Marketing Exam #2

Economic measures like GDP and GNI do not fully account for a country's economic health because they only measure A. material output. B. international trade. C. global expectations. D. purchasing power parity. E. poverty potential.

A

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked A. procedural fairness. B. variability. C. organizational fairness. D. intangibility. E. explanatory fairness.

A

Overriding desires that drive how we live our lives are called A. self-values. B. self-concept. C. self-esteem. D. self-confidence. E. self-control.

A

Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.

A

The building block of service quality called __________ refers to the ability of the firm's employees to convey trust and confidence. A. assurance B. reliability C. responsiveness D. empathy E. tangibles

A

Using technology and __________ are two ways a delivery gap can be reduced in size. A. empowering employees B. variability analysis C. voice-of-customer analysis D. zone of tolerance analysis E. public relations

A

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as A. exporting. B. franchising. C. a strategic alliance. D. a joint venture.

A

Which of the following adopter categories refers to the last large group of buyers to enter a new product market? A. Late majority B. Early majority C. Laggards D. Early adopters E. Innovators

A

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support and after-sale service? A. augmented product B. core customer value C. actual product D. modified product E. core product

A

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of A. perishable value. B. distributive fairness. C. empowerment. D. procedural justice. E. the size of the knowledge gap.

B

Global expansion often begins with A. franchising. B. an order from another country. C. joint ventures. D. direct investment. E. strategic alliances.

B

Empowerment becomes more important when the service is A. institutionalized. B. repetitive. C. individualized. D. routine. E. standardized.

C

Firms spend millions of dollars annually to build brand equity, recognizing brand equity contributes to A. product mix breadth. B. corporate stakeholder relations. C. profitability. D. brand liability. E. perceived brand personality.

C

If values provide goals, and self-concept is the way we see ourselves, lifestyles are A. visual images of how we should live our lives. B. marketing manipulation of consumers' fears. C. the way we live our lives to achieve our goals. D. motivations turned into perceptual maps. E. determined by demographics.

C

In services marketing, the saying, "where the rubber meets the road" refers to whether or not a(n) __________ gap exists. A. knowledge B. quality C. delivery D. standards E. empowerment

C

The _________________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. A. innovator B. laggard C. late majority D. early majority E. early adopter

C

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool. A. SKU B. PDQ C. IMF D. CRM E. GATT

D

Adidas Group owns Reebok, Rockport, and Greg Norman brands. Adidas uses the different brands to pursue a(n) __________ strategy. A. concentrated targeting B. micromarketing C. benefit targeting D. differentiated targeting E. undifferentiated targeting

D

In the case of Band-Aid adhesive bandages, the brand name has A. successfully employed private label branding. B. distinctive brand substitutability. C. grown through private label branding. D. become synonymous with the product itself. E. avoided brand extensions.

D

Innovators are a critical group of new product adopters because they A. are the major source of innovation. B. act as reverse engineering consultants. C. help with test marketing. D. help the product gain market acceptance. E. extend the product life cycle.

D

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality. A. knowledge B. communication C. standards D. delivery E. empowerment

D

The Lite beer commercial with the slogan, "less filling, tastes great," was based on __________ segmentation. A. geographic B. geodemographic C. psychographic D. benefit E. loyalty

D

The ________________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. early adopter

D

When selecting a target market, firms should attempt to A. decide between demographic and geographic segmentation methods. B. seek out opportunities to customize products. C. develop a strong communication plan. D. match the firm's competencies with a market segment's attractiveness. E. reposition the brand.

D

A __________ is a name, symbol, design, or term that identifies a seller's good or service as distinct from those of other sellers. A. SKU B. product line C. supply chain D. commodity E. brand

E

According to purchasing power parity theory, if __________ is/are in equilibrium, products will cost the same in each country. A. imports and exports B. consumer spending C. interest rates D. domestic products E. exchange rates

E

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers EXCEPT A. short-term price reductions. B. coupons. C. rebates. D. advertising. E. coordination of delivery and storage.

E

Exchange controls refers to the regulation of a country's A. comparative inflation rate. B. countertrade exchange. C. quota rate of exchange. D. exchange tariffs. E. currency exchange rate.

E

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication

E

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. The market segment must be A. substantial. B. perceptive. C. identifiable. D. reachable. E. responsive.

E

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting their marketing mix variables in order to give customers A. better Medicaid and Medicare payments. B. a perceptual map of the imaging landscape. C. more product features than the competition offers. D. lower prices than the competition offers. E. a clear, distinctive, and desirable understanding of their products relative to competing products.

E

Frequent buyer/user award programs are used to A. increase price sensitivity. B. decrease co-branding costs. C. lower licensing fees. D. expand product line depth. E. maintain contact with loyal customers.

E

Global marketers are under constant pressure to shorten distribution channels in order to A. improve promotion efficiency. B. reduce trade deficits. C. afford tariffs. D. meet trade agreement guidelines. E. reduce costs.

E

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in A. concept testing. B. market testing. C. premarket tests. D. product development. E. alpha testing.

E

To determine the market potential for its particular product or service, a firm should use A. GDP data. B. unemployment data. C. purchasing power parity data. D. inflation data. E. as many measures as it can obtain

E

Before Segway manufactured their two-wheeled people movers, they built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in A. alpha testing. B. product launch. C. test marketing. D. beta testing. E. concept testing.

A

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will A. spread positive word of mouth to other physicians. B. buy one for each office in their practices. C. reposition his products. D. create demand among the late majority. E. not need any service or support when using the product.

A

Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her ad agency urged caution because A. advertising regulations differ, including advertising to children. B. print media are different in Europe, and it would be difficult to create a global campaign. C. literacy rates are significantly lower in Europe, and print ads would be ineffective. D. research indicates that European children do not eat breakfast as often as American children. E. domestic advertising agencies cannot earn commissions on advertising they place overseas.

A

Coca-Cola introduced Coke Zero to increase sales without taking away from its existing product sales. Which of the following is NOT true about this effort? A. Segmentation and targeting were of little use compared to developing special advertising. B. The word "diet" was not used in promotion because the target segment of men did not react favorably to the "girly" connotations. C. Masculine images were used to promote the product to the targeted segment. D. Although Coke has more than 450 products, sales to a carefully targeted segment can greatly increase total sales. E. Although the market for cola is mature, Coke plans to adapt the current products and services to meet the needs of changing market climate.

A

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of former customers. C. avoiding market penetration from products that have been on the market for a long time. D. creating diversification and reducing risk. E. taking advantage of a long product cycle.

A

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as A. individual brands. B. family brands. C. corporate brands. D. traditional brands. E. registered brands.

A

During the _____________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline

A

Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit? A. $6.00 B. $7.00 C. $8.00 D. $9.00 E. $10.00

A

Generally, firms entering foreign markets begin with A. less risky strategies first. B. direct investment. C. importing. D. decentralized production. E. cultural output.

A

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a(n) __________ strategy. A. franchising B. exporting C. joint venture D. direct investment E. strategic alliance

A

Global marketers typically find distribution in developing countries is more complex because A. they must go through many different types of distribution channels. B. distribution is more heavily regulated in developing countries. C. most consumers in developing countries live in densely populated cities. D. the infrastructure is more advanced in most developing countries. E. consumers in developing countries have very specific preferences.

A

Global segmentation, targeting, and positioning (STP) is more complicated than local STP because A. consumers may view their roles differently in different countries. B. there are fewer franchising opportunities in global markets. C. global consumer markets are almost totally homogeneous, making segmentation difficult. D. most governments have rules against targeting consumers. E. positioning almost always fails when attempted in a foreign country.

A

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of A. occasion segmentation. B. loyalty segmentation. C. geographic segmentation. D. psychographic segmentation. E. demographic segmentation.

A

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is A. substantial. B. responsive. C. profitable. D. reachable. E. identifiable.

A

One of the reasons marketers use loyalty segmentation is A. the high cost of finding new customers. B. government tax incentives for loyalty. C. accounting difficulties associated with identifying new customers. D. rapid population increases. E. the failure of micromarketing as a workable strategy.

A

PRIZM and Tapestry by ESRI divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because A. it is based on underlying reasons why people make choices. B. it is easier to use than demographics. C. the travel business doesn't respond well to other approaches to segmentation. D. psychographics is the preferred method for service businesses. E. psychographic segmentation is the least expensive method.

A

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

A

Shell MasterCard, created cooperatively by Shell Oil Company and Master Card, is an example of A. co-branding. B. brand extraction. C. brand collusion. D. a generic brand. E. brand dilution.

A

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of A. an associated service. B. the actual product. C. product style. D. the product position. E. the core value.

A

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

A

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? A. private-label brand B. counterfeit brand C. premium brand D. national brand E. manufacturer brand

A

The old cliché, "Service with a smile," recognizes the fact that A. service providers need to be pleasant even if the customer is not. B. smiling is contagious. C. service providers should smile and not think. D. life is too short to be ugly. E. services are perishable but a smile is forever

A

The phrase "birds of a feather flock together" captures the idea of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation. A. benefit B. geodemographic C. psychographic D. loyalty E. demographic

A

When a company launches a new product with an existing brand name this is known as A. a brand extension. B. a line extension. C. a multi-brand. D. a new brand. E. co-branding.

