Final Exam - Marketing

Which of the following is an example of a zero-level channel? A) A company takes online orders from customers and ships the products to them. B) An organization uses a combination of direct salespeople and sales agencies to increase sales. C) A company sells its products through wholesalers and retailers. D) A company sells its products through chains of supermarkets and other large sellers. E) A large company forms alliances with smaller companies to increase sales coverage.

A) A company takes online orders from customers and ships the products to them.

________ refers to buying large carload lots and dividing them into smaller units before shipping them out to consumers. A) Bulk breaking B) Containerization C) Wholesaling D) Warehousing E) Broking

A) Bulk breaking

________ has overtaken the United States as the world's largest luxury market; it's forecast that one-third of all high-end goods will be sold there in the coming years. A) China B) India C) South Africa D) Brazil E) South Korea

A) China

________ power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power. A) Coercive B) Reward C) Legitimate D) Expert E) Referent

A) Coercive

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes. A) Containerization B) Haulage C) Inventory carrying D) Order processing E) Warehousing

A) Containerization

________ seeks to determine whether an ad is communicating effectively. A) Copy testing B) Flighting C) Pulsing D) Frequency capping E) Square inch analysis

A) Copy testing

In a(n) ________, the buyer announces something he or she wants to buy, and potential sellers compete to offer the lowest price. A) Dutch auction with one buyer and many sellers B) English auction with one buyer and many sellers C) English auction with one seller and many buyers D) sealed-bid auction E) ascending auction

A) Dutch auction with one buyer and many sellers

Which of the following equations accurately describes the total number of exposures (E) of an advertising message through a given medium? A) E = reach × frequency B) E = (reach × frequency) / impact C) E = reach × frequency × impact D) E = (reach + frequency) / impact E) E = frequency / reach

A) E = reach × frequency

_______ price refers to what the consumers feel the product should cost. A) Fair B) Typical C) Usual discounted D) List

A) Fair

________ 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

________ channel conflict occurs between channel members at the same level. A) Horizontal B) Vertical C) Multichannel D) Administrative E) Contractual

A) Horizontal

Which of the following is an example of a brick-and-click company? A) IFB Industries, a company that sells products using various channels such as Internet, retailers, direct outlets, and franchisees. B) Opera, a Web browser and Internet suite developed by Opera Software, performs common tasks such as displaying Web sites and sending and receiving e-mail messages. C) Atrutron, a company that offers its customers access to the Internet using data transmission technology. D) eBay Inc., an American company, facilitates online auctions and shopping to people and businesses across the globe to buy and sell a broad variety of goods and services. E) Yahoo! Inc., an American corporation, provides services via the Internet such as directories, e-mail, news, advertising, online mapping, and so on.

A) IFB Industries, a company that sells products using various channels such as Internet, retailers, direct outlets, and franchisees.

________ advertising aims to create brand awareness and knowledge of new products or new features of existing products. A) Informative B) Corporate C) Reinforcement D) Persuasive E) Reminder

A) Informative

________ branding consists of activities and processes that help inform and inspire employees about brands. A) Internal B) Personal C) Individual D) External E) Co-

A) Internal

Which of the following channels is associated with the lowest cost per transaction? A) Internet B) telemarketing C) retail stores D) distributor E) sales force

A) Internet

Which of the following is a major advantage of adding more channels for selling? A) It helps the company increase its market coverage. B) It helps the company reduce its fixed costs. C) It reduces the likelihood of channel conflict. D) It is the best strategy for selling low-involvement consumer products. E) It results in economies of scale.

A) It helps the company increase its market coverage.

Which of the following is a major disadvantage of using the Internet as a marketing channel? A) It is less effective for complex products. B) It lacks convenience and practicality. C) It cannot be used to reach a wide audience. D) It is considered expensive. E) It causes the company to lose direct contact with customers.

A) It is less effective for complex products.

________ encompass sales forecasting, production planning, and inbound materials transportation. A) Market logistics B) Containerization C) Transportation D) Nonstore retailing E) Wholesaling

A) Market logistics

________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption. A) Marketing channels B) Interstitials C) Communication channels D) Sales territories E) Marketing terrains

A) Marketing channels

________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications. A) Mass customization B) Reverse engineering C) Interoperability D) Backward compatibility E) Benchmarking

A) Mass customization

Which of the following is an example of a category killer? A) PETCO B) Walmart C) Kohl's D) The Limited E) Tesco

A) PETCO

Which company launched Eco-Fina packaging for its water? A) PepsiCo B) Coca-Cola C) SodaStream D) PURE E) Sigg Switzerland

A) PepsiCo

________ 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

________ is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products. A) Public relations B) Advertising C) Sales promotion D) Personal selling E) Direct marketing

A) Public relations

Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool? A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions. B) They incorporate some concession, inducement, or contribution that gives value to the consumer. C) Given their live, real-time quality, public relations tools are more actively engaging for consumers. D) Public relations communications can be prepared to appeal to the addressed individual. E) Public relations tools create an immediate and interactive episode between two or more persons.

A) Public relations can reach prospects who prefer to avoid mass media and targeted promotions.

________ refers to simple exaggerations in advertisements that are not meant to be believed and that are permitted by law. A) Puffery B) Boosterism C) Astroturfing D) Doublethink E) Subliminal advertising

A) Puffery

________ are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop. A) Rebates B) Cents-off deals C) Price packs D) Coupons E) Premiums

A) Rebates

________ contribution lists the changes in income to other company products caused by the introduction of a new product. A) Supplementary B) Dragalong C) Gross D) Cumulative E) Net

A) Supplementary

Which of the following problems is most likely when a company chooses to use a sales agency instead of company salespeople? A) The company will find it difficult to control the sales process. B) They do not take title to goods or negotiate purchases or sales. C) The value-added per sale is the lowest for sales agencies. D) Agencies will pay less attention to customers who buy the most or in large volumes. E) Sales agencies are often difficult to access due to strict contractual obligations

A) The company will find it difficult to control the sales process.

Which of the following is a benefit of franchising for franchisees? A) The franchisee finds it easier to borrow money from financial institutions. B) The franchisee receives ownership of the franchisor's trademark. C) The franchisee must change its operations to suit those of the franchisor. D) The franchisee collects royalty payments from the franchisor. E) The franchisee is paid by the franchisor for being part of the system.

A) The franchisee finds it easier to borrow money from financial institutions.

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget? A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications. B) The percentage-of-sales method views sales as the determiner of communications rather than as the result. C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds. D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending. E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.

A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.

Which of the following is the most complete and accurate description of a pure-click company? A) These are companies that launch a Web site without any previous existence as a firm. B) These firms' business models are based on advertising revenue. C) These are established companies that have an online site for selling products. D) These companies get paid every time a user visits their Web site. E) These companies sell online space to other Web sites and are paid for the service.

A) These are companies that launch a Web site without any previous existence as a firm.

Which of the following ads depict an informational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat. B) The California Milk Processor Board ran the successful "Got Milk?" ad to boost declining sales. C) VW advertised to active, youthful people with its famed "Drivers Wanted" campaign. D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years. E) KFC has marketed its fast-food products under the slogan, "Finger Lickin' Good."

A) Thompson Water Seal can withstand intense rain, snow, and heat.

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality. A) Value B) Going-rate C) Auction-type D) Markup E) Perceived-value

A) Value

Tracy works for a cellular phone company that offers trade-in allowances toward the upgrade of new phones, which is an example of ________. A) a sales promotion B) interactive marketing C) word-of-mouth marketing D) personal selling E) events and experiences

A) a sales promotion

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

A) a subbrand

Which of the following is the most accurate description of a value network? A) a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings B) a system of organizations and resources involved in moving a product from supplier to customer C) an arrangement whereby an organization transforms inputs into finished goods D) a network that allows an organization take the finished products to the end-users E) a communication network that allows an organization to transfer information to end-customers

A) a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

Which of the following is a prepurchase service offered by retailers? A) accepting orders over the telephone B) shipping the product C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet

A) accepting orders over the telephone

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 elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media? A) advertising B) personal selling C) sales promotion D) direct marketing E) public relations

A) advertising

The trade-off approach may be easier to use when there ________. A) are many variables B) are only a few alternatives C) are observers that are biased D) are possible offers that are limited E) is only one highly desirable solution

A) are many variables

Experience-curve pricing ________. A) assumes competitors are weak followers B) allows products to project a high quality image C) is applicable only to manufacturing costs D) focuses on reducing fixed costs E) is generally risk-free

A) assumes competitors are weak followers

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature-friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL are in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here A) attribute listing B) forced relationship analysis C) morphological analysis D) reverse assumption analysis E) mind mapping

A) attribute listing

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption. A) awareness B) investigation C) trial D) innovation E) diffusion

A) awareness

During ________ testing, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements. A) beta B) research C) sales-wave D) alpha E) simulated

A) beta

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message "Nothing else beats this brand"? A) bonding B) relevance C) advantage D) performance E) presence

A) bonding

BENGAY aspirin, Cracker Jack cereal, Frito-Lay lemonade, and Fruit of the Loom laundry detergent are examples where consumers' ________ dictated 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

Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________. A) brand knowledge B) purchase patterns C) demographic characteristics D) income levels E) psychographic characteristics

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) co-brand C) generic brand D) licensed product E) subbrand

A) brand line

Armac Ltd. is a sluice-box manufacturer based in China. A sluice-box is used for gold prospecting. Armac is interested in selling a few of its machines to an American mining company, but it wants 95 percent of the machines' price in gold and the rest in ores recovered by using the machines. This is an example of a ________. A) buyback arrangement B) functional discount C) barter deal D) compensation deal E) sealed bid

A) buyback arrangement

Which of the following media timing factors expresses the rate at which new customers enter the market? A) buyer turnover B) purchase frequency C) media reach D) weighted number of exposures E) advertising impressions

A) buyer turnover

A computer manufacturing company allows customers to place orders online, which they can later pick up from a convenient retail location. Which of the following terms best represents this practice? A) channel integration B) mass customization C) online personalization D) push strategy E) internal marketing

A) channel integration

Which of the following is an example of a word-of-mouth marketing communication platform? A) chat rooms B) billboards C) factory tours D) incentive programs E) trade shows

A) chat rooms

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind. Consumer expectations about the level of involvement and commitment are likely to be high, so unsatisfactory performance could be very negative for the brands involved. A) co-branding B) cannibalization C) vertical integration D) disintermediation E) brand stretching

A) co-branding

Which of the following types of power is objectively observable? A) coercive power B) legitimate power C) group power D) expert power E) referent power

A) coercive power

Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models? A) cognitive stage — affective stage — behavioral stage B) affective stage — cognitive stage — behavioral stage C) behavioral stage — affective stage — cognitive stage D) cognitive stage — behavioral stage — affective stage E) affective stage — behavioral stage — cognitive stage

A) cognitive stage — affective stage — behavioral stage

A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand. A) community B) channel C) association D) personality E) cluster

A) community

Which of the following covers payment terms and producer guarantees? A) conditions of sale B) pricing policies C) exclusive dealings D) mutual services E) territorial rights

A) conditions of sale

M-commerce refers to ________. A) conducting business using mobile channels B) the use of mass media communications to attract customers C) providing mobile and on-site services to customers D) the use of a specific medium to communicate with prospects E) using the Internet as a medium for doing business

A) conducting business using mobile channels

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) consistency B) depth C) width D) length E) composition

A) consistency

A producer must modify its channel design and arrangements if ________. A) consumer buying patterns change B) the competition in the market stabilizes C) the product is in the growth stage of its life cycle D) the market size remains unchanged for a particular period E) the firm's profits stabilize

A) consumer buying patterns change

Which of the following is a sales promotion tool that typically does NOT build brand image? A) consumer refund offers B) free samples C) premiums related to the product D) frequency awards E) coupons that include a selling message

A) consumer refund offers

Which of the following entities is present in a zero-level marketing channel? A) consumers B) retailers C) brokers D) jobbers E) wholesalers

A) consumers

The way the user performs the tasks of getting and using products and related services is the user's total ________. A) consumption system B) consumable system C) consistent use system D) augmented system E) potential system

A) consumption system

A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk that are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing systems can be observed here? A) contractual B) corporate C) administered D) controlled E) regulatory

A) contractual

A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership. A) corporate B) administered C) contractual D) regulatory E) controlled

A) corporate

When a public relations department of a company advises management about public issues, and company positions and image during good times and bad, it is performing the function of ________. A) counseling B) corporate communications C) product publicity D) lobbying E) press relations

A) counseling

Madame Tussaud's wax museum is a popular tourist attraction in London. The museum charges higher entry rates for tourists compared to locals. This form of price discrimination is known as ________ pricing. A) customer-segment B) image C) location D) special customer E) special event

A) customer-segment

A company does not set a final price until the product is finished or delivered. This is known as ________. A) delayed quotation pricing B) an escalator clause C) special-event pricing D) time pricing E) the shallow-pockets trap

A) delayed quotation pricing

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning. A) demand chain B) resource C) external channel D) materials E) strategic business

A) demand chain

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

Which of the following products is most likely to be sold using an exclusive distribution strategy? A) designer luggage B) cigarettes C) alcoholic beverages D) car fuel E) medicine

A) designer luggage

In your neighborhood there is a small men's store that has a limited selection of clothing, but the selection that is carried is of very high quality and price. Services include free alterations and tailoring, personalized recordkeeping, and free dry cleaning. Inside the store are deep leather chairs and couches and thick pile carpet. Upon entering the store, a customer feels "special and rich." In terms of differentiation, what is this retailer trying to communicate by its decorations and service level? A) differentiation based on services mix and atmosphere B) differentiation based on prepurchase services C) differentiation based on postpurchase services and atmosphere D) differentiation based on ancillary services and atmosphere E) differentiation based on prepurchase and postpurchase services

A) differentiation based on services mix and atmosphere

Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in non-deal regions? A) diverting B) panic buying C) hoarding D) stockpiling E) forward buying

A) diverting

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

RX Corp. is a large manufacturer of electronic goods and sells its products through distributors and retailers. In order to keep pace with the growing use of the Internet, the company decides to start selling online. The company faces stiff opposition from its retailers as they believe that this will significantly reduce their profits. The company attempts to eliminate this resistance by offering its retailers commissions for processing and delivering orders received via the Web. This is an example of which of the following conflict resolution strategies? A) dual compensation B) joint membership C) arbitration D) co-optation E) strategic pricing

A) dual compensation

Who will most likely be willing to pay for high-value-added channels? A) early buyers of a product B) internal customers of a company C) small and matured buyers of an industry D) consumers of low involvement products E) repeat customers of a product

A) early buyers of a product

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

General Motors' executives work for a short time in some dealerships, and some dealership owners work in GM's dealer policy department. This strategy helps the company avoid conflicts with its dealers. This is an example of the ________ strategy. A) employee exchange B) dual compensation C) joint membership D) co-optation E) diplomacy

A) employee exchange

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

The challenge for marketers in building a strong brand is ________. A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge B) pricing the product at a point that maximizes sales volume C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience D) minimizing the impact of customer brand equity E) avoiding the usage of an established brand to introduce a new product in the market

A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge

A retailer who utilizes a(n) ________ policy charges a constant low price with little or no price promotions and special sales. A) everyday low pricing B) high-low pricing C) low cost D) going-rate pricing E) auction-type pricing

A) everyday low pricing

Which of the following types of distribution involves severely limiting the number of channel intermediaries? A) exclusive B) selective C) intensive D) aggressive E) retail

