Master Quizlet
Which step in the ethical decision-making framework is sometimes referred to as seeing through a problem to the other side?
Consider how the decision will affect the stakeholders.
social media influencers
Consumers who have a large following and credibility within a certain market segment.
Which of the following is a drawback of contests?
Contests can be expensive to administer.
At which step in building an advertising campaign do marketers focus on creating the content of the campaign's message?
Create advertisements.
17. As outlined in your text, think about the percentage of global advertising delivered by each major medium. Which advertising medium is projected to see a drop in its use in the future? A. television B. magazines C. newspapers D. radio E. outdoor
C. newspapers
39. As a retailer, Target has developed its own line of products with the brand name up & up. These products are sold exclusively in Target stores and are an example of A. manufacturer brands. B. generic brands. C. co-brands. D. private label brands. E. licensed brands.
D. private label brands.
researching
Digital purchasing behavior wherein the consumer is purchasing a product for the first time. Unlike browsing, which has no expected outcome, researching is more deliberate and will likely result in a purchase either online or offline.
publicity
Disseminating unpaid news items through some form of media (e.g., television story, newspaper article, etc.) to gain attention or support
noise
Distractions in the communication process that disrupt the reception of a marketing message.
61. Which step of the personal-selling process is often the most difficult because it requires the salesperson to overcome the fear of being rejected? A. preapproach B. approach C. sales presentation D. handling objections E. closing the sale
E. closing the sale
Federal Communications Commission (FCC)
Federal agency that enforces the federal laws that prohibit obscene, indecent, and profane content from being broadcast on the radio or television.
Federal Trade Commission (FTC)
Federal agency that protects consumers and businesses from anticompetitive behavior and unfair and deceptive practices.
In the context of new product development, which of the following actions by Farmel Inc., a pharmaceutical firm, is unethical?
Holding off on marketing a new and vastly improved cancer drug until it recovered investments on the existing drug
communication process
How a message is transmitted from (encoded by) a sender and decoded by a receiver.
Tiffany & Co. is a luxury jewelry brand. Its iconic Tiffany blue box, along with its suede pouch, have been used for more than 100 years. How does Tiffany's packaging help to promote the brand's image?
It communicates class and sophistication.
What is true of the first step of the CRM process?
It is the step during which a firm will identify its current customers.
Which of the following statements represents a purchase decision?
It's been a long day and you do not want to cook dinner; you decide to order take-out.
How will marketers know when they have applied a product excellence strategy?
Items are produced at a high quality, with a focus on adding value.
What is one way a company attempts to reposition the competition rather than itself?
Launch a promotional campaign that characterizes the competition in a negative light.
employee sales promotions
Promotional incentives designed to increase sales for a product or brand.
viral campaigns
Promotional messages spread quickly by social media users forwarding them throughout their social networks.
sender
Starts the communication process by transmitting a message.
extrinsic motivation
Stems from positive or negative external factors such as financial or social rewards, embarrassment, or termination.
personal selling
Two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision.
Understanding how customers make their purchases and how they communicate with the firm characterizes which step of the CRM process?
Understand How Customers Interact
As noted in your text, producers in which country were accused of dumping by selling silk at unreasonably low prices? A. China B. India C. Japan D. Brazil E. Morocco
a
Which of the following is not one of the five dimensions used by consumers to determine overall service quality
acceptibility
Undifferentiated targeting is a strategy that
approaches the marketplace as one large segment.
Students regularly seek out Professor Guillory to advice them...
assurance
All of the following are categories of new products except
brand extensions
All of the following represent augmented product components except
brand.
Every year the high school hosts a faculty-staff basketball game to raise money for the American Heart Association. Along with a cash donation, the local Subway restaurant donates sandwiches that the high school can sell at the game to earn extra money for the charity. By doing so, Subway is engaged in
corporate philanthropy.
A firm that markets domestically does not need to worry about the government artificially controlling the value of its currency—something it must face when marketing globally. This is a phenomenon known as
currency manipulation.
A company can determine the value of its CRM program by calculating its
customer equity ratio
A company can determine the value of its CRM program by calculating its
customer equity ratio.
High levels of customer service and a uniquely curated inventory are characteristics of which type of retailer?
department stores
To meet or exceed customers expectations, marketers must
determine what those expectations are
After reviewing data on communication methods, which of the following would a firm that sells a complex computer system most likely find effective?
digital ad with a how-to video
According to your text, an effective nonprofit brand should be all of the following EXCEPT A. unique. B. pleasing to the eye and ear. C. easy to remember. D. reflective of the organization. E. detailed and thought-provoking.
e
One of the reasons why private label brands are more advantageous than manufacturer brands is that private label brands
encourage consumers to shop exclusively at the retailer that sells them, creating a competitive advantage.
The Federal Communications Commission (FCC) was created to
enforce laws that prohibit obscene, indecent, and profane content from being broadcast on radio or television networks.
A car company that seeks to produce an electric car that provides an immediate and sizeable savings on monthly gasoline purchases should follow which environmental marketing strategy?
environmental cost leadership
Because green products sometimes cost more to produce than traditional products, organizations providing these products can attempt to recover the cost of their ecological investments and generate a profit by utilizing a(n)
environmental cost leadership strategy.
Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called
environmental scanning.
When creating advertisements, marketers need to understand that
getting the message correct is an important part of the campaign's success or failure.
Today, almost every sales rep can immediately check the company's inventory and production of scheduling electronically
greater ability to obtain information
Along the service product continuum, which of the following would be considered the most product dominant?
grocery store
When marketers state that services are _____, they are referring to the fact that services are not always the same quality from one time period to another or from one service provider to another
heterogeneous
Because of___________ many companies have altered their no questions asked return policies to include limits, restocking fees, and store-credit-only refunds
high costs
Food preparation, lawn maintenance, and house cleaning services are all examples of
household maintenance, activities that people increasingly pay others to perform
Although firms such as restaurants have difficulty controlling service quality from day to day, they do have control over
how they communicate the services they promise
For many professionals offering intangible services. , an ethical marketing dilemma exists. The dilemma centers on
how to gain clients while retaining an image of professionalism and integrity
The first step in the customer relationship management process is to
identify current customers.
Tactical greening involves
implementing limited change within a single area of the organization.
The type of digital marketing that utilizes tools such as blogging, webinars, or follow-up emails is known as ________ marketing.
inbound
A strategy designed to put the customer at the center of all marketing activities by focusing on value, satisfaction, and quality of service is known as
customer excellence.
This method of data mining involves creating customer profiles based on demographic characteristics and purchase patterns.
customer segmentation analysis
The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of
customer.
As a retailer, Target has developed its own line of products with the brand name up & up. These products are sold exclusively in Target stores and are an example of A. manufacturer brands. B. generic brands. C. co-brands. D. private label brands. E. licensed brands.
d
Because it could be considered an attempt to create a monopoly, which pricing strategy is illegal under U.S. law but is difficult to prove? A. price discrimination. B. deceptive pricing. C. price fixing. D. predatory pricing. E. price inflation.
d
Brand revitalization is also referred to as A. co-branding. B. rebuilding. C. recouping. D. rebranding. E. remaking.
d
When a marketing researcher converts the information obtained from qualitative research, such as focus groups and surveys, into a form that can be used to solve a marketing problem, what step in the marketing research process is taking place?
data analysis
To understand what items are most likely to sell from on-campus vending machines, a company distributes surveys and holds a few focus groups of vending machine users on different campuses. The company is in what step of the marketing research process?
data collection
A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of which social criticism of marketing?
deceptive pricing
A ____ gap can be closed by getting employees to meet or exceed service expectations
delivery
In services marketing, the saying, where the rubber meets the road refers to whether a ____ gap exists
delivery
Saltdust Grill is known as the premier restaurant in town...
delivery
Effectie service recovery efforts can lead to all of the following except
increased dependence on technology to prevent future service failures
Many messages are not actually received by consumers because the transmission of the message
is disrupted by distractions called noise.
Dell doesn't currently offer a smartphone in its product line. However, if the company decided to enter the market by producing a smartphone of its own, it would be classified as what type of product?
new category entry
A company uses sales forecasting to determine how much product to hold in inventory at various points in the distribution network. Sales forecasting is related to which of the four Ps of marketing?
placeCorrect
Jin walks past a person carrying a red bag decorated with a red and white bull's-eye and immediately knows he is near a Target store. Target's use of the red and white bull's-eye on its packaging is an example of which type of marketing communication method?
point of purchase
The fact that customers can now use their mobile devices to pay for a product reflects the intersection of social media and the _____ element of the marketing mix.
price
Collusion to set a product's price is a key characteristic of this unethical pricing practice.
price fixing
One way that companies can capture value from customers is through
price.
Both Sam's Club and Costco have positioned themselves as providing a variety of items to shoppers at prices lower than retail stores. These stores have positioned themselves based on
price/quality relationship.
Which step in the marketing research process includes setting specific, measurable research objectives?
problem definition
The communication gap is described as the gap between a company's
service delivery and external messaging.
The old cliche "Service with a smile" recognizes the fact that
service providers need to be pleasant even if the customer is not
Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call
service quality
Medical services, assisted living care, and active senior travel are all examples of
services an aging population will increase their demand for
All of the following are common techniques for overcoming the objections of potential customers except
summarization.
Marta needs to pick up a few groceries, a gift for her son to take to a second-grade birthday party, and some items to restock her toolbox. She only wants to make one stop. Which of the following retailers should she visit?
supercenter
Included among the 10 general categories of retailers are supermarkets, department stores, drugstores, service retailers, and e-tailers, as well as
supercenters, warehouse retailers, convenience retailers, specialty retailers, and off-price retailers.
Excellent website design can help a firm build strong customer relationships by making sure it includes
superior customer service tools such as chat features.
Whereas a consumer need is something one has to have to ________, a consumer want is something one would like to ________.
survive; have
Ethics can be defined as
the moral standards expected by a society.
Overall, GDP is the most common gauge of
the overall expansion or contraction of an economy.
When marketers segment consumer groups based on psychographics, they are relying on
the reason the consumer made the purchase.
Services marketing managers have learned that more employees will support a quality oriented process if
they are involved in setting the goals
When it comes to the communication gap, the best way for a company to manage customer expectations is
to be realistic about the services it provides.
Bank of America uses a complex polling system...
voice of customer
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
zone of tolerance
Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers _______
zone of tolerance
When Jaime arrived at her hotel room and saw the bed sheets had not been changed
zone of tolerance
The concept of ______ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service
zones of tolerance
3 main types of sales roles
1. inside salespeople 2. outside salespeople 3. sales team
types of visible marketing influences
1. paid search 2. paid stories 3. paid display advertising 4. sponsorship
digital mall
A digital retail site where a variety of sellers stock their goods.
67. Which public relations tool is typically intended to inform and engage the public? A. speeches B. annual reports C. sales presentations D. blogs E. brochures
E. brochures
Direct competition occurs when a product provides alternate solutions to the same market.
F
Jackson manages an upscale french restaurant in Washington D.C.
knowledge
In order to meet the goals of a social media campaign, certain activities, or ________, need to be set and completed.
objectives
What type of qualitative research involves watching how people behave and recording behaviors that are relevant to the research objective?
observation
Which of the following represents how technology is being used in the global marketing environment?
the use of translation programs that allow customers to view websites in their own language
What issue is an ever-present concern for customers regarding CRM systems?
the worry that customer data is not secure
A systematic _______ program collects customer inputs and integrates them into managerial decisions
voice of customer
Which of the following is not an example of a secondary data source?
questionnaires
steps in the communication process
1. sending 2. encoding 3. message (noise) 4. channel (noise) 5. receiver (noise) 6. decoding 7. feedback
lifetime value analysis
A data mining model that allows the company to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers.
data mining
A process that involves the computerized search for meaningful trends in a large amount of data.
click path
A sequence of hyperlink clicks that a website visitor follows on a given site, recorded and reviewed in the order the consumer viewed each page after clicking on the hyperlink
sales promotion
A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.
bots
A software application that runs automated tasks over the Internet.
social media platform
A website-based media channel used to facilitate communication and connection.
71. A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of what pricing strategy? A. price discrimination B. deceptive pricing C. price fixing D. predatory pricing E. price inflation
B. deceptive pricing
8. Which of the following is NOT one of the broad segmentation bases outlined in your text that can be used to segment a market? A. demographic B. demand C. geographic D. psychographic E. behavioral
B. demand
11. The brand image that bears your name and that must be managed 24-hours-a-day, 7-days-a-week, 365-days-a-year, is referred to as your A. primary brand. B. personal brand. C. unique brand. D. social brand. E. brand equity.
B. personal brand.
57. What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers? A. an undifferentiated targeting strategy B. a geographic targeting strategy C. a niche marketing strategy D. a concentrated marketing strategy E. a differentiated targeting strategy
A. an undifferentiated targeting strategy
Which of the following is an example of market segmentation?
a pet supplies shop that caters only to cats and dogs
All of the following are necessary for omnichannel retailing success, except
segregated channel operations.
paid stories
Ads that appear as content designed to look like stories to the viewer.