A

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a A. brand extension. B. line extension. C. licensed brand. D. copycat brand. E. premium brand.

A

When a salesperson approaches you to sell a cemetery plot, this is considered what type of product? A. Unsought product B. shopping product C. convenience product D. line extension E. secondary product

A

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because A. they were not involved in setting the goals. B. perishable services were being replaced with tangible services. C. they were not allowed to diverge from existing standards. D. customers were required to create service quality standards. E. the process involved both part-time and full-time employees.

A

When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept? A. Franchisee B. Franchisor C. Franchise agent D. Franchise partner E. Franchised owner

A

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is A. responsive. B. identifiable. C. reachable. D. substantial. E. reactive.

A

When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can. A. intangible B. inseparable C. variable D. perishable E. replenishable

A

When the delivery of a service fails to meet customers' expectations, a __________ gap exists. A. service B. knowledge C. standards D. production E. communication

A

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who A. export goods to other countries. B. import goods from other countries. C. engage in countertrade. D. enforce import quotas. E. outsource labor.

A

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) ___________ in the diffusion of innovation curve. A. innovator B. laggard C. late majority D. early majority E. early adopters

A

Which of the BRIC countries has the highest illiteracy rate? A. India B. Brazil C. Russia D. Italy E. China

A

Which of the following best describes the direct investment global entry strategy? A. With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country. B. Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. C. Direct investment refers to depositing payroll funds in a foreign bank. D. Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period. E. Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.

A

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product? A. line extension B. brand extension C. brand dilution D. rebranding E. co-branding

A

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu? A. a line extension B. a brand extension C. a copycat brand D. a premium brand E. a multi-brand

A

Which of the following defines a value proposition? A. The unique value that a product or service provides to its customers B. A special discount offer dropping the price C. An advertisement that talks about value D. A display of the position of products or brands in the consumer's mind E. None of these

A

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other? A. Strategic alliance B. Joint venture C. Franchising D. Direct investment E. Equity partnership

A

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

A

Which of the following is NOT one of the benefits to a firm of new product development? A. Reduced costs of production. B. Satisfying the changing needs of current and new customers. C. Avoiding market saturation from products that have been on the market for a long time. D. Creating diversification and reducing risk. E. Keeping up in a market where sales come mostly from new products

A

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? A. NAFTA B. EU C. CAFTA D. Mercosur E. ASEAN

A

. Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities. A. relative positioning B. compatibility C. observability D. complexity E. trialability

B

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct A. brand associations. B. product/service lines. C. product mixes. D. brands. E. augmented services.

B

Adidas Group owns Reebok, Rockport, and Greg Norman brands. Having a variety of brands allows Adidas to A. engage in micromarketing for hard-to-fit shoe customers. B. obtain a bigger share of the shoe market. C. use mass marketing techniques. D. utilize geographic segmentation. E. generate economies of scale in advertising expenditures.

B

Marketers can take advantage of the variable nature of services by A. merging services with products. B. customizing services to meet customers' needs. C. offering to expedite intangibles. D. expanding the standards gap. E. strict standardization.

B

Marketers like Benetton want their ads to appeal to one's self-concept, suggesting to consumers A. "Trendy products for the masses." B. "I'm like them, so I should buy their products." C. "I will never be rich, but I can dress like I am." D. "Be Peace." E. "All is fair in love, marketing, and war."

B

Of the five strategies for entering new markets, direct investment creates the A. least investment cost. B. greatest potential risk. C. most franchisee control. D. best opportunity for strong strategic alliances. E. greatest coordination of efforts of global and local partners.

B

What is the best situation in the Circles for a Successful Value Proposition framework? A. The firm's benefits overlap with both customer needs/wants and competitors' benefits. B. The firm's benefits overlap with customer needs/wants but not with competitors' benefits. C. The firm's benefits overlap with competitors' benefits but not with customer needs/wants. D. Customer needs/wants overlap with both the firm's benefits and competitors' benefits. E. None of the three circles overlaps.

B

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"? A. They create low expectations. B. They are not specific. C. They do not allow for the voice-of-customer process. D. Most employees are unwilling to do what customers want. E. They create a delivery gap.

B

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl? A. Because of the annual competition for the most creative Super Bowl ad. B. Because the Super Bowl offers an opportunity to create significant brand awareness. C. Because the Super Bowl is a significant opportunity to be associated with global marketing. D. Because Super Bowl ads generate brand loyalty. E. There is no good reason to spend over $2 million for a Super Bowl ad.

B

. For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.

C

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

C

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation. A. demographic; psychographic B. geographic; geodemographic C. psychographic; demographic D. demographic; behavioral E. demographic; benefit

C

Marketers selling milk, bread, and other consumer staples, know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods. A. specialty B. shopping C. convenience D. ritual E. impulse

C

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over twenty years. Windows will likely remain in the maturity stage of the product life cycle A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.

C

One of the potential benefits to a firm of introducing new-to-the-world products or services is: A. cost savings. B. late majority marketing. C. establishing a completely new market. D. the ability to avoid paying pioneers for new product development. E. capitalizing on existing consumer preferences.

C

One of the reasons service failures need to be addressed quickly is to A. minimize the zone of tolerance. B. increase empowerment zones. C. avoid negative word-of-mouth from upset customers. D. avoid a situational ethics conflict. E. keep management from finding out what happened.

C

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonalds, the Golden Arches reduce marketing costs because people (including young children) A. have memorized the McDonald's menu. B. prefer yellow to other colors. C. know what the Golden Arches brand symbol means. D. recognize increases in product line depth. E. are sensitive to brand repositioning.

C

The most important consideration, when a firm chooses a global product strategy, should be A. opportunities for countertrade. B. the effectiveness of the marketing team. C. the needs of the target market. D. the provisions of GATT. E. WTO regulations.

C

Why should marketers be aware of the BRIC countries? A. They are a microcosm of the rest of the world. B. They represent almost half the world's population. C. They are likely to be the source of most market growth. D. They have had the most dramatic changes in culture and consumer buying patterns. E. They have stable population growth, which makes them easier to study.

C

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings. A. Processing B. Perceptualizing C. Positioning D. Proportioning E. Prospecting

C

A firm's product mix breadth is its A. number of items per product line. B. depth divided by profitability. C. number of categories that are mutually exclusive. D. number of product lines. E. brand equity multiplied by its capacity utilization.

D

Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good. A. shopping; specialty B. convenience; shopping C. convenience; specialty D. specialty; convenience E. unique; universal

D

At the end of a brainstorming session, participants are often asked to: A. identify the worst ideas. B. defer to management for the final decision. C. identify which ideas each person proposed. D. vote on the best ideas. E. propose one more new idea each.

D

Firms might use multiple segmentation methods to A. tailor communications B. design products C. determine the substance of the marketing message D. all of these E. none of these

D

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents A. the firm's value proposition. B. competitors' value propositions. C. low-priority needs and wants that customers are willing to give up. D. unmet customer needs/wants. E. unknown customer needs/wants that the firm does not understand.

D

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is NOT one of the decision items on the agenda for the team discussion of Place in the marketing mix for a new product launch? A. How much should be shipped initially to the stores? B. Where should the merchandise be stored: at distribution centers or shipped directly to the stores? C. Which retailers are chosen to sell the product? D. Are the packaging colors working well with the target markets? E. Should the manufacturer be involved in reordering decisions?

D

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

D

Private-label brands like Gap and Victoria's Secret have increased in importance along with the increased power of ___________ in the supply chain. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to A. differentiate his product line. B. consider future customer loyalty. C. create a perceptual map. D. select a target market. E. divide geographic segments into lifestyle groups.

D

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to A. develop an advertising plan to promote the upcoming sales. B. find marketing interns or hire new staff to help with implementation. C. create pro forma financial statements to complete the package. D. identify and evaluate opportunities by conducting segmentation, targeting and positioning analysis. E. use the Internet, catalogs, and vendor information to draw up a list of new products.

D

Sean had moved to take a new job, and when he was feeling really sick, he needed to find a doctor. He discovered during the visit that he didn't like the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as A. intangibility. B. professional competence. C. perishability. D. inseparability. E. variability.

D

When consumers associate a brand with a certain level of quality and familiar attributes allowing consumers to make quick decisions, the brand A. establishes novelty. B. is the only one the consumer will consider. C. reduces delivery costs. D. facilitates purchasing. E. creates brand dilution.

D

__________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. A. Brand positioning B. Brand licensing C. Brand association D. Brand equity E. Brand solvency

D

Collecting information at the point of sale is a straightforward and inexpensive way to assess service quality, but this approach will NOT be useful if A. customers cannot assess service quality, as in the case of oil change or maintenance check. B. decision-making managers do not get the results of the feedback. C. the person who rendered poor service is the same person collecting the information. D. customers are rushed and don't take the time to assess the service. E. any of these occur.

E

When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future. A. intangible B. inseparable C. variable D. durable E. perishable

E

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.