A) exclusive

Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description? A) expert channel B) formal channel C) social channel D) sponsored channel E) advocate channel

A) expert channel

Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure. A) form B) prototype C) architecture D) model E) blueprint

A) form

Which of the following types of retailing generally entails the highest costs? A) full-service B) self-service C) limited-selection D) limited service E) self-selection

A) full-service

A manufacturer wants to achieve rapid market penetration through a low-price policy. However, the manufacturer's dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________. A) goal incompatibility B) unclear roles C) ambiguous rights D) differences in perception E) dependence on the manufacturer

A) goal incompatibility

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

Which of the following is a disadvantage of using television as an advertising medium? A) high absolute cost B) low audience attention C) lack of reach among audience D) high audience selectivity E) absence of clutter

A) high absolute cost

Which of the following is an advantage of using television as an advertising medium? A) high attention and reach B) low absolute cost C) absence of clutter D) long duration of ad exposure E) high audience selectivity

A) high attention and reach

Which of the following is a disadvantage of using Yellow Pages as an advertising medium? A) high competition B) poor local market coverage C) low believability D) lack of adequate reach E) high total costs

A) high competition

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

Which of the following is an advantage of using magazines as an advertising medium? A) high-quality reproduction B) short ad purchase lead time C) high efficiency in circulation D) no ad competition in same medium E) low cost of advertising

A) high-quality reproduction

A firm uses its sales force to sell to large accounts and outbound telemarketing to sell to medium-sized accounts. The firm is using ________ marketing. A) hybrid B) pull C) personalized D) vertical E) internal

A) hybrid

The stage in the new product process that occurs first and has a pass ratio of 1:4 is the ________ stage. A) idea screening B) product development C) test marketing D) product soft launch E) concept testing

A) idea screening

With respect to the "six brand building blocks," brand ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs. A) imagery B) judgment C) resonance D) salience E) performance

A) imagery

Co-optation is an effort by one organization to win the support of the leaders of another by ________. A) including them in advisory councils B) engaging in mediation and arbitration C) encouraging joint memberships in trade associations D) encouraging employee exchanges E) offering strategic justifications

A) including them in advisory councils

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product. A) incremental B) continuous C) spontaneous D) radical E) competitive

A) incremental

Exxon Consulting works as an agent on behalf of business consumers to collect information on various industrial products. When faced with buying decisions, businesses can approach Exxon to obtain detailed information on the various options available to them. The company earns revenue by selling such information to various customers. Exxon Consulting can be called a(n) ________. A) infomediary B) market maker C) customer community D) third party arbitrator E) informant

A) infomediary

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________. A) innovators B) early adopters C) early majority D) investigators E) experimenters

A) innovators

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process. A) interest B) awareness C) evaluation D) trial E) adoption

A) interest

Beyond the optimal order quantity, total cost per unit increases because ________. A) inventory-carrying cost per unit increases B) inventory-carrying cost per unit decreases C) order-processing cost per unit increases D) order-processing cost per unit increases though inventory cost decreases E) inventory-processing cost per unit falls slowly

A) inventory-carrying cost per unit increases

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________. A) lateral marketing B) brand extension C) market development D) internal marketing E) brand personification

A) lateral marketing

Which of the following channel conflict resolution techniques is used only if everything else proves ineffective? A) legal recourse B) mediation C) arbitration D) co-optation E) superordinate goals

A) legal recourse

In second-degree price discrimination, the seller charges ________. A) less to buyers of larger volumes B) different prices depending on the season, day, or hour C) a separate price to each customer depending on the intensity of his or her demand D) different prices for different versions of the same product E) different prices for the same product depending on the channel through which it is sold

A) less to buyers of larger volumes

Qualities such as candor, humor, and naturalness make a spokesperson ________, which is an important component of spokesperson credibility. A) likable B) an expert C) trustworthy D) transformational E) informational

A) likable

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

Which of the following is an example of a public relations and publicity communication platform? A) lobbying B) company museums C) street activities D) company blogs E) incentive programs

A) lobbying

Most retailers will put low prices on some items in order to increase traffic to the store. These low-priced products are known as ________. A) loss leaders B) price ceilings C) price skimmers D) price floors E) cold calls

A) loss leaders

Companies who believe that higher sales volume leads to lower unit costs and higher long-run profits are attempting to ________. A) maximize their market share B) skim the market C) become a product-quality leader D) merely survive in the market E) maximize their current profits

A) maximize their market share

The ________ creativity technique begins with a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally a new idea materializes by associating all of the thoughts. A) mind mapping B) contextual analysis C) attribute listing D) reverse assumption analysis E) morphological analysis

A) mind mapping

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) cross-promotion D) captive pricing E) two-part pricing

A) mixed bundling

Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. A) nondurable goods B) durable goods C) services D) unsought goods E) specialty goods

A) nondurable goods

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need? A) normal depletion B) sensory gratification C) social approval D) intellectual stimulation E) value enhancement

A) normal depletion

An item described as low-risk and low-opportunity is a ________. A) nuisance item B) bottleneck item C) variable item D) critical item E) commodity

A) nuisance item

Identify the channel function that constitutes both backward and forward flow. A) obtaining funds for financing B) storage of physical goods C) persuasive communication D) movement of physical goods E) overseeing actual transfer of ownership

A) obtaining funds for financing

A factory outlet is an example of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog

A) off-price

Bill and Josh are considering opening a retail store. They have identified their target market and location and are finalizing the details of the merchandise they will carry. Since the neighborhood is rundown and the customers in the area are very price-conscious, Bill and Josh want to offer goods from well-known brands, but at lower rates than the full retail prices of the products. They choose to stock excess production from manufacturers or goods that have remained unsold at other retailers. This is a description of a(n) ________ retailer . A) off-price B) specialty C) discount D) department E) catalog

A) off-price

Moonburst is a newly launched brand of energy drinks, one among many other recently introduced competing brands. The advertising agency handling Moonburst's account decides that to better promote Moonburst, it has to zero in on an advertising medium that would offer immunity from the clutter of other brands, flexibility to alter its advertising message, and the ability to fit in with the modest advertising budget. Also, the medium has to provide a high repeat exposure of the advertising message to the target audience. The advertising agency would be happy to trade-off audience selectivity and creative possibilities if the medium satisfies the above criteria. Which of the following would be the best option for Moonburst? A) outdoor media B) radio C) magazines D) television E) Yellow Pages

A) outdoor media

Costs that do not vary with production levels or sales revenue are known as ________ costs. A) overhead B) variable C) average D) opportunity E) total

A) overhead

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

Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference? A) performance and imagery B) judgment and feelings C) resonance and salience D) imagery and judgment E) salience and feelings

A) performance and imagery

Which of the following marketing communications tools is most effective at the later stages of the buying process? A) personal selling B) public relations C) advertising D) sales promotions E) direct marketing

A) personal selling

According to researchers, which of the following is the correct order in which content of print advertisements matter? A) picture-headline-copy B) copy-picture-headline C) headline-copy-picture D) picture-copy-headline E) copy-headline-picture

A) picture-headline-copy

Consumer surveys suggest that one of the most significant inhibitors of online shopping is the absence of ________. A) pleasurable experiences B) competitive prices C) adequate technical information D) after-sales service E) facilities to compare offerings

A) pleasurable experiences

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case? A) poor launch timing of the product B) a small and fragmented target market C) high cost of development D) social and economic constraints E) hasty product development

A) poor launch timing of the product

Which of the following is an example of an advertising platform? A) posters and leaflets B) company magazines C) fairs and trade shows D) sales presentations E) continuity programs

A) posters and leaflets

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

Exclusive dealing arrangements are mainly used by companies looking for an edge in markets increasingly driven by ________. A) price B) efficiency C) product variety D) add-on services E) spatial convenience

A) price

If consumers were largely indifferent to a $0.05 increase in the price of a gallon of milk, the price rise is said to fall within customers' ________. A) price indifference band B) experience curve C) arm's-length price D) learning curve E) net price index

A) price indifference band

Consumers are less price sensitive when ________. A) price is only a small part of the total cost spent on the product over its lifetime B) they perceive the higher prices to be unjustified C) they change their buying habits regularly D) there are many substitutes and competitors in the market E) they are buying high-cost items

A) price is only a small part of the total cost spent on the product over its lifetime

Which of the following consumer promotion tools refers to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period? A) product warranties B) coupons C) free trials D) rebates E) patronage awards

A) product warranties

Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ multiplier of the brand value chain. A) program B) brand C) market D) customer E) profit

A) program

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

An Internet service provider (ISP) is a(n) ________ company. A) pure-click B) brick and click C) brick-and-mortar D) m-commerce E) one-level

A) pure-click

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________. A) quality function deployment B) quality control processes C) rapid prototyping D) marketing control E) control system formation

A) quality function deployment

Which of the following strategies 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

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer," targeted at youth. However, the new line is not well received by the market, and sales fail to take off even three months after its launch. Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power. A) referent B) passive C) legitimate D) coercive E) reward

A) referent

Hewlett-Packard is a highly respected brand. Many retailers want to be associated with the brand because of this reputation. What kind of power does Hewlett-Packard obtain due to this reputation? A) referent B) functional C) legitimate D) coercive E) reward

A) referent

Which of the following is NOT one of the four important contributions an effectively trained company sales force can make to consumer marketing? A) remind end-consumers about the product B) increase stock position C) build enthusiasm D) conduct missionary selling E) manage key accounts

A) remind end-consumers about the product

As inventory draws down, management must know at what stock level to request additional stock. This stock level is called the ________. A) reorder point B) least fixed point C) point of divergence D) inflection point E) critical point

A) reorder point

A manufacturer is using legitimate power when it ________. A) requests a behavior that is warranted under the selling contract B) threatens to withdraw a resource or terminate a relationship C) offers intermediaries an extra benefit for performing specific acts or functions D) makes the intermediaries sell more of a particular product by offering rewards E) sells more products by making use of its reputation in the market

A) requests a behavior that is warranted under the selling contract

A group of small sellers takes the initiative and organizes a new business entity to carry on wholesaling and possibly some production. This entity is called a(n) ________. A) retailer cooperative B) franchise organization C) area-based cartel D) sponsored voluntary chain E) alternate selling channel

A) retailer cooperative

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power. A) reward B) coercive C) functional D) expert E) referent

A) reward

Which of the following channel alternatives is most suited to handle complex products and transactions? A) sales forces B) the Internet C) dealers D) telemarketers E) direct mails

A) sales forces

Which of the following is an example of a personal selling communication platform? A) sales presentations B) company blogs C) telemarketing D) TV shopping E) press kits

A) sales presentations

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution. A) selective B) intensive C) exclusive D) internal E) passive

A) selective

Atburex is a furniture manufacturing company in the United States. The company provides a 60-day credit period and also offers on-site delivery and installation. These special benefits refer to which of the following service outputs? A) service backup B) large product variety C) spatial convenience D) large lot size E) short waiting time

A) service backup

Which of the following terms refers to add-on services such as credit, delivery, installation, and repairs, and is provided by a marketing channel? A) service backup B) product accessories C) external products D) product variety E) service extensions

A) service backup

A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________. A) skunkworks B) idea funnels C) research centers D) stage-gate systems E) contextual bases

A) skunkworks

A jobber in a three-level marketing channel is a(n) ________. A) small-scale wholesaler B) external broker C) advertising agent D) independent evaluator E) communication channel

A) small-scale wholesaler

Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage? A) spatial convenience B) service backup C) lot size D) waiting time E) delivery time

A) spatial convenience

A ________ process recognizes the value of returning to an earlier stage to make improvements before moving forward. A) spiral development B) reactive development C) market testing D) proactive development E) concept testing

A) spiral development

According to BrandAsset® Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value. A) stature B) parity C) strength D) personality E) architecture

A) stature

A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. A) stock-keeping unit B) inventory turn C) individual brand D) product type E) brand line

A) stock-keeping unit

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on. A) survival-age distribution B) life-cycle ratio C) obsolescence rate D) business turnover ratio E) product-performance usage

A) survival-age distribution

When ConAgra foods decided to cut $250 million in costs to return to a $1 price point (after sales dropped as a result of raising prices $0.25 to cover higher commodity costs), it was using ________. A) target costing B) experience-curve pricing C) ceiling pricing D) the learning curve E) promotional price elasticities

A) target costing

Which of the following is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers at low cost per exposure? A) television B) radio C) newspapers D) magazines E) billboards

A) television

The hallmark of an optimal brand portfolio is ________. A) the ability of each brand to maximize equity in combination with all the other brands in it B) the ability of each brand to maximize its individual equity in isolation C) maximum brand overlap D) the eventual reduction of brand differentiation to create a unified brand appearance E) maximum internal competition within the firm

A) the ability of each brand to maximize equity in combination with all the other brands in it

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

A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________. A) the brand value chain B) the brand portfolio C) the brand life cycle D) brand partitioning E) brand positioning

A) the brand value chain

The common denominators of luxury brands are quality and ________. A) uniqueness B) practicality C) global appeal D) contemporary E) goodwill

A) uniqueness

Companies may wish to implement a(n) ________ to achieve more growth, to realize higher margins, or simply to position themselves as full-line manufacturers. A) up-market stretch B) rebranding plan C) outsourcing strategy D) disintermediation policy E) vertical integration strategy

A) up-market stretch

Creative strategies refer to the ________. A) way marketers translate their messages into a specific communication B) amount of creative content in a communications message C) degree of innovation involved in the marketing of a product D) novelty of a marketing communication E) type of medium used to deliver a marketing communication

A) way marketers translate their messages into a specific communication

A merchant is a(n) ________ in the marketing channel. A) wholesaler B) broker C) sales agent D) warehouse E) advertising agency

A) wholesaler

Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of ________. A) zero-level channels B) jobbers C) wholesalers D) manufacturer's representatives E) consumers

A) zero-level channels

46) ________ cost is the cost per unit at that level of production; it equals total costs divided by production. A) Target B) Average C) Marginal D) Opportunity E) Fixed

B) Average

________ brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand. A) Mission-driven B) Customer-based C) Product-driven D) Service-driven E) Function-based

B) Customer-based

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements. A) Conformance B) Design C) Performance D) Reliability E) Style

B) Design

________ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she claims to possess. A) Trustworthiness B) Expertise C) Acquaintance D) Likability E) Professionalism

B) Expertise

________ 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

________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. A) Brand engagement B) Integrated marketing communications C) Market research D) Customerization E) Marketing research

B) Integrated marketing communications

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.

_______ refers to the means by which firms attempt to inform, persuade, and remind consumers — directly or indirectly — about the products and brands they sell. A) Human resource development B) Marketing communications C) Financial management D) Operations management E) Planning

B) Marketing communications

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 a positive customer 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 a positive customer brand equity

The brand promise for ________ is "the product you buy is of highest esteem, based on its timeliness, elegant design and the high quality, which is derived from the excellence of our craftsmen." A) Hermés B) Montblanc C) Patrón D) Sub-zero Refrigerators E) Armani

B) Montblanc

________ is the number of times the average buyer buys a product during the period. A) Buyer turnover B) Purchase frequency C) Customer retention rate D) Advertising impressions E) Total number of exposures

B) Purchase frequency

________ is a measure of communications effectiveness that describes the percentage of target market exposed to a communication. A) Frequency B) Reach C) Width D) Depth E) Range

B) Reach

________ includes all the activities in selling goods or services directly to final consumers for personal, non-business use. A) Wholesaling B) Retailing C) Procurement D) Promoting E) Warehousing

B) Retailing

________ 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 NOT one of the guidelines for managing luxury brands? A) Besides brand names, other brand elements — logos, symbols, packaging, signage — can be important drivers of brand equity for luxury products. B) Secondary associations from linked personalities, events, countries, and other entities should be avoided. C) Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns. D) All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences. E) Luxury brands must carefully control distribution via a selective channel strategy.