If a firm promises more than it can deliver
it creates a communication gap
Wen the delivery of a service fails to meet customer expectations, a _____ gap exists
service
Products are classified according to how a consumer
shops, pays for, or uses the product.
steps in the customer relationship management process
1. identify current customers 2. understand how customers interact 3. gather specific customer information 4. store and analyze information
Common techniques for handling objections:
1. Acknowledging the objection 2. Postponing 3. Denial
Three advertising objectives
1. Inform 2. Persuade 3. Remind
dashboard
A central location where all social media activity can be easily monitored.
advertising campaign
A collection of coordinated advertisements that share a single theme.
promotional mix
A combination of tools used by marketers to promote goods, services, and ideas and to accomplish their communication objectives.
social media marketing campaign
A coordinated marketing effort to advance marketing goals using one or more social media platforms.
67. Regarding positioning a product, when is competitive analysis most important? A. when competitors all appear to offer a similar good or service B. when a product is unique compared to what other firms are offering C. when selecting a target market for a product D. when determining how to segment the market E. when competitors all appear to offer lower priced options
A. when competitors all appear to offer a similar good or service
59. Taxes on imports and exports between countries are called A. embargoes. B. tariffs. C. market equalizers. D. allowances. E. sanctions.
B. tariffs.
2. The marketing mix element where most of an organization's communications with the marketplace occurs is A. price. B. place. C. product. D. promotion. E. position.
D. promotion.
29. Charging someone less than they are willing to pay is a practice referred to as A. dumping. B. survival pricing. C. minimal pricing. D. underpricing. E. price skimming.
D. underpricing.
coupons
Documents that entitle the customers who possess them to a discount on a product.
All products and services are intangible
False
native advertising
Form of promotion that integrates a marketer's advertising message into the content and look of a website or other platform.
public relations (PR)
Nonpersonal communication focused on promoting positive relations between a firm and its stakeholders.
Sarah takes a lot of time and care while purchasing various skin-care products. She recently purchased Opal Cosmetics' new product, an expensive moisturizing serum, which produced good results on the first use. Which of the following must Opal Cosmetics do to transition Sarah's high-involvement decisions, regarding Opal's products, to low-involvement decisions?
Prove that its serum delivers the intended results in the long run.
A quality marketing objective that is motivational and attainable is considered
Realistic
content
The information, images, videos, and any other delivery method of the marketer's social media message.
prospecting
The search for potential customers—those who need or want a product and fit into a firm's target market.
samples
Trial portions of a product used to encourage product purchase.
A delivery gap always results in a service failure
True
A delivery gap is the difference between a firm's service standards and the actual service it provides to customers
True
Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage
True
Listening to the customer is the first step in service recovery
True
combination approach
Utilizes multiple types of territory strategies to organize the sales force.
When _____ are authorized to make decisions to help their customers, service quality generally improves
frontline employees
Unlike data, information gathered from marketing research
can enable decision making.
An advantage to using a perceptual map is that it
can highlight potential market positions that might be underserved.
The first step in the price-setting process is to A. evaluate demand. B. determine the costs. C. analyze the competitive price environment. D. define the pricing objectives. E. compare alternatives.
d
Scotts Fertilizer has a 4-step program for lawn care. Each step features a different product. Scotts sells the fertilizer as a set containing one bag of each of the 4-step products. If Scotts decided to sell each product individually rather than as a set, it would be an example of which pricing strategy? A. dumping B. dynamic pricing C. minimal pricing D. underpricing E. unbundling
e
Since consumers have the tendency to compare prices on almost everything they buy, marketers should attempt to capitalize on this tendency when setting prices by determining the price consumers will consider fair and reasonable for a product. This is known as the A. benchmark price. B. break-even point. C. dynamic price. D. reasonable price. E. reference price.
e
Effective services recovery entails all of the following accept
estimating the damage
Gerald's Tire service provides each employee with a clean sharp looking uniform...
tangibles
Of the following list of products, which would be considered a product idea?
"America Runs on Dunkin'"
4 elements of promotional mix
1. Advertising 2. Personal Selling 3. Public Relations 4. Sales Promotion
Trade (B2B) Sales Promotion
1. Allowances 2. Training
The elements of excellent Web design include:
1. Ease in navigation 2. Quick load time 3. Mobile friendly 4. Customer service tools
Follow-ups include:
1. Improving customer satisfaction 2. Promoting positive reviews 3. Enhancing sales opportunities
The primary forms of digital marketing include:
1. Inbound marketing 2. Search engine optimization 3. e-mail marketing 4. social media marketing
The four approaches that marketers use to determine the promotional mix are:
1. Nature of the method 2. Nature of the product 3. Target market characteristics 4. Marketing budget
Steps in the Personal Selling Process
1. Prospecting and qualifying 2. The Pre-approach 3. The Approach 4. The presentation 5. Handling objections 6. Closing the sale 7. Follow-up
Response types include:
1. Registering for further information 2. Requesting to be contacted by a salesperson 3. Making a purchase
Direct marketing can result in a range of benefits for firms, including:
1. The development of new customer relationships 2. An increase in sales 3. The ability for consumers to share compelling content with other consumers and users 4. The ability to test the appeal of a product or service 5. The ability to test various marketing approaches to see which is most effective with a target audience 6. The ability to test different marketing message elements
tools for public relations
1. annual reports 2. speeches 3. blogs 4. brochures 5. event sponsorship
factors of the personal-selling environment
1. changing environment 2. competitive environment 3. complex environment
forms of consumer feedback
1. consumer reviews 2. chatter 3. influencers
types of invisible marketing influences
1. cookies 2. geotracking 3. bots
5 main types of consumer (B2C) sales promotions
1. coupons 2. rebates 3. samples 4. contests and sweepstakes 5. loyalty programs
Data Mining Analysis Techniques
1. customer segmentation analysis 2. recency-frequency-monetary analysis 3. lifetime value analysis 4. predictive modeling
types of digital sellers
1. digital malls 2. digital marketplaces 3. auction sites 4. buying club sites
Defining what territories the salespeople will serve is often accomplished in one of four ways:
1. geographic approach 2. product approach 3. customer approach 4. combination approach
Steps in Building an Advertising Campaign
1. identify the target audience 2. define objectives 3. create advertisements 4. choose advertising tools 5. measure the effectiveness of the advertising
Marketers predominantly communicate through:
1. mass media 2. electronic media 3. personal communication 4. point of purchase 5. physical space 6. press
5 categories of online purchasing behavior
1. product-focused shopping 2. browsing 3. researching 4. bargain hunting 5. one-time shopping
Steps in Social Media Marketing Campaign
1. set a goal - integrating social media into the marketing mix 2. select the correct combination of social media platforms 3. create marketing content - set social media objectives 4. monitor the campaign
4 criteria to judge the effectiveness of CRM
1. share of customer 2. customer equity 3. customer focus 4. lifetime value
3 major closing strategies
1. summarization close 2. trial method close 3. assumptive close
3 ways firms capture value from information
1. tailor promotions 2. reduce cognitive dissonance 2. improve B2B relationships
Greg is the owner of a full-service car wash. For the month of December he paid $2,000 in rent, $700 in utilities, $2,250 in salaries, and $50 on advertising. A full service car wash costs $10.50. Unit variable costs per car wash are $2.50. How many full-service car washes does Greg need to sell to break even each month?
625
e-mail marketing
A cost-effective form of digital marketing used to retain, nurture, or attract a new customer base.
frequency
A count of how often a consumer is exposed to a promotional message (television advertisement, online advertisement, billboard, etc.).
recency-frequency-monetary analysis
A data mining model that involves categorizing customers by their buying patterns, such as how recently they have purchased a good or service, how often they purchase from the company, and how much money they spend on the company's products.
customer segmentation analysis
A data mining model that involves creating customer profiles based on demographic characteristics, purchase patterns, and other criteria and placing them into various categories.
predictive modeling
A data mining model that uses algorithms to try to determine the future actions of customers.
digital marketplace
A digital retail site made up of small, independent sellers.
buying club site
A digital retail site that allows consumers to buy in bulk
auction site
A digital retail site that lists goods from individuals or firms that can be purchased through an auction bidding process or directly through a "purchase now" feature.
consumer review
A direct assessment of a product (good, service, or idea) that is expressed through social media for others to see and consider.
What is the primary goal of the second step of the market positioning process?
A firm identifies the positioning strategies that will best highlight its competitive advantage.
Which of the following is an example of a marketer exhibiting the ethical value of citizenship?
A firm that makes office supplies donates paper and pens to disadvantaged schools in its community
inbound marketing
A form of digital marketing that utilizes such tools as blogs, webinars, or follow-up e-mails to entice consumers to a product or service offer without forcing an interaction or a purchase.
direct response advertising
A form of marketing that requires an immediate response or call to action.
sales presentation
A forum to convey the organization's marketing message to the prospect.
sales team
A group of salespeople and possibly other employees who act collectively to sell to a customer.
sales management
A manager's responsibility for formulation and implementation of a sales plan used to deploy salespeople to interact with customers.
Which of the following statements about a marketing manager's role within an organization is true?
A marketing manager is responsible for all the short- and long-term operational and strategic activities of a firm.
communication method
A means for marketers to get a message to consumers
sentiment analysis
A measurement that indicates whether people are reacting favorably or unfavorably to products or marketing efforts.
pre-approach
A part of the personal-selling process that involves identifying specific information about a prospect.
qualifying
A part of the personal-selling process that involves identifying which potential customers within the firm's target market have not only a desire for the product but also the authority to purchase it and the resources to pay for it.
approach
A part of the personal-selling process that involves meeting the prospect and learning more about his or her needs and wants
integrated marketing communications (IMC) strategy
A promotional strategy that involves coordinating the various promotional mix elements to provide customers with a clear and consistent message about a firm's products.
customer equity
A ratio that compares the financial investments a company puts into gaining and keeping customers to the financial return on those investments.
mobile marketing
A set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through and with any mobile device or network.
active listening
A skill that salespeople can develop to improve how they fully concentrate, understand, respond, and remember what is said during a sales meeting.
self-regulation
A structure to settle disagreements in business without having to include government resources.
informative advertising
A type of advertising that attempts to develop initial demand for a product.
persuasive advertising
A type of advertising that attempts to increase demand for an existing product.
reminder advertising
A type of advertising that seeks to keep the product before the public in an effort to reinforce previous promotional activity.
63. As noted in your text, producers in which country were accused of dumping by selling silk at unreasonably low prices? A. China B. India C. Japan D. Brazil E. Morocco
A. China
54. Which of the following is NOT true regarding global pricing? A. Firms do not encounter any unique challenges when pricing products globally. B. Historically, companies have set prices for products sold internationally higher than the same products sold domestically. C. Technological advancements have made global pricing more transparent. D. Economic conditions over the past decade have impacted global pricing for products. E. Pricing is a critical component of a successful global marketing strategy.
A. Firms do not encounter any unique challenges when pricing products globally.
35. According to your text, all of the following technological advances have created disadvantages for radio advertising EXCEPT A. GPS systems. B. satellite radio stations. C. smartphones. D. MP3 players. E. digital presets.
A. GPS systems.
9. Compare the following statements and select the one that accurately describes a company that is practicing supply chain management. A. It sets up technology to enable the sharing of demand information with suppliers. B. It has an inward focus on the activities and performance of other companies. C. It recognizes the importance of sharing supply and demand information with suppliers and customers. D. It has an outward focus regarding the activities of its own company. E. It does not rely on other members of the supply chain to add value to the final product.
A. It sets up technology to enable the sharing of demand information with suppliers.
61. What social brand monitoring tool allows a firm to capture its brand across most social media sites by monitoring over 100 platforms, isolating relevant keywords and measuring the brand's impact online? A. Social Mention B. Google Alerts C. Twitter Search D. Technorati E. Klout
A. Social Mention
53. According to your text, what tool provides an excellent framework to determine if a firm will be successful targeting a specific segment? A. a SWOT analysis B. Maslow's hierarchy of needs C. a perceptual map D. a positioning map E. a segmentation analysis
A. a SWOT analysis
47. Keegan is a purchasing manager for a large auto manufacturer. The contract with the company's steel provider is just about to expire, so Keegan is negotiating the terms and condition of a new contract with his supplier. Keegan is satisfied with the negotiations, so he takes the next step of drawing up a legal obligation to buy the negotiated amount of steel at the price and delivery date agreed upon by himself and his supplier. This legal obligation is otherwise known as A. a purchase order. B. a bill of sale. C. an agreement. D. a contract amendment. E. the cost of goods sold.
A. a purchase order.
26. Which type of supply chain strategy is demonstrated by the following sequence: (Step 1) forecast sales, (Step 2) plan production, (Step 3) order materials, (Step 4) customer orders, (Step 5) make product, and (Step 6) ship product? A. a push-pull strategy B. supply strategy C. demand strategy D. push strategy E. pull strategy
A. a push-pull strategy
50. According to recent data from ACNielsen, 60 percent of consumers researching products through online sources learned about a specific brand or retailer from A. a social networking site. B. the company webpage. C. a search engine. D. a newspaper website. E. a product comparison website.