E

Zappos.com, an online shoe store, worked to overcome the problem of new product ______________ with its easy, no hassle return procedure. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes of the core brand. A. Corporate branding B. Brand extraction C. Brand collusion D. Brand personality destruction E. Brand dilution

E

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach. A. Geographic B. Psychographic C. Behavioral D. Benefits E. Demographic

E

The perceptions of __________ are being measured in a perceptual map. A. competitors B. strategic planners C. the company's executive team D. the current R&D team E. consumers

E

The potential benefits of brand extension do NOT include A. allowing the perception of a brand with a quality image to be carried over to the new product. B. lowering marketing costs. C. boosting sales of the core brand. D. spending less on creating brand awareness and associations. E. diluting brand equity.

E

The term "trade deficit" refers to A. a country that exports more goods than it imports. B. an indicator of the quality of life in a country. C. a level of population growth that impacts exports. D. the sum of all goods and services handled in a country. E. higher levels of imports than exports.

E

The __________ gap can be reduced by managing consumers' expectations. A. knowledge B. communication C. delivery D. standards E. empowerment

B

. In many cases, pioneers lose their market lead and initial market share to imitators who A. capitalize on the pioneers' weaknesses. B. create similar products with reduced value to consumers. C. utilize alpha-beta testing. D. ignore patents and copyrights. E. target late maturity consumers.

A

.During the _______ stage of the product life cycle, there are few but an increasing number of competitors. A. Growth B. Introduction C. Maturity D. Decline E. Innovation

A

Along the service-product continuum, which of the following would be considered the most product dominant? A. grocery store B. auto repair shop C. doctor's office D. cell phone service provider E. restaurant

A

Brands are assets that can be legally protected through A. copyrights and trademarks. B. financial reporting. C. brand extensions. D. generic branding. E. corporate branding strategies.

A

For a brand name to be effective, it needs to be A. easy for consumers to recognize and remember. B. a catchy, tongue-twisting phrase. C. a visual image containing human characters. D. generic, so it can be applied to as many products as possible. E. associated with a sports or movie superstar.

A

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable A. awareness. B. equity. C. extension. D. integration. E. co-branding.

A

The new hotel manager asked the chef, "Are you sure you know how to cook a Beef Wellington?" Which of the building blocks of service quality was the hotel manager expressing concern about? A. reliability B. responsiveness C. assurance D. empathy E. tangibles

A

When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's A. global product strategy. B. global pricing strategy. C. global distribution strategy. D. global exchange strategy. E. global communication strategy.

A

Which of the following is NOT part of the "actual product" level of the product offer? A. product warranty B. features C. design D. quality E. brand name

A

Which of the following is one of the global entry strategies? A. Direct investment B. Countertrade C. Offshoring D. Infrastructure development E. Trade agreements

A

Developed countries are experiencing __________ population growth. A. slight B. zero or negative C. infinite D. moderate E. significant

B

Which of the following is NOT one of Hofstede's cultural dimensions? A. Power distance B. Certainty assurance C. Masculinity D. Individualism E. Time orientation

B

Which of the following is NOT one of the five groups in the diffusion of innovation curve? A. Innovators. B. Non-adopters. C. Late majority. D. Early majority. E. Early adopters.

B

Which of the following is NOT one of the four product life cycle stages? A. Introduction B. Leveling C. Maturity D. Growth E. Decline

B

Along the service-product continuum, which of the following would be considered the most service dominant? A. grocery store B. apparel specialty store C. doctor's office D. bookstore E. restaurant

C

By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap. A. seniority B. knowledge C. standards D. delivery E. communication

C

By the time BMW and Mercedes Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the ______________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

C

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. A. brand equity B. product line breadth C. product line depth D. product mix depth E. product mix breadth

C

. Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being A. substantial. B. perceptive. C. identifiable. D. reachable. E. quantifiable.

D

A __________ gap can be closed by getting employees to meet or exceed service standards. A. seniority B. knowledge C. standards D. delivery E. communication

D

Brands can be extremely valuable domestically, but international use can be challenging. Companies can help to overcome language difficulties in using brands by A. keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B. avoiding the use of the brand name in advertising and focusing on feature and benefits. C. translating advertising copy for the entire ad except the brand name. D. developing brand names that are meaningless in known languages. E. adhering to the UN Convention on Naming Rights.

D

During the _____________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. A. introduction B. leveling C. maturity D. growth E. decline

D

Efforts to change a brand's focus to target new markets or change the image of a brand are called A. co-branding. B. brand extraction. C. brand collusion. D. brand repositioning. E. brand dilution.

D

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a A. knowledge gap. B. standards gap. C. social expectations gap. D. delivery gap. E. communications gap.

D

The diffusion of innovation theory focuses on A. the geographic boundaries of innovation. B. the relationship between pioneer brands and imitators. C. the psychological traits of innovators. D. the rate at which consumers are likely to adopt a new product or service. E. the way a product moves through the product life cycle.

D

What U.S. government agency has primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

D

What type of event exposes retailers to large numbers of new products in a concentrated location? A. Hosted shows B. Browser shows C. Premarket demonstrations D. Trade shows E. Trade promotions

D

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation. A. benefit B. geodemographic C. psychographic D. loyalty E. geographic

D

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider A. ease of accessing or developing distribution channels and brand familiarity. B. the current size of the market and the expected growth rate. C. ease of pricing control and number of promotional outlets. D. the number of competitors, entry barriers, and product substitutes. E. profitability and customer buying behavior.

A

________ is another term for private-label brands. A. Store brands B. Off brands C. Manufacturer brands D. National brands E. Experiential brands

A

A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. A. seniority B. knowledge C. standards D. delivery E. communication

B

___________________ are customers who modify existing products according to their own ideas to suit their specific needs. A. Early adopters B. Market testers C. Lead users D. Reverse engineers E. Concept testers

C

__________ segmentation is the segmentation method most directly related to value creation for consumers. A. Geographic B. Demographic C. Psychographic D. Benefit E. Geodeomographic

D

A __________ is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee. A. franchise brand B. joint venture brand C. shared brand D. common use brand E. licensed brand

E

.__________ refers to the perceived fairness of the process with which a firm handles customer complaints. A. Procedural fairness B. Intangible fairness C. Distributive fairness D. Service fairness E. Empowerment fairness

A

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products. A. product line B. product mix C. product mix breadth D. line extension E. brand extension

A

A service is any intangible offering that involves a deed, performance, or effort that A. cannot be physically possessed. B. is high-priced. C. is supported solely through advertising. D. can be transformed into a physical product. E. offers benefits but not costs.

A

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on A. providing classes at convenient times and offering online courses. B. discount pricing for students taking more than twelve credit hours. C. the higher average salaries earned by college graduates. D. the great variety of classes offered. E. the number of Nobel Prize winners on the faculty.

A

Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over A. how they communicate the services they promise. B. the price of ingredients. C. the attitudes of customers. D. the way customers view them compared to competitors. E. the knowledge gap consumers create.

A

An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is A. customer complaints. B. syndicated data services. C. employee empowerment programs. D. distributive fairness analysis. E. management by objective programs.

A

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of A. instrumental support. B. employee incentives. C. emotional support. D. line extensions. E. the delivery gap.

A

Because customers have different needs and expectations, the key to distributive fairness in service recovery is to A. listen to the customer. B. contact a supervisor quickly. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

A

Because services like cruises and car rentals are perishable, many marketers use A. pricing strategies to match supply with demand. B. service quality to extend the life of the product. C. incentives to encourage staff to deliver according to standards. D. training to standardize delivery. E. machines to replace people for standard transactions.

A

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make up an attractive market for their products. This is a __________ segment of the beer market. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following EXCEPT A. why it took her so long to consider the new product line. B. if the e-books are generating the expected level of profit. C. if the e-books are generating the expected level of sales. D. if her customers are interested in the new books. E. if the e-books function as expected.

A

Carlos has identified four potential market segments for his Rent-A-Chef home meal catering service. He will now compare the segments to see if they are different enough from each other. Carlos is evaluating whether or not each segment is A. identifiable. B. responsive. C. profitable. D. reachable. E. substantial.

A

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

A

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) A. knowledge gap. B. standards gap. C. ethics gap. D. delivery gap. E. communications gap.

A

During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned because they had the skills necessary to develop, promote, and market brand name consumer products. A. large U.S. firms B. Japanese electronics companies C. low-cost Chinese manufacturers D. European service companies E. Mideast oil producers

A

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to A. emphasize the benefits these consumers are looking for in a college education. B. lower the price for this market segment. C. offer alternative courses based on geographic location. D. employ loyalty marketing strategies. E. utilize micromarketing strategies

A

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders, which was being promoted as a glamorous health-oriented product. She had always thought of Head and Shoulders as an anti-dandruff shampoo. The new ads suggest that Head & Shoulders has been A. Rebranded B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

A

Empowerment of employees helps to address the delivery gap because A. employees directly involved with the customer can respond effectively at the moment theproblem occurs. B. customers appreciate feeling empowered. C. management then doesn't need to devote time and energy to resolving service delivery problems. D. employees spend less time resolving problems than managers would. E. it ultimately contributes to employee knowledge and retention.

A

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

A

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of A. beta testing. B. market testing. C. premarket tests. D. test marketing. E. concept testing.