B) Secondary associations from linked personalities, events, countries, and other entities should be avoided.

________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products. A) Stage-gate systems B) Skunkworks C) Funnels D) Opportunity spaces E) Research centers

B) Skunkworks

________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy. A) Design B) Style C) Durability D) Conformance E) Reliability

B) Style

Which of the following is an example of direct marketing? A) E&OE sells its herbal skincare products exclusively through its standalone stores. B) TCJ is a telemarketing firm that sells products from a number of different suppliers. C) Jayne's sells most of its products to customers through home sales parties. D) J3 is a storeless retailer that organizes the retail activity of the employees of four firms. E) Reynold's tries to minimize its staff costs by installing vending machines in its stores.

B) TCJ is a telemarketing firm that sells products from a number of different suppliers.

Which of the following is true for self-service retailing? A) They carry more shopping goods and services such as credit and merchandise-return privileges. B) This service model is favored by discount stores and customers who want to save money. C) It results in high staffing costs compared to other forms of retailing. D) Salespeople are ready to assist in every phase of the "locate-compare-select" process. E) Customers need more information and assistance than in other forms of retailing.

B) This service model is favored by discount stores and customers who want to save money.

________ teams are cross-functional groups charged with developing a specific product or business. A) Virtual B) Venture C) Fundamental D) Elemental E) Transitory

B) Venture

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

B) Warranties

________ includes all the activities in selling goods or services to those who buy for resale or business use. A) Retailing B) Wholesaling C) Procurement D) Promoting E) Warehousing

B) Wholesaling

Which of the following is true regarding price elasticity? A) The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction. B) Within the price indifference band, price changes have little or no effect on demand. C) If demand is elastic, sellers will consider increasing the price. 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) Within the price indifference band, price changes have little or no effect on demand.

Which of the following is NOT one of the possible consumer reference prices? A) typical price B) actual future price C) last price paid D) expected future price E) upper-bound price

B) actual future price

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming. A) corporate B) administered C) contractual D) regulatory E) controlled

B) administered

Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness? A) sales promotion and advertising B) advertising and personal selling C) publicity and personal selling D) reminder advertising and publicity E) sales promotion and personal selling

B) advertising and personal selling

Gabrielle is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Gabrielle and Trent use to arrive at the marketing communications budget? A) objective-and-task method B) affordable method C) competitive-parity method D) activity-based method E) percentage-of-sales method

B) affordable method

A(n) ________ is an extra payment designed to gain reseller participation in special programs. A) seasonal discount B) allowance C) discount D) quantity discount E) functional discount

B) allowance

When a company requires customers to pay today's price and all or part of any inflation increase that takes place before delivery, it is known as ________. A) special-customer pricing B) an escalator clause C) delayed quotation pricing D) unbundling E) time pricing

B) an escalator clause

Which of the following auctions is characterized by one seller and many buyers? A) Walrasian auctions B) ascending bid auctions C) closed auctions D) sealed-bid auctions E) reverse auctions

B) ascending bid auctions

As a service output produced by marketing channels, product variety refers to the ________. A) units the channel permits a customer to purchase at once B) assortment provided by the marketing channel C) add-on services provided by the channel D) ability of a product to provide incremental value E) degree to which the channel makes it easy for customers to purchase a product

B) assortment provided by the marketing channel

Marketers must see themselves as benefit providers. For example, 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

Which of the following is considered a wholesaler? A) retailers B) brokers C) producers D) manufacturers E) farmers

B) brokers

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

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer," targeted at youth. However, the new line is not well received by the market, and sales fail to take off even three months after its launch. A) reward B) coercive C) legitimate D) expert E) referent

B) coercive

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________. A) divisibility B) communicability C) compatibility D) relative advantage E) plainness

B) communicability

The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services. A) marketing budget B) communications audit C) market research program D) publicity campaign E) product launch

B) communications audit

A Japanese firm is ready to sell its recent technological innovation to the US 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 US government. A) functional discount B) compensation deal C) buyback arrangement D) offset agreement E) barter deal

B) compensation deal

Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth. The company provides a one-year warranty on all products and also allows customers to pay in installments — they pay 50 percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"? A) price policy B) conditions of sale C) distributors' territorial rights D) exclusive dealings E) mutual services and responsibilities

B) conditions of sale

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

Universal Services Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern England. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in this scenario? A) virtual reality testing B) conjoint analysis C) perceptual mapping D) product fabrication E) rapid prototyping

B) conjoint analysis

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers. A) gap level analysis B) conjoint analysis C) perceptual mapping D) concept testing E) morphological analysis

B) conjoint analysis

Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool? A) consumption aid B) consumer affluence C) consumer influence D) conformance qualities E) brand identification

B) consumer affluence

How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider. A) value proposition B) consumption system C) value system D) quality perception E) value chain

B) consumption system

A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. A) administered B) contractual C) corporate D) regulated E) referent

B) contractual

What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications? A) lobbying B) corporate communications C) press relations D) product publicity E) counseling

B) corporate communications

Competitive superiority and channel support are factors that influence the ________ multiplier of the brand value chain. A) program B) customer C) brand D) profit E) market

B) customer

The key to perceived-value pricing is to ________. A) reengineer the company's operations B) deliver more unique value than competitors C) adopt subtle marketing tactics compared to competitors D) deliver more value but at a lower cost E) invest heavily in advertising in order to convey superior value

B) deliver more unique value than competitors

A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has high ________. A) consistency B) depth C) intensity D) range E) width

B) depth

Stores are using ________ to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store. A) electronic data interchange (EDI) B) direct product profitability (DPP) C) radio-frequency identification (RFID) D) global positioning systems (GPS) E) compounded annual grown rate (CAGR)

B) direct product profitability (DPP)

Which of the following is a medium of visual identity for a company? A) annual reports B) dress codes C) press releases D) seminars E) trade shows

B) dress codes

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

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

B) elastic

Brand ________ is the added value endowed to products and services. A) loyalty B) equity C) preference D) identity E) licensing

B) equity

Starbucks uses social-media engagement to respond, listen to and connect with fans, which is important to them because it builds loyalty, which is one aspect of the ________ pillar of the BrandAsset® Valuator. A) energized differentiation B) esteem C) relevance D) knowledge E) strength

B) esteem

Becoming part of a personally relevant moment in consumers' lives through ________ can broaden and deepen a company or brand's relationship with the target market. A) advertisements B) events and experiences C) sales promotions D) public relations E) direct marketing efforts

B) events and experiences

Stacey wants to use a highly relevant, engaging, and implicit communications mix mode to use a "soft sell" approach for her new makeup line. The communications mix mode that has these characteristics is ________. A) sales promotions B) events and experiences C) advertising D) direct and interactive marketing E) personal selling

B) events and experiences

JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a program in association with the Food4Kids Foundation, which raises funds to promote nutritional awareness of young children. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Food4Kids logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program? A) entertaining key clients or rewarding key employees B) expressing commitment to the community or on social issues C) permitting merchandising or promotional opportunities D) stimulating quicker or greater purchase of particular brands E) identifying with a particular target market or lifestyle

B) expressing commitment to the community or on social issues

Aldi, Lidl, Dollar General, and Family Dollar are examples of ________, as they carry a more restricted merchandise mix than discount stores at even lower prices. A) off-price retailers B) extreme value stores C) superstores D) convenience stores E) specialty stores

B) extreme value stores

While shopping at the mall, Jane was asked by one of the sales representatives at the cosmetics counter to try out a new lipstick that her company was test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using? A) usual discounted price B) fair price C) maximum retail price D) last price paid E) historical competitor price

B) fair price

The number of times within a specified time period that an average person or household is exposed to an advertising message is known as ________. A) impact B) frequency C) amplitude D) reach E) depth

B) frequency

If a producer wants to achieve rapid market penetration through a low-price policy, while a dealer wants to work with high margins to pursue short-run profitability, the source of the channel conflict is ________. A) unclear roles and rights B) goal incompatibility C) differences in perception D) intermediaries' dependence on the manufacturer E) strategic justification

B) goal incompatibility

Which of the following is an advantage of using Yellow Pages as an advertising medium? A) low competition B) high believability C) short ad purchase lead time D) greater scope for creativity E) lack of clutter

B) high believability

Which of the following is a disadvantage of using newsletters as an advertising medium? A) low audience selectivity B) high chances of runaway costs C) lack of adequate control D) relatively high costs E) lack of interactive possibilities

B) high chances of runaway costs

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

What goods are similar in quality but different enough in price to justify shopping comparisons? A) emergency goods B) homogeneous shopping goods C) heterogeneous shopping goods D) specialty goods E) convenience goods

B) homogeneous shopping goods

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

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 kind of pricing is the company depending on? A) going-rate pricing B) image pricing C) market-skimming pricing D) target pricing E) markup pricing

B) image pricing

Which of the following is a disadvantage of using the Internet as an advertising medium? A) limited audience selectivity B) increasing clutter C) lack of interactive possibilities D) relatively high costs involved E) fleeting ad exposure time

B) increasing clutter

Which of the following products is most likely to undergo alpha and beta testing? A) food products B) industrial goods C) consumer products D) commodities E) FMCG products

B) industrial goods

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits. A) aesthetic B) informational C) bandwagon D) emotional E) transformational

B) informational

Betty Crocker cake mixes using Hershey syrup in its mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding? A) family branding B) ingredient co-branding C) co-branding D) generic branding E) individual branding

B) ingredient co-branding

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history. A) commodity B) innovation C) adoption D) invention E) novel product

B) innovation

Brand salience ________. A) is customers' emotional responses and reactions with respect to the brand B) is how often and how easily customers think of the brand under various purchase or consumption situations C) is how well the product or service meets customers' functional needs D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it

B) is how often and how easily customers think of the brand under various purchase or consumption situations

Increasingly, new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering. A) reverse assumption analysis B) lateral marketing C) attribute listing D) forced relationships E) morphological analysis

B) lateral marketing

The ________ of the product mix refers to the total number of items in the mix. A) width B) length C) depth D) breadth E) range

B) length

Which of the following is a disadvantage of using magazines as an advertising medium? A) low geographic and demographic selectivity B) long ad purchase lead time C) low-quality reproduction D) small "pass-along" readership E) lack of credibility

B) long ad purchase lead time

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

A company that is looking to maximize its market share would do well to follow ________ pricing. A) markup B) market-penetration C) market-skimming D) survival E) target-return

B) market-penetration

When a company introduces a product at a high price and then gradually drops the price over time, it is pursuing a ________ strategy. A) market-penetration pricing B) market-skimming pricing C) value-pricing D) switching cost E) loss-leader pricing

B) market-skimming pricing

In a retailer cooperative, ________.' A) profits are equally divided among members B) members plan their advertising jointly C) nonmembers cannot buy through the co-op D) members rely on distribution programming E) members standardize their selling practices

B) members plan their advertising jointly

Companies that sell products door-to-door or at home sales parties are engaging in ________. A) franchising B) network marketing C) direct-response marketing D) corporate selling E) direct marketing

B) network marketing

Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication? A) negative feedback B) noise C) attenuation D) phase lag E) selective distortion

B) noise

1) An advertising ________ is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. A) medium B) objective C) channel D) budget E) copy

B) objective

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

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 most effective communications mix tool at later stages of the buying process is ________ because it is particularly effective at building buyer preference, conviction, and action. A) sales promotions B) personal selling C) advertising D) direct and interactive marketing E) events

B) personal selling

Which of the following channel functions constitute only a backward flow? A) movement of physical goods B) placing orders with manufacturers C) persuasive communication D) storage of physical goods E) overseeing actual transfer of ownership

B) placing orders with manufacturers

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 the question "Do I know about this brand?" A) relevance B) presence C) performance D) advantage E) bonding

B) presence

If the shipper owns its own truck or air fleet, it becomes a ________ carrier. A) containerized B) private C) contract D) common E) diversified

B) private

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

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

The popular music talent show American Idol has been generally acknowledged as the most profitable TV series in US history, in terms of advertising and merchandising revenue. Major sponsors of the show include Coca-Cola, AT&T Wireless, and iTunes, among others. Cups bearing the Coca-Cola logo were a prominent prop found on the show's judges' tables. The show also urged viewers to vote for contestants using AT&T's sms service. Contestants were routinely shown rehearsing for their performances with the help of Apple iPods. Which of the following advertising practices is apparent in this example? A) ambush advertising B) product placement C) angel dusting D) co-branding E) subliminal advertising

B) product placement

Which of the following activities is a reverse-flow channel of marketing? A) raw materials movement B) product recycling C) materials ordering D) finished goods storage E) customer order placement

B) product recycling

When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low, average, and high, based upon performance and features. This is an example of what type of product-mix pricing? A) two-part pricing B) product-line pricing C) captive product pricing D) market pricing skimming E) price discrimination

B) product-line pricing

Product-line analysis provides information for two key decision areas: product-line length and ________. A) product-class composition B) product-mix pricing C) product pricing D) popular pricing E) product-need family

B) product-mix pricing

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

Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) direct marketing B) public relations and publicity C) personal selling D) advertising E) sales promotion

B) public relations and publicity

Total Beverages, a maker of fruit juices and health drinks, recently launched a new brand of packaged drinking water called AquaPure. In order to induce distributors to carry the product, Total offers all its intermediaries a free refrigerator to store bottles of AquaPure. This is an example of a ________. A) consumer promotion B) push strategy C) backward flow D) reverse flow E) pull strategy

B) push strategy

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

Modern firms use the ________ tool to design products on a computer and then produce rough models to show potential consumers for their reactions. A) morphological analysis B) rapid prototyping C) concept testing D) perceptual mapping E) conjoint analysis

B) rapid prototyping

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

Five characteristics influence the rate of adoption of an innovation. One of these is ________. A) marketing expertise B) relative advantage C) packaging attractiveness D) government regulations E) place of value exchange

B) relative advantage

According to the BrandAsset® Valuator model, which of the components of brand equity measures the breadth of a brand's appeal? A) differentiation B) relevance C) esteem D) knowledge E) value

B) relevance

Which of the following levels of the BrandDynamics Pyramid pertains to consumer's needs? A) advantage B) relevance C) bonding D) performance E) presence

B) relevance

The "Got Milk" campaign was intended to boost sagging milk consumption among Californians in the 1990s. The campaign ads highlighted the inconvenience of running out of milk when intended to be used with certain foods, such as cookies or muffins, advising consumers to stock up on milk to avoid such inconveniences. The "Got Milk?" campaign is an example of ________ advertising. A) informational B) reminder C) institutional D) comparative E) reinforcement

B) reminder

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named "Inducer," targeted at youth. However, the new line is not well received by the market, and sales fail to take off even three months after its launch. In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power. A) coercive B) reward C) passive D) expert E) referent

B) reward

Which marketing channel is associated with the highest value added per sale? A) retail stores B) sales force C) distributors D) Internet E) telemarketing

B) sales force

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

In the ________ type of retailing, customers usually find their own goods, although they can ask salespeople for assistance. A) self-service B) self-selection C) full-service D) limited service E) limited-selection