A. a social networking site.
72. As a budgeting method, which approach is simple and fiscally conservative but offers no other benefits for the organization? A. affordable method B. percentage-of-sales method C. objective-and-task method D. principal accounting method E. cost-per-media method
A. affordable method
70. At auction, Maria purchased an antique porcelain vase valued at $25,000. The vase must be shipped from California to her home in Florida. What would be the best mode of transportation for this item? A. air transportation B. railroad C. water transportation D. common carrier truck E. contract carrier truck
A. air transportation
22. A push-pull supply chain strategy A. allows the firm to achieve economies of scale in purchasing. B. is the most cost competitive supply chain strategy to use. C. allows the firm to take advantage of manufacturing and transportation economies of scale. D. relieves the firm of having to incur inventory costs. E. does not rely on sales forecasts.
A. allows the firm to achieve economies of scale in purchasing.
51. A trade sales promotion that typically involves paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product is known as A. an allowance. B. a rebate. C. a contest. D. a premium program. E. a loyalty program.
A. an allowance.
55. Undifferentiated targeting is a strategy that A. approaches the marketplace as one large segment. B. simultaneously pursues several different market segments with a different strategy for each. C. involves pursuing a large share of a small market. D. uses a different marketing strategy for each segment. E. markets the same product to multiple regions.
A. approaches the marketplace as one large segment.
47. As a sales promotion tactic, why do marketers prefer using rebates? A. because customers often fail to redeem them B. because they are easy for the customer to use C. because they offer the customer a chance to actually try the product D. because they offer incentives that encourage satisfied customers to become repeat customers E. because they are most effective on everyday purchases
A. because customers often fail to redeem them
33. What type of business-to-business segmentation allows B2B marketers to segment based on purchasing patterns, supplier requirements, and technological orientation? A. behavioral B. geographic C. demographic D. lifestyle E. psychographic
A. behavioral
31. According to your text, the segmentation base that is often the most difficult to use is A. behavioral segmentation. B. geographic segmentation. C. lifestyle segmentation. D. psychographic segmentation. E. demographic segmentation.
A. behavioral segmentation.
55. The illegal buying and selling of products outside of sanctioned channels is referred to as the A. black market. B. white market. C. gray market. D. blue market. E. red market.
A. black market.
31. The strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity is referred to as A. brand revitalization. B. brand extension. C. cannibalization. D. brand marking. E. brand recouping.
A. brand revitalization.
35. The makers of Breyers ice cream have come up with a new line called Breyers Blasts! This line of ice cream combines Breyers ice cream with well-know products such as Oreo cookies, Snickers candy bars, and Reese's peanut butter cups. This is an example of A. co-branding. B. brand extension. C. dual branding. D. partner branding. E. brand revitalization.
A. co-branding.
14. When building a successful brand, it is important that all of the marketing decisions, promotions, and employees reinforce the brand by providing a(n) _______ experience in the minds of consumers. A. consistent B. unique C. memorable D. simplistic E. impressive
A. consistent
23. Small files on your computer that track information about the websites that you visit and the information that you share online, to collect data and design advertising based on that data, are called A. cookies. B. clickers. C. bugs. D. data trackers.
A. cookies.
19. Which of the following is a variable cost? A. delivery cost B. salaries C. advertising cost D. insurance E. rent
A. delivery cost
15. Quentin is a realtor selling high-end homes priced over $750,000. Before showing a property to prospective clients, Quentin makes sure they are pre-qualified for a home loan commensurate with the price of the house. This pre-qualification is based mainly on the client's income, which is what type of segmentation variable? A. demographic B. psychographic C. behavioral D. financial E. geographic
A. demographic
60. A firm marketing its product in the United States and abroad may have to tweak the product for its international customers and as such may have to market it differently. What type of targeting strategy would work best for this situation? A. differentiated B. niche C. undifferentiated D. geographic E. concentrated
A. differentiated
65. Celeste is a company representative for Tastefully Simple. She holds parties at the homes of her family and friends where she demonstrates various uses for the company's products. Celeste works as a A. direct retailer. B. telemarketer. C. independent retailer. D. broker. E. wholesaler.
A. direct retailer.
51. Fenton, a marketer for a major retailer, uses the Internet to aggressively review the prices of products sold by his competitors. Accordingly, he constantly updates his prices based on his findings and what changes he sees in consumer demand. What type of pricing strategy is Fenton most likely using? A. dynamic pricing. B. demand pricing. C. market pricing. D. flexible pricing. E. penetration pricing.
A. dynamic pricing.
32. Data management systems that integrate information across all the departments of an organization are called A. enterprise resource planning (ERP) systems. B. electronic data interchange (EDI) systems. C. just-in-time (JIT) inventory systems. D. intermodal data planning (IDP) systems. E. enterprise data planning (EDP) systems.
A. enterprise resource planning (ERP) systems.
73. According to your text, what step in deciding how to position a product should be done on a continual basis since consumer tastes change for almost every product? A. evaluate feedback B. analyze competitors positions C. review the perceptual map D. define the product's competitive advantage E. undergo market segmentation
A. evaluate feedback
22. What type of research involves asking consumers what comes to mind when they think about the brand? A. free association B. aided recall C. unplanned response D. unaided recall E. free thought
A. free association
48. Among consumers who write product reviews online, a majority do so to A. give recognition for a job well done. B. receive a product discount. C. punish the company for a product defect. D. bond with others. E. feel personally empowered.
A. give recognition for a job well done.
38. Which international segmentation base usually results in market segments made up of young people, those that have more money to spend, or those with access to the Internet? A. global B. cultural C. national D. regional E. unique
A. global
72. A British company manufactures specialty teas and sells them to a retailer in Estes Park, Colorado. In order to get the product to the end-user, the teas are shipped via ocean liner to a port in the Gulf of Mexico and then placed on a railway car to Denver, Colorado. From Denver, the tea is placed on a truck and taken to the retailer in Estes Park. This is an example of A. intermodal transportation. B. contract carrier transportation. C. international transportation. D. just-in-time delivery. E. common carrier transportation.
A. intermodal transportation.
37. Pipeline inventory refers to A. inventory that is in transit between suppliers and customers. B. the inventory a firm needs in its pipeline to meet average demand. C. inventory that is produced or purchased to cover anticipated demand. D. the inventory a firm needs to accommodate seasonal demand. E. inventory that has been over-ordered or that has expired.
A. inventory that is in transit between suppliers and customers.
73. Nonprofit organizations need to use the value stakeholders associate with the organization to raise the funds and support required to accomplish its mission. It is easier for a nonprofit organization to do this if A. it has high brand equity. B. it is relevant to only a small, focused group of consumers. C. its brand is similar to that of its competitors. D. it is relatively unknown. E. it has low brand equity.
A. it has high brand equity.
35. Xin has a business in which she assembles and decorates gift baskets for various occasions such as birthdays, bridal showers, retirement parties and weddings. She makes each basket based on customer orders and gathers the basket components from various stores only when they are needed. This is an example of what type of manufacturing process? A. just-in-time B. cyclical C. pipeline D. anticipative E. seasonal
A. just-in-time
21. Compared to advertising on other media, Internet advertising is A. less expensive. B. less measurable. C. more expensive. D. less targeted. E. less cluttered.
A. less expensive.
3. Randi's family has always owned Toyota vehicles and has been very happy with them. Now that Randi is ready to buy her first vehicle, she doesn't even want to look at other manufacturers because she feels that Toyota's are the best. Randi is exhibiting brand A. loyalty. B. recognition. C. equity. D. discrimination. E. exclusion.
A. loyalty.
53. Coordinating the supply and demand for materials and ensuring that stored or recently received materials get to the production floor when needed are jobs of the A. materials manager. B. purchasing manager. C. plant manager. D. supply chain manager. E. production manager.
A. materials manager.
3. A defined in your text, market segmentation involves dividing a larger market into smaller market segments based on A. meaningfully shared characteristics. B. shopping habits. C. potential interest in a product. D. geographic region. E. available sales force.
A. meaningfully shared characteristics.
19. Free-standing areas with a core urban population of at least 50,000 are what the U.S. Census Bureau calls A. metropolitan statistical areas. B. urban numerical areas. C. major cities. D. metropolitan districts. E. urban statistical areas.
A. metropolitan statistical areas.
27. The dissemination of information to a fairly small, select audience that is defined by its shared values, preferences, or demographic attributes is referred to as A. narrowcasting. B. relationship selling. C. personal selling. D. prospecting. E. broadcasting.
A. narrowcasting.
33. When marketers segment consumers by the type of radio station they listen to and then air their advertisements accordingly, it is a form of A. narrowcasting. B. podcasting. C. simulcasting. D. prospecting. E. concentrating.
A. narrowcasting.
66. The practice of charging different customers different prices for the same product is called A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
A. price discrimination.
13. A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as A. price elasticity of demand. B. break-even analysis. C. profit maximization. D. price elasticity of supply. E. marginal revenue.
A. price elasticity of demand.
6. When Apple released its first iPhone in 2007, it charged customers $599. Shortly thereafter, it reduced the price to $399 for the exact same device. Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy? A. price skimming B. volume maximization C. survival pricing D. underpricing E. target pricing
A. price skimming
56. Alejandro works in a warehouse. His job is to assemble store displays and refurbish goods that have been returned by customers. What warehouse function is Alejandro responsible for? A. production B. logistics C. put-away D. picking E. movement
A. production
37. The amount a product sells for above the total cost of the product itself is called A. profit margin. B. the break-even point. C. marginal revenue. D. marginal cost. E. the price elasticity of demand.
A. profit margin.
8. The goal of an integrated marketing communications strategy is to coordinate the various promotion mix elements to A. provide consumers with a clear and consistent message about the firm's products. B. find the least expensive alternative to promoting a firm's products. C. determine the target market for a firm's products. D. discover the firm's strengths, weaknesses, opportunities and threats. E. identify which potential customers in the target market have the desire and ability to purchase the firm's products.
A. provide consumers with a clear and consistent message about the firm's products.
25. Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most likely use what type of segmentation strategy? A. psychographic segmentation B. socioeconomic segmentation C. demographic segmentation D. geographic segmentation E. behavioral segmentation
A. psychographic segmentation
24. If cost reduction is part of a firm's strategy, which of the following systems will allow it to achieve cost savings through economies of scale in purchasing, manufacturing, and transportation? A. push strategy B. supply strategy C. demand strategy D. push-pull strategy E. pull strategy
A. push strategy
18. After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Les has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a A. push strategy. B. supply strategy. C. demand strategy. D. pull strategy. E. push-pull strategy.
A. push strategy.
45. Watch manufacturer Festina designed a diving watch called the Profundo. The quality promised by Festina in making the Profundo is that this watch stays waterproof. To back up its claim, the watch is sold in a transparent bag filled with distilled water, convincing customers of the watch's high quality. This most likely is an example of how packaging A. reinforces the brand's image. B. upstages the brand's image. C. contributes to low brand equity. D. can turn off a customer through gimmicks. E. differs completely from advertising.
A. reinforces the brand's image.
53. Tristan has been calling on the same customer for years. He handles all of the company's orders and quickly resolves any issues that may come up. On occasion, Tristan takes some of the company employees out to dinner and has even given them tickets to local sporting events. Tristan is involved in A. relationship selling. B. multi-level marketing. C. loyalty selling. D. publicity. E. public relations.
A. relationship selling.
42. Which of the following is NOT a disadvantage of outdoor advertising? A. relatively high cost B. wasted coverage C. short exposure time D. limited space for messages E. difficulty in reading the message
A. relatively high cost
75. Today's health conscious society has caused cereal manufacturers to rethink their products. Now many cereals such as Frosted Flakes are being marketed as being healthier because they are made with whole grains and have less sugar. This is an example of A. repositioning. B. remarketing. C. remanufacturing. D. resegmenting. E. retargeting.
A. repositioning.
73. The Robinson-Patman Act was passed in 1936 and A. requires sellers to charge everyone the same price for a product. B. established the Federal Trade Commission. C. was designed to protect consumers from false advertising practices. D. established maximum rates for tariffs on imports and exports. E. made illegal the practice of price fixing.
A. requires sellers to charge everyone the same price for a product.
26. Which of the following provides the best source of information for marketers regarding how high they can price a product before customers stop considering the product a good value? A. salespeople B. sales forecasts C. historical pricing data D. advertising staff E. customer service personnel
A. salespeople
42. Sunny Pines campground, located in the Midwest, promotes the months of September and October as its value camping months. During this time, it offers reduced rates on camper rentals and campgrounds. It does this, in part, because the weather is not as favorable for camping at this time. The pricing tactic Sunny Pines is using to encourage camping during these months is most likely A. seasonal discounts. B. price bundling. C. prestige pricing. D. unbundling. E. odd pricing.
A. seasonal discounts.
41. What is the term for the situation in which a company does not have enough inventory available to fill an order? A. stockout B. overrun C. obsolete inventory D. shortage E. put-away
A. stockout
39. A firm must track three types of costs to determine the correct level of inventory to keep in stock: purchasing costs, inventory carrying costs, and the costs incurred by A. stockouts. B. overruns. C. obsolete inventory. D. distribution. E. customer returns.
A. stockouts.
41. Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them? A. substantial B. differentiable C. measurable D. accessible E. actionable
A. substantial
47. Carson has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1) students from the nearby college campus, (2) families with small children, and (3) young adult males. Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as A. targeting. B. positioning. C. segmenting. D. marketing. E. repositioning.
