the competitor's product.

A Firms must keep in mind that their target audience may or may not be the same as current users of the product. They must conduct research to identify their target audience.

The most important activity in recruiting salespeople is determining what the salesperson will be doing and Select one: a. what personal traits and abilities a salesperson should have to do the job well. b. whether to pay them on a commission basis or a salary plus commission. c. their previous level of experience. d. when they are available to start work. e. how long they are likely to stay.

A It is important to determine what traits and abilities a good salesperson needs to have and to seek these traits in job candidates.

The manufacturer of Beats by Dr. Dre headphones decides to advertise in the lifestyles sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here? Select one: a. The message was not received by its intended audience. b. The sender was not clearly identified. c. The message was encoded incorrectly. d. The message was decoded incorrectly. e. The message was not transmitted.

A Noise is any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, the message was not relevant to the audience who received it.

In the IMC communication process, the __________ encodes the marketing communication message. Select one: a. transmitter b. instructor c. sender d. communication channel e. receiver

A The transmitter converts the sender's ideas into a message, which could be verbal, visual, or both.

Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren, and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of Select one: a. microblogging. b. social bookmarking. c. thought sharing. d. professional networking. e. media sharing.

A Twitter is an example of a microblogging site where users are limited to 140-character messages.

The term "trade deficit" refers to Select one: a. a level of population growth that affects exports. b. higher levels of imports than exports. c. the sum of all goods and services handled in a country. d. an indicator of the quality of life in a country. e. a country that exports more goods than it imports.

B Feedback A trade deficit refers to a situation where a country imports more goods (in terms of dollar value) than it exports.

Barbara is using a test model of her firm's new inline skates to see whether they work according to the design specifications. Barbara is involved in Select one: a. product launch. b. alpha testing. c. test marketing. d. product development. e. concept testing.

B Feedback Alpha testing of new products is conducted by employees, as in this case.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because Select one: a. they encourage competitors to enter the market. b. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. c. they are especially price conscious. d. they prefer products from established market leaders. e. they are easily influenced by reminder advertising.

B Feedback As the first group to adopt a new product, innovators help the product to gain initial market acceptance. Innovators may recommend the product to friends, creating word-of-mouth referrals.

As a multichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure? Select one: a. growth of retail channel, diminishment of Internet channel b. operational integration of all channels c. escalation of costs across all channels d. separation of all operations e. growth of Internet channel, diminishment of retail channel

B Feedback Consumers desire a seamless experience when interacting with multichannel retailers. To determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain. As the multichannel operation matures, retailers tend to integrate all operations under one organization.

The Ethical Decision-Making Framework includes all of the following steps EXCEPT Select one: a. brainstorm and evaluate alternatives. b. promote the firm's corporate social responsibility efforts. c. gather information and identify stakeholders. d. identify issues. e. choose a course of action.

B Feedback Corporate social responsibility is separate from the Ethical Decision-Making Framework.

If the __________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. Select one: a. laggard b. early adopter c. early majority d. late majority e. innovator

B 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. If there are relatively few early adopters to serve as opinion leaders, the market for the product is likely to be small.

Exchange control refers to the regulation of a country's Select one: a. countertrade exchange. b. currency exchange rate. c. quota rate of exchange. d. exchange tariffs. e. comparative inflation rate.

B Feedback Exchange control refers to the regulation of a country's currency exchange rate, the measure of how much one currency is worth in relation to another.

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. common marketing system. b. partnering relationship. c. linked supply chain. d. shared mission statement. e. corporate vertical marketing system.

B Feedback 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.

Frederica manages an upscale women's clothing store. She wants more information about her customers' general feelings about upcoming fall fashions. Frederica will most likely use __________ to gather this type of data. Select one: a. door-to-door surveys b. focus group interviews c. syndicated data d. census data e. sales invoices

B 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.

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that Select one: a. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. b. countries with high purchasing power today may not continue to show the same growth in the future. c. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. d. urban population centers will become increasing unattractive and the rural areas will experience major growth in population. e. the global population is expected to grow at staggering rates indefinitely.