A

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In the process, the company A. differentiated its product. B. avoided the SARS virus. C. created a new class of micromarketing. D. raised consumers' self-concepts. E. redefined mass customization.

A

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as A. premarket testing. B. market testing. C. alpha testing. D. concept testing. E. pre-launch testing.

A

Inkjet personal computer printers were a big improvement over the dot matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is A. Relatively insensitive to price B. uninformed about the product category. C. product category committed. D. a brand equity investor. E. a savvy consumer.

A

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in A. premarket testing. B. product launch. C. test marketing. D. product development. E. concept testing.

A

Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. A. surplus B. deficit C. culture D. bonus E. balance

A

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of A. micromarketing. B. concentrated targeting. C. psychographic segmentation. D. differentiated targeting. E. undifferentiated targeting.

A

Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.

A

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as A. brand dilution. B. co-mingled brands. C. undifferentiated brands. D. approximated brands. E. unlicensed brands.

A

Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries A. that have established a formal agreement to manage trade activities. B. using the same currency. C. with similar cultural shopping patterns. D. located next to each other. E. with similar political views.

A

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue? A. tangibles B. reliability C. responsiveness D. assurance E. empathy

A

One key feature of the value of a brand is that A. it often protects the firm from competition and price competition. B. it no longer needs to be supported by advertising and promotion. C. if it becomes a generic name, the brand is worth even more. D. it cannot be successfully imitated by a retailer's own brand. E. competitors will typically abandon a sector altogether rather than compete.

A

One of the key characteristics of brainstorming sessions is A. no idea is immediately accepted or rejected. B. everyone must come up with ideas. C. the first idea is almost always the best idea. D. only the marketing team is included in these sessions. E. the manager should always make the final decision.

A

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer. A. perceived value B. brand awareness C. brand loyalty D. generic positioning E. brand extension

A

Retail store chains often use __________ data to identify other locations with similar demographics and purchasing behavior where it might make sense to open additional stores. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A

Service employees at the airlines' flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights. The first thing these employees should do is to A. listen to the customer. B. contact a supervisor. C. estimate the damage. D. provide a fair solution. E. resolve the problem quickly.

A

Services marketing managers have learned that more employees will support a quality-oriented process if A. they are involved in setting the goals. B. perishable services are replaced with tangible services. C. they are required to diverge from existing standards. D. customers are responsible for setting service quality standards. E. the process involves both part-time and full-time employees.

A

Television advertising has recently expanded to include "mini-ads," which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A

The United States imports more goods from China than it exports to China. This is known as A. a trade deficit. B. a trade surplus. C. gross domestic product (GDP). D. gross national income (GNI). E. an import imbalance.

A

The components of global market assessment include all of the following EXCEPT A. sensory analysis. B. infrastructure and technology analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis

A

What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan? A. associated services B. actual product C. product style D. product position E. product concept

A

When Jaime arrived at her hotel room and saw that the bedsheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, buginfested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

A

When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another twenty minutes. John decided he didn't mind waiting, because he had arrived well ahead of the standard check-in time. John didn't mind waiting twenty minutes because this wait fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

A

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy. A. concentrated B. micromarketing C. benefit-driven D. differentiated E. undifferentiated

A

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings. A. responsive B. perceptive C. identifiable D. reachable E. quantifiable

A

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," they are appealing to their target market's A. lifestyle. B. geodemographics. C. demographics. D. loyalty. E. PRIZM segment.

A

When a manufacturer launches a new product, it may offer _________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling. A. trade promotions B. trade shows C. trade-in allowances D. trade discounts E. trade budgets

A

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. A. core customer value B. associated services C. augmented products D. product support E. quality level

A

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of A. a tariff. B. a boycott. C. overseas consolidation. D. globalization. E. franchising.

A

Which of the following is NOT one of the important functions of labels on products and packages? A. Protecting against damage to the product B. Providing consumer information to assist in purchasing C. Identifying the brand and building brand image D. Promoting the brand or complementary brands E. Listing ingredients

A

Which of the following is a potential negative factor for foreign investment in China? A. China's population is aging rapidly. B. China drastically restricts the goods it allows U.S. companies to export to China. C. China's standard of living has dropped over the past 30 years. D. China has imported fewer goods from the U.S. each year for the past decade. E. Chinese consumers are not interested in purchasing products from the U.S.

A

Which of the following is the correct sequence of new product adopters in the Diffusion of Innovation Curve? A. Innovators, Early adopters, Early majority, Late majority, Laggards B. Early adopters, Early majority, Innovators, Late majority, Laggards C. Innovators, Early majority, Early adopters, Innovators, Late majority, Laggards D. Early majority, Late majority, Early adopters, Innovators, Laggards E. Innovators, Late majority, Early adopters, Early majority, Laggards

A

Which of the following segmentation methods is being used when M&Ms offers special wedding-themed packaging for customized M&Ms (imprinted with the names of the bride and groom)? A. Occasion segmentation B. Geographic segmentation C. Lifestyle segmentation D. Benefit segmentation E. Loyalty segmentation

A

Which of the following statements best describes global expansion through a strategic alliance? A. A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other. B. In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits and controls. C. In a strategic alliance, two firms enter into a franchise agreement. D. In a strategic alliance, a firm in one country sends products to a firm in another country. E. In a strategic alliance, a firm signs a trade agreement with a firm in another country

A

Which of the following would NOT be used in calculating the profitability of a segment? A. segment perceptions B. segment size C. segment adoption percentage D. profit margin percentage E. fixed costs

A

Which of these is NOT one of the BRIC countries? A. Bulgaria B. Russia C. India D. China E. These are all BRIC countries.

A

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee? A. standards gap B. knowledge gap C. performance gap D. communication gap E. recovery gap

A

In the United States, most consumer packaged goods found in grocery and discount stores are in the________ stage of the product life cycle. A. growth B. pioneer C. introduction D. decline E. maturity

E

. "Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy. A. macromarketing B. micromarketing C. benefit-based D. differentiated E. undifferentiated

B

. Medical services, assisted living care, and active senior travel are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will increase their demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

B

. ___________________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. A. Reverse innovation B. Reverse engineering C. Selective dissection D. Redistribution E. Creative destruction

B

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in __________ exist in many African markets. A. transportation B. communication C. distribution D. commerce E. population

B

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me." A. geographic choices B. self-concepts C. loyalty references D. benefit perceptions E. demographics

B

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) _________________ in the diffusion of innovation process. A. innovator B. laggard C. late majority D. early majority E. early adopter

B

Brands can be owned by A. manufacturers only. B. any firm in the supply chain. C. retailers only. D. wholesalers and retailers only. E. only private label generic retailers.

B

By providing good customer service, firms __________ their products or services. A. eliminate the communication gap for B. add value to C. reduce the zone of tolerance for D. reduce the empowerment cost associated with E. increase the perishability of

B

Cheryl will only let Martiné cut her hair. She has tried other hairdressers, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

B

Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, population size and growth rate, and A. culture. B. real income. C. airport capabilities. D. political situation. E. religious institutions.

B

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated. A. purchasing power parity B. segmentation, targeting, and positioning C. trading bloc coordination D. exchange control planning E. reducing trade surpluses

B

Differences in weather and climate create opportunities for A. concentrated targeting. B. geographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. demographic segmentation.

B

During the introduction stage of a product's life cycle, typical consumers are A. early adopters. B. innovators. C. pioneers. D. early majority. E. laggards.

B

Effective service recovery entails all of the following EXCEPT A. listening to the customer. B. estimating the damage. C. providing a fair solution. D. resolving the problem quickly. E. all of these are effective service recovery techniques

B

Even if they succeed, new-to-the-world products are A. not always profitable. B. not adopted by everyone at the same time. C. sometimes copycat brands. D. not subject to the law of first movers. E. typically very short-lived.

B

Firms can close the __________ gap by matching customer expectations with actual service through use of marketing metrics. A. seniority B. knowledge C. standards D. delivery E. communication

B

Firms use a differentiated targeting strategy because A. it is easier than mass marketing. B. it helps to obtain a bigger share of the market. C. it is better than focusing on individual or small groups of potential customers. D. most market segments are too small to be profitable. E. banks are more willing to extend credit to companies with this strategic approach.

B

For marketers, one of the benefits of having achieved brand loyalty is A. recognition through industry awards. B. lower marketing costs associated with reaching loyal customers. C. increased price sensitivity among loyal customers. D. greater concern about competitors' actions. E. few worries about copyright infringement.

B

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country. A. symbols B. underlying values C. ceremonies D. dress E. visible artifacts

B

Global businesses often find it particularly difficult to understand the __________ of a country's culture. A. symbols B. underlying values C. ceremonies D. dress E. visible artifacts

B

Globalization refers to the process by which goods, services, capital, people, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. form joint ventures. E. affect corporate culture.

B

How is consumer panel data collected during the test marketing phase of a new product introduction? A. Panelists complete a questionnaire about the product. B. Panelists scan their receipts on a home scanning device. C. Stores provide sales data to companies. D. Consumers voluntarily go to a website to record their preferences. E. Focus groups are held in key markets.

B

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. market testing. B. product development. C. brainstorming. D. reverse engineering. E. launching the product.