A. targeting.
9. What is marginal revenue? A. the change in total revenue that results from selling one additional product unit B. a percentage change in price that results from a change in quantity demanded C. the total change in revenue that results from a large change in product price D. the change in total revenue that results from producing one additional unit E. the total change in revenue that results from a small change in product price
A. the change in total revenue that results from selling one additional product unit
20. Which of the following accurately describes break-even analysis? A. the process of calculating the sales volume needed to achieve a profit of zero B. the process of calculating the point at which fixed costs and variable costs are equal C. the process of calculating the difference between marginal revenue and marginal cost D. the process of calculating the percentage change in quantity demanded in response to a percentage change in price E. the process of calculating how many units of product must be sold to cover fixed costs
A. the process of calculating the sales volume needed to achieve a profit of zero
13. Marketers particularly target older Americans because A. they tend to have more time and money than other consumers. B. they tend to pay more attention to advertisements than other consumers. C. they tend to be more educated than other consumers. D. there are more products available to that age group. E. they purchase products not only for themselves, but also for their family members.
A. they tend to have more time and money than other consumers.
31. What are two of the most common and effective strategies marketers can use for raising prices? A. unbundling and escalator clauses B. reference pricing and unbundling C. markup pricing and escalator clauses D. prestige pricing and dynamic pricing E. odd pricing and prestige pricing
A. unbundling and escalator clauses
2. By leveraging the resources and skills of its various component firms, a supply chain provides the end customer with A. value. B. variety. C. flexibility. D. stability. E. competition.
A. value.
emotional appeal
Advertising appeal that attempts to create an emotional response to the advertising.
rational appeal
Advertising appeal that uses logical arguments, which lead to the consumer thinking about the product and its benefits.
advertising puffery
Advertising that makes broad exaggerated or boastful statements about a product or service that are subjective (a matter of opinion) rather than objective fact.
paid advertising
Advertising that requires a purchased time or space for communicating a message.
nonpersonal advertising
Advertising that uses media to transmit a message to large numbers of individuals rather than marketing to consumers face-to-face.
Which of the following is true of demographic segmentation?
Age, being the easiest to identify, is one of the most commonly used demographic variables.
Which of the following consumers visited a convenience retailer?
Although it cost 30 cents more than he usually pays, Elijah was starving and purchased a candy bar at 7-Eleven.
chatter
Another form of consumer feedback that occurs when a consumer shares, forwards, or "retweets" a marketing message. For marketers, the level of chatter represents consumer feedback.
touchpoint
Any point at which a customer and the company come into contact.
Parker was granted a job interview for an IT audit position at a bank. She wanted to get a haircut for the interview, but because she is new in town and does not know the salons in the area, she made a decision based on her reading of online reviews. She walked into Style It Up and told the stylist she wanted a layered cut. The stylist ended up giving Parker a blunt cut with no layers and charged her $125. Parker was not pleased. Which of the following exemplifies the salon acting quickly and taking ownership of the service failure?
Apologize for the error and set Parker up with a more experienced stylist to correct the cut on the spot, free of charge.
3. Joey set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week for which he charges $25.00 each. Joey spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Joey's weekly revenue? A. $105.00 B. $175.00 C. $148.00 D. $88.00 E. $158.00
B. $175.00
21. Greg is the owner of a full-service car wash. For the month of December he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full service car wash costs $10.50. Unit variable costs per car wash are $2.50. How many full-service car washes does Greg need to sell to break-even each month? A. 713 B. 625 C. 476 D. 543 E. 619 The break-even point is calculated as fixed costs (rent, salaries and advertising) divided by (price minus unit variable costs), or $5,000 ÷ ($10.50 - $2.50) = 625 car washes.
B. 625
50. Compare the following definitions and select the one that accurately describes the term personal buying. A. A purchasing manager develops a relationship with a supplier and buys directly from that supplier and no one else. B. A purchasing manager buys items for the personal use of employees rather than for business use. C. Sales representatives add-on to a supplier order for items that they intend to keep for themselves. D. Employees buy items from the company using their employee discount. E. A purchasing manager buys items from a supplier in return for free items for himself.
B. A purchasing manager buys items for the personal use of employees rather than for business use.
63. Read the following and select which one best represents a growing ethical concern in targeting certain market segments. A. Miller Brewing Company targeting its beer product line to sporting fans B. Abercrombie and Fitch targeting tweens with sexualized clothing C. Lane Bryant targeting clothing for plus-sized women D. Sears giving discounts to military, fire, and police personnel E. Skype.com targeting older Americans as a way to connect with their grandchildren
B. Abercrombie and Fitch targeting tweens with sexualized clothing
34. Read the following statements to select which one is accurate regarding the use of social media in market segmentation. A. Social media is not very helpful in segmenting markets, but it can be a useful tool for marketers once the market has already been segmented. B. By segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base. C. Social media is most helpful in reaching out to older Americans and senior citizens. D. As of yet, social media has not been proven to be an effective tool for segmenting markets. E. As compared to traditional segmenting techniques, it is easier to know exactly how to engage consumers on social networking sites.
B. By segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base.
65. What firm tops the list of the most valuable global brand? A. Microsoft B. Coca-Cola C. McDonald's D. Toyota E. IBM
B. Coca-Cola
14. In November the appliance store priced its front-loading washing machines at $899.00 and sold 50 units. In December they reduced the price to $799.00 and sold 53 units. Which of the following statements is accurate regarding this situation? A. Demand is elastic and total revenue fell from November to December. B. Demand is inelastic and total revenue fell from November to December. C. Demand is elastic and total revenue rose from November to December. D. Demand is inelastic and total revenue rose from November to December. E. Demand is neither elastic nor inelastic but revenue rose from November to December.
B. Demand is inelastic and total revenue fell from November to December.
62. What tool for monitoring a social brand allows a firm to set up alerts about your company, good, service or brand so that you're e-mailed whenever they appear online? A. Social Mention B. Google Alerts C. Twitter Search D. Technorati E. Klout
B. Google Alerts
6. Which of the following statements is accurate regarding the way a supply chain works? A. In a supply chain, products flow upstream, finances flow downstream, and information flows both upstream and downstream. B. In a supply chain, products flow downstream, finances flow upstream, and information flows both upstream and downstream. C. In a supply chain, products, finances and information flow both upstream and downstream. D. In a supply chain, products flow downstream, while finances and information flow both upstream and downstream. E. In a supply chain, products flow both upstream and downstream, finances flow upstream, and information flows downstream.
B. In a supply chain, products flow downstream, finances flow upstream, and information flows both upstream and downstream.
60. Compare the following statements made by a salesperson and select the one that exemplifies handling objections by denial. A. Yes, our service time is slower but our service staff has won the Best Service in the Industry award for the past 5 years. B. It simply is not accurate to claim that our product is a copycat of XYZ brand. We have a patent showing how our product is considerably different. C. We can discuss the product's warranty in a few minutes, but first let me explain one more important benefit of the product. D. Yes, our prices are higher, but our product has been proven to be more efficient. E. If I may take just a moment to ask about your production needs, we can then talk about the various delivery options.
B. It simply is not accurate to claim that our product is a copycat of XYZ brand. We have a patent showing how our product is considerably different.
70. Of all developed countries, the people living in _______ are the most brand and status conscious and are generally accepting of foreign brands. A. the United States B. Japan C. China D. France E. Spain
B. Japan
30. Which of the following statements regarding pricing is TRUE? A. Marketers should keep prices low during the introductory stage of the product life cycle. B. Pricing strategies should be reevaluated throughout the product life cycle. C. Choosing a price is a one-time decision that is made for each individual product. D. Initiating price increases is one of the least challenging aspects of pricing. E. A price-skimming strategy is often used during the growth and maturity stages of the product life cycle.
B. Pricing strategies should be reevaluated throughout the product life cycle.
26. The VALS framework classifies adults into eight psychographic groups: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and A. Creators. B. Survivors. C. Seekers. D. Fighters. E. Skeptics.
B. Survivors.
47. Your text notes that technology has helped to shift the balance of power from companies to customers. Which of the following exemplifies this statement? A. Companies can use social networking sites to help them better target their audiences. B. The Internet has made it possible for customers to comparison shop for products. C. Data gathered at the point-of-sale can be used by companies to target customers for new products. D. Automated production systems lead to more efficient and cost-effective manufacturing processes. E. The Internet allows companies to advertise on more than one platform.
B. The Internet has made it possible for customers to comparison shop for products.
13. What aspect of product development should firms try to achieve when developing a successful brand? A. The product should be unique to the marketplace in order to be competitive. B. The product should provide value to the customers that will be using it. C. The product should be aligned with a customer service department to handle complaints. D. The product should be able to be manufactured as quickly as possible. E. The product should be promotable through advertising and personal selling.
B. The product should provide value to the customers that will be using it.
69. What is the major disadvantage of publicity as a promotion mix tool? A. It is a very costly option. B. There is less control over how the information is presented. C. It cannot be presented through multiple media sources. D. It is time-consuming for the marketer to prepare. E. It is not helpful in crisis management situations.
B. There is less control over how the information is presented.
7. Target stores use an image of a white dog with a red bulls-eye around one of its eyes. In marketing terms, what does this represent for Target? A. an identifier B. a brand mark C. a brand image D. a patent E. a brand feature
B. a brand mark
61. Dumping occurs when A. prices for products are lowered to the point at which revenue just covers costs. B. a company sells its exports to another country at a lower price than it sells the same product in its domestic market. C. a product is exported to a foreign country because demand for the product domestically has waned. D. an abundance of inventory is sold off to discount retailers to recoup costs. E. a company charges less for a product than what customers are willing to pay.
B. a company sells its exports to another country at a lower price than it sells the same product in its domestic market.
49. At a local fair, Ford hosted a booth and brought several models of its cars for customers to sit in and look at up close. Customers were then encouraged to fill out a comment card letting Ford know what their favorite model car was. At the end of the fair, one comment card would be chosen by the company and that person would win the car of their choice. This is an example of A. a coupon. B. a sweepstakes. C. a contest. D. a premium. E. a deal.
B. a sweepstakes.
43. Which of the following is a nontraditional form of advertising? A. advertisements that are painted on the side of a building B. advertisements that are embedded within a video game C. advertisements that are flown from the back of an airplane D. advertisements that show up on web pages E. advertisements that are placed on the top of taxi cabs
B. advertisements that are embedded within a video game
9. Nonpersonal promotional communication about goods, services, or ideas that is paid for by the firm identified in the communication is referred to as A. publicity. B. advertising. C. personal selling. D. direct marketing. E. sales promotion.
B. advertising.
60. The ability of a distribution center to pick available goods down to a single piece allows customers to buy in quantities that make sense for their business. This exemplifies the function of product A. accumulation. B. allocation. C. sortation. D. assortment. E. picking.
B. allocation.
66. The first step marketers should take when deciding how best to position their product is to A. clearly define its competitive advantage. B. analyze competitors' positions. C. evaluate consumer feedback. D. define the product attributes that make it unique. E. determine what market segments will be interested in the product.
B. analyze competitors' positions.
66. Which public relations tool provides a forum for the organization to share with its stakeholders what it has achieved over the past year? A. speeches B. annual reports C. sales presentations D. blogs E. brochures
B. annual reports
17. The value the firm derives from consumers' positive perception of its products is called A. brand capture. B. brand equity. C. brand profit. D. brand relevance. E. brand esteem.
B. brand equity.
37. Marketers divide magazines into two categories: A. informative and entertainment. B. business and consumer. C. trade publications and general-interest publications. D. men's and women's. E. general-interest and specific-interest.
B. business and consumer.
10. Demographic segmentation divides markets by A. geographic location. B. characteristics such as age, gender, and income. C. characteristics such as loyalty and price sensitivity. D. consumer attitudes. E. psychological traits.
B. characteristics such as age, gender, and income.
28. According to your text, one of the most common mistakes in modern pricing is A. failing to correctly calculate the break-even point. B. charging someone less than they are willing to pay. C. covering fixed costs while ignoring variable costs. D. setting the price too high on an introductory product. E. pricing items based on consumers' reference prices.
B. charging someone less than they are willing to pay.
24. According to your text, pricing resembles a game of A. checkers. B. chess. C. cards. D. blackjack. E. roulette.
B. chess.
20. Direct marketing refers to advertising that A. seeks to keep the product before the public in an effort to reinforce previous promotional activity. B. communicates directly with consumers and organizations in an effort to provoke a response. C. is used in the introductory stage of the product life cycle to attempt to develop initial demand for a product. D. combines various forms of promotion strategies into a coordinated collection sharing a single theme. E. attempts to increase demand for an existing product when competition is at its highest.
B. communicates directly with consumers and organizations in an effort to provoke a response.
75. When a firm selects a small number of carriers as opposed to using a large number of different carriers, it is a type of strategy known as A. contract carrier. B. core carrier. C. common carrier. D. central carrier. E. constrained carrier.
B. core carrier.
35. One of the most commonly used pricing tactics, markup pricing, is also referred to as A. profit margin pricing. B. cost-plus pricing. C. profit-plus pricing. D. dynamic pricing. E. standard pricing.
B. cost-plus pricing.
70. In the early 2000s, the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. When the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. In addition, the company set up a crisis link on its webpage and posted updates regularly. Mattel's actions can be classified as A. negative publicity. B. crisis management. C. consumer fraud. D. direct marketing. E. poor public relations.