B) self-selection

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car? A) problem removal B) sensory gratification C) normal depletion D) intellectual stimulation E) problem avoidance

B) sensory gratification

Because shelf space is scarce, many supermarkets now charge a ________ for accepting a new brand, to cover the cost of listing and stocking it. A) retainer B) slotting fee C) residual fee D) contingent fee E) royalty

B) slotting fee

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need? A) problem removal B) social approval C) normal depletion D) problem avoidance E) incomplete satisfaction

B) social approval

Agricultural assemblers, petroleum bulk plants and terminals, and auction companies are examples of ________. A) full-service wholesalers B) specialized wholesalers C) limited-service wholesalers D) merchant wholesalers E) brokers

B) specialized wholesalers

E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through standalone stores as well as an online portal. E&OE is a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) extreme value

B) specialty

Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors' prices, is known as ________. A) overhead costing B) target costing C) activity-based costing D) benefit analysis E) estimate costing

B) target costing

Using the push strategy is most appropriate when ________. A) consumers are able to perceive differences between brands B) the product being sold is an impulse item C) there is high brand loyalty for the product D) the product is a high involvement purchase E) consumers choose the brand before they go to the store

B) the product being sold is an impulse item

Which of the following is the strongest differentiator for brick-and-mortar stores who want to emphasize their superiority over online retailers? A) product quality B) the shopping experience C) product range D) pricing E) the retailer's reputation

B) the shopping experience

In ________, the seller charges different amounts to different classes of buyers. 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(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image. A) logical B) transformational C) reasonable D) informational E) rational

B) transformational

Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a(n) ________ to reach more consumers and ventures that are more profitable. A) upstream integration B) two-way stretch C) up-market stretch D) down-market stretch E) downstream integration

B) two-way stretch

Products such as insurance, cemetery plots, and smoke detectors are examples of ________ goods that are products that the consumer does not know about or does not normally think of buying. A) specialty B) unsought C) heterogeneous shopping D) homogeneous shopping E) convenience

B) unsought

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________. A) finding and developing new intermediaries B) using a few existing intermediaries C) forming partnerships with the market leader D) creating a special channel E) forming partnerships with other firms

B) using a few existing intermediaries

Intercom Inc., together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________ team. A) virtual B) venture C) fundamental D) elemental E) transitory

B) venture

A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system. A) parallel marketing channel B) vertical marketing system C) extensive marketing channel D) internal marketing system E) conventional marketing channel

B) vertical marketing system

A ________ is a wholesaler-sponsored group of independent retailers engaged in bulk buying and common merchandising. A) retailer cooperative B) voluntary chain C) consumer cooperative D) merchandising conglomerate E) franchise organization

B) voluntary chain

Which of the following wholesaler functions reduces inventory costs and risks to suppliers and customers? A) selling and promoting B) warehousing C) transportation D) market information E) assortment building

B) warehousing

When is a pull strategy appropriate? A) when there is low brand loyalty B) when consumers are able to perceive differences between brands C) when brand choice is made in the store D) when it is a low involvement purchase E) when the product is an impulse item

B) when consumers are able to perceive differences between brands

A stock order point of 10 means ordering the product ________. A) every 10 days B) when stock falls to 10 units C) every 10 units D) when stock falls to 9 units E) in batches of 10 items

B) when stock falls to 10 units

Place advertising, or out-of-home advertising, is a broad category that includes many creative and unexpected forms to grab consumers' attention, including all of the following EXCEPT ________ A) billboards B) yellow pages C) public spaces D) product placement E) point of purchase

B) yellow pages

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

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks. A) Sales wave analysis B) Simulative data testing C) Adaptive conjoint analysis D) Business analysis E) Exponential data collection

C) Adaptive conjoint analysis

Which of the following is true of brokers? A) Brokers represent buyers or sellers on a semipermanent basis. B) Most brokers are small businesses with a few skilled salespeople. C) Brokers bring buyers and sellers together and assist in negotiation. D) Selling brokers have contractual authority to sell a manufacturer's entire output. E) Purchasing brokers make purchases for buyers and often receive, inspect, warehouse, and ship merchandise.

C) Brokers bring buyers and sellers together and assist in negotiation.

Many people believe that customer focus does not help to create better, or new, products. This belief rests on which of the following ideas? A) Such new product developments decrease the chances of success. B) Customers do not consider the cost of design when making suggestions. C) Customers are at times unaware of what they really want. D) It increases the cost of testing a product or service E) Having too much customer focus leads to a negative brand image.

C) Customers are at times unaware of what they really want.

________ was originally pioneered by Japanese firms such as Toyota to produce goods with minimal waste of time, materials, and money. A) Electronic funds transfer (EFT) B) Market logistics C) Electronic data interchange (EDI) D) Lean manufacturing E) Supply chain management

C) Electronic data interchange (EDI)

69) ________ is an advertising timing pattern that calls for advertising during a certain period, followed by a period with no advertising, followed by a second specific period of advertising activity. A) Pulsing B) Continuity C) Flighting D) Concentration E) Frequency capping Answer: C

C) Flighting

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

C) Functional discounts

________ are unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, and canned peaches. A) Common carriers B) Shills C) Generics D) Private labels E) Marques

C) Generics

Which of the following is true for direct product profitability? A) It is highly correlated with the gross margin on a product. B) It is negligible compared to the gross margin on a product. C) It bears little relation to the gross margin on a product. D) It is significantly lower than the gross margin on a product. E) It is exactly the same as the gross margin on a product.

C) It bears little relation to the gross margin on a product.

Which of the following is an example of direct selling? A) E&OE sells its herbal skincare products exclusively through its standalone stores. B) TCJ is a telemarketing firm that sells products from a number of different suppliers. C) Jayne's sells most of its products to customers through home sales parties. D) J3 is an online shopping portal where customers can buy directly from manufacturers. E) Reynold's tries to minimize its staff costs by installing vending machines in its stores. Answer: C

C) Jayne's sells most of its products to customers through home sales parties.

________ is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience. A) Media scheduling B) Content analysis C) Media selection D) Communication design E) Copy testing

C) Media selection

________ are independently owned businesses that take title to the merchandise they handle. They are full-service and limited-service jobbers, distributors, and mill supply houses. A) Brokers B) Agents C) Merchant wholesalers D) Specialized wholesalers E) Retailers' branches

C) Merchant wholesalers

When Lola asked what the advertising campaign should say, she was concerned with which of the five Ms? A) Mission B) Money C) Message D) Media E) Measurement

C) Message

Which of the following statements is true of the factors that affect an advertising budget? A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share. B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image. C) New products typically merit large advertising budgets to build awareness and to gain consumer trial . D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard. E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

C) New products typically merit large advertising budgets to build awareness and to gain consumer trial

________ advertising aims to create liking, preference, conviction, and purchase of a product or service. A) Corporate B) Reminder C) Persuasive D) Reinforcement E) Informational

C) Persuasive

________ refers to selling below cost with the intention of destroying competition. A) Bid rigging B) Loss-leader pricing C) Predatory pricing D) Price discrimination E) Price penetration

C) Predatory pricing

Identify a shortcoming of giving the responsibility to develop new products to the product managers of a company. A) They would not be familiar with the industry standards. B) Product managers would not have an operational focus. C) Product managers are often busy managing existing lines. D) They will find it difficult to gain support from employees. E) Product managers are less likely to use participative management.

C) Product managers are often busy managing existing lines.

________ 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

________ is continuous advertising at low levels, reinforced periodically by waves of heavier activity. A) Flighting B) Frequency capping C) Pulsing D) Concentration E) Session capping

C) Pulsing

________ advertising aims to convince current purchasers that they made the right choice. A) Persuasive B) Informational C) Reinforcement D) Reminder E) Comparative

C) Reinforcement

________ works by listing all the normal assumptions about an entity and then turning them around. A) Lateral marketing B) Attribute listing C) Reverse assumption analysis D) Forced relationships E) Morphological analysis

C) Reverse assumption analysis

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following is true for E&OE? A) Inventory costs are lower than order-processing costs. B) Running costs are higher than inventory-carrying costs. C) Setup costs for the products are low. D) Order-processing costs are high. E) Order-processing costs are lower than setup costs.

C) Setup costs for the products are low.

Which of the following is true for franchisees? A) The franchisee is paid by the franchisor to be part of the franchise system. B) The franchisee licenses a trademark to the franchisor. C) The franchisee must change its operations to suit those of the franchisor. D) The franchisee collects royalty payments from the franchisor. E) The franchisee owns the trade or service mark.

C) The franchisee must change its operations to suit those of the franchisor.

Sales promotion expenditures increased as a percentage of budget expenditure for a number of years. Growth has, however, recently slowed. Which of the following is a factor that has contributed to the growth of sales promotion expenditures? A) Many brands have come to be seen as dissimilar. B) The efficiency of advertising as a promotion has improved. C) The trade demands more deals from manufacturers. D) Consumers have become less price-oriented. E) The number of brands in the market has decreased.

C) The trade demands more deals from manufacturers.

Which of the following is NOT true about the two-step process by which mass communications affect personal attitudes? A) The influence of mass media is mediated by opinion leaders, people whose opinions others seek or who carry their opinions to others. B) The influence of mass media on public opinion is not as direct, powerful, and automatic as marketers have supposed. C) The two-step flow supports the notion that consumption styles are primarily influenced by a trickle-up or trickle-down effect from mass media. D) People interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. E) Two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the message to others.

C) The two-step flow supports the notion that consumption styles are primarily influenced by a trickle-up or trickle-down effect from mass media.

________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels. A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers

C) Truck wholesalers

The weighted number of exposures (WE) of an advertising message over a given medium is given by ________. A) WE = reach × frequency B) WE = (reach × frequency) / impact C) WE = reach × frequency × impact D) WE = (reach + frequency) / impact E) WE = frequency / reach

C) WE = reach × frequency × impact

________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services. A) Personal selling B) Sales promotion C) Word-of-mouth marketing D) Public relations E) Advertising

C) Word-of-mouth marketing

100) Which of the following is usually referred to as a full-blown test market? A) an internal focus group B) a discussion group C) a country D) a city or a few cities E) a laboratory

C) a country

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

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 "Does this brand offer something better than the others?" A) performance B) presence C) advantage D) bonding E) relevance

C) advantage

Which element of the marketing communications mix allows for amplified expressiveness? A) sales promotion B) public relations C) advertising D) direct and interactive marketing E) personal selling

C) advertising

Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle? A) sales promotions B) direct marketing C) advertising D) publicity E) interactive marketing

C) advertising

Which of the following personal communication channels consist of company salespeople contacting buyers in the target market? A) expert channels B) social channels C) advocate channels D) independent channels E) informal channels

C) advocate channels

The ________ technique for stimulating creativity lists all the characteristics of an object and then modifies each to try to arrive at a new idea. A) reverse assumption analysis B) lateral marketing C) attribute listing D) forced relationship E) morphological analysis

C) attribute listing

Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications? A) attention-interest-desire-action B) awareness-interest-evaluation-trial-adoption C) awareness-knowledge-liking-preference-conviction-purchase D) exposure-reception-cognitive response-attitude-intention-behavior E) knowledge-persuasion-decision-implementation-confirmation

C) awareness-knowledge-liking-preference-conviction-purchase

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

Advertisements for which of the following product categories would merit a continuous advertising timing pattern the most? A) air conditioners B) life insurance C) breakfast cereal D) automobiles E) holiday package tours

C) breakfast cereal

A(n) ________ is a storeless retailer serving a specific clientele — usually employees of large organizations — who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list. A) direct-selling vendor B) direct marketing vendor C) buying service D) automatic vendor E) corporate retailer

C) buying service

If line filling is overdone, it could result in ________ and customer confusion. A) sales paralysis B) manufacturing inefficiencies C) cannibalization D) disintermediation E) ineffective management

C) cannibalization

Jaycee was using ________ when his organization tried to win the support of the leaders of one of his distributors by including them in advisory councils, boards of directors, and the like. A) dual compensation B) employee exchange C) co-optation D) joint membership E) strategic justification

C) co-optation

Which of the following types of advertising timing patterns calls for spending all advertising dollars in a single period? A) frequency capping B) flighting C) concentration D) pulsing E) continuity

C) concentration

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

Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications. A) durability B) compatibility C) conformance quality D) form E) performance quality

C) conformance quality

A ________ is a retail firm owned by its customers. Members contribute money to open their own store, vote on its policies, elect a group to manage it, and receive dividends. A) retailer cooperative B) voluntary chain C) consumer cooperative D) merchandising conglomerate E) franchise organization

C) consumer cooperative

Comparative advertising works best when ________. A) it elicits cognitive and behavioral motivations simultaneously B) the firm is trying to minimize brand dilution C) consumers are processing advertising in a detailed, analytical mode D) it elicits affective motivation, followed by cognitive motivation E) the advertising message uses negative fear appeals

C) consumers are processing advertising in a detailed, analytical mode

Which of the following is an example of a business and sales force promotion? A) advertising allowance B) free samples C) contests for sales reps D) display allowance E) discount coupons

C) contests for sales reps

A franchise organization is an example of a(n) ________ vertical marketing system. A) corporate B) administered C) contractual D) regulatory E) controlled

C) contractual

The five product levels constitute a ________. At each level more customer value is added. A) product line B) business model C) customer value-hierarchy D) value grid E) demand chain

C) customer value-hierarchy

When a movie theater charges a lower ticket fee for children and senior citizens, it is engaging in ________ pricing. A) product-form B) image C) customer-segment D) location E) time

C) customer-segment

When museums charge a lower admission fee to students and senior citizens, this form of price discrimination is known as ________ pricing. A) location B) channel C) customer-segment D) special-customer E) loss-leader

C) customer-segment

Which of the following is a postpurchase service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet

C) delivery to the customer's doorstep

The ________ of a product mix refers to how many variants are offered of each product in the line. A) width B) length C) depth D) consistency E) height

C) depth

Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects? A) advertising B) personal selling C) direct marketing D) public relations E) sales promotion

C) direct marketing

Avon, Tupperware, and Southwestern Company of Nashville are among companies in the multibillion-dollar ________ industry, which involves selling door-to-door or at home sales parties. A) direct marketing B) catalog showroom C) direct selling D) automatic vending E) buying services

C) direct selling

Which of the following is an example of a trade promotion? A) free samples B) discount coupons C) display allowances D) contests for sales reps E) premiums

C) display allowances

hich of the following terms refers to the degree to which the innovation can be tried on a limited basis? A) compatibility B) relative advantage C) divisibility D) communicability E) complexity

C) divisibility

LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products? A) learn-do-feel B) feel-learn-do C) do-feel-learn D) feel-do-learn E) do-learn-feel

C) do-feel-learn

A company positioned in the "middle" market introduces a lower-priced product line. What type of line-stretching is this? A) home stretch B) up-market stretch C) down-market stretch D) maintenance stretch E) two-way stretch

C) down-market stretch

When Mercedes successfully introduced its C-Class cars at $30,000 without injuring its ability to sell other Mercedes cars for $100,000, it was an example of a successful ________. A) two-way stretch B) line pruning C) down-market stretch D) up-market stretch E) choice reduction

C) down-market stretch

Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices. A) delivery B) ordering ease C) ease of installation D) customer consulting E) reparability

C) ease of installation

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

Identify the four pillars of brand equity, according to BrandAsset® Valuator model. A) relevance, performance, bonding, and advantage B) presence, performance, advantage, and bonding C) energized differentiation, relevance, esteem, and knowledge D) brand salience, brand feelings, brand imagery, and brand performance E) energized differentiation, esteem, brand feelings, and brand salience