B

If they create new markets, pioneer or breakthrough products A. will likely result in late maturity buying. B. can add tremendous value to firms. C. incorporate reverse engineering outputs. D. require the use of concept testing services. E. must be geographically centered.

B

In a competitive market, perceived value is determined by consumers mostly A. by quantitative analysis of brand personalities. B. in relationship to the value of competitors' offerings. C. by weighing primary versus secondary benefits. D. through investment in product tracking systems. E. through brand association and brand licensing

B

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used A. to shorten supply chains. B. as a response to perceived unfair trade practices. C. to offer domestic discounts. D. to stimulate consumer demand. E. as a way to equalize quotas.

B

In retailing, effective packaging sends this message: A. More packaging means more product. B. Buy me! C. I have more features than the competition. D. I am cheaper than the competition. E. There is nothing toxic inside.

B

In the 1970s and 1980s, __________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development. A. large U.S. firms B. Japanese firms C. low-cost Chinese manufacturers D. European service companies E. Mideast oil producers

B

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

B

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

B

Jackson manages an upscale French restaurant in the Washington, D. C., area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to have greater brand awareness. A. co-brand B. Brand extension C. premium brand D. joint brand E. natural brand

B

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is A. what retailers she should use to sell the swimwear. B. whether or not they would purchase the swimwear if it becomes available. C. what wholesale price should be charged. D. what promotional plan will work best. E. in which season she should introduce the product.

B

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. reduction in cost of ingredients.

B

Marketers spend billions of dollars annually attempting to build effective brands. The basic benefit of a brand is that it A. creates a basis for effective packaging. B. provides a way for a firm to differentiate its product offerings from competitors. C. offers consumers promotional parity. D. allows manufacturers to ignore promotional expenditures. E. reduces the need for product line depth.

B

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

B

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is part of A. social insistence. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

B

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them to learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of A. glocalization. B. reverse innovation. C. franchising. D. a strategic alliance. E. purchasing power parity.

B

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for A. pretesting. B. beta testing. C. test marketing. D. alpha testing. E. concept testing.

B

Randall arrived at the hotel to find that, although he had a guaranteed reservation, the hotel had no rooms available. He became angry when the hotel made him a reservation at a more expensive hotel but refused to pay the difference in room rates. Randall was upset because, in his opinion, the hotel's solution did not incorporate A. intangible fairness. B. distributive fairness. C. procedural fairness. D. service fairness. E. empowerment fairness.

B

Rob was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job. A. maintenance schedule B. instrumental support C. equipment inventory D. service infrastructure E. customer expectation mechanisms

B

Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more importantly, working the way you did to correct the error could result in __________." A. a smaller empowerment gap B. increased customer purchases and positive word of mouth C. a full refund for the customer D. a larger service gap E. less instrumental support

B

Segmentation, targeting, and positioning A. are terms that can be used interchangeably in developing marketing plans. B. are part of a firm's marketing strategy. C. should be done simultaneously so synergies can help streamline the effort. D. are part of the marketing plan but bear little direct relationship to the marketing mix. E. all of these

B

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by A. empowering consumers. B. providing support and incentives for their employees. C. directing zone of tolerance limits for employees. D. effective customer screening. E. forcing rude customers to use technology.

B

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online resumés, and look for new jobs. What segmentation method is LinkedIn using? A. Loyalty segmentation. B. Benefit segmentation. C. Psychographic segmentation. D. Geodemographic segmentation. E. Demographic segmentation.

B

Some products may stay comfortably in the maturity phase of the product life cycle often until a new product emerges to replace them. An example of such a mature product is A. e-books. B. refrigerators. C. the VCR. D. smart phones. E. None of these. No product can stay in the maturity phase and survive for very long.

B

Sometimes brand names become synonymous with a product itself. If that happens, the firm A. has achieved brand nirvana. B. could lose its trademark. C. should try co-branding in order to avoid brand dilution. D. should consider a new packaging strategy. E. easily eliminates all competition.

B

Tariffs, quotas, and currency exchange policies affect global A. offshore product design. B. pricing strategies. C. advertising. D. logistics. E. promotion.

B

The Big Mac Index is a novel measure of A. GDP. B. purchasing power parity. C. per capita GNI. D. economic growth. E. international trade surplus.

B

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

B

The __________________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. A. pretesting B. product launch C. post-testing D. product development E. evaluation of results

B

The basic reason manufacturers spend time and money building their own brands is to A. create brand awareness. B. build brand equity. C. offset the power of private label manufacturers. D. create positioning possibilities for their generic product lines. E. to maximize product line depth.

B

The decision to delete a product is never taken lightly because, generally, manufacturers have A. offered the product line to other firms for purchase. B. made substantial investments in brand development and manufacturing. C. promised consumers they will maintain the product. D. used brand repositioning to improve results. E. federal standards that must be met when taking products off the market.

B

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one "happy hour" special but few members showed up. The manager did not have a grasp of what would make his target market A. substantial. B. responsive. C. identifiable. D. reachable. E. quantifiable.

B

The most common measure of market potential of an economy is a country's A. GNI. B. GDP. C. PPP. D. CPI. E. APR.

B

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one ______________, an extremely successful product that pays for the costs associated with the other attempts to develop new products. A. standout B. blockbuster C. first mover D. pioneer E. premium product

B

The shift of population from rural to urban areas in countries such as India helps global marketers by A. decreasing pollution. B. simplifying the supply chain needed to make goods and services available. C. increasing the human development index. D. decreasing competition for intellectual capital. E. increasing nonmaterial GDP output.

B

Toyota, a well-established, reputable brand, recently introduced a new line of vehicles under the Scion brand, targeted at young car buyers. Toyota probably used the new brand to A. lower advertising costs. B. appeal to a different market segment. C. reinforce the Toyota brand image. D. exploit brand loyalty to Toyota. E. lower product development costs.

B

We often see advertisements touting a product as being made with natural ingredients, or being long lasting. Marketers using these types of promotions are positioning their products based on A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

B

When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's A. population control measures. B. legal, banking, and regulatory systems. C. retailing capabilities. D. per capita income estimates. E. climate and culture.

B

When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over twelve hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of A. the variability associated with service quality performance. B. empowering employees to meet customers' needs. C. procedural fairness. D. specific service standards. E. public relations to increase puffery.

B

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) ______________ in the diffusion of innovation process for telephones. A. innovator B. laggard C. late majority D. early majority E. early adopter

B

When Procter & Gamble added teeth whitening products under the Crest brand, the firm was engaged in A. corporate branding. B. brand extension. C. brand licensing. D. brand association. E. perceived value branding.

B

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by A. segmenting, targeting, and positioning. B. offering everything to everyone. C. trying lots of options to find out which one works. D. continual test marketing. E. focusing exclusively on its Pink brand.

B

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

B

When conducting exploratory research for her firm's new Internet anti-piracy software, Dee knows the most important question is A. how long will it take to bring the software to market. B. whether or not respondents would purchase the software if it becomes available. C. who will determine the price to be charged. D. where the product should be sold. E. which computer trade show will be used to introduce the product.

B

When entering a foreign market, the least risky strategy is A. franchising. B. exporting. C. joint venture. D. direct investment. E. strategic alliance.

B

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. intangible B. inseparable C. variable D. perishable E. peripheral

B

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to A. meet their self-actualization needs. B. make purchase decisions. C. consider repositioning their opinions. D. pursue generic alternatives. E. negotiate discounts.

B

Which of the following is currently a negative factor for foreign investment in India? A. India's population is fairly old and aging fast. B. India's infrastructure for supply chain management is not up-to-date. C. India prevents foreign investors from entering into joint ventures. D. India has no shopping malls or other large commercial centers. E. India lacks a skilled workforce.

B

Which of the following is the best example of a family brand? A. Cadillac, GMC, and Chevrolet B. Tostitos Multigrain Scoops and Tostitos Chunky Salsa C. Kellogg's Special K and Famous Amos Chocolate Chip Cookies D. Lifesavers Soda, Coca Cola, and Diet Coke E. KFC/Taco Bell Fast Foods

B

Which of the following was NOT a new-to the-world product or service when it was introduced? A. Wi-Fi networking B. The Mercedes mini sport utility vehicle, a smaller version of its larger SUVs C. Microsoft's Windows operating system D. The MP3 player E. Flat screen TVs

B

Which of these trade agreements represents the highest level of integration among participating nations? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

B

While demographic and geographic segmentation of retail customers is relatively easy, these characteristics do NOT help marketers determine A. how old their customers are. B. what their customers need. C. where their customers live. D. which customers have young children. E. what income brackets their customers are in.

B

With a median age of 34.1 years, ________ is one of the most rapidly aging countries in the world. A. Russia B. China C. Brazil D. India E. Chile

B

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy. A. specialty B. shopping C. convenience D. ritual E. impulse

B

__________ is an extreme form of a targeting strategy. A. Macromarketing B. Micromarketing C. Benefit marketing D. Differentiated targeting E. Concentrated targeting

B

. If a firm promises more than it can deliver A. it has created an empowerment gap. B. consumers will have a knowledge gap. C. it creates a communication gap. D. it needs to enact a voice-of-customer program. E. perishability becomes a problem.