B. crisis management.
20. The fact that you see a Starbucks on practically every corner would indicate that Starbucks is most likely geographically segmenting based on A. market size. B. customer convenience. C. population shifts. D. income. E. lifestyle.
B. customer convenience.
36. The type of inventory a firm needs to meet average demand is called A. typical. B. cyclical. C. pipeline. D. anticipative. E. standard.
B. cyclical.
43. An auto insurance company segmented its market by both gender and age, and designed different marketing campaigns to appeal to both. In the end, both segments responded the same to the different marketing strategies, in part, because both segments are required to have auto insurance. This firm failed to understand the criteria of market segments needing to be A. substantial. B. differentiable. C. measurable. D. accessible. E. actionable.
B. differentiable.
59. Rico's firm manufactures homemade salsa. His product is sold around the country, but he adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those customers prefer the extra heat and spice. Rico also markets the product differently based on the region of the country where it is sold. This represents what type of targeting strategy? A. niche B. differentiated C. undifferentiated D. geographic E. concentrated
B. differentiated
53. For an airline, the price of economy-class seats on any given flight may fluctuate over time. For example, the airline may try to fill economy-class seats by lowering the price as the day of the flight draws closer, or try to fill business-class seats first by raising prices on economy tickets. This is an example of A. market pricing. B. dynamic pricing. C. price skimming. D. odd pricing. E. seasonal discounts.
B. dynamic pricing.
54. When recommending products, which of the following do social media users tend to trust the most? A. a company's website B. friends and family C. product review sites D. a company's Facebook page E. reviews posted on independent blogs
B. friends and family
60. According to your text, social media can support the goal of building a successful brand in two main ways: by allowing the firm to develop deeper relationships with customers, and by A. allowing the firm to offer coupons and discounts to a larger number of customers. B. generating positive-word-of-mouth communication about the brand across social networks. C. having the ability to track the competition on social networks. D. reducing the number of other promotional activities the firm has to engage in. E. allowing firms to build a customer database to use to promote other products.
B. generating positive-word-of-mouth communication about the brand across social networks.
20. Which of the following is most helpful in facilitating a brand's expansion into new markets? A. changing the brand's image for each new market B. having a high level of brand equity C. advertising on only one platform D. delivering a different brand message for the new environment E. reinventing the product for the new environment
B. having a high level of brand equity
28. Behavioral segmentation divides consumers according to A. consumers' opinion and interests. B. how consumers behave with or act towards products. C. customer convenience and market size. D. the various lifestyles of the consumer. E. how motivated and how many resources a consumer has.
B. how consumers behave with or act towards products.
13. What type of advertising attempts to develop initial demand for a product? A. reminder B. informative C. persuasive D. entertainment E. narrative
B. informative
12. The costs required to make or buy a product, including risk of obsolescence, taxes, insurance, and warehousing space used to store the goods, are called A. supply chain costs. B. inventory carrying costs. C. marketing channel costs. D. distribution channel costs. E. logistics management costs.
B. inventory carrying costs.
42. The number of times a firm's entire inventory is sold and replaced is referred to as A. days of supply. B. inventory turns. C. stockout. D. inventory supply. E. days of stock.
B. inventory turns.
39. One advantage to using magazines as an advertising medium is A. the relatively short timeframe necessary to place an ad. B. its ability to target specific audiences. C. the control marketers have over ad placement. D. the quick turnaround between ad creation and ad placement. E. its use as a primary information source.
B. its ability to target specific audiences.
27. The part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer is called A. supply chain management. B. logistics. C. warehousing. D. production management. E. value chain optimization.
B. logistics.
1. The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as A. mass marketing. B. market segmentation. C. positioning. D. concept testing. E. market fragmentation.
B. market segmentation.
17. Which of the following is NOT a fixed cost? A. rent B. material C. salaries D. insurance E. advertising costs
B. material
28. Cannibalization occurs when A. a brand has been mismanaged and must be revitalized in order remain a viable brand. B. new products take sales away from the firm's existing products rather than generating additional revenues. C. two or more companies collude to set prices, forcing smaller brands to leave the marketplace. D. a firm develops a new product but does not allocate enough funds to promote the product successfully. E. existing products have such a strong market share that new products fail to gain acceptance with consumers.
B. new products take sales away from the firm's existing products rather than generating additional revenues.
61. A targeting strategy that involves pursuing a large share of a small market segment is referred to as A. differentiated targeting. B. niche marketing. C. undifferentiated targeting. D. geographic targeting. E. lifestyle marketing.
B. niche marketing.
41. Compare the following forms of advertising and select the medium that is generally the cheapest form. A. television advertising B. outdoor advertising C. radio advertising D. newspaper advertising E. magazine advertising
B. outdoor advertising
42. All of the activities of designing and producing the container for a product are referred to as A. housing. B. packaging. C. labeling. D. containment. E. sorting.
B. packaging.
8. Volume maximization is also referred to as A. price skimming. B. penetration pricing. C. profit maximization. D. survival pricing. E. target pricing.
B. penetration pricing.
73. The most widely used budgeting approach is the A. affordable method. B. percentage-of-sales method. C. objective-and-task method. D. principal accounting method. E. cost-per-media method.
B. percentage-of-sales method.
68. The competitive analysis tool that creates a visual picture of where products are located in consumers' minds is called a A. positioning map. B. perceptual map. C. conceptual map. D. marketing map. E. competitive map.
B. perceptual map.
52. The two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision is referred to as A. advertising. B. personal selling. C. sales promotion. D. public relations. E. publicity.
B. personal selling.
68. A new Home Depot opened up down the street from Hank's Hardware and has drastically reduced prices on many of the same products that Hank sells, forcing him to go out of business. After Hank closed his store, he noticed that Home Depot began raising its prices to more normal levels. This is an example of A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
B. predatory pricing.
44. When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers, wireless headset, and one video game. This is an example of A. underpricing. B. price bundling. C. yield management. D. price skimming. E. survival pricing.
B. price bundling.
40. Prestige pricing involves A. adding a certain amount to the cost of each item in a product set. B. pricing a product higher than competitors to signal that it is of higher quality. C. separating out the individual goods that make up a product and pricing each one individually. D. pricing generic label goods at the same price as designer goods. E. constantly updating prices to reflect changes in supply or demand.
B. pricing a product higher than competitors to signal that it is of higher quality.
36. High-involvement consumer products, such as a house or a car, benefit most from which form of advertising? A. radio B. print C. television D. outdoor E. mobile
B. print
1. All the activities that communicate the value of a product and persuade customers to buy it is referred to as A. marketing. B. promotion. C. positioning. D. advertising. E. salesmanship.
B. promotion.
30. Which of the following demonstrates how logistics has an effect on the product element of the marketing mix? A. deciding to reduce the amount of inventory in the warehouse B. providing feedback on product packaging C. deciding which mode of transportation to employ D. utilizing volume discounts E. shipping goods in full rather than partial vehicles
B. providing feedback on product packaging
63. According to your text, a company should consider all of the following when designing its distribution network EXCEPT: A. inventory levels. B. proximity to suppliers. C. operating expenses. D. customer service. E. transportation costs.
B. proximity to suppliers.
22. Psychographic segmentation refers to the science of segmenting markets based on A. consumers' opinions and interests. B. psychology and demographics. C. behavior and demographics. D. consumers' income and behavior. E. psychology and geography.
B. psychology and demographics.
48. Which person is responsible for establishing performance expectations for suppliers and developing ways to measure their performance? A. warehouse manager B. purchasing manager C. salesperson D. distribution channel manager E. plant manager
B. purchasing manager
32. According to your text, brand revitalization often begins with A. redesigning the product. B. rebuilding trust with consumers. C. revamping its promotional campaign. D. rebuilding trust with stockholders. E. employee training and education.
B. rebuilding trust with consumers.
58. The distribution center function of product accumulation involves A. gathering goods with similar characteristics in one area of the distribution center to facilitate proper inventory control and effectively provide customer service. B. receiving goods from various suppliers, storing the goods until they're ordered by a customer and consolidating orders to achieve transportation economies of scale. C. picking available goods to fill customer orders whether it is a full pallet, full case, or individual item. D. mixing goods coming from multiple suppliers into outgoing orders so that each order includes a variety of goods rather than just one type of good. E. retrieving materials from storage and bringing them to manufacturing to fulfill a production order.
B. receiving goods from various suppliers, storing the goods until they're ordered by a customer and consolidating orders to achieve transportation economies of scale.
5. The degree to which customers can identify the brand under a variety of circumstances is referred to as brand A. awareness. B. recognition. C. loyalty. D. equity. E. marking.
B. recognition.
6. A family traveling in their car is looking for a place to eat off the highway. One of the children in the car sees a sign up ahead with the face of Ronald McDonald on it and exclaims, let's go to McDonald's! This is most likely an example of brand A. discrimination. B. recognition. C. preference. D. equity. E. labeling.
B. recognition.
15. What sort of strategies must companies embrace for an integrated supply chain to work? A. customer-based B. relationship-based C. profit-based D. production-based E. supplier-based
B. relationship-based
6. Market segments are A. the various types of advertising and promotional campaigns used to sway consumer interest in a product. B. relatively homogenous groups of consumers that result from the segmentation process. C. the different geographical areas in which a product must be marketed differently. D. the two buying groups: those that have never purchased a firm's product, and those that are potential repeat customers. E. relatively heterogeneous groups of consumers that result from the segmentation process.
B. relatively homogenous groups of consumers that result from the segmentation process.
4. Which element of the promotion mix refers to the set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product? A. advertising B. sales promotion C. Internet ordering D. personal selling E. public relations
B. sales promotion
52. What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement? A. growth potential B. strategic fit C. cultural awareness D. organizational fit E. segment harmony
B. strategic fit
50. According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and A. proximity to the market. B. strategic fit. C. profitability timeframe. D. cultural factors. E. economic conditions.
B. strategic fit.
46. When a company evaluates each market segment to determine which segment or segments present the most attractive opportunity to maximize sales, it is engaged in A. positioning. B. targeting. C. segmenting. D. situation analysis. E. repositioning.
B. targeting.
29. High cost is the biggest disadvantage to which form of advertising? A. radio B. television C. magazine D. billboard E. Internet
B. television
25. According to your text, what do people think of FIRST when they hear the term marketing? A. radio advertising B. television advertising C. newspaper advertising D. sales promotion E. public relations
B. television advertising
57. In which step of the personal-selling process would you identify key decision makers, review account histories and prepare a sales presentation? A. the prospecting step B. the preapproach step C. the qualifying step D. the approach step E. the presentation step
B. the preapproach step
11. Consumers will be more price sensitive when A. some or all of the purchase price is paid by others. B. the price they have to pay is more than they anticipated. C. the cost of not getting the expected benefits of a purchase is high. D. a product's price is within the range that they perceive as fair or reasonable. E. they perceive the price as a gain rather than a forgone loss.
B. the price they have to pay is more than they anticipated.
67. As noted in your text, managing ________ is one of the most important logistics function for retailers and every other member of the supply chain because it creates place and time utilities that are essential to keeping customers satisfied. A. purchasing activities B. transportation C. inventory costs D. operating expenses E. customer service
B. transportation
40. To be effective, segmentation should create market segments that rate favorably on various criteria. Which of the following is NOT one of the criteria outlined in your text? A. substantial B. variable C. measurable D. accessible E. actionable
B. variable
49. What technological advancement created for mobile devices has unleashed a new era of pricing transparency for consumers? A. text messaging B. wireless apps C. GPS systems D. mobile banking E. SIM cards
B. wireless apps
Which of the following exemplifies a customer touchpoint?
Bed, Bath, and Beyond sends Daisy a coupon for 20 percent off her next purchase via postal mail, however, Daisy does not receive the coupon because she recently moved and forgot to have her mail forwarded.
________ is the value the firm derives from consumers' positive perception of its products.
Brand equity
According to your text, why are brand loyal customers an important contributor to a firm's long-term success and profitability?
Brand loyal customers typically exhibit less price sensitivity.
relationship selling
Building a trusting relationship with a customer over multiple sales interactions.
Which of the following explains how market segmentation plays a key role in an organization's success?
By identifying the various needs and wants of customers
4. Joey set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week for which he charges them $25.00 each. Joey spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Joey's weekly profit? A. $105.00 B. $175.00 C. $148.00 D. $88.00 E. $158.00
C. $148.00
30. Which of the following is NOT true regarding a brand extension strategy? A. It is best to have high brand equity before pursuing a brand extension strategy. B. Firms must make sure that the extension lives up to the quality consumers expect from the brand. C. A brand extension strategy is the same thing as a product extension strategy. D. A brand extension strategy allows new products to profit from recognition the brand already enjoys. E. Brand extensions must be implemented with an eye towards avoiding cannibalization.
C. A brand extension strategy is the same thing as a product extension strategy.
68. Research indicates that emerging middle-class consumers in developing countries desire brand names that sound A. British. B. German. C. American. D. French. E. Chinese.
C. American.
16. Which component of a successful brand allows firms to engage customers through online surveys and social media tools? A. Deliver a quality product. B. Create a consistent brand image. C. Capture feedback. D. Create consistent brand messaging. E. Evaluate competitor's products.