B Feedback In general, developed countries are experiencing zero or no population growth, while most less developed nations are experiencing rapid population growth. These trends are expected to shift today's patterns of purchasing power.

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of Select one: a. emotional support. b. instrumental support. c. the delivery gap. d. line extensions. e. employee incentives.

B Feedback Instrumental support refers to systems and equipment needed by service employees to do their jobs well.

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is Select one: a. increased price sensitivity among loyal customers. b. that he can be less concerned about competitors' actions. c. recognition through industry awards. d. lower marketing costs associated with reaching loyal customers. e. less need for concern about product quality.

B Feedback Loyal customers are less likely to switch brands due to competitor actions.

Just as marketers create value by meeting the needs and wants of consumers, market researchers create value if Select one: a. the research is expensive. b. the results will be used in making management decisions. c. the research does not cost too much. d. the research is finished quickly. e. all participants like the research design.

B Feedback Market research creates value if it can assist in management decision making.

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets. Select one: a. functional and social b. functional and psychological c. postpurchase and prepurchase d. psychological and physiological e. safety and situationa

B Feedback Marketers must understand what needs are most likely to drive customers to consider their products, and design offerings to meet those needs.

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

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

B Feedback Once the list of potential suppliers has been limited to a few finalists who are able to meet USF's needs, the firm will probably negotiate with each of the finalists regarding price, quality, delivery, and financing, to get the best deal possible.

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

B Feedback There are no intermediaries between the buyer and seller in a direct marketing channel, as in this example.

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap. Select one: a. Quality mechanics b. Instrumental support c. Service infrastructure d. Customer interface architecture e. Dynamic support

B Feedback This is the definition of instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

Multinational corporations are recognizing their responsibility to the people who make their products Select one: a. when it suits them financially. b. even if they aren't their employees. c. when public attention might embarrass the corporation. d. if the local government suggests that the company pay bribes to officials. e. unless another firm actually employs the workers.

B Feedback When firms outsource production to manufacturers in other countries, it does not absolve them of responsibility for the working conditions in the factory.

A firm that places emphasis on developing and maintaining positive relationships with the media is focusing on a No ________ strategy. Select one: a. advertising b. public relations c. personal selling d. mobile marketing e. direct marketing

B Public relations is the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

Because PSAs are a special class of advertising, FCC rules require Select one: a. consumers to listen to them. b. broadcasters to devote a specific amount of free time to them. c. court approval before they are aired. d. they use only the informative or reminder advertising appeals. e. all advertisers to contribute to them.

B Public service announcements are messages focused on public welfare. All broadcasters, in return for access to the broadcast spectrum, are required by the FCC to devote some free airtime to PSAs.

Which of the following is NOT one of the steps in the personal selling process? Select one: a. generate and qualify leads b. request for proposal c. closing the sale d. follow-up e. preapproach

B The RFP (request for proposal) process is part of the B2B buying process.

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated? Select one: a. only when a product is removed from the line b. once for each individual product and service c. once by each management team member d. when the prior year's budget is exceeded e. never, after the first product/service

B This process—set objectives, choose media, and determine costs—must be repeated for each product or service.

Excluding computers, which of the following methods is used by more consumers to access social media? A) E-readers B) iPods C) mobile phones D) iPads E) GPS units

C Although 97% of consumers access social media through their computers, 37% access these media via their mobile phones, 3% through iPads, and 2% through e-readers.

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. selective distribution. b. an extreme value strategy. c. a multichannel strategy. d. exclusive distribution. e. a service retailing philosophy.

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

A no-haggle pricing policy is a type of _______________ pricing strategy. Select one: a. sales orientation b. status quo c. customer-oriented d. maximizing profits e. target return

C Feedback A no-haggle pricing policy seeks to set a fair price representing customers' perceived value and to avoid requiring customers to bargain to get this price.

A customer who is shopping for fashionable but relatively low-cost merchandise in a pleasant environment is shopping at a Select one: a. specialty store. b. extreme value retailer. c. full-line discount store. d. department store. e. convenience store.