C

. VALS is the most widely used __________ segmentation tool. A. geographic B. behavioral C. psychographic D. benefits E. geodemographic

C

. When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. variable D. perishable E. viable

C

.__________ is the number of items within a product line. A. Brand equity B. Product line breadth C. Product line depth D. Product mix depth E. Product mix breadth

C

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds. A. mass marketing analysis B. psychographic profile C. perceptual map D. loyalty timeline E. PRIZM analysis

C

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product. A. secondary; primary B. generic; private label C. primary; secondary D. corporate; manufacturer's E. co-branded; licensed

C

A marketing professor in Ithaca, New York maintains a museum of failed consumer products. Most new products in this museum failed during the _______________ stage of new product development, when they are introduced to a limited geographical area. A. pretesting B. product launch C. test marketing D. product development E. concept testing

C

A(n) __________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. A. facilitating payment B. introductory price promotion C. slotting allowance D. stocking premium E. place holder

C

After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to A. throw the customer out of the restaurant. B. assume the waiter provoked the attack and respond accordingly. C. provide emotional support to the waiter. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts. A. mass customization consumers B. geographic segments C. market segments D. self-concept customers E. geodemographic segments

C

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using A. the value proposition. B. salient attributes. C. symbols. D. the competition. E. all of these

C

Another name for a manufacturer's brand is a(n) __________ brand. A. systematic B. extended C. National D. premium E. private-label

C

Another name for brand repositioning is A. strategic brand alteration. B. change management. C. rebranding. D. perception tracking. E. brand scaling.

C

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation. A. geographic B. self-concept C. psychographic D. benefit E. behavioral

C

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in: A. test marketing. B. product launch. C. alpha testing. D. product development. E. concept testing.

C

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds. A. government regulations B. Better Business Bureau guidelines C. high costs D. accounting concerns E. well-publicized liability cases

C

Because services are __________, it is often difficult for marketers to convey the benefits to consumers. A. variable B. inseparable C. intangible D. perishable E. substantial

C

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call A. service perceptions. B. service efforts. C. service quality. D. service aspirations. E. service feedback.

C

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation. A. geographic B. psychographic C. demographic D. benefits E. behavioral

C

Before the development of computer-assisted design software, many firms handcrafted ______, wooden or clay models that served as rough physical representations of the new product. A. premarket tests B. blockbusters C. prototypes D. storyboards E. designer models

C

Brand extension is a popular marketing strategy because A. it separates out the cost of brand extension from brand intention. B. it allows the firm to discontinue complementary products. C. the firm can spend less on creating brand awareness and associations. D. it avoids the problem of brand dilution. E. it guarantees success for a new product.

C

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the _________________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C

Changes in tariffs and quotas are A. business actions stimulating imports. B. corporate strategies designed to maximize profits. C. government actions that reduce competition from international firms. D. efforts to stimulate choices among government agencies. E. a means of slowing outsourcing.

C

China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses. A. franchises B. export promotions C. joint ventures D. direct investments E. strategic alliances

C

Companies that develop customized-business software often work closely with their customers when installing their products. This close contact often creates new product ideas through A. reverse engineering. B. licensing technology. C. customer input. D. R&D consortia. E. clinical trials.

C

Concept testing is important because it can A. help the firm to refine the promotional plans. B. lead to immediate roll out of the final product. C. help a firm avoid the costs of unnecessary product development. D. reduce the potential loss of sales during the decline stage. E. increase product development costs.

C

Dopson's Hardware was in bad financial shape. They owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on back order and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap. A. knowledge B. empowerment C. communication D. standards E. tangibility

C

During the _____________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. A. introduction B. leveling C. maturity D. growth E. decline

C

Food preparation, lawn maintenance, and house cleaning services are all examples of A. services shifted abroad because costs are lower in developing countries. B. services an aging population will decrease their demand for. C. household maintenance activities that people increasingly pay others to perform. D. the price elasticity effect on services demand. E. the ability of empowerment to create tangible service products.

C

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation. A. increasing product line depth B. decreasing product line depth C. decreasing product mix breadth D. increasing product mix breadth E. introducing brand extensions

C

Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta? A. The same product design and features, and the same basic promotional campaign, used in all countries. B. Variations in the product design country by country, with the same basic promotional campaign used in all countries. C. The same product design and features in all countries, with variations in the promotional campaigns country by country. D. Variations in the product design and the promotional campaign country by country. E. The same marketing mix for all of the four Ps used in all countries

C

GDP is defined as A. the value of a country's exports minus its imports. B. great domestic product. C. the market value of goods and services produced in a country in a year. D. national income minus national taxes. E. the gross purchasing power of domestic goods and services plus international income.

C

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood. A. Internet marketers B. wholesalers C. retailers D. consumer goods manufacturers E. cable TV networks

C

Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. They also instruct employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

C

Global pricing strategies should be consistent with A. offshore distribution facilities. B. cost of materials. C. positioning strategies. D. domestic pricing. E. trade surplus guidelines.

C

Global segmenting, targeting and positioning is more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and A. currency differences. B. anti-discrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities.

C

What is the primary cause of a delivery gap in service delivery? A. Managers set extremely specific service standards. B. Managers misinterpret customers' expectations. C. Service employees sometimes do not deliver according to standards. D. Firms make service promises they don't keep. E. Employees are allowed to make decisions about service delivery.

C

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can't afford to purchase a PRIZM or Tapestry analysis so she will most likely use __________ as a basis for targeting her market. A. voter registration lists B. the city phone book C. real estate values by subdivision D. public school enrollment data E. new construction data

C

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

C

In the Circles for a Successful Value Proposition framework, the value proposition is represented by A. the intersection between customer needs/wants and competitors' benefits. B. the intersection between the firm's benefits and competitors' benefits. C. the intersection between customer needs/wants and the firm's benefits. D. the intersection between all three of the circles. E. the part of the firm's benefits that doesn't overlap with anything.

C

Jim wants to position his firm against his competitors. In doing so he should A. never select a competitor in the same neighborhood. B. avoid making the competitor's product look undesirable. C. avoid looking too much like the competitor so that he'd confuse the target segment. D. avoid discussing the strengths of his product so that competitors won't be aware of his product quality. E. avoid discussing the weaknesses of his competitors so they won't retaliate.

C

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation. A. micromarketing; loyalty B. lifestyle; macromarketing C. geodemographic; lifestyle D. geographic; loyalty E. behavioral; geodemographic

C

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

C

Managers of fast food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to A. ban abusive customers from their restaurants. B. reward service providers based solely on the speed of service. C. provide emotional support and concern for their employees. D. review the delivery support system. E. make sure services delivery expectations are consistent and coherent throughout the organization.

C

Marketers with luxury brands use brand extension cautiously in order to avoid A. brand licensing fees. B. exclusive co-branding arrangements. C. diluting the core brand. D. private label branding disputes. E. product line extension limitations.

C

Most customers want to achieve a fair solution following a service failure. Which of the following is NOT a factor that affects a person's perceptions of "fairness" in these kinds of situations? A. The nature or severity of the service failure. B. The customer's experience with other firms. C. The firm's policy on service recovery. D. Observed treatment of other customers. E. Stories of service recovery told by friends and family

C

Nora is deciding whether to purchase brand name sneakers or a store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer A. more brand awareness. B. higher degrees of brand loyalty. C. greater perceived value. D. a better brand image. E. more product line depth.

C

One important purpose of a brand is to A. sell advertising space. B. minimize product line depth needed to be effective. C. increase consumer recognition and awareness of product offerings. D. protect product packaging. E. meet government regulations.

C

One of the advantages of selling specialty goods and services is that when consumers want them, they will A. question the price. B. consider many alternatives. C. Search for them D. perceive greater performance risk. E. expect them to be offered conveniently.

C

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and A. decrease advertising spending. B. focus on a single market segment. C. lower overall risk. D. use undifferentiated strategies in micro markets. E. all of these

C

Procter & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G A. can monopolize store brands. B. has greater opportunity to dictate retail pricing. C. has greater control over marketing strategy. D. can increase brand dilution. E. can eliminate any local competition.

C

Psychographics is the segmentation method that delves into how consumers A. adjust to demographic changes. B. allocate scarce incomes to a variety of goods and services. C. describe themselves. D. value their livelihoods. E. all of these

C

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ____________, who can provide ideas for new and improved products. A. early adopters B. market testers C. lead users D. reverse engineers E. concept testers

C

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) _______ in the MP3 player market. A. blockbuster B. early adopter C. pioneer D. market tester E. concept tester

C

The Gaps Model is designed to highlight those areas where A. service providers provide the best possible service. B. manufacturers are cutting corners on product quality. C. customers believe they are getting less or poorer service than they should. D. service providers know more than their customers. E. delivered service exceeds expected service.

C

The complete set of all products offered by a firm is called its A. product line. B. product categories. C. product mix. D. product breadth. E. product line depth.

C

The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service. A. voice-of-customer programs B. empowerment C. the zone of tolerance D. standards analysis E. quality gap analysis

C

The diffusion of innovation theory is useful to marketers in helping them A. adjust to the performance life cycle. B. avoid the cost of concept testing. C. predict which types of customers will buy their product immediately and later. D. predict how long it will take for a new product to gain market acceptance. E. forecast sales for a new product.