C. Capture feedback.
63. Which of the following statements regarding monitoring a social brand is true? A. There are not very many social monitoring tools currently on the market, and the ones that are available tend to be expensive. B. The social monitoring tools currently available on the market are difficult to set up. C. Firms that use social monitoring tools are better prepared to facilitate an ongoing dialogue with customers to strengthen brand loyalty over time. D. Unless a firm has a website or is selling its product in some sort of online format, there is no need to monitor social network activity. E. Most social network monitoring sites only allow monitoring of one particular platform.
C. Firms that use social monitoring tools are better prepared to facilitate an ongoing dialogue with customers to strengthen brand loyalty over time.
74. In 2012, the most valuable nonprofit brand in the Youth Interest category was A. Stand Up for Kids. B. Big Brothers, Big Sisters of America. C. Girls Scouts of the USA. D. Young Life. E. Boy Scouts of America.
C. Girls Scouts of the USA.
23. What can be said regarding the role of industry structure on setting price? A. In industry in which there are many buyers and sellers, the pricing impact of any single firm will be quite large. B. In an industry in which there are many buyers and sellers, firms will typically match the price of competitors. C. In an industry in which there are many buyers and sellers, the pricing impact of any single firm will be fairly small. D. In an industry in which a small number of firms compete, the pricing impact of any single firm will be fairly small. E. Marketers should make pricing decisions irrespective of whether there are many or few competitors in the industry.
C. In an industry in which there are many buyers and sellers, the pricing impact of any single firm will be fairly small.
3. Which of the following is NOT an element of the promotion mix? A. advertising B. sales promotion C. Internet ordering D. personal selling E. public relations
C. Internet ordering
58. What could be the potential downside of continually offering discounts as a type of promotional strategy? A. It could pave the way for more competition to enter the marketplace. B. It could have the effect of overpricing the product. C. It could potentially devalue the brand and its relationship with its customers. D. It could cause the firm to have to repackage its product. E. It could lower a firm's brand recognition.
C. It could potentially devalue the brand and its relationship with its customers.
59. As outlined in your text, all of the following should be part of a great sales presentation EXCEPT A. it should explain the value proposition. B. it should assert the advantages and benefits of the product. C. It should refute any complaints or objections about the product. D. it should enhance the customer's knowledge of the company and the product. E. it should create a memorable experience.
C. It should refute any complaints or objections about the product.
7. Read the following statements to select the choice that is NOT true of market segmentation. A. Market segmentation helps firms define the needs and wants of the customers who are most interested in buying the firm's products. B. Market segmentation helps firms design specific marketing strategies for the characteristics of specific segments. C. Market segmentation identifies which products will be profitable and which ones are not worth pursuing. D. Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit. E. Market segmentation results in identifying the relatively homogenous groups of consumers that a firm can market its product to.
C. Market segmentation identifies which products will be profitable and which ones are not worth pursuing.
37. As it pertains to international segmentation, global segmentation refers to identifying A. products that can be marketed in the same way across the globe. B. similar patterns in cultures that can be used to segment a market. C. a group of consumers with common needs and wants that spans the entire globe. D. products that will have a global appeal. E. markets that will be favorable for exporting products internationally.
C. a group of consumers with common needs and wants that spans the entire globe.
47. According to your text, which of the following marketers in today's world is most likely positioned for success? A. a marketer who is creative at crafting messages onto print ads B. a marketer who sticks to the traditional forms of advertising C. a marketer who connects with his or her audience through social media D. a marketer who understands that the use of social media carries no risk E. a marketer who is creative at crafting messages onto digital materials
C. a marketer who connects with his or her audience through social media
48. A new specialty tea shop opened up in town. In order to lure customers into the store, the owners sent their most popular teabag to 5,000 potential customers. This is an example of A. a rebate. B. a coupon. C. a sample. D. a loyalty program. E. an allowance.
C. a sample.
1. A set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer is referred to as A. logistics. B. distribution management. C. a supply chain. D. a distribution center. E. a value chain.
C. a supply chain.
45. When a firm is reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it, then the firm rates favorably on which market segment criteria? A. substantial B. differentiable C. actionable D. accessible E. measurable
C. actionable
11. A collection of coordinated advertisements that share a single theme is called A. a marketing mix. B. an advertising mix. C. an advertising campaign. D. a promotion mix. E. an advertising concept.
C. an advertising campaign.
33. The almost instantaneous transfer of information from one company's computer to another that allows ERP systems to communicate with the information technology systems of other companies is done through A. a radio frequency identification system. B. a just-in-time inventory system. C. an electronic data interchange. D. a computerized identification system. E. an electronic inventory system.
C. an electronic data interchange.
34. Traditionally, the biggest disadvantage of radio advertising has been that radio ads A. are expensive. B. have a long exposure time. C. are audio-only. D. have a narrow transmission. E. don't allow marketers to segment audiences.
C. are audio-only.
15. To be successful, brand messaging should A. strive to explain the product in detail. B. contain many different messages. C. be consistent and concise. D. be complex and varied. E. keep consumers guessing.
C. be consistent and concise.
2. A successful brand adds value to organizations in many ways, but which of the following is NOT one of those ways? A. by generating loyal customers B. by generating recognizable goods and services C. by reducing competition D. by generating more revenue E. by fostering more donations for nonprofit organizations
C. by reducing competition
69. An advantage to using a perceptual map is that it A. it is the quickest way to determine market segments. B. shows how other companies are marketing their products. C. can highlight potential market positions that might be underserved. D. shows which products of a firm are most profitable. E. shows the firms strengths, weaknesses, opportunities and threats.
C. can highlight potential market positions that might be underserved.
22. The ratio showing how often people who see an Internet ad who end up clicking on it is referred to as A. cost per click. B. cost-per-thousand impressions. C. click-through-rate. D. click-on-ratio. E. click-link-rate.
C. click-through-rate.
34. A strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company's brand is called A. dual branding. B. brand extension. C. co-branding. D. partner branding. E. brand revitalization.
C. co-branding.
69. Companies can either maintain their own fleet of trucks to transport goods or they can hire carriers. What are the two types of for-hire carriers? A. domestic and international B. union and private C. common and contract D. local and regional E. perishable goods and durable goods
C. common and contract
72. When highlighting a product's competitive advantage based on attributes, a firm will A. show how its product is priced lower than the competition. B. show how its product use can be advantageous to the customer. C. concentrate on the unique aspects of the product that sets it apart from the competition. D. develop a relationship with the target market that will enhance the product's brand. E. remind customers the value of the product received in comparison to its price.
C. concentrate on the unique aspects of the product that sets it apart from the competition.
52. When analyzing the most common sources of product information and the percentage of social media users that prefer each source, it was found that compared to other sources, users prefer A. a company's website. B. a live chat with a company employee. C. consumer-generated reviews and product ratings. D. a company's Twitter page. E. a company's Facebook page.
C. consumer-generated reviews and product ratings.
16. In the price-setting process, the next step after demand has been evaluated is to A. define the pricing objectives. B. analyze the competitive price environment. C. determine the costs. D. choose a price. E. evaluate the alternatives.
C. determine the costs.
18. Young and Rubicam, a global advertising agency, developed the BrandAsset Valuator, which suggests that brand equity is based on which of the following four dimensions? A. image, loyalty, messaging, and recognition B. differentiation, recognition, knowledge, and image C. differentiation, relevance, esteem, and knowledge D. relevance, recognition, image and esteem E. loyalty, esteem, image, and recognition
C. differentiation, relevance, esteem, and knowledge
4. Market segmentation refers to A. having regional sales forces that can market a product according to geographic area. B. taking an overall marketing plan and dividing it into smaller campaigns based on each product. C. dividing a larger market into smaller groups based on meaningfully shared characteristics. D. redesigning or repositioning a product so it meets the needs of a target market. E. marketing a product so that each and every consumer can get value from it.
C. dividing a larger market into smaller groups based on meaningfully shared characteristics.
62. The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as A. survival pricing. B. mass exporting. C. dumping. D. bundling. E. the gray market.
C. dumping.
50. A pricing strategy that involves constantly updating prices to reflect changes in supply, demand, or market conditions is called A. market pricing. B. demand pricing. C. dynamic pricing. D. flexible pricing. E. penetration pricing.
C. dynamic pricing.
17. Contractors that advertise the ability to turn home attics or the space above a garage into living areas are most likely targeting their market based on the demographic variable of A. income. B. gender. C. family size. D. usage rate. E. neighborhoods.
C. family size.
56. The main goal of the first step in the personal-selling process is to A. identify a firm's key decision makers. B. identify a customer's product needs. C. find qualified prospects. D. have the salesperson meet the prospective customer. E. find as many potential customers as possible.
C. find qualified prospects.
14. Which of the following is a demographic segmentation variable? A. lifestyle B. motivation C. gender D. market size E. population shifts
C. gender
43. As a marketing tool, packaging A. is not very important for communicating to the consumer. B. is only crucial to a few products, since most products are heavily promoted in other ways. C. gives a product a chance to stand out among all the other choices on a store shelf. D. does little to help promote and reinforce brand image. E. is not something that marketers are involved with.
C. gives a product a chance to stand out among all the other choices on a store shelf.
56. Branded products sold through legal but unauthorized distribution channels is referred to as the A. black market. B. white market. C. gray market. D. blue market. E. red market.
C. gray market.
10. The Jeep brand of vehicles provides consumers with a unique blend of freedom and adventure. One of their advertising campaigns featured the tagline Have fun out there. Jeep. to highlight how the Jeep brand is about being free and adventuresome. This unique set of associations that consumers will make with the Jeep brand is referred to as brand A. recognition. B. marking. C. image. D. awareness. E. equity.
C. image.
6. What is the name of the promotional strategy that involves coordinating the various promotion mix elements to provide consumers with a clear and consistent message about a firm's products? A. integrated promotion mix B. integrated marketing concept C. integrated marketing communications D. integrated promotion concept E. integrated advertising mix
C. integrated marketing communications
40. Storage and handling expenses and service costs such as property taxes and insurance are what type of inventory costs? A. purchasing costs B. distribution costs C. inventory carrying costs D. production costs E. stockout costs
C. inventory carrying costs
17. The main advantage of a push strategy is that A. it allows firms to customize orders. B. it reduces inventory carrying costs. C. it allows firms to achieve economies of scale. D. it eliminates the risk associated with producing an unwanted product. E. it allows firms to respond rapidly to changing market conditions.
C. it allows firms to achieve economies of scale.
4. Brenda and Tim went to Carl's Custom Dining to buy a new dining room set. At the store they configured the set to their specifications in terms of size, finish and style. The store sent the order out via the Internet to the manufacturer. The manufacturer, in turn, secured the correct type of wood from its supplier to complete the dining room set. When finished, the manufacturer shipped the product to its local warehouse where Carl's Custom Dining arranged for delivery to its store by a local trucking company. For Carl's Custom Dining, this is an example of A. a push strategy. B. a stockout. C. its supply chain. D. a just-in-time inventory system. E. its inventory management system.
C. its supply chain.
52. What is the term used for the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process? A. intermodal transportation B. supply chain management C. materials management D. distribution channel management E. warehouse management
C. materials management
42. When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be A. identifiable. B. differentiable. C. measurable. D. accessible. E. actionable.
C. measurable.
27. According to the VALS framework, why different consumer groups exhibit different behaviors or why different consumer groups exhibit the same behaviors for different reasons is based on A. opinion and interests. B. lifestyle and income. C. motivation and resources. D. opinion and resources. E. motivation and desire.
C. motivation and resources.
36. As a pricing tactic, markup pricing is A. difficult to implement. B. a good measure of price sensitivity. C. not very effective at maximizing profits. D. good at capturing the value consumers place on products. E. the most effective pricing tactic overall.
C. not very effective at maximizing profits.
75. Which budgeting method takes a bottom-up approach by defining specific objectives, determining the tasks needed to achieve these objectives and then estimating how much each task will cost? A. affordable method B. percentage-of-sales method C. objective-and-task method D. principal accounting method E. cost-per-media method The objective-and-task approach is typically considered the best of the budgeting methods because it incorporates many of the strengths of the other budgeting methods without falling prey to their weaknesses.
C. objective-and-task method
71. Firms typically determine their promotional budget using one of three methods: the affordable method, the percentage-of-sales-method, and the A. total sales method. B. market demand method. C. objective-and-task method. D. principal accounting method. E. cost-per-media method.
C. objective-and-task method.
38. Taylor's toy shop bought a very large inventory of the newest superhero action figure. Because a new movie was supposed to come out featuring the superhero, Taylor didn't anticipate a problem selling the toy. However, production on the movie was halted and now Taylor is having a hard time selling the action figure. This represents what type of inventory? A. cyclical B. pipeline C. obsolete D. seasonal E. anticipative
C. obsolete
39. Bowman's shoe store just received a shipment of dress boots. The manufacturer's suggested retail price for the boots is $150.00, but Bowman's decides to price the boots at $149.95. What pricing tactic is Bowman's most likely using? A. prestige pricing B. perceived pricing C. odd pricing D. dynamic pricing E. yield pricing
C. odd pricing
14. What type of advertising attempts to increase demand for an existing product? A. reminder B. informative C. persuasive D. entertainment E. narrative
C. persuasive
15. What type of advertising is common during the growth stage of the product life cycle as firms compete directly and attempt to take market share from one another? A. reminder B. informative C. persuasive D. entertainment E. narrative
C. persuasive
74. A succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product is called a A. mission statement. B. marketing plan. C. positioning statement. D. vision statement. E. business plan.