C Feedback Customers do not expect higher-end products in full-line discount stores. Rather, they are looking for value prices on these items and are willing to compromise on quality or cachet.

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

C Feedback Goods are tangible things that can be touched; services are intangible. The remaining answers could be true in some cases, but untrue in others.

In most companies, portfolio management is typically done at the SBU or ___________ level of the firm. Select one: a. corporate b. sales representative c. product line d. customer care e. accounting

C Feedback In general, marketing resources are allocated to SBUs or product lines. The corporate level is too high unless it is a very small company with just a single product line, and the sales representative level is generally too low.

During the RFP stage, B2B buyers Select one: a. revise their need recognition analysis. b. negotiate contract terms. c. invite suppliers to bid on supplying what is requested. d. recognize obstacles that the firm must work around. e. proceed to vendor analysis.

C Feedback In the RFP stage, suppliers are invited to submit proposals in response to the RFP.

Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales. Select one: a. B2C b. C2C c. B2B d. G2B e. G2G

C Feedback Jackie sells materials used by other businesses; thus, she is in B2B sales.

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. Select one: a. ritual b. shopping c. convenience d. specialty e. impulse

C Feedback Milk, bread, and other consumer staples are convenience goods for most shoppers. They will not compare many alternatives, but will simply purchase what they need.

When Karen realized her dog had fleas, Karen had Select one: a. a social-perceptual incongruence. b. a psychological need. c. an unsatisfied need. d. a cognitive learning failure. e. a universal shopping need.

C Feedback Need recognition is the first step in the consumer buying process.

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by Select one: a. empowering consumers. b. forcing rude customers to use technology. c. providing support and incentives for their employees. d. effective customer screening. e. directing zone of tolerance limits for employees.

C Feedback One reason service jobs can be difficult is that service employees must remain pleasant and courteous even when customers are not. Managers can help frontline employees to manage angry customers with courtesy by providing emotional support and incentives.

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider Select one: a. the features the engineers feel are most important. b. the characteristics that helped his firm win a statewide award for excellence in manufacturing. c. what the target market would consider the most important features. d. the safety record of the firm and its products. e. the ways the sales representatives have been positioning the firm's products.

C Feedback Positioning should be done with the target market's needs in mind. What matters is which attributes are salient (important) to potential customers.

David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT Select one: a. hours worked by cooks. b. energy costs. c. rent on the restaurant building. d. ingredients used in preparing food. e. hours worked by the waiters and waitresses.

C Feedback Rent is unlikely to be based on hours opened, so this will be a fixed cost. All the other costs could rise when the hours are extended.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably Select one: a. income elastic. b. price elastic. c. price inelastic. d. cross-price elastic. e. price sensitive.

C Feedback Since Barry's customers don't seem to care about the price, we would not expect to see demand change much as price changes. This describes a situation where demand is price inelastic.

The centerpiece of the marketing environment analysis framework is Select one: a. corporate partners. b. competitive intelligence. c. consumers. d. culture. e. green marketing.

C Feedback The consumer is the center of all marketing activities.

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to use its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that Select one: a. are easiest to satisfy. b. competitors have tried and failed to satisfy. c. match its core competencies. d. are important to all generational cohorts. e. provide minimal core value.

C Feedback The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

Within a perceptual map, aNo __________ represents where a particular market segment's desired product would lie. Select one: a. point of parity b. PRIZM cluster c. ideal point d. benefit centroid e. strategic target

C Feedback The ideal point is the point representing the target market's perfect product offering.

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by Select one: a. cognitive, affective, and behavioral environment. b. functional and psychological profit. c. family, reference groups, and culture. d. universal, retrieval, and evoked sets. e. impulse, habitual, and limited problem solving process.

C Feedback The wedding decision is being influenced by family (Natalie's mother), reference groups (Natalie's friends who have gotten married on the beach), and culture (Dow's Thai heritage).