C

The first step in the STP process is to A. identify the segmentation methods to be used. B. produce a list of strengths and weaknesses of the firm's past marketing strategies. C. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

C

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are A. intangible. B. inseparable. C. variable. D. portable. E. viable.

C

The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.

C

The product life cycle is theoretically ________ shaped with regard to sales and profits. A. Y B. lightning bolt C. bell D. circle E. flat line

C

The value of a brand is often calculated by assessing the A. difference between brand equity and brand liability. B. corporate profitability divided by the monthly brand earnings. C. earning potential of the brand over the next 12 months. D. effect of brand dilution if it occurred. E. average product line depth.

C

To meet or exceed customers' expectations, marketers must A. know where customers live. B. know how often consumers buy their products. C. determine what those expectations are. D. recognize that expectations are tangible. E. empower customers to meet their own expectations.

C

When McDonald's comes up with a new drink or sandwich for its fast food stores, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in A. pretesting. B. product launch. C. test marketing. D. product development. E. concept testing.

C

When firms pool their resources to enter a new market, they create a(n) A. franchise. B. export promotion. C. joint venture. D. direct investment. E. strategic alliance.

C

When microwaves were new, they often cost over $300, were huge, and were had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ______________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

C

When testing new products, most firms consider the question of whether testing products on animals A. should always be done in the animal's natural environment. B. should be done outside of the United States to avoid consumer backlash. C. should be done when the new product does not contribute to the health and well being ofhuman users. D. should be done only by companies large enough to be ethically responsible. E. should be done with animal activists present.

C

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition. A. segmenting B. packaging C. positioning D. pricing E. targeting

C

Which of the following is NOT a stage in the product life cycle? A. Introduction B. Growth C. Evaluation D. Maturity E. Decline

C

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality? A. assurance B. reliability C. acceptability D. responsiveness E. empathy

C

Which of the following is NOT one of the major trade agreements affecting global marketing? A. NAFTA B. EU C. GNI D. ASEAN E. CAFTA

C

Which of the following is currently a negative factor for foreign investment in Russia? A. The Russian population is poorly educated. B. Russian consumers have little interest in online shopping. C. Russia is known for corruption, particularly bribe taking in business negotiations. D. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. E. Few Russians have access to the Internet due to heavy regulation.

C

Which statement about India's population is TRUE? A. With a median age of 61, India has one of the oldest populations in the world. B. India's young people mostly live in rural areas in large families. C. India's workforce is highly skilled, particularly in technology. D. India claims more than 25% of the world's population. E. Most Indian citizens shop in large retail outlets.

C

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap. A. Service infrastructure B. Quality mechanics C. Instrumental support D. Dynamic support E. Customer interface architecture

C

________________ is the process by which ideas are transformed into new products and services that will help firms grow. A. Beta testing B. Concept testing C. Innovation D. Reverse engineering E. The product life cycle

C

. ___________________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product. A. Loss leaders B. Push prices C. Market skimming incentives D. Introductory price promotions E. Distribution rebates

D

."Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason? A. "It's a quick way for senior managers to see not only our product but each of our competitors, all at once." B. "It's a way to demonstrate the dimensions that our customers think are important." C. "It shows where we aren't—and where our competitors aren't—in our customers' and prospects' minds." D. "It's a way to show the position of the company in ten years." E. "We can easily show where we are positioned and how large the market is."

D

A __________ gap is the difference between the firm's service standards and the service it provides to customers. A. seniority B. knowledge C. standards D. delivery E. communication

D

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider A. mass marketing distribution potential and logistical support. B. the current size of the market and the expected growth rate. C. ease of pricing control and number of promotional outlets. D. the number of competitors, entry barriers, and product substitutes. E. profitability and customer buying behavior.

D

Although a differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market, this strategy A. is the cheapest option. B. requires the use of advanced advertising techniques. C. rarely works. D. is often expensive. E. is ineffective without multiple brand names.

D

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation A. is available only in limited geographic areas. B. is rarely used and unproven. C. offers only one-to-one marketing potential. D. is a more expensive method for identifying potential customers. E. is still an unproven area.

D

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were many alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter

D

Because services like airline flights and hotel beds are _________, many marketers attempt to match demand with supply using pricing strategies. A. intangible B. inseparable C. variable D. perishable E. accountable

D

Brand dilution occurs when A. customers see the "fit" between products sharing the same brand name. B. there are too few products and product categories. C. new brands compete with existing brands. D. customer perceptions about the core brand are adversely affected. E. brand names seem too old-fashioned or familiar.

D

Brands that are owned by ___________ are called private-label brands. A. manufacturers B. wholesalers C. supply chain specialists D. retailers E. manufacturer's reps

D

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

D

By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal. A. insurmountable B. invisible C. empowerment D. measurable E. inseparable

D

Chris had laughed at some of the cultural mistakes companies had made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues down to sociocultural factors. He was looking at both __________ and __________. A. product uses; currency rates B. language; trading blocs and social structure C. potential tariffs; symbols D. visible artifacts; underlying values E. verbal communication; logistics

D

Colin has been directed by his boss to determine if their company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making measurement of service quality difficult. A. quantifiable B. substantial C. unequally distributed D. intangible E. inconsequential to customers

D

College students can be a less __________ market segment because students' media habits are quite diverse. A. substantial B. perceptive C. identifiable D. reachable E. quantifiable

D

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D

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

D

Firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because A. brands protect corporate copyrights. B. consumer loyalty can be bought for less now compared to the past. C. brand equity can only be obtained by means of product line depth. D. people already know what the brand means. E. well-known brands are less likely to introduce brand extensions.

D

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. A. brand associations B. family brands C. co-brands D. product lines E. private label brands

D

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on A. when to advertise versus when to use personal selling. B. which media are appropriate for promoting intangible services. C. which images create a better impression on consumers. D. how to gain clients while retaining an image of professionalism and integrity. E. who should be the spokesperson for professionals offering intangible services.

D

For products like pencils and paper clips, which provide the same benefit for all consumers, marketers should probably use a(n) A. concentrated targeting strategy. B. lifestyle segmentation strategy. C. benefit segmentation strategy. D. undifferentiated targeting strategy. E. differentiated segmentation strategy.

D

Gross national income equals GDP A. minus net consumer spending. B. plus government spending on international trade. C. minus purchasing power parity. D. plus the net investment income earned from abroad. E. plus gross domestic international investment

D

In order to develop psychographic segments, the marketer must understand consumers' A. age, income, and education. B. gender, race, and religion. C. disposable personal income, benefit perceptions, and alternative egos. D. self-values, self-concept, and lifestyles. E. buying patterns and behaviors.

D

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the U.S., what segmentation method would probably be most useful in choosing new locations? A. Loyalty segmentation. B. Benefit segmentation. C. Psychographic segmentation. D. Geodemographic segmentation. E. Demographic segmentation.

D

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

D

Marketers often create a special marketing mix for loyalty segments because these segments are A. too large to service with ordinary targeting. B. difficult to identify. C. costly to acquire. D. usually quite profitable. E. all of these

D

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them. A. loyalty segmentation; demographics B. undifferentiated targeting; differentiated targeting C. loyalty segmentation; geodemographics D. geodemographic segmentation; lifestyle or benefit segmentation E. lifestyle segmentation; geographic segmentation

D

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns A. with low individualism symbolism when confronted with a time oriented culture. B. using uncertainty avoidance to reduce power distance. C. with significant power distance. D. consistent with underlying cultural values in a country. E. with more consistent time orientation.

D

NCD company wants to expand into the Mexican market. They have financial resources, want to control business operations, and have had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market. A. franchising B. exporting C. a joint venture D. direct investment E. a strategic alliance

D

One of the categories of products for which brand extension is especially logical is A. generic goods. B. generic services. C. commodities. D. complementary goods. E. licensed brands.

D

One of the major tools used by marketers to meet the needs of loyal customers is A. SKU. B. PDQ. C. IMF. D. CRM. E. GATT.

D

Which of the following is LEAST likely to be a source of ideas for new products? A. R&D efforts B. Licensing technology C. Consumer research D. Geodemographic segmentation E. Brainstorming

D

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and A. not having to pay advertising expenses. B. using prototypes to dominate the market. C. not needing to do test marketing. D. establishing an early market share lead. E. motivating laggards to buy their products.

D

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation. A. benefit B. geodemographic C. psychographic D. demographic E. geographic

D

The marketing of services differs from product marketing because services are all of these EXCEPT A. intangible. B. inseparable. C. variable. D. renewable. E. perishable.

D

Today, almost every sales rep can immediately check the company's inventory and production scheduling electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through A. access to a wide variety of services. B. greater control by customers over service delivery. C. increased zone of tolerance. D. greater ability to obtain information. E. saving customers time.

D

Training service providers to know exactly what a "good job" entails is setting service A. knowledge. B. quality. C. delivery. D. standards. E. empowerment.