C. positioning statement.
41. If luxury brands such as Versace clothing, Lexus automobiles, and Dom Perignon champagne wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic? A. luxury pricing B. cost-plus pricing C. prestige pricing D. dynamic pricing E. odd pricing
C. prestige pricing
65. Located on a college campus, Ben's Burger Barn charges $4.99 for its burger basket. However, students receive a 10% discount off the price for showing their student ID. This is an example of A. price fixing. B. predatory pricing. C. price discrimination. D. deceptive pricing. E. price inflation.
C. price discrimination.
67. The three largest manufacturers of solenoid values for plumbing applications conspired together so that all three firms would charge the same price for its 3-way valve. This is an example of A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
C. price fixing.
10. The degree to which the price of a product affects consumers' purchasing behavior is referred to as A. price elasticity. B. dynamic pricing. C. price sensitivity. D. marginal pricing. E. price relevance.
C. price sensitivity.
1. The amount of something (money, time, or effort) that a buyer exchanges with a seller to obtain a product is referred to in marketing terms as A. renumeration. B. value. C. price. D. fee. E. worth.
C. price.
37. Products developed by a retailer and sold only by that specific retailer are known as A. manufacturer brands. B. generic brands. C. private label brands. D. licensed brands. E. co-brands.
C. private label brands.
30. The advertising technique in which a company promotes its products through appearances on television shows, movies, or other media is called A. media marketing. B. indirect marketing. C. product placement. D. co-branding. E. joint marketing.
C. product placement.
57. A distribution center functions much like a warehouse, but performs additional activities. Which of the following is NOT one of the activities performed by a distribution center? A. product accumulation B. sortation C. product removal D. allocation E. assortment
C. product removal
23. A marketer is trying to uncover the true opinions of a group of consumers, but they are unwilling to express themselves, so instead he asks them to compare his brand to an automobile, a country and a person. What technique is the marketer using? A. free association B. aided recall C. projective technique D. brand recognition E. brand recall survey
C. projective technique
44. Purchasing is an important logistical function for all of the following reasons EXCEPT A. savings in purchase costs can add significantly to a company's profits. B. it is a major factor in good and service quality. C. purchasing contracts protect the company from legal action. D. purchasing can help improve product design and time to market. E. sourcing materials from reliable suppliers ensures that the flow of goods meets demand.
C. purchasing contracts protect the company from legal action.
21. When it comes to measuring brand equity, which type of research is particularly helpful in identifying the sources of brand equity and its role in consumer decisions? A. quantitative research B. brand recognition research C. qualitative research D. brand recall surveys E. product development research
C. qualitative research
49. Purchasing goods and services from suppliers only if they buy from the purchasing manager's company is an unethical practice called A. personal buying. B. picking. C. reciprocity. D. stockout. E. pulling.
C. reciprocity.
65. Which of the following is NOT a tool for public relations? A. speeches B. annual reports C. sales presentations D. blogs E. brochures
C. sales presentations
44. The bulk of a firm's promotion budget is allocated to A. advertising. B. personal selling activities. C. sales promotion activities. D. public relations. E. publicity.
C. sales promotion activities.
32. The price strategy of unbundling involves A. adding a certain amount to the cost of each item in a product set. B. pricing products a few cents below the next dollar amount. C. separating out the individual goods that make up a product and pricing each one individually. D. placing two or more products together in a package and selling them at a single price. E. constantly updating prices to reflect changes in supply or demand.
C. separating out the individual goods that make up a product and pricing each one individually.
59. Lucy works in a distribution center for a vitamin and nutritional supplement company. Part of her job entails gathering all goods with similar characteristics in one area of the distribution center. From there, she can facilitate the proper inventory controls to ensure that no expired vitamins or supplements are shipped to stores for sale. Lucy's job involves product A. accumulation. B. allocation. C. sortation. D. assortment. E. picking.
C. sortation.
20. Which of the following terms is NOT associated with a pull strategy? A. customization B. responsive C. speculation D. flexibility E. tailored
C. speculation
69. According to your text, what is the biggest challenge in global branding? A. coming up with different brand strategies for different countries B. grouping nations with consumers that have similar tastes and brand preferences C. staying easily recognizable at any location, while remaining compatible with local culture and traditions D. translating promotional materials into another language so that the meaning does not get lost E. adhering to the regulations of other countries when promoting the product
C. staying easily recognizable at any location, while remaining compatible with local culture and traditions
60. Which of the following has allowed for easier import/export transactions between the United States, Mexico, and Canada? A. the gray market B. the black market C. the absence of tariffs D. the implementation of tariffs E. the implementation of embargoes
C. the absence of tariffs
10. Supply chain management refers to A. the actions a firm takes to manage the costs required to make or buy a product. B. the planning, implementation, and control of the manufacture of a product. C. the actions a firm takes to coordinate the various flows within a supply chain. D. the management of data to integrate information across all departments of an organization. E. the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process.
C. the actions a firm takes to coordinate the various flows within a supply chain.
39. As it pertains to international segmentation, unique segmentation is used when A. a firm can identify a group of consumers with common needs and wants that spans the entire globe. B. the similarity in needs and wants only extends across the region or several countries. C. the similarity in needs and wants exists within one country. D. a product offering has market appeal in several countries. E. a product offering has market appeal only in English-speaking regions.
C. the similarity in needs and wants exists within one country.
14. According to your text, the ultimate objective of supply chain management is A. to make each channel as efficient as possible, thus saving the company money. B. to utilize as few channel members as possible in the manufacture of the product. C. to integrate related companies so they function as one organization. D. to accurately predict production levels in order to minimize inventory carrying costs. E. to choose intermediaries that share the same mission as the company.
C. to integrate related companies so they function as one organization.
62. In which closing method does the salesperson solicit customer reaction without asking for the sale directly? A. summarization close B. solicitation close C. trial method D. indirect method E. assumptive close
C. trial method
71. What is intermodal transportation? A. transportation from one warehouse or distribution center to another B. transportation that is performed by a contract carrier C. using several types of transportation for the same shipment D. transportation that crosses state lines E. transportation of goods to overseas destinations
C. using several types of transportation for the same shipment
65. According to your text, positioning assumes that consumers A. will always want to pay the lowest price possible for a product. B. are followers and will only buy products that appeal to their friends as well. C. will compare goods and services on the basis of benefits. D. are innovators and will always want the latest and most innovative products. E. will make up their own minds about a product, regardless of how it is marketed.
C. will compare goods and services on the basis of benefits.
8. Brand marks are elements of a brand that can be expressed in all of the following ways EXCEPT with A. symbols. B. colors. C. words. D. designs. E. figures.
C. words.
Which of the following is not true regarding corporate social responsibility (CSR) programs?
CSR programs are the sole responsibility of the marketing department.
________ refers to the perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it.
Customer value
59. When it comes to using social media to respond to customer complaints, Research by ACNielsen found that 42 percent of 18-34 year olds expect customer support within _______ of a question or complaint. A. 30 minutes B. 1 hour C. 8 hours D. 12 hours E. 24 hours
D. 12 hours
48. Recent research indicates that approximately _______ of consumers search for and purchase a low-priced product using an in-store shopping app or online search engine. A. 5% B. 20% C. 75% D. 40% E. 90%
D. 40%
49. Which of the following shows how social media can utilize consumers as brand advocates? A. A company searches through social media sites looking for negative product reviews so it can address the issues. B. A company tracks visits to its website to better target its audience. C. A company encourages customers to enter a contest on its website for a chance to win a free product. D. A company encourages customers to post pictures promoting the brand and the lifestyle it represents. E. A company airs its Super Bowl television ad after the game on YouTube.
D. A company encourages customers to post pictures promoting the brand and the lifestyle it represents.
51. Read through the following scenarios and select the one that represents unethical behavior on the part of a purchasing manager. A. A purchasing manager will not buy from a supplier unless the supplier agrees to renegotiate the terms of the contract. B. A purchasing manager requests bids from three different companies before deciding which vendor to buy from. C. A purchasing manager has lunch with one of his suppliers and picks up the tab. D. A purchasing manager gives business to a supplier because the purchasing manager has relatives that work for the company. E. A purchasing manager provides training for his supplier's employees.
D. A purchasing manager gives business to a supplier because the purchasing manager has relatives that work for the company.
22. Which of the following statements regarding break-even analysis is TRUE? A. Break-even analysis does not measure the cost of sales. B. Break-even analysis is an accurate measure of fixed costs. C. Break-even analysis is an accurate measure of variable costs. D. Break-even analysis does not measure price sensitivity. E. Break-even analysis reflects how demand may be affected at different price levels.
D. Break-even analysis does not measure price sensitivity.
58. Which of the following statements regarding the gray market is TRUE? A. The gray market is a benefit for manufacturers, but not for consumers. B. The gray market involves the illegal buying and selling of goods. C. The interconnected nature of world economies has made it easier for firms to track gray market exchanges. D. Gray market goods allow consumers to purchase items for less than they could normally. E. Gray market exchanges occur when the price of an item is the same in both countries where the exchange occurs.
D. Gray market goods allow consumers to purchase items for less than they could normally.
12. Which of the following is NOT a component of building a successful brand? A. Deliver a quality product. B. Create a consistent brand image. C. Create consistent brand messaging. D. Monitor the competitive environment. E. Capture feedback.
D. Monitor the competitive environment.
11. Which of the following statements reflects the underlying philosophy behind the concept of supply chain management? A. You get out of it what you put into it. B. Every company for himself. C. Money makes the world go 'round. D. No company is an island. E. Better late than never.
D. No company is an island.
35. Which of the following is NOT characteristic of gathering the information needed to engage in international market segmentation? A. Obtaining the information required to segment international markets is both costly and difficult. B. The information needed to segment international markets may be hard to come by. C. Not all countries collect or classify their data in the same way. D. Social media sites and the Internet have made it possible to collect all the information needed to segment international markets. E. It is practically impossible to compare the data received across nations in order to form a segment.
D. Social media sites and the Internet have made it possible to collect all the information needed to segment international markets.
57. Which brand in 2012 was ranked as the most loved brand on social media, in part because of the specials it offered to its most loyal customers? A. McDonalds B. Barnes and Noble C. Macy's D. Starbucks E. Subway
D. Starbucks
63. Which of the following statements about the follow-up step of the personal-selling process is NOT true? A. The follow-up step is critical to creating customer satisfaction. B. The follow-up step may uncover new customer needs and wants. C. Referrals can often be discovered in the follow-up step. D. The follow-up step is not needed for repeat customers. E. Building long-term relationships with customers is part of the follow-up step.
D. The follow-up step is not needed for repeat customers.
58. Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy? A. an undifferentiated targeting strategy B. a geographic targeting strategy C. a niche marketing strategy D. a differentiated marketing strategy E. a concentrated targeting strategy
D. a differentiated marketing strategy
46. A legal obligation to buy a certain amount of product at a certain price from a supplier to be delivered at a specified date is referred to as A. a contract. B. a bill of sale. C. an agreement. D. a purchase order. E. the cost of goods sold.
D. a purchase order.
9. What are the two most commonly used demographic variables used by marketers? A. age and income B. gender and income C. education and family size D. age and gender E. family size and age
D. age and gender
28. Compare the following forms of advertising to determine which one is an example of narrowcasting. A. a Super Bowl advertisement for Doritos B. an advertisement for Halloween costumes in the Sunday newspaper C. a radio broadcast for a sale at Walmart D. an advertisement for Scotts fertilizer shown on the Home and Garden Television network E. a billboard advertisement for Miller Lite beer
D. an advertisement for Scotts fertilizer shown on the Home and Garden Television network
61. When the distribution center mixes goods coming from multiple suppliers into outgoing orders so that each order includes a variety of goods rather than just one type of good, this is referred to as product A. accumulation. B. allocation. C. sortation. D. assortment. E. picking.
D. assortment.
19. The fact that a consumer who has tried and likes a product and therefore, is more likely to continue buying it regardless of outside influences exemplifies the fact that A. consumers are not that knowledgeable in evaluating alternative products. B. brand image is the main reason consumers continue to purchase a brand. C. advertising a brand is the surest way to ensure repeat purchasing. D. brand equity increases a firm's ability to succeed in a difficult competitive environment. E. consumers do not like change when it comes to buying products.
D. brand equity increases a firm's ability to succeed in a difficult competitive environment.
26. The process of broadening the use of an organization's current brand to include new products is called A. product extension. B. brand revitalization. C. cannibalization. D. brand extension. E. co-branding.
D. brand extension.
9. The unique set of associations target customers or stakeholders make with a brand is referred to as A. brand recognition. B. brand marking. C. brand value. D. brand image. E. brand equity.
D. brand image.
24. Which qualitative technique for measuring brand equity helps marketers understand which brands stand out in a consumer's memory and what the strength of his or her association is with the brand? A. free association B. aided recall C. projective technique D. brand recognition E. brand recall survey
D. brand recognition
1. The name, term, symbol, design, or any combination of these that a firm uses to identify and differentiate its products is its A. label. B. trademark. C. trade name. D. brand. E. copyright.