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because Select one: a. he was unfamiliar with the code of ethics for advertising in other countries. b. copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market. c. differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets. d. he had not applied for or received international certification that was required for working outside the United States. e. he did not have the budget for a global rollout.

C Feedback When designing communication strategies for global markets, differences in languages, customs, and culture must be carefully considered. A campaign that works well in one country might be ineffective or even offensive in another.

Location-based software and applications can help bring a special offer to customers right through their smartphones when they are in the process of making a purchase decision. This best represents the ____________ framework of social media marketing. A) Energize B) Educate C) Excite D) Engage

C For instance, Staples may provide loyal customers a relevant coupon based on previous purchases through their mobile phone while they are in the store - a hopefully exciting experience.

Independent Publisher's Group is a distributor of books for small publishers. It doesn't have its own sales force, but uses ________ on a contract basis to sell its product on commission. Select one: a. order getters b. order takers c. independent agents d. in-house telemarketers e. sales support personnel

C Independent agents do not work for the company but are hired on a contract basis and paid commission.

Walmart's "Everyday low prices" selling proposition is effective primarily because it is Select one: a. a one-time message. b. variable over time. c. meaningful to the consumer. d. unique to the industry. e. generally unsustainable.

C Walmart's message is meaningful to the consumer because of the low-price promise it conveys. In addition, a unique selling proposition should be unique to the brand, sustainable over time, and supportive of repetition.

A salesperson's compensation can be made up of some combination of salary, commission, and __________, which are payments made at a manager's discretion when the salesperson achieves certain goals. Select one: a. metrics b. awards c. income segments d. bonuses e. rebates

D A bonus is a payment made at management's discretion when the salesperson attains certain goals.

Anne's Pita Bread Chips offers free POP (point-of-purchase) displays to retailers ordering their product. Anne's is using a __________ strategy. Select one: a. pull b. puffery c. publicity d. push e. posttesting

D A push strategy promotes a product to members of the supply chain. Consumer advertising, in contrast, is usually part of a pull strategy, in which the goal is to have consumers demand the product of retailers.

When a company launches a new product line with an existing brand name, this is known as Select one: a. co-branding. b. a new brand. c. a line extension. d. a brand extension. e. a multi-brand.

D Feedback A brand extension refers to the use of the same brand name for a new product line.

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

D Feedback A key component of target marketing is the evaluation of potential target segments' attractiveness.

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT Select one: a. the value proposition. b. product attributes. c. competitive comparisons. d. profitability. e. symbols.

D Feedback Each of these is an option to consider when positioning a product except profitability.

Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration? Select one: a. When will customers want this product? b. What assortment of products will customers want? c. What prices will customers be willing to pay? d. How likely is it for certain retailers to carry this product? e. What is the appropriate advertising strategy?

D Feedback In choosing retail partners, Natalie must first assess how likely it is for certain retailers to carry the product.

Which of the following details is/are included in the order specification stage of the B2B buying process? Select one: a. the RFP b. bids for supplying the required components or parts c. vendor performance assessment d. prices and delivery dates e. vendor selection

D Feedback In the order specification stage, the buyer places an order that includes a detailed description of the goods, prices, delivery dates, and in some cases, penalties for noncompliance.

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation. Select one: a. lifestyle; macromarketing b. geographic; loyalty c. behavioral; geodemographic d. geodemographic; lifestyle e. micromarketing; loyalty

D Feedback Kim starts by identifying a geodemographic segment (active retirees in a nearby community). She then moves on to design a marketing mix based on the lifestyle of her target market.

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing aNo __________ gap in service quality. Select one: a. knowledge b. standards c. communication d. delivery e. empowerment

D Feedback Saltdust Grill, which ordinarily provides an excellent dining experience, has failed to do so on this occasion, creating a delivery gap (a gap between service standards and actual delivered service).

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation. Select one: a. benefit b. self-concept c. geographic d. psychographic e. behavioral

D Feedback Segmentation based on self-values is a form of psychographic segmentation.