C) energized differentiation, relevance, esteem, and knowledge

Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) knowledge B) energized differentiation C) esteem D) advantage E) presence

C) esteem

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

When a firm uses an established brand to introduce a new product, it is called a brand ________. A) harmonization B) valuation C) extension D) positioning E) parity

C) extension

Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods? A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products

C) extent of media coverage

Which of the following is an example of an events and experiences platform? A) fairs and trade shows B) continuity programs C) factory tours D) sales presentations E) community relations

C) factory tours

In ________ retailing, salespeople are ready to assist in every phase of the "locate-compare-select" process. A) self-service B) self-selection C) full-service D) limited service E) limited-selection

C) full-service

Reynold's is a grocery chain that has always catered to mid-market customers. However, the owner, Mal, has noticed that an influx of new residents are buying mostly the lower-cost and discounted products. To attract customers, Mal decides to make a gradual switch to the discount store format, but to do this, he will have to cut costs wherever possible. Which of the following types of services should Mal avoid in order to lower costs? A) limited service B) self-selection C) full-service D) self-service E) limited-selection

C) full-service

In addition to its store brands and nationally well-known brands of detergents, Reynold's also carries much cheaper varieties of detergents that are not advertised and have little-known names. They are often manufactured from lower-quality ingredients and save on packaging and advertising costs. These are known as ________. A) common carriers B) shills C) generics D) private labels E) marques

C) generics

H&A is a retail chain that specializes in selling goods at very low prices. To achieve this, it stocks a very narrow assortment of basic necessities and offers customers a "no-frills" shopping experience. H&A is an example of a(n) ________ store. A) off-price B) specialty C) hard-discount D) superstore E) convenience

C) hard-discount

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. A) reverse flow B) vertical C) horizontal D) lateral E) forward flow

C) horizontal

Which of the following is a benefit 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

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

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation. A) awareness B) adoption C) interest D) evaluation E) trial

C) interest

Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________. A) are collinear B) are diagonal to each other C) intersect D) are parallel to each other E) equal zero

C) intersect

TV advertising is considered to be particularly advantageous because ________. A) the low volume of nonprogramming material on television makes it difficult for consumers to ignore or forget ads B) it provides detailed product information and effectively communicates user and usage imagery C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits D) TV channels are very targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response E) it lets companies achieve a balance between broad and localized market coverage

C) it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits

Flighting as an advertising timing pattern is most useful when ________. A) purchase cycle is rather frequent B) substantial advertising budget is available C) items are seasonal D) tightly defined buyer categories exist E) there are expanding market situations

C) items are seasonal

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

Which of the following sources of a spokesperson's credibility describes his or her attractiveness? A) expertise B) trustworthiness C) likability D) integrity E) experience

C) likability

Which of the following is a disadvantage of using outdoor media for advertising? A) low flexibility B) low repeat exposure C) limited audience selectivity D) high costs E) greater competition

C) limited audience selectivity

A company has developed the prototype of a mobile phone that it plans to launch in the next few months. The phone comes equipped with the most advanced technological features. As part of its test marketing efforts, the company allows customers to examine and use the prototype and also gathers feedback regarding product features and price. The results of this test marketing effort show that customers are willing to pay at least $500, considering the phone's various features. As such, the company has discovered customers' ________. A) last paid price B) expected future price C) lower-bound price D) upper-bound price E) typical price

C) lower-bound price

Pepe Homes manufactures a range of bathroom accessories and fittings that include bathtubs, shower stalls, etc. While deciding on an effective advertising media vehicle for its planned advertising campaign, the marketing department decides that its advertising objectives would be best achieved if they used a medium that would portray their brand as prestigious and a symbol of luxury. To this effect, the medium should offer marketers a high degree of audience selectivity and high-quality reproduction. Which of the following advertising media would best serve the advertising purposes of Pepe Homes? A) outdoor media B) radio C) magazines D) television E) newspapers

C) magazines

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

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix. A) is ineffective on total B) has no effect on total C) maximizes D) minimizes E) capitalizes upon

C) maximizes

The highest loss a project can create is called ________. A) rapid prototyping income B) payback income C) maximum investment exposure D) incremental yearly exposure E) cannibalized income

C) maximum investment exposure

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________. A) attribute listing B) mind mapping C) morphological analysis D) lateral analysis E) reverse analysis

C) morphological analysis

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

The easiest measure of marketing public relations effectiveness is the ________. A) resultant effect on the company's sales figures B) effect it has on its market capitalization C) number of exposures carried by the media D) changes observed in consumers' brand knowledge E) impact it has on the company's market share

C) number of exposures carried by the media

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

If a consumer who is trying to decide between alternatives believes that a particular brand delivers acceptable product performance and can be shortlisted, she is in the ________ level of the BrandDynamics Pyramid. A) presence B) relevance C) performance D) advantage E) bonding

C) performance

Which of the following is a disadvantage of using newspapers as an advertising medium? A) lack of flexibility B) high costs of advertisement space C) poor reproduction quality D) low believability E) absence of local market coverage

C) poor reproduction quality

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

Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it. A) product mix B) captive products C) product lines D) optional products E) average products

C) product lines

Personal influence in marketing communications carries great weight when the ________. A) product being marketed is a convenience item B) purchase of the product is considered to be safe and risk-free C) product suggests something about the user's status or taste D) product being marketed is purchased on a frequent basis E) product or service in questions is used without being recommended by others

C) product suggests something about the user's status or taste

Names that become synonymous with product categories like Kleenex, Kitty Litter, Jell-O, and Xerox, need to ensure they retain their brand names remain ________ so they can retain their trademark rights and avoid becoming generic. A) meaningful B) likable C) protectable D) transferable E) adaptable

C) protectable

Which of the following is a form of mass communications channel? A) interactive marketing B) personal selling C) public relations D) word-of-mouth marketing E) sales presentations

C) public relations

According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through? A) awareness B) knowledge C) purchase D) preference E) conviction

C) purchase

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________. A) guaranteed response B) price sensitivity C) purchase frequency D) usage convenience E) preferential treatment

C) purchase frequency

A manufacturer uses the company's sales force and trade promotions to carry, promote, and sell products to end users. Which of the following strategies is this manufacturer using? A) personalization strategy B) tailoring strategy C) push strategy D) pull strategy E) consumer promotion strategy

C) push strategy

A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them? A) responding to senior management wishes B) responding to consumer wishes C) reaching for incremental profits D) reaching for incremental capacity E) responding to sales-force demands

C) reaching for incremental profits

All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence? A) clothes B) dishwashers C) real estate D) personal computer E) air tickets

C) real estate

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 "Does this brand offer me something?" A) advantage B) presence C) relevance D) bonding E) performance

C) relevance

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

McDonald's restaurants inside Walmart stores and Starbucks inside Super Targets are examples of ________, whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands. A) cooperative marketing B) cross-promotion C) retail co-branding D) ingredient branding E) feature promotion

C) retail co-branding

Jake wants to open a Subway franchise in his small town. To do this, he must pay the company a ________ fee. A) slotting B) title C) royalty D) merchandising E) residual

C) royalty

A ________ is a sales force promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed. A) trade show B) frequency program C) sales contest D) sweepstake E) patronage award

C) sales contest

Which of the following elements of the marketing communications mix consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers, or the trade? A) advertising B) public relations C) sales promotion D) events and experiences E) personal selling

C) sales promotion

A major advantage of a ________ strategy is that the company does not tie 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

We define packaging as 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

Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers? A) expert channels B) advocate channels C) social channels D) formal channels E) sponsored channels

C) social channels

In the corporate headquarters of a supermarket chain, ________ are responsible for developing brand assortments and listening to salespersons' presentations. A) central buyers B) brokers C) specialist buyers D) agents E) specialized wholesalers

C) specialist buyers

A ________ divides the innovation process into stages with a checkpoint at the end of each stage. A) reverse assumption analysis technique B) skunkworks system C) stage-gate system D) spiral development process E) new-product department technique

C) stage-gate system

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

Competitors are most likely to react to a price change when ________. A) the firm has a weak value proposition B) the firm enjoys a monopoly C) there are few competing firms D) the product is heterogeneous E) buyers have limited information

C) there are few competing firms

Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark's personal R8 Spyder. Which of the following is the most rational explanation for Audi's decision to associate itself with the movie? A) to express commitment to the community or on social issues B) to identify with a particular target market or lifestyle C) to create experiences and evoke feelings D) to become part of a personally relevant moment in consumers' lives E) to entertain key clients or reward key employees

C) to create experiences and evoke feelings

When a company maintains its price but removes or prices separately one or more elements that were part of the former offer, such as free delivery or installation, it is known as ________. A) escalating B) differentiation C) unbundling D) reverse discounting E) delayed quotation pricing

C) unbundling

The first step in estimating demand is to ________. A) analyze competitors' cost B) select a pricing method C) understand what affects price sensitivity D) calculate fixed costs E) decipher the experience curve

C) understand what affects price sensitivity

The reservation price, the maximum that most consumers will pay for a given product, is known as the ________ price. A) expected future B) usual discounted C) upper-bound D) typical E) historical competitor

C) upper-bound

Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from its retailers that their orders are not delivered on time. They also complain that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict. A) multichannel B) horizontal C) vertical D) intermediate E) parallel

C) vertical

When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estee Lauder products in its department stores in response to the ________ conflict. A) horizontal channel B) multichannel C) vertical channel D) grid channel E) end-customer

C) vertical channel

Share of ________ represents the proportion of company advertising of a product to all advertising of that product. A) wallet B) mind C) voice D) market E) cost

C) voice

Under which of the following conditions is the reach of media the most important factor in media selection? A) when introducing frequently purchased brands B) when going into a defined target market C) when launching extensions of well-known brands D) when there are strong competitors to a brand E) when there is high consumer resistance to the product

C) when launching extensions of well-known brands

Which of the following circumstances are best suited for personal selling? A) when the products used are simple and easy-to-use B) when there is minimal risk involved in buying or using the products C) when the market has fewer and larger sellers D) when the products being marketed are inexpensive and easily available E) when prospective customers are spread across a wide geographic area

C) when the market has fewer and larger sellers

A direct marketing channel is a ________ channel. A) one-level B) two-level C) zero-level D) three-level E) reverse-flow

C) zero-level

________ are certificates that entitle the bearer to a stated saving on the purchase of a specific product. A) Samples B) Coupons C) Rebates D) Price packs E) Premiums

Coupons

What is the gross rating points (GRP) for a media schedule that reaches 60 percent of homes with an average exposure frequency of 4 and impact of 1.5? A) 10 B) 15 C) 160 D) 240 E) 360

D) 240

hich of the following statements is true of the two-step approach to mass communications? A) The influence of mass media on public opinion is more direct, powerful, and automatic than marketers have supposed. B) Communications through mass media bypasses opinion leaders and reaches the individual buyers. C) The two-step flow supports the notion that consumption styles are primarily influenced by a "trickle-down" or "trickle-up" effect from mass media. D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. E) Two-step communication suggests that mass communicators should direct messages to groups of buyers who interpret the message and act accordingly.

D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups.

________ 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 is an example of a limited-service retailer? A) Customers at TAB pick out the products they want and pay at the checkout counter. B) Salespeople at Eli are always on hand to offer shoppers advice and assistance in choosing products. C) Mina's allows customers to checkout their own purchases in order to reduce the staff count. D) As CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping. E) Alison's stocks a number of specialty products and the store's salespeople generally help shoppers with all their needs.

D) As CLO's offers a number of merchandise-return privileges, customers need information and assistance while shopping.

Which of the following questions is answered during the business analysis of ideas? A) Will this product meet our profit goals? B) Have we got a technically and commercially sound product? C) Can we find a cost-effective, affordable marketing strategy? E) Can we find a good concept consumers say they would try?

D) Can this product meet sales expectations?

A ________ error occurs when the company dismisses a good idea. A) probability B) performance C) double counting D) DROP E) GO

D) DROP

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications. B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford. C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit. D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning. E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.

D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.

Which of the following is true for distributor brands? A) They sell at higher volumes than national brands and are also known as generics. B) They are usually sold at higher prices than national brands because production costs are higher. C) They are always of better quality than national brands as production is strictly monitored. D) Distributor brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure. E) Advertising and sales promotion costs for distributor brands are much higher than those for national brands.

D) Distributor brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure.

________ serve bulk industries such as coal, lumber, and heavy equipment, assuming title and risk from the time an order is accepted to its delivery. A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers

D) Drop shippers

________ is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy. A) Sampling B) Premium C) Cross-promotion D) Free trial E) Rebate

D) Free trial

________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. A) Personal selling B) Direct marketing C) Sales promotion D) Interactive marketing E) Public relations

D) Interactive marketing

Which of the following is an advantage of sales-wave research? A) It gives surprisingly accurate results on advertising effectiveness. B) It allows the brand to gain favorable shelf position. C) It guarantees immediate brand recognition and high sales volume. D) It can be implemented quickly with a fair amount of security. E) It easily creates a buzz in the minds of customers.

D) It can be implemented quickly with a fair amount of security.

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this? A) It increases customer loyalty. B) It provides the producer with greater control over operations. C) It reduces the amount of direct customer interaction. D) It lowers the producer's costs and prices. E) It ensures greater information

D) It lowers the producer's costs and prices.

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.

________ time is the time necessary to prepare a promotional program prior to launching it. A) Sell-in B) Link C) Setup D) Lead E) Hold

D) Lead

________ found a highly creative way to address the problem of proliferating plastic bottles with its "Waste<Less" line and helped farmers grow cotton with less water for its "Water<Less" line. A) Calvin Klein B) Ralph Lauren C) Ferragamo D) Levi-Strauss E) Roberto Cavalli

D) Levi-Strauss

________ describes the service program for helping customers keep purchased products in good working order. A) Returns B) Ordering ease C) Installation D) Maintenance and repair E) Delivery

D) Maintenance and repair

________ costs for a manufacturer consist of setup costs and running costs. A) Inventory-carrying B) Containerization C) Wholesaling D) Order-processing E) Transportation

D) Order-processing

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following will be true for E&OE? A) Short production runs will be more expensive than longer ones. B) Setup and order-processing costs will be high. C) The order point will be high. D) Order-processing costs will be lower than the inventory-carrying costs. E) E&OE can reduce the average cost per unit by producing a long run.

D) Order-processing costs will be lower than the inventory-carrying costs.

Which of the following is an example of retailing? A) Dylan's sends catalogs to retail, industrial, and institutional customers. B) SEZ U Inc. sells a limited line of fast-moving goods to small retailers for cash. C) BEL Inc. sells FMCG goods to merchant wholesalers and distributors. D) Praxis International sells products to consumers directly through the Internet. E) Hub Styles procures its raw materials directly from farmers in the region.

D) Praxis International sells products to consumers directly through the Internet.

_______ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient. A) Exclusive dealings B) Mutual services C) Territorial rights D) Price policy E) Tying agreements

D) Price policy

Which of the following ads depict a transformational appeal? A) Thompson Water Seal can withstand intense rain, snow, and heat. B) DIRECTV offers better HD options than cable or other satellite operators. C) NBA phenomenon LeBron James pitching Nike, Sprite, and McDonald's. D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years. E) Excedrin stops the toughest headache pain.

D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years.