D

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage A. sales would rise quickly, profits would jump, and even laggards would buy his product. B. sales would level off, profits would decline, and mature golfers would be attracted to his product. C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

D

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the _____________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline

D

When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

D

When confronted with an angry and emotional customer, the best first step toward service recovery is to A. call security in case it is necessary to escort the person from the building. B. match the person's voice in intensity and volume to gain control of the confrontation. C. gently but firms tell the person you will not tolerate being addressed in that tone of voice and turn away until he or she calms down. D. listen carefully and with empathy until the customer feels he or she has been heard. E. ask a coworker to take over handling the complaint to get a neutral perspective.

D

When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh. A. production capacity B. pricing C. advertising D. infrastructure E. cultural

D

Which of the following is NOT a recommended strategy for service recovery? A. Listening to the customer. B. Finding a fair solution. C. Resolving problems quickly. D. Silencing an irate customer before the individual makes any angry outbursts. E. Following procedural fairness when solving problems

D

Which of the following is NOT one of the four criteria used for determining how "good" a brand is? A. brand awareness B. brand loyalty C. brand associations D. brand conceptualization E. brand perceived value

D

Which of these is NOT one of the main components of a value proposition? A. The target market. B. The name of the product or brand being offered. C. The product/service category or concept being offered. D. The price of the product or service being offered. E. The unique point of difference or benefits offered.

D

With access to the Internet nearly universal in the United States, many potential market segments have become more A. substantial. B. perceptive. C. identifiable. D. reachable. E. quantifiable.

D

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie. A. point of parity B. strategic target C. PRIZM cluster D. ideal point E. benefit centroid

D

_________ means allowing employees to make decisions about how service is provided to customers. A. Endorsement B. Quality control C. Standardization D. Empowerment E. Authorization

D

. Many product dominant firms use quality service A. as a way to minimize the cost of production. B. to support a standards gap. C. as a way to increase the perishability of their products. D. to install a voice of the customer program. E. to maintain a sustainable competitive advantage.

E

A major limitation in the use of internal R&D departments for new idea generation is A. few scientists have ideas. B. they tend to be dissolved once sufficient ideas have been generated. C. they tend to create too many blockbusters. D. few scientists have practical ideas. E. the costs tend to be quite high.

E

A product is __________ that can be offered through a voluntary marketing exchange. A. the combination of a firm's marketing mix B. the brand associations C. the category depth D. a tangible item E. anything of value to consumers

E

A systematic ____________ program collects customer inputs and integrates them into managerial decisions. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

E

A(n) __________ gap exists when a firm knows what they need to do to meet customers' service expectations, but sometimes fails to do it. A. knowledge B. communication C. standards D. empowerment E. delivery

E

Airlines were among the first retailers to embrace loyalty segmentation when they created A. business-class seating. B. 30-day advance pricing. C. fuel surcharges. D. in-flight movies. E. frequent flyer programs.

E

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings. A. quality gap analysis B. empowerment C. zone of tolerance D. standards analysis E. voice-of-customer

E

Between concept testing and market testing, a firm should engage in which stage of the product development process? A. securing financial backing B. marketing research C. brainstorming D. determining potential ROI E. product development

E

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing __________ of each potential market segment. A. substance B. responsiveness C. identification D. reach E. profitability

E

Culture affects A. how consumers decide to make their purchases. B. what consumers decide to purchase. C. when consumers decide to make their purchases. D. where consumers decide to make their purchases. E. every aspect of consumers' purchase decisions.

E

Demographic segmentation is segmentation based on all of the following EXCEPT A. age. B. gender. C. education. D. income. E. lifestyle.

E

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising? A. The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. B. The franchisor might end up training a future competitor. C. Franchising limits profit potential, since profits will have to be split with the franchisee. D. Franchising is the riskiest way to enter a foreign market. E. All of these are disadvantages a firm must consider.

E

During the ________________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline

E

Early personal computers cost several thousand dollars, allowing competitors A. to focus on creating demand for their brand. B. to promote alternative brands in that product category. C. to spend less on introductory advertising. D. to focus on making improved versions. E. to introduce lower-priced alternatives.

E

Effective service recovery efforts can lead to all of the following EXCEPT A. increased purchase intentions. B. increased positive word of mouth. C. increased customer satisfaction. D. lower levels of satisfaction than prior to the service failures. E. increased dependence on technology to prevent future service failures

E

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies. A. geographic B. benefit-based C. economic D. global E. concentrated

E

Golden Years Vitamin Corporation targets consumers living in Florida who are over 65. Golden Years is using __________ segmentation. A. benefit B. self-actualization C. psychographic D. loyalty E. geodemographic

E

If the _____________ diffusion of innovation group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter

E

If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

E

In addition to calculating the potential profitability of a market segment, marketers will also consider A. customer loyalty. B. defection rates. C. the cost of replacing customers. D. likely future sales to customers. E. all of these

E

In countries like the United States, services A. have almost all been replaced by technology. B. are a small portion of GDP relative to manufacturing. C. are replacing property taxes as a source of government revenue. D. will decrease in demand as the population ages. E. account for an increasing share of jobs.

E

Jenna always buys Stacy's brand pita bread chips. She does not even consider alternatives. Jenna is a __________ customer. A. price sensitive B. brand persuasion oriented C. brand association oriented D. brand extension oriented E. brand loyal

E

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is all of the following EXCEPT A. substantial. B. responsive. C. profitable. D. reachable. E. realistic.

E

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to A. categorize each market segment by consumer demographics. B. establish her overall objectives. C. decide on a targeting strategy. D. develop a positioning strategy. E. evaluate the attractiveness of each segment.

E

Many former Enron professionals who had nothing to do with the corporate scandal have found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has A. no brand associations. B. unspent brand loyalty. C. private label impact. D. brand dilution. E. negative brand equity.

E

Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of A. intangibility. B. part-time employees. C. perishability. D. inseparability. E. variability.

E

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate. A. intangibility B. inseparability C. spendability D. perishability E. variability

E

Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients' expectations will reduce the __________ gap associated with their service. A. knowledge B. empowerment C. delivery D. standards E. communication

E

Private-label brands are developed and managed by A. manufacturers. B. wholesalers. C. supply chain specialists. D. manufacturer's reps. E. retailers.

E

Robin recently bought Voice over Internet protocol (VOIP) phone service (phone service delivered over the Internet). A few of Robin's friends bought VOIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) ________________ in this product category. A. innovator B. laggard C. late majority D. early majority E. early adopter

E

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the LEAST important information that should be included in promotions is A. the brand name. B. the logo. C. the packaging. D. the slogan. E. the product history.

E

Samples are often used for new products when _________________ will influence the diffusion of the product. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E

Service employees on the front line often face difficulties when dealing with customers. Marketing managers can help address these difficulties by A. providing emotional support to service providers. B. making sure service providers have the tools they need to do their jobs. C. ensuring conflicting organizational goals are resolved before the conflicts reach the front line employees. D. providing rewards for excellent service. E. All of these.

E

She is now deciding how to position the accessories. She could consider positioning based on A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. all of these

E

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in ________________, a form of new idea generation. A. R&D B. licensing technology C. consumer research D. geodemographic analysis E. brainstorming

E

Technology can help facilitate service delivery through A. access to a wide variety of services. B. greater control over service delivery by customers. C. increased efficiency. D. greater ability to obtain information. E. all of these.

E

The ______ is a specific price at which manufacturers encourage retailers to sell a product. A. key price point B. slotting fee C. perceived value D. retail margin E. manufacturer's suggested retail price

E

The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? A. Profits increase as sales increase. B. Profits increase as economies of scale are attained. C. Some new competitors may enter the market with similar products. D. Some competitors will exit in an "industry shakeout." E. Price competition with protracted price wars erodes profits

E

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. A. promotional discounts B. zone of tolerance allowances C. perishability gap analysis D. point-of-purchase displays E. satisfaction guarantees

E

To develop a zone of tolerance analysis, a market researcher would likely ask customers A. their desired level of service for each of the five service quality dimensions. B. their expected level of service for each of the five service quality dimensions. C. how well the firm performs in each service quality dimension. D. the importance of each service quality dimension. E. all of these.

E

What do the BRIC countries have in common? A. They participate together in a trading bloc. B. They have suffered more than most other countries in the recent recession. C. They are Asian countries experiencing explosive population growth. D. They are the four countries known for the highest levels of bribery in business and government. E. They are experiencing significant levels of economic growth.

E

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in A. concentrated segmentation. B. geodemographic segmentation. C. benefit segmentation. D. psychographic segmentation. E. misguided geographic segmentation.

E

When __________ are authorized to make decisions to help their customers, service quality generally improves. A. consultants B. middle managers C. corporate executives D. production control managers E. frontline employees

E

Which of the following is NOT true regarding secondary packaging? A. It can provide information to consumers not found on the primary packaging. B. It is important to the retailer in terms of convenience in handling. C. It can be an important positioning tool to convey the brand image. D. It can allow for cost efficiencies due to larger order and shipment sizes. E. It is of little value to the average consumer.

E

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line? A. The firm decided to refocus marketing efforts elsewhere. B. The firm must respond to evolving markets. C. The product undermined its own brand. D. The product being eliminated is unprofitable. E. The firm has decided to capture new markets.

E

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening. A. intangible B. inseparable C. variable D. durable E. perishable

E