When Ford introduced its Figo in India, it was responding to Select one: a. increased competition in the small car market. b. an increased need for large trucks to accommodate the burgeoning construction trade in India. c. the new middle class in India who prefer status cars. d. India's movement away from small cars. e. the economic and social trends in India toward small cars.

E Feedback A company must continually monitor economic and social trends to protect its position within the market and adjust its products and marketing strategies to meet the changing needs of global markets. In this case, there was a clear trend toward smaller, less expensive cars.

Policing potential violations of human rights and child labor laws is an important component of Select one: a. implementation. b. social responsibility. c. planning. d. control. e. the mission statement.

E Feedback Among the most important controls is policing potential violations of human rights and child labor laws. Deciding to avoid these violations would be an element of implementation, and adding it to the mission statement would take place during the planning phase.

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? Select one: a. McDonald's, lowering prices on its coffee drinks. b. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes. c. Nike, opening hundreds of new company stores in high-traffic shopping areas. d. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. e. 3M Corporation, implementing new software to improve communication with its suppliers.

E Feedback By improving communication with its suppliers, 3M would probably improve efficiency of the supply chain, which is how firms achieve operational excellence. The ability to offer lower prices, as in the McDonald's example, is a potential benefit enjoyed by firms that achieve operational excellence, but lower prices do not help to create operational excellence.

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life. Select one: a. inflationary expectations b. regional cultures c. cultural values d. political affiliations e. purchase behavior

E Feedback Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.

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

E 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.

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of Select one: a. engaging customers, developing long-term relationships. b. advising production on how much product to make. c. synthesizing and interpreting sales, accounting, and customer-profile data. d. alerting the logistics department when to ship products. e. identifying opportunities to expand.

E Feedback Leah was identifying a potential opportunity—the absence of the firm's smartphones from stores in Ecuador.

Marketing channel management is also known as Select one: a. endless chain marketing. b. a transactional orientation. c. product design. d. wholesaling. e. supply chain management.

E Feedback Marketing channel management, also known as supply chain management, is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing system-wide costs and satisfying the service levels required by the customers.

Successful firms focus their efforts on satisfying customer needs that Select one: a. competitors have tried and failed to satisfy. b. are easiest to satisfy. c. are important to all generational cohorts. d. provide minimal core value. e. match their core competencies.

E Feedback The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

The evolution of marketing progressed along the following continuum: Select one: a. sales, marketing, value-based marketing, production. b. value-based marketing, production, sales, marketing. c. marketing, value-based marketing, production, sales. d. sales, value-based marketing, marketing, production. e. production, sales, marketing, value-based marketing.

E Feedback The production-oriented era was followed by the sales-oriented era, then the marketing-oriented era, and finally the value-based marketing era.

A__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. Select one: a. market segment b. transactional orientation c. relational orientation d. promotional plan e. exchange

E Feedback This is the definition of the term "exchange."

Research indicates that positively engaged consumers tend to be Select one: a. younger and poorer than average. b. more critical consumers. c. older and wealthier than average. d. more socially outgoing. e. more profitable consumers.

E Feedback Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks. Such engagement can be negative or positive. Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers.

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

E Feedback Upscale clothing can improve a person's image or make him or her feel a certain way, both of which are examples of psychological needs.

When Barbara realized she didn't have all of the technical information she needed to answer the customer's questions, she made a call to her office. Who would be most likely to provide appropriate assistance? Select one: a. an order taker b. another salesperson c. an order getter d. her sales manager e. sales support personnel

E Sales support personnel enhance and help with the overall selling effort, including providing technical information. A sales manager might be helpful but may not know the technical information required.

In the AIDA model, the do stage is the __________ stage. Select one: a. interest b. desire c. awareness d. intentions e. action

E This is the action stage, the final stage of the AIDA model.

Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his product, as there are a few similar ones on the market. What technique can Darren use to analyze data from his competitors' websites, particularly to learn how people search for similar products online? Select one: a. click-path data b. budget analysis c. social influence d. sentiment analysis e. keyword analysis

E With information obtained from keyword analysis, marketers can refine their websites by choosing keywords to use on their site that their customers use.