________ refers to the task of securing editorial space — as opposed to paid space — in print and broadcast media to promote or "hype" a product, service, idea, place, person, or organization. A) Advertising B) Media planning C) Communication design D) Publicity E) Copy testing

D) Publicity

hich of the following benefits is offered by sales promotion tools? A) Sales promotion tools are more authentic and credible to buyers than others such as advertising, public relations, and personal selling. B) Sales promotion tools can reach prospects who prefer to avoid mass media and targeted promotions. C) Sales promotion tools are typically an indirect form of "soft-sell" and hence, better received by customers. D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer. E) Sales promotion tools allow buyers personal choices and encourage them to respond directly.

D) Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer.

Which of the following statements is true of the role of advertising in business markets? A) Advertising is unsuitable for explaining any new features that a product might have. B) Sales calls are more economical than reminder advertisements. C) Sales calls are more effective than advertisements at reminding customers how to use a product and reassure them about their purchase. D) Sales representatives can use copies of the company's ads to legitimize their company and products. E) Advertisements are the least preferred tools when intended to generate leads for sales representatives.

D) Sales representatives can use copies of the company's ads to legitimize their company and products.

Which of the following is an example of an interactive marketing communication platform? A) product demonstrations B) factory tours C) company museums D) TV shopping E) community relations

D) TV shopping

Which of the following is true for franchisors? A) The franchisor has to pay the franchisee to be part of the franchise system. B) The franchisor licenses the trademark from the franchisee. C) The franchisor must change its operations to suit those of the franchisee. D) The franchisor collects royalty payments from the franchisee. E) The franchisor pays startup costs for the franchisee.

D) The franchisor collects royalty payments from the franchisee.

Which of the following conditions necessitates that the objective of advertising should be to stimulate more usage of a product? A) The advertised product belongs to a nascent product category. B) The company is not the market leader. C) The advertised brand is superior to the market leader . D) The product class is mature. E) Brand usage for the product is very high.

D) The product class is mature.

________ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be. A) Likability B) Expertise C) Experience D) Trustworthiness E) Compassion

D) Trustworthiness

Which of the following firms is most likely to seek radical innovation? A) a traditional publishing company B) a small scale FMCG company C) a firm that procures and markets wheat D) a high-tech firm in telecommunications E) a firm that sells mineral water

D) a high-tech firm in telecommunications

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

Marketing communications budgets tend to be higher when there ________. A) is high channel support B) exists hardly any change in the marketing program over time C) are infrequent product purchases in large quantities D) are differentiated products and nonhomogeneous customer needs E) are many easily reachable customers spread over small geographic territories

D) are differentiated products and nonhomogeneous customer needs

Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through? A) interest B) evaluation C) trial D) awareness E) adoption

D) awareness

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

Which of the following is a characteristic of the affordable method of establishing a marketing communications budget? A) fixed annual budget B) suitable for long-range planning C) priority given to role of promotion as an investment D) calculated to reflect what the company can spare for marketing communications E) based on the immediate impact of promotion on sales volume

D) calculated to reflect what the company can spare for marketing communications

Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its coffee shops. This is an example of ________. A) brand dilution B) co-branding C) brand variants D) category extension E) brand harmonization

D) category extension

Staples is a giant retailer that concentrates on selling office supplies. Staples is an example of a(n) ________. A) ambush marketer B) supercenter C) megamarketer D) category killer E) guerilla marketer

D) category killer

When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant, a fast-food restaurant, or a vending machine, then this form of price discrimination is known as ________ pricing. A) product-form B) loss-leader C) special event D) channel E) location

D) channel

Winstar is a large-scale manufacturer with more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using? A) diplomatic counselling B) mediation C) arbitration D) co-optation E) joint membership

D) co-optation

Which method for establishing the total marketing communications budget sets communication budgets to achieve the same amount of share-of-voice as competitors? A) comparative-parity method B) objective-and-task method C) affordable method D) competitive-parity method E) percentage-of-sales method

D) competitive-parity method

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try? A) idea generation B) idea screening C) business analysis D) concept development and testing E) product development and testing

D) concept development and testing

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes. A) concept testing B) perceptual mapping C) gap level analysis D) conjoint analysis E) morphological analysis

D) conjoint analysis

Market skimming pricing makes sense under all the following conditions, EXCEPT if ________. A) a sufficient number of buyers have a high current demand B) the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear C) the high initial price does not attract more competitors to the market D) consumers are likely to delay buying the product until its price drops E) the high price communicates the image of a superior product

D) consumers are likely to delay buying the product until its price drops

In which of the following types of advertising timing patterns do exposures appear evenly throughout a given period? A) concentration B) pulsing C) flighting D) continuity E) frequency capping

D) continuity

Rotter Garder Inc. is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores that sell its products. This is an example of a(n) ________ vertical marketing system. A) administered B) contractual C) referent D) corporate E) regulated

D) corporate

Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand? A) tie-in promotion B) frequency programs C) specialty advertising D) cross-promotion E) patronage awards

D) cross-promotion

In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension

D) customer equity

When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair. A) technology intensity B) responsiveness C) ease of use D) customer training E) adaptability

D) customer training

Which of the following describes the public relations function of lobbying? A) sponsoring efforts to publicize specific products B) advising management about public issues, and company positions and image during good times and bad C) presenting news and information about the organization in the most positive light D) dealing with legislators and government officials to promote or defeat legislation and regulation E) promoting understanding of the organization through internal and external communications

D) dealing with legislators and government officials to promote or defeat legislation and regulation

Moving ________ carries risks. The new brand can cannibalize core brand sales and lower the core brand's quality image. A) up-market B) two ways C) one way D) down-market E) out-market

D) down-market

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) reparability D) durability E) style

D) durability

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use. A) availability B) affordability C) aesthetics D) durability E) necessity

D) durability

Along which of the following parameters should marketers evaluate communication options when building brand equity? A) popularity B) innovativeness C) technological sophistication D) efficiency E) novelty

D) efficiency

It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________ good. A) impulse B) specialty C) homogeneous shopping D) emergency E) heterogeneous shopping

D) emergency

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

When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction? A) developing brand awareness B) building customer traffic C) enhancing purchase actions D) establishing product category E) enhancing firm image

D) establishing product category

According to Young and Rubicam's BrandAsset® Valuator, a brand's ________ measures how well the brand is regarded and respected. A) differentiation B) energy C) relevance D) esteem E) knowledge

D) esteem

Which of the following is the mental step in the consumer-adoption process where the customer starts considering whether to try an innovation? A) adoption B) trial C) awareness D) evaluation E) interest

D) evaluation

Which of the following allows a firm to maintain control over service level and obtain more dedicated and knowledgeable selling? A) selective distribution B) intensive distribution C) push strategy D) exclusive distribution E) pull strategy

D) exclusive distribution

A parent brand that is associated with multiple products through brand extensions is also called a(n)________. A) category brand B) subbrand C) extension brand D) family brand E) line brand

D) family brand

With respect to the "six brand building blocks," brand ________ are customers' emotional responses and reactions with respect to the brand. A) imagery statements B) judgments C) performances D) feelings E) resonances

D) feelings

Which of the following is the main advantage of radio as an advertising medium? A) low competition B) more attention than television C) longer duration of ad exposure D) flexibility E) standardized rate structures

D) flexibility

A large staff, along with a higher proportion of specialty goods and slower-moving items and many services, are usually features of ________ retailing. A) self-service B) self-selection C) limited service D) full-service E) limited-selection

D) full-service

Which of the following is an ancillary service offered by retailers? A) accepting orders over the telephone B) advertising and window displays C) delivery to the customer's doorstep D) general information E) alterations and tailoring

D) general information

The sellers of ________ goods carry a wide assortment to satisfy individual tastes. They must have well-trained salespeople to inform and advise customers. A) unsought B) specialty C) convenience D) heterogeneous shopping E) generic

D) heterogeneous shopping

Which of the following is an example of a manufacturer promotion? A) price cuts B) feature advertising C) retailer coupons D) high-value trade-in credit E) retailer contests or premiums

D) high-value trade-in credit

Mass merchandisers and discount stores typically fall into the ________ group with respect to margins and volume. A) mixed markup, high-volume B) low-volume, mixed markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, low-volume

D) high-volume, low-markup

The qualitative value of an exposure through a given medium is known as ________. A) frequency B) reach C) amplitude D) impact E) range

D) impact

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

According to consumer-packaged goods companies, which of the following effects is attributed to the heavy use of sales promotion? A) increased brand loyalty B) focus on long-run marketing planning C) improved brand-quality image D) increased price sensitivity E) greater coupon redemption rates

D) increased price sensitivity

Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods? A) impact on market share of sponsor B) amount of time a brand is clearly visible on a television screen C) amount of relevant newsprint mentioning the sponsor D) influence on consumers' brand knowledge of the sponsor E) net impact on the sponsor's bottom line

D) influence on consumers' brand knowledge of the sponsor

Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report on early weaknesses of consumer electronics products. He is most likely to fall in the ________ adopter category. A) late majority B) early C) early majority D) innovator E) laggard

D) innovator

Relative advantage of an innovation refers to the degree to which ________. A) it matches the values and experiences of the individuals B) it is difficult to understand or use C) it can be tried on a limited basis D) it appears superior to existing products E) the benefits of use are observable or describable to others

D) it appears superior to existing products

With respect to the "six brand building blocks," brand ________ focuses on customers' own personal opinions and evaluations. A) salience B) performance C) imagery D) judgment E) resonance

D) judgment

According to the BrandAsset® Valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand? A) esteem B) energized differentiation C) relevance D) knowledge E) presence

D) knowledge

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs. A) innovator B) early adopter C) early majority D) laggard E) late majority

D) laggard

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 payoff B) parallel C) balancing D) late E) compensating

D) late

Surgeons and ER nurses would be considered ________ for surgical equipment. A) venture agents B) internal customers C) buzz agents D) lead users E) connectors

D) lead users

When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model? A) feel-do-learn B) do-feel-learn C) feel-learn-do D) learn-do-feel E) learn-feel-do

D) learn-do-feel

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

American businessman King Gillette pioneered the sales model in which razor handles were given away for free or sold at a loss, but sales of disposable razor blades were very profitable. This is known as the ________ model. A) two-tiered pricing B) predatory pricing C) cross selling D) loss leading E) product churning

D) loss leading

JSE Securities Exchange is the largest stock exchange in Africa. The JSE provides a market where securities can be traded freely under a regulated procedure. The company acts as an intermediary between the traders. JSE is an example of a(n) ________. A) internal broker B) infomediary C) customer community D) market maker E) third party arbitrator

D) market maker

Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product

When Goodyear began selling its popular tire brands through Sears, Walmart, and Discount Tire, independent dealers that sold the same tires at higher prices were angry. This is an example of a(n) ________ conflict. A) horizontal B) vertical C) intermediate D) multichannel E) parallel

D) multichannel

In ________, a salesperson goes to the home of a host who has invited friends, demonstrates the products, and takes orders. A) catalog marketing B) franchising C) direct-response selling D) network marketing E) direct marketing

D) network marketing

New-to-the-world products are ________. A) low-cost products designed to obtain an edge in highly competitive markets B) new product enhancements that supplement established products C) new versions of an existing product that has been less successful D) new products that create an entirely new market E) existing products that are targeted to new geographical markets

D) new products that create an entirely new market

With respect to the "six brand building blocks," brand ________ signifies how well the product or service meets customers' functional needs. A) judgment B) imagery C) salience D) performance E) resonance

D) performance

Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, he or she expects the bike to perform to specifications and to have a high ________, meeting the promised specifications. A) features B) conformance quality C) durability D) performance quality E) reliability

D) performance quality

Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness? A) advertising B) publicity C) sales promotion D) personal selling E) events and experiences

D) personal selling

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________. A) performance B) utility C) tangibility D) price E) availability

D) price

Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience? A) principle of closure B) principle of duality C) principle of delegation D) principle of congruity E) principle of neutrality

D) principle of congruity

Pricing cues such as sale signs and prices that end in 9 are more influential when ________. A) customers have substantial knowledge about prices B) customers purchase the particular item regularly C) product quality is standardized D) product designs vary over time E) prices do not vary from time to time

D) product designs vary over time

A(n) ________ is a possible product the company might offer to the market. A) test brand B) alpha product C) beta version product D) product idea E) product concept

D) product idea

Which of the following advertising practices involves advertisers paying filmmakers to have their products make cameo appearances in movies and television shows? A) brand extension B) flyposting C) co-branding D) product placement E) ambush marketing

D) product placement

The ________ determines the marketing program's ability to affect the customer mindset and is a function of the quality of the program investment. A) customer multiplier B) market multiplier C) shareholder value D) program multiplier E) price elasticity

D) program multiplier

Spike Inc. is a sportswear manufacturer that recently launched its new line of customizable running shoes. The shoes come with a digital component that allows them to adapt to the runner's biomechanics. To promote this new product, Spike launches an advertising campaign and entices a famous athlete to endorse the product. This is an example of a ________. A) trade promotion B) reverse flow C) push strategy D) pull strategy E) backward flow

D) pull strategy

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 number of different persons or households exposed to a particular media schedule at least once during a specified time period is known as ________. A) range B) impact C) intensity D) reach E) frequency

D) reach

Which of the following is a disadvantage of using direct mail as an advertising medium? A) low audience selectivity B) lack of flexibility C) high competition within same medium D) relatively high cost E) lack of personalization of advertising message

D) relatively high cost

High levels of brand ________, or the extent to which consumers feel they are "in sync" with the Fox News brand and engagement in Fox News programs, often leads to greater recall of the ads Fox News runs. A) salience B) feelings C) judgments D) resonance E) imagery

D) resonance

Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness? A) events and experiences B) publicity C) direct marketing D) sales promotion E) interactive marketing

D) sales promotion

:uke is considering the various options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up? A) advertising B) direct marketing C) events and experiences D) sales promotions E) publicity

D) sales promotions

The least costly way of consumer-goods market testing is ________. A) simulated test marketing B) controlled test marketing C) a few test markets D) sales-wave research E) test marketing in 25 percent of the country

D) sales-wave research

With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"? A) resonance B) imagery C) performance D) salience E) judgment

D) salience

Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer? A) coupons B) rebates C) premiums D) samples E) price packs

D) samples

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

Discount stores that try to keep prices as low as possible are more likely to function using ________ operations. A) limited service B) self-selection C) full-service D) self-service E) limited-selection

D) self-service

The predominant response function for advertising is often concave, but when it is S-shaped, ________. A) sales are flat, and advertising does not generate any sales impact B) any increase in advertising spending results in a proportionally positive increase in sales C) any increase in advertising spending results in a proportionally negative decrease in sales D) some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually flatten out E) advertising is not necessary to generate any sales impact

D) some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually flatten out

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

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

When hotels drop their rates on the weekends, this form of price discrimination is known as ________ pricing. A) channel B) image C) product-form D) time E) location

D) time

Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events? A) to enhance corporate image B) to express commitment to the community or on social issues C) to entertain key clients or reward key employees D) to create perceptions of key brand image associations E) to become part of a personally relevant moment in consumers' lives

D) to create perceptions of key brand image associations

If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________. A) memorable B) meaningful C) likeable D) transferable E) adaptable

D) transferable

What is the trade-off in return for the benefits associated with an integrated multichannel marketing system? A) increased market coverage B) customers who buy in one channel are more profitable than customers who buy across different channels C) lower channel costs D) two or more channels may end up competing for the same customer E) customized selling

D) two or more channels may end up competing for the same customer

A company decided to conduct a market survey for its new MP3 player that the company had priced at $150. In the survey, 95 percent of participants said that the maximum they would pay for the MP3 player is $100. This is an example of which of the following possible consumer reference prices? A) historical competitor price B) expected future price C) usual discounted price D) upper-bound price E) last price paid

D) upper-bound price

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

Under which of the following conditions is the frequency the most important factor in media selection? A) when introducing flanker brands B) when launching infrequently purchased brands C) when going into undefined target markets D) when there is high consumer resistance to the product E) when there is modest competition to the brand in the market

D) when there is high consumer resistance to the product

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

What is the weighted number of exposures of a media schedule that reaches 80 percent of the target audience, with an exposure frequency of 4 and impact value of 2? A) 10 B) 160 C) 240 D) 320 E) 640

E) 640

Which of the following is an example of a private carrier? A) MET is a transporter that operates only in the Chicago area and charges fixed prices. B) BCL is a family firm that owns only three trucks, but takes small orders for transport. C) VTV owns a fleet of trucks and transports goods for any client for a fee. D) COM is a shipping firm that transports goods by road and rail across the United States. E) BEL Inc. manufactures parts for automobiles and transports its products to customers itself.

E) BEL Inc. manufactures parts for automobiles and transports its products to customers itself.

________, which combines the BrandAsset® Valuator dimensions of energized differentiation and relevance, is a leading indicator that predicts future growth and value. A) Brand stature B) A brand's power grid C) Brand presence D) Brand bonding E) Brand strength

E) Brand strength

________ 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

________ means presenting the product concept to target consumers, symbolically or physically, and getting their reactions. A) Perceptual mapping B) Brand-positioning mapping C) Brand attribute mapping D) Concept development E) Concept testing

E) Concept testing

________ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved. A) Stage-gating B) Cocreation C) Microstocking D) Buzzing E) Crowdsourcing

E) Crowdsourcing

________ refers to data, information systems, and advice services that the seller offers to their buyers. A) Sales force relationships B) Customer relationships C) Open source technology D) Customer training E) Customer consulting

E) Customer consulting

________ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers. A) Publicity campaigns B) Trade promotions C) Advertisements D) Public relations E) Events and experiences

E) Events and experiences

________ 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

________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods. A) Raw materials B) Materials and parts C) Processed materials D) Capital goods E) Installations

E) Installations

The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ 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

Which of the following is the best example of a new-to-the-world product? A) Walmart, the retail giant, opens new stores in an underdeveloped African country. B) Pestorica, a publishing company, decides to launch a new sports magazine. C) Tata Motors, an Indian automobile company, acquires Jaguar to extend its business. D) An Asian company licenses a US apparel brand name though the brand is not familiar in Asia. E) Kids-Med, a company that produces childcare products, launches a non-contact thermometer.

E) Kids-Med, a company that produces childcare products, launches a non-contact thermometer.

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

________ is the effect one person has on another's attitude or purchase probability. A) Sharing power B) Collaborative power C) Market influence D) Brand power E) Personal influence

E) Personal influence

________ advertising aims to stimulate repeat purchase of products and services. A) Reinforcement B) Comparative C) Persuasive D) Informational E) Reminder

E) Reminder

It has been observed that most new products have shorter product life cycles. What is the reason for this? A) Most new products do not use technology. B) Most new products are not backed by a marketable idea. C) New products do not get adequate management support. D) Social and governmental constraints lead to this failure. E) Rivals quickly copy products that are successful.

E) Rivals quickly copy products that are successful.

________ time begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers. A) Lead B) Hold C) Setup D) Link E) Sell-in

E) Sell-in

hich of the following is true for retailing? A) Manufacturers are not considered to be retailers as they are engaged in producing the product. B) Vending machines are considered to be retailing only if they are located within stores. C) Retailing deals only with goods; it does not include services. D) Selling from a consumer's home is direct selling, but not retailing. E) Wholesalers are only considered to be retailers if they are selling to final consumers.

E) Wholesalers are only considered to be retailers if they are selling to final consumers.

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

Delivery refers to how well a product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process. A) expedience B) intensity C) tangibility D) performance E) accuracy

E) accuracy

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________. A) value price more than differentiation B) do not support innovation on brands C) value differentiation more than price D) prefer personalized products rather than standard ones E) are satisfied with the product

E) are satisfied with the product

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

Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness. A) comprehension B) conviction C) ordering D) reordering E) awareness-building

E) awareness-building

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

Companies that aim to ________ strive to be affordable luxuries. A) survive in the market B) partially recover their costs C) maximize their market share D) pursue value pricing E) be product-quality leaders

E) be product-quality leaders

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

Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing brand ________. A) alliance B) essence C) harmonization D) parity E) bonding

E) bonding

A ________ is a set of all brand lines that a particular seller makes. A) brand platform B) brand image C) co-brand D) brand extension E) brand mix

E) brand mix

A large retail chain in the United States decides to expand its operations by adding an online site for e-commerce. This is called a(n) ________ company. A) B2B B) brick-and-mortar C) m-commerce D) pure-click E) brick-and-click

E) brick-and-click

Which of the following actions would result in the elimination of uncontrollable returns of products in the short run? A) improved handling B) better packaging C) improved transportation D) proper storage E) cannot be eliminated

E) cannot be eliminated

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

Electronic shelf labeling allows retailers to ________. A) check inventory levels instantaneously B) order electronically from suppliers C) run continual promotional messages D) advertise sales and special offers E) change price levels instantaneously

E) change price levels instantaneously

LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. During the planning process, LCH conducts a ________, which profiles all interactions customers in the target market may have with LCH, its computers, and its services. A) sales promotion B) brand association C) brand contact D) response hierarchy model E) communication audit

E) communication audit

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

E) contact

What types of goods are purchased frequently, immediately, and with minimum effort by the consumers? A) specialty goods B) shopping goods C) unsought goods D) durable goods E) convenience goods

E) convenience goods

According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through? A) attention B) exposure C) reception D) adoption E) conviction

E) conviction

Companies such as Edison Nation and the Big Idea Group have sprung up to tap into ________ possibilities, often combining its own design, branding, engineering, and sales teams with online participants, forming a community for devising new products. A) stage-gating B) cocreation C) microstocking D) buzzing E) crowdsourcing

E) crowdsourcing

Marketers often cut the cost of advertising dramatically by using consumers as their creative team. This strategy is known as ________. A) disintermediation B) public relations C) vertical integration D) reintermediation E) crowdsourcing

E) crowdsourcing

An example of a restaurant with a narrow and deep assortment is a ________. A) small lunch counter B) cafeteria C) large restaurant D) casual dining restaurant chain E) delicatessen

E) delicatessen

1) 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 marketplaces C) increasing the operational profitability D) increasing productivity of employees E) developing new products from within

E) developing new products from within

Electronic shopping is a type of ________. A) direct selling B) network marketing C) multilevel selling D) corporate selling E) direct marketing

E) direct marketing

Telemarketing is a type of ________. A) direct selling B) network marketing C) multilevel selling D) close-range marketing E) direct marketing

E) direct marketing

Joseph, a student of Columbia University, finds many of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before has been identified as a very useful product and many students in the US have rated it highly. Considering all these, Joseph also decides 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

Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars? A) enhancing brand awareness B) developing brand attitude C) increasing brand purchase intention D) encouraging repeat purchases E) establishing category need

E) establishing category need

Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle? A) personal selling B) sales promotion C) interactive marketing D) direct marketing E) events and experiences

E) events and experiences

With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions? A) resonance B) salience C) imagery D) performance E) feelings

E) feelings

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

E) fixed

Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell? A) diverting B) panic buying C) straight rebuy D) buyout E) forward buying

E) forward buying

A low price buys market share but not market loyalty. The same customers will shift to any lower-priced product that may come along. This is called the ________ trap. A) low-price B) relative-market-share C) shallow-pockets D) target-market-share E) fragile-market-share

E) fragile-market-share

When Fred sends in the box top from his cereal to receive a free DVD of a cartoon featuring one of his favorite characters, he is responding to a ________. A) self-liquidating premium B) with-pack premium C) reduced-price pack D) banded pack E) free in-the-mail premium

E) free in-the-mail premium

Which of the following is a sales promotion tool that is consumer franchise building in nature? A) price-off packs B) contests and sweepstakes C) consumer refund offers D) trade allowances E) frequency awards

E) frequency awards

Which of the following is an advantage of using newspapers as an advertising medium? A) long lifespan B) high reproduction quality C) huge "pass-along" audience D) high level of targeting E) good local market coverage

E) good local market coverage

Which of the following is an advantage of using radio as an advertising medium? A) higher attention than television B) standardized rate structures C) long duration of ad exposure D) high quality reproduction E) high geographic selectivity

E) high geographic selectivity

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

E) high knowledge — evidence of past performance — a lower level of esteem, and even lower

Which of the following characteristics is closely associated with late majority adopter groups? A) superior technological knowledge B) low price sensitiveness C) opinion leadership D) deliberate pragmatism E) high risk aversion

E) high risk aversion

A store selling expensive artwork and luxury goods typically falls into the ________ group with respect to margins and volume. A) mixed markup, high-volume B) low-volume, mixed markup C) low-volume, low-markup D) high-volume, low-markup E) high-markup, low-volume

E) high-markup, low-volume

What occurs when any company lengthens its product line beyond its current range? A) market overreach B) brand dilution C) product adaptations D) cannibalization E) line stretching

E) line stretching

According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies. A) liquidity trap B) cognitive dissonance C) branding fallout D) cannibalization E) line-extension trap

E) line-extension trap

The prices of tickets to the opera vary depending on where the person would like to be seated — in the gallery or in the stalls. This is an example of ________ pricing. A) channel B) time C) image D) product-form E) location

E) location

The minimum price that most consumers would pay for a given product is known as the ________ price. A) everyday low B) usual discounted C) fair D) typical E) lower-bound

E) lower-bound

A winning formula for many ________ brands is craftsmanship, heritage, authenticity, and history, often critical to justifying a sometimes extravagant price. A) design B) nondurable C) durable D) ingredient E) luxury

E) luxury

When Japanese teenagers carry DOCOMO phones from NTT and use them to order goods, they are engaged in ________. A) B2B e-commerce B) brick-and-click commerce C) infomediation D) dilution E) m-commerce

E) m-commerce

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________. A) maximize market share B) skim the market C) become a product-quality leader D) survive in the market E) maximize current profit

E) maximize current profit

If consumers can easily recall and recognize a brand element, the brand element is said to be ________. A) meaningful B) protectable C) adaptable D) transferable E) memorable

E) memorable

A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here? A) morphological analysis B) forced relationship analysis C) reverse assumption analysis D) attribute listing E) mind mapping

E) mind mapping

In ________, the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products. A) pirating pricing B) captive pricing C) two-part pricing D) pure bundling E) mixed bundling

E) mixed bundling

In supermarkets and other retail outlets, RFID is used to ________. A) change prices instantaneously B) check for spoilage or damage to goods C) advertise special offers and discounts D) run continual promotional messages E) monitor inventory and track goods

E) monitor inventory and track goods

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source. A) attribute listing B) reverse assumption analysis C) mind mapping D) lateral marketing E) morphological analysis

E) morphological analysis

An intensive distribution strategy serves well for ________. A) premium cars B) commercial trucks C) private label products D) industrial equipment E) newspapers

E) newspapers

The elapsed time between an order's receipt, delivery, and payment is called the ________ cycle. A) variable-costs-to-payment B) product-to-payment C) inventory-to-sale D) order-to-inventory E) order-to-payment

E) order-to-payment

Smith & Adams Poultry has recently upgraded its transactional model such that its customers (restaurants and hotels) can communicate with its central supply system to indicate purchase volumes, dates, and receive confirmation, through their computer terminals. This is an example of a company differentiating itself versus competition in terms of ________. A) customer relationships B) customer training C) installation D) delivery ease E) ordering ease

E) ordering ease

Gabrielle is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Gabrielle and Trent use to arrive at the marketing communications budget? A) affordable method B) objective-and-task method C) competitive-parity method D) activity-based method E) percentage-of-sales method

E) percentage-of-sales method

Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders? A) advertising B) sales promotion C) word-of-mouth marketing D) public relations E) personal selling

E) personal selling

The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento and the surrounding towns on a regular schedule and at fixed prices. The trucking firm saves transportation costs by transporting the goods using trains as well as trucks, instead of trucks alone. Your transportation manager has hired a(n) ________ carrier. A) airship B) airtruck C) trainship D) fishyback E) piggyback

E) piggyback

Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light? A) corporate communications B) product publicity C) lobbying D) counseling E) press relations

E) press relations

Though it is sold only in Walmart stores, Walmart's Ol'Roy dog food has surpassed Nestlé's Purina brand as the top-selling dog food. Ol'Roy is an example of a ________. A) generic product B) national brand C) franchise D) copy-cat brand E) private label

E) private label

A brand developed by a retailer and/or wholesaler that is available only in selected retail outlets is called a ________ brand. A) generic B) franchisee C) marque D) national E) private-label

E) private-label

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

Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging. A) product class B) product-type C) need-family D) product-family E) product-line

E) product-line

Starbucks, Aveda, and BMW have been able to position themselves within their categories by combining quality, luxury, and premium prices with an intensely loyal customer base. These companies are employing a ________ strategy. A) market-skimming B) market-penetration C) survival D) market share maximization E) product-quality leadership

E) product-quality leadership

Aisha is a marketing manager with Injoos, a company that manufactures packaged fruit juices. Knowing that several other companies exist in the market that offer similar products, Aisha decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers? A) advertising B) personal selling C) sales promotions D) direct marketing E) public relations

E) public relations

The owner of supermarket chain Reynold's has realized that customers want a wider variety of goods than is currently available. However, Reynold's cannot afford the costs of storing excess inventory. Additionally, the owner is not willing to take the risk that the new products will remain unsold. Which of the following types of wholesalers can help Reynold's meet customer demand while minimizing costs? A) producers' cooperatives B) cash and carry wholesalers C) truck wholesalers D) drop shippers E) rack jobbers

E) rack jobbers

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 uses ________. A) disruptive technologies B) incremental innovation C) complex innovations D) discontinuous innovations E) radical innovations

E) radical innovations

71) Advertisements for which of the following product categories would be most effective when used with a flighting pattern? A) breakfast cereal B) detergents C) beer D) electric bulbs E) refrigerator

E) refrigerator

Ideal ________ would exist if users could fix the product themselves with little cost in money or time. A) durability B) reliability C) style D) design

E) reparability

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

As Ben manages communications for his company's watch brand, which has reached the decline stage in the product life cycle, which of the following marketing communications mix tools is he most likely to continue? A) interactive marketing B) advertising C) personal selling D) direct marketing E) sales promotion

E) sales promotion

Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service? A) advertising B) direct marketing C) public relations D) personal selling E) sales promotion

E) sales promotion

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here? A) simulated testing B) controlled testing C) full test marketing D) parallel testing E) sales-wave research

E) sales-wave research

When higher-priced competitors match lower prices of their competitors but have longer staying power because of deeper cash reserves, it leads to a(n) ________ trap. A) low-quality B) fragile-market-share C) price war D) escalator E) shallow-pockets

E) shallow-pockets

According to BrandAsset® Valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________. A) position B) image C) depth D) knowledge E) strength

E) strength

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

An administered VMS coordinates successive stages of production and distribution through ________. A) an automated central control unit B) single ownership C) the combined efforts of all its members D) the establishment of contractual obligations E) the size and power of one of the members

E) the size and power of one of the members

Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events? A) to permit merchandising or promotional opportunities B) to express commitment to the community or on social issues C) to create experiences and evoke feelings D) to identify with a particular target market or lifestyle E) to increase salience of company or product name

E) to increase salience of company or product name

Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee. A) pure bundling B) pure pricing C) mixed pricing D) captive pricing E) two-part pricing

E) two-part pricing

Costs that differ directly with the level of production are known as ________ costs. A) fixed B) overhead C) opportunity D) target E) variable

E) variable

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

E) when they do not readily notice higher prices

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

114) The product-line length can be obtained by averaging the number of variants within the brand groups.

False

115) Customers of a proposed truck may want a certain acceleration rate, which is a desired customer attribute. Engineers can turn this into the required horsepower and other engineering attributes through a process known as alpha testing.

False

121) Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

False

136) Intrabrand shifts in a company's sales are always undesirable.

False

151) Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.

False

156) Customer equity is synonymous with brand equity.

False

20) High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek radical innovation.

False

23) Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

False

40) A business analysis is performed mainly to identify if a company has got a technically and commercially sound product.

False

5) Physical goods, services, and stores can be branded, but ideas and people cannot.

False

51) Brand equity arises from unanimity in consumer response.

False

67) In reality, it is very easy for firms to estimate their demand and cost functions.

False

69) Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.

False

81) In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

False

83) If a brand element has the characteristic of being memorable, the brand is credible and suggestive of the type of person who might use the brand.

False

104) Concept testing means validating the product concept by discussing within the design group.

False

106) Perceived value refers to the gap between actual needs and satisfied needs of a customer.

False

107) Brand equity is essentially the same as brand valuation.

False

108) A major drawback of conjoint analysis is that it cannot be used to measure objective attributes such as estimated market share and profit.

False

108) When Interbrand uses competitive benchmarking and a structured evaluation of the brand's clarity, commitment, protection, responsiveness, relevance, differentiation, consistency, presence, and understanding to determine the likelihood the brand will realize forecasted Brand Earnings, it is calculating Brand Value.

False

109) The trade-off approach may be easier to use when there are only a few variables and alternatives.

False

11) Price is one of the two elements of the marketing mix that produces revenue.

False

110) Beta testing tests the product within the firm to see how it performs in different applications.

False

112) A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.

False

114) Cannibalized income is additional income to a company as a result of a new product.

False

116) Companies in the "middle market" should never attempt to stretch their line in both directions.

False

117) In a compensation deal, the seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.

False

117) Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.

False

12) Traditionally, price was never a major determinant of buyer choice.

False

120) In first-degree price discrimination, the seller charges less to buyers who purchase in larger volumes.

False

121) When firms charge different prices to different customer groups for the same product or service, it is a case of second-degree price discrimination.

False

122) A pricing system in which there is a "fixed" fee and then a variable "usage" fee is called bundling.

False

123) After a test, the most customer-appealing offer will be the most profitable offer to make.

False

123) Price discrimination in all forms is illegal in the United States.

False

123) Pure bundling occurs when a firm offers goods both individually and in bundles.

False

124) A buyer of the 2013 Subaru Outback 2.5i could pay extra for four-way passenger seats, an All-Weather package, and a power moon roof because Subaru was using captive-product pricing.

False

125) Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

False

127) Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use.

False

128) Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

False

13) Today, consumers are price takers and accept prices at face value or as given.

False

130) When Honda expanded its brand into such areas as automobiles, snow blowers, and marine engines, it was pursuing a strategy called line extension.

False

132) Flankers are brands that may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.

False

133) The role of a relatively high-priced brand in a portfolio is often to attract customers to the brand franchise or to "build traffic."

False

135) Brand differentiation occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.

False

137) In Hershey Kisses candy, Hershey would be considered a branded variant.

False

139) In a price-war trap, higher-priced competitors match the firm's lower prices but have longer staying power because of deeper cash reserves.

False

14) Pricing cues such as sale signs and prices that end in 9 are more influential when consumers are experienced in the category.

False

140) Cash cows, or fighter brands, include products like Busch Bavarian and Intel Celeron, which are positioned with respect to the competitors' brands so that more important and profitable flagship brands can retain their desired positioning.

False

140) If the variants within the Tide product under P&G's detergent line included Tide with Acti-Lift, Tide Plus Febreze Freshness Sport, Tide Plus Febreze, Tide Free, Tide Plus Downy, Tide Coldwater, Tide TOTALCARE, and Tide Free for Coldwater, and all were available in Pods, Liquids, Liquids for HE machines, and Powder formats, the width of the product mix would be 32 because there would be 32 distinct variants.

False

141) A brand that is seen as prototypical of a product category is easy to extend outside the category.

False

144) The most effective advertising strategy for an extension emphasizes the parent brand.

False

149) At the interest stage of the consumer-adoption process, the consumer becomes aware of the innovation but lacks information about it.

False

150) The step in the consumer-adoption process where a consumer considers whether to try the innovation is interest.

False

151) A firm in a homogeneous market that has the ability to augment its product is more likely to need to meet a competitive price reduction than one that does not have the ability to augment its product.

False

152) Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

False

153) The Robinson-Patman Act, passed by Congress in 1967, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries.

False

18) Organic growth refers to increasing the profitability of the organization by increasing employee productivity.

False

20) In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value.

False

21) The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.

False

23) Shorter product life cycles are common in industries characterized by low level of competition.

False

24) Because they are intangible, durable goods normally require more quality control, supplier credibility, and adaptability than either services or nondurable goods.

False

25) Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

False

26) A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.

False

29) Supplies can be classified as two kinds: heterogeneous supplies and homogeneous supplies.

False

36) Companies should use normal investment criteria to budget for new-product developments.

False

37) Almost all companies use the conventional percentage-of-sales figure while budgeting for new product development.

False

38) Skunkworks are formal workplaces where intrapreneurial teams attempt to develop new products.

False

42) Angell Healthcare, the world's largest manufacturer of protective gloves and clothing, adopted a spiral development process, which divided the innovation process into stages with checkpoints at the end of each stage, to develop products that increased overall sales from 4.6 percent to 13 percent in a little over two years.

False

52) The quantity, rather than quality, of a marketer's investment in brand building is the critical factor in building brand equity.

False

52) To be branded, physical products need not be differentiated.

False

54) According to the BrandZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.

False

54) Firms should design the highest performance level possible for their products.

False

55) As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.

False

56) Brand salience describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.

False

56) If the physical product cannot be easily differentiated, the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.

False

57) Brand imagery is a consumer's emotional response and reaction with respect to the brand.

False

66) Companies strive to maximize their current profits if they are plagued with overcapacity, intense competition, or changing consumer wants.

False

67) Attribute listing lists several ideas and considers each in relationship to the others.

False

68) Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

False

68) When Sony introduced the first high-definition television to the Japanese market in 1990, it was priced at $43,000, which is an example of partial-cost recovery pricing.

False

69) If firms wish to maximize their market share, they should opt for market-skimming pricing.

False

70) A DROP-error occurs when the company accepts a bad idea.

False

73) Caterpillar uses target-return pricing to set prices on its construction equipment, and justifies a higher price by showing lower lifetime operating costs.

False

76) Competition for luxury brands must be defined narrowly.

False

77) In target-return pricing, the firm adds a standard markup to the product's cost.

False

78) A category concept defines the product's attributes and features.

False

79) When a company combines two product concepts or ideas to create a new offering, it is called reverse assumption analysis.

False

80) Price elasticity magnitudes are lower for durable goods than for other goods.

False

82) Colleges all over the country — from Western Washington University to Brown University, the University of Vermont, and the University of California at Berkeley — are encouraging the sale of plain bottled water.

False

82) The US government often uses Dutch auctions to procure supplies.

False

83) If a calculator company produces 100,000 hand calculators at a cost of $10, but the cost drops to $9 when it produces 200,000 and $8 when it produces 400,000 hand calculators, the decline in average cost with accumulated product experience is called the price elasticity of demand.

False

84) Brands are built only by advertising.

False

88) Modifying a brand to suit group-level or individual needs is called staking.

False

90) The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

False

93) An important part of reinforcing brands is providing uniform and unchanging marketing support.

False

119) Loss leader pricing dilutes a company's brand image.

True

129) A firm's branding strategy is also called the brand architecture.

True

138) Companies sometimes initiate price cuts in an attempt to dominate the market through lower costs.

True

143) United Technologies is a good example of a house of brands strategy because it uses individual or separate family brand names including Otis elevators, Carrier heaters and air conditioners, Hamilton Sundstrand aerospace and industrial, and Sikorsky helicopters.

True

149) Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive.

True

16) Although consumers may have fairly good knowledge of the range of prices involved, very few can accurately recall specific prices of products.

True

74) Price elasticity depends upon the magnitude and direction of the contemplated price change.

True

77) In the aftermath of a crippling recession, luxury for many has become more about style and substance, combining personal pleasure and self-expression.

True

105) Rapid prototyping refers to designing products on a computer and then producing rough models to show potential consumers for their reactions.

True

106) The brand audit can be used to set strategic direction for the brand.

True

107) Consumer preferences for alternative product concepts can be measured with conjoint analysis.

True

111) Sales-wave research can be implemented quickly and carried out without final packaging and advertising.

True

111) The product hierarchy stretches from basic needs to particular items that satisfy those needs.

True

112) Expensive industrial goods and new technologies will normally undergo alpha and beta testing.

True

113) In response to a short-term oversupply of wine in the marketplace, the makers of Kendall-Jackson developed two new brands by using rapid prototyping — designing products on a computer and producing rough models to show potential consumers for their reactions — to quickly bring its ideas to life.

True

113) The four product-mix dimensions (length, width, depth, consistency) permit the company to expand its business.

True

115) Every company's product line covers a certain part of the total possible range of products and consumer levels.

True

118) In the rapidly changing market of today's world, product lines must be continuously updated or modernized.

True

118) Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

True

119) Price-setting logic must be modified when the product is part of a product mix.

True

120) Companies normally develop product lines rather than a single product and introduce price steps such as a low-, average-, and high-priced computer system.

True

122) The airline industries implement yield pricing by offering discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires.

True

124) A business analysis is typically performed after management has developed the product concept and marketing strategy.

True

124) When PepsiCo sold its cola syrup to Russia for rubles and agreed to buy Russian vodka at a certain rate for sale in the United States, it was engaged in the form of countertrade known as an offset.

True

126) Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

True

128) When a parent brand covers a new product within a product category it currently serves, it is called a line extension.

True

131) Increasing shelf presence and retailer dependence in the store is one of the reasons for introducing multiple brands in a category.

True

134) Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.

True

138) Co-branding is when two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

True

138) Marketers must judge each potential brand extension by how effectively the brand leverages existing brand equity from the parent brand, as well as how effectively, in turn, it contributes to the parent brand's equity.

True

139) Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

True

139) Research indicates that high-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.

True

140) Escalator clauses are found in contracts for major industrial projects, such as aircraft construction and bridge building.

True

141) Generally, consumers prefer small price increases on a regular basis to sudden, sharp increases.

True

141) Product line analysis provides information for two key decision areas — product line length and product mix pricing.

True

142) A successful extension cannot only contribute to the parent brand image but also enable a brand to be extended even farther.

True

142) Shrinking the amount of product instead of raising the price is a good way to counteract consumer resistance to price increases.

True

148) Packaging includes the activities of designing and producing a container for a product.

True

15) Customers usually have a lower price threshold below which prices signal inferior or unacceptable quality, as well as an upper price threshold above which prices are prohibitive and the product appears not worth the money.

True

150) A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

True

150) Warranties are formal statements of expected product performance by the manufacturer.

True

151) A guarantee's greatest contribution to a product's success is that it decreases the buyer's perceived risk in the purchase of the product.

True

157) Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.

True

158) Both brand equity and customer equity emphasize the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible.

True

17) When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

True

18) Many consumers use price as an indicator of quality and value.

True

18) Marketing planning begins with formulating an offering to meet target customers' needs or wants.

True

19) A product is anything that can be offered to a market to satisfy a want or need.

True

19) Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation.

True

21) Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

True

22) Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

True

22) Most established companies focus on incremental innovation rather than radical innovation.

True

27) The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

True

28) Capital items are long-lasting goods that facilitate developing or managing the finished products.

True

39) Venture teams are cross-functional groups charged with developing a specific product or business.

True

41) A spiral development process recognizes the value of returning to an earlier stage to make improvements before moving forward.

True

50) One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.

True

53) According to BrandAsset® Valuator (BAV) model, knowledge is one of the key components of brand equity.

True

53) To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

True

55) Under the BrandZ model of brand strength, customers who are bonded to the brand believe "nothing else beats it."

True

57) Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

True

58) The cost of processing a return can be significantly greater than that of an outbound shipment.

True

59) The ability to design custom jeans through Levi's and create merchandise with your own images through Zazzle are examples of mass customization.

True

64) Crowdsourcing means inviting an Internet community to help create content or software, often with prize money or a moment of glory as an incentive.

True

65) Cocreation can help a company create favorable word of mouth.

True

66) Employees can be a source of ideas for improving production, products, and services.

True

67) Design can shift consumer perceptions to make brand experiences more rewarding.

True

68) Reverse assumption analysis lists all the normal assumptions about an entity and then turns them around.

True

69) Design thinking requires intensive ethnographic studies of consumers, creative brainstorming sessions, and collaborative teamwork to decide how to bring the design idea to reality.

True

70) In the case of prestige goods, the demand curve sometimes slopes upward.

True

71) Companies prefer customers who are less price sensitive.

True

72) A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales would charge a markup price of $20.

True

75) When a product is more distinctive, it leads to less price sensitivity.

True

76) Total costs consist of the sum of the fixed and the variable costs for any given level of production.

True

78) One of the weaknesses of using surveys to estimate the demand curve is that consumers exaggerate their willingness to pay for new products and services.

True

79) Value pricing requires a company to reengineer its operations to become a low-cost producer.

True

8) Fewer than 10 percent of all new products are truly innovative and new to the world.

True

81) Environmental concerns matter to consumers, and they expect companies to make changes to address their concerns.

True

82) One of the selection criteria for creating a successful brand element is that it should be protectable.

True

85) To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise.

True

86) Brand equity can be built by linking the brand to sources, such as channels of distribution as well as to

True

87) A brand promise will not be delivered unless everyone in a company lives the brand.

True

89) A brand community can be a constant source of inspiration and feedback for product improvements or innovations.

True

91) Spending on product research, development, and design constitutes investment in the brand value development process.

True

92) When change is necessary, marketers should vigorously preserve and defend sources of brand equity.

True

4) Consumers may evaluate identical products differently depending on how they are branded.

True`

Dante is a media buyer with Shelvey Partners, an ad agency in San Francisco. He is currently working on charting a media plan for the ads of a department store chain to target the upcoming Thanksgiving weekend. Which of the following advertising timing patterns is best suited for running these ads? A) continuity B) flighting C) pulsing D) concentration E) frequency capping

concentration

he ________ marketing sales system works by recruiting independent businesspeople who act as distributors. A) catalog he ________ marketing sales system works by recruiting independent businesspeople who act as distributors. A) catalog B) multilevel C) direct-response D) corporate E) direct C) direct-response D) corporate E) direct

he ________ marketing sales system works by recruiting independent businesspeople who act as distributors. A) catalog B) multilevel C) direct-response D) corporate E) direct