D. brand.
7. All along the supply chain, distribution channels add value to the product by A. getting the product closer to the end-consumer. B. reducing the final cost that consumers must pay for the product. C. getting the product to the customer in a timely manner. D. changing the product's form and location. E. listening to customer feedback and reacting accordingly.
D. changing the product's form and location.
5. As a promotion mix element, public relations refers to A. nonpersonal promotional communication about a firm's goods and services. B. a set of nonpersonal communication tools designed to stimulate more frequent purchases of a product. C. advertising focused on promoting the company's image with its customers. D. communication focused on promoting positive relations between a firm and its stakeholders. E. the two-way flow of personal communication between the firm and its customers.
D. communication focused on promoting positive relations between a firm and its stakeholders.
71. According to your text, what two facets of nonprofit organizations makes branding more critical for them as compared to for-profit organizations? A. limited funds and complex goals B. varied audiences and limited funds C. limited staff and complex goals D. complex goals and varied audiences E. global presence and varied audiences
D. complex goals and varied audiences
46. What is the most common type of sales promotion? A. rebates B. samples C. loyalty programs D. coupons E. contests and sweepstakes
D. coupons
5. The first step in the price-setting process is to A. evaluate demand. B. determine the costs. C. analyze the competitive price environment. D. define the pricing objectives. E. compare alternatives.
D. define the pricing objectives.
15. For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is A. inelastic. B. unstable. C. stable. D. elastic. E. marginal.
D. elastic.
34. A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as a(n) A. protective clause. B. hardship clause. C. materials clause. D. escalator clause. E. control clause.
D. escalator clause.
18. Segmentation based on where prospective consumers live, work, and spend their leisure time is referred to as A. regional segmentation. B. demographic segmentation. C. residential segmentation. D. geographic segmentation. E. proximity segmentation.
D. geographic segmentation.
41. Over 40 percent of U.S. shoppers say that they purchase private label brands for at least half of which product category? A. personal care products B. cleaning products C. clothing D. groceries E. medication
D. groceries
66. Which of the following is NOT a form of nonstore retailing? A. mail order retailing B. telemarketing C. direct retailing D. independent retailing E. online retailing
D. independent retailing
32. One of the advantages of radio as an advertising medium is that it A. is audio-only. B. has a long exposure time. C. is good for complex messages. D. is cost-effective. E. doesn't require marketers to segment an audience.
D. is cost-effective.
46. All of the following are advantages of using a price bundling strategy EXCEPT A. bundled packages can be sold for a higher price. B. it leads to reduced advertising costs. C. it can lead to higher profits for the firm. D. it benefits the consumer more than the firm. E. it leads to reduced selling costs.
D. it benefits the consumer more than the firm.
2. It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of A. mass marketing. B. market fragmentation. C. repositioning. D. market segmentation. E. limited marketing.
D. market segmentation.
16. Reminder advertising is most common during which stage of the product life cycle? A. conceptual B. introductory C. growth D. maturity E. repositioning
D. maturity
24. A disadvantage of Internet advertising involves its A. high cost. B. lack of measurability. C. cost-per-click. D. methods of data collection. E. lack of target ability.
D. methods of data collection.
38. A pricing tactic in which a firm prices products a few cents below the next dollar amount is called A. even pricing. B. perceived pricing. C. deal pricing. D. odd pricing. E. bargain pricing.
D. odd pricing.
40. Billboards, skywriting, and ads on the sides of buses are all forms of A. mobile advertising. B. print advertising. C. direct marketing. D. outdoor advertising. E. social media advertising.
D. outdoor advertising.
10. What two key words in the definition of advertising are crucial to understanding how advertising fits into the promotion mix? A. personal and communication B. paid and communication C. nonpaid and nonpersonal D. paid and nonpersonal E. nonpaid and personal
D. paid and nonpersonal
18. While viewing a webpage for outdoor gear, Phil noticed a graphic display advertising skateboards at low prices. When he clicked on the ad, it took him to a different website where the skateboards were listed for sale. This is an example of what type of Internet advertising? A. paid search B. direct marketing C. linked advertising D. paid display E. reminder advertising
D. paid display
54. The single most effective approach for establishing and developing a personal relationship with the customer is through A. advertising. B. sales promotion. C. publicity. D. personal selling. E. public relations.
D. personal selling.
55. What is the warehouse activity that involves retrieving materials from storage and bringing them to manufacturing to fulfill a production order, or retrieving finishing goods from storage and preparing them for shipment to fulfill a customer order? A. put-away B. logistics C. stocking D. picking E. movement
D. picking
64. The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as A. segmenting. B. targeting. C. conceptualizing. D. positioning. E. categorizing.
D. positioning.
69. Because it could be considered an attempt to create a monopoly, which pricing strategy is illegal under U.S. law but is difficult to prove? A. price discrimination. B. deceptive pricing. C. price fixing. D. predatory pricing. E. price inflation.
D. predatory pricing.
64. According to your text, which of the elements of the marketing mix is one of the most watched and regulated activities? A. place B. product C. promotion D. price E. profit
D. price
32. Business-to-business firms generally segment their markets according to what three variables? A. market size, customer convenience, and usage rate B. demographic, geographic, and psychographic C. demographic, geographic, and behavioral D. price sensitivity, usage rate, and region E. profit potential, price sensitivity, and demand
D. price sensitivity, usage rate, and region
71. Both Sam's Club and Costco have positioned themselves as providing a variety of items to shoppers at prices lower than retail stores. These stores have positioned themselves based on A. application. B. attributes. C. product knowledge. D. price/quality relationship. E. personalized sales support.
D. price/quality relationship.
44. Tiffany is well-known as a luxury brand of jewelry. The iconic Tiffany blue box, along with its blue jewelry bag, has been used for over 100 years. By communicating class and sophistication, Tiffany's packaging is an example of how packaging A. can take the place of advertising. B. contributes to low brand equity. C. can mislead a customer. D. promotes a brand's image. E. takes away from a brand's image.
D. promotes a brand's image.
55. Amy just took a job with a scrap metal collection company. Her job is to search for potential customers that need to get rid of scrap metal or those customers who wish to buy scrap metal. Amy's job fits into the first step of the personal-selling process, that of A. advertising. B. personal selling. C. sales promotion. D. prospecting. E. public relations.
D. prospecting.
68. Disseminating unpaid news items through some form of media to gain attention or support is referred to as A. public relations. B. free advertising. C. media-controlled content. D. publicity. E. sales promotion.
D. publicity.
25. Outdoor Living is a manufacturer of patio dining sets and outdoor furniture. Typically, customers purchase the company's products as the summer season begins and as such, do not want to wait for the product to be manufactured. Which supply chain strategy would work best for Outdoor Living? A. a forecast strategy B. supply strategy C. demand strategy D. push strategy E. pull strategy
D. push strategy
16. A supply chain strategy in which a company builds goods based on a sales forecast, puts those goods into storage, and waits for a customer to order the product is called a A. pull strategy. B. supply strategy. C. demand strategy. D. push strategy. E. push-pull strategy.
D. push strategy.
21. A company that forecasts sales, builds an inventory based on the forecast, holds the components in inventory until a customer order is received and then finalizes the product based on the order is using a A. push strategy. B. supply strategy. C. demand strategy. D. push-pull strategy. E. pull strategy.
D. push-pull strategy.
33. Brand revitalization is also referred to as A. co-branding. B. rebuilding. C. recouping. D. rebranding. E. remaking.
D. rebranding.
52. Yield management is a strategy for maximizing a firm's A. production. B. supply. C. operating costs. D. revenue. E. demand.
D. revenue.
66. When determining the top most valuable global brand in 2012, three criteria were used: (1) the financial performance of the branded product, (2) the ability of the brand to draw a premium price or significantly impact the company's profits, and (3) the A. amount of money spent in order to promote the product. B. number of competitors competing against the product. C. role the brand plays in corporate philanthropy efforts. D. role the brand plays in influencing consumers. E. length of time the product has been on the market.
D. role the brand plays in influencing consumers.
31. According to your text, companies that employ a pull or push-pull strategy typically establish logistics operations based on A. sales forecasts, inventory stockpiles, and volume. B. speculation, forecasting, and chance. C. routine, standardization, and transportation efficiency. D. service quality, innovation, and flexibility. E. inventory levels, customer orders, and flexibility.
D. service quality, innovation, and flexibility.
55. According to your text, men and women, typically between 18 and 49 years old, who reach a large number of potential consumers through social media are referred to as A. product gurus. B. opinion leaders. C. social networking stars. D. super influencers. E. online persuaders.
D. super influencers.
8. A management philosophy that guides the actions of company members toward the goal of actively managing the upstream and downstream flows of goods, services, finances, and information across the supply chain is referred to as a A. logistics approach. B. distribution orientation. C. marketing orientation. D. supply chain orientation. E. channel management approach.
D. supply chain orientation.
48. The group of customers toward which an organization has decided to direct its marketing efforts is called its A. marketing segment. B. primary segment. C. primary market. D. target market. E. target sector.
D. target market.
49. After Carson opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group which will be his A. marketing segment. B. primary segment. C. primary market. D. target market. E. target sector.
D. target market.
74. Which of the following established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition? A. the Sherman Antitrust Act B. the Robinson-Patman Act C. the Clayton Antitrust Act D. the Federal Trade Commission Act E. The Wheeler-Lea Act
D. the Federal Trade Commission Act
11. One of the most important sources of demographic information for marketers, which of the following provides free information on data such as how households are segmented by race, education, age, and occupation? A. ACNielsen Company B. Consumer Reports C. the Social Security Administration D. the U.S. Census Bureau E. the U.S. Bureau of Labor Statistics
D. the U.S. Census Bureau
58. During which step of the personal-selling process does the salesperson establish a rapport that sets a foundation for the relationship and asks open-ended questions to learn more about the prospect and his or her needs and wants? A. the prospecting step B. the preapproach step C. the qualifying step D. the approach step E. the presentation step
D. the approach step
73. Intermodal transportation got its start with what transportation innovation developed in the 1950s? A. the pallet B. the corrugated box C. the drum D. the container E. the forklift
D. the container
23. When marketers segment based on psychographics, the market is divided into groups according to A. a consumer's income and interest in the product. B. how consumers act toward products. C. how convenient the product is for the consumer. D. the reason why the consumer made the purchase. E. family size and marital status.
D. the reason why the consumer made the purchase.
3. A supply chain refers to A. the intermediaries (wholesalers, distributors, and retailers) through which the flow of products travels. B. the planning, implementation, and control of the flow of goods, services and information between the point of origin and the final customer. C. The inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process. D. the set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer. E. the activities involved in delivering the right product, to the right place, to the right customer, at the right time, in the right quantity, in the right condition, and at the right price.
D. the set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer.
54. Which of the following represents the three basic strategies for targeting markets? A. primary targeting, secondary targeting, and specialized marketing B. targeting by product, targeting by price, and targeting by customer C. demographic targeting, geographic targeting, and psychographic targeting D. undifferentiated targeting, differentiated targeting, and niche marketing E. print advertising, sales promotion, and public relations
D. undifferentiated targeting, differentiated targeting, and niche marketing
29. Which of the following is a behavioral segmentation variable? A. population shifts B. customer convenience C. family size D. usage rate E. lifestyle
D. usage rate
18. Variable costs are defined as costs that A. vary depending on the type of material used in production. B. change only during economic downturns. C. remain constant even though the product offering varies. D. vary depending on the number of units produced or sold. E. vary depending on the advertising budget for the product.
D. vary depending on the number of units produced or sold.
cookies
Data files stored on websites that can generate a profile or other data about consumers.
Which of the following statements about defining objectives for an advertising campaign is true?
Deciding which objective to follow is based on the product and needs of the audience.
Maura, a college student, was researching affordable laptop computers on Google. A sponsored advertisement for Dell computers appeared at the top of her search results. Maura clicked on the link and watched a video showing the multiple benefits and price options of a Dell laptop. Maura liked what she saw and ended up purchasing one. She shared the ad link with Ling, her roommate, who is also searching for an affordable laptop. In this scenario, who represents the sender in the communication process?
Dell
In November the appliance store priced its front-loading washing machines at $899.00 and sold 50 units. In December they reduced the price to $799.00 and sold 53 units. Which of the following statements is accurate regarding this situation?
Demand is inelastic and total revenue fell from November to December.
What is the first step in the ethical decision-making framework?
Determine the facts in an unbiased manner.
What is the difference between determining the facts of an ethical issue, and identifying the ethical issue at hand?
Determining the facts means identifying fundamental details such as the history and background of the ethical issue. Identifying the issue means formulating the problem based on those facts
consumer feedback
Different ways that customers can report their satisfaction or dissatisfaction with a firm's products.
bargain hunting
Digital purchasing behavior that involves coupon sites such as wish.com or auction sites such as eBay. Bargain hunting is often combined with browsing and may or may not lead to a purchase.
product-focused shopping
Digital purchasing behavior that involves replacing an existing product or purchasing a product that has been pre-chosen.
one-time shopping
Digital purchasing behavior that may combine product-focused shopping, browsing, researching, and bargain hunting all at the same time. Consumers are shopping for a gift or using a gift card and will not return to the shop once the purchase is made.
browsing
Digital purchasing behavior wherein the consumer is not really looking to make a purchase
30. The 80/20 rule is a theory that suggests that A. 80 percent of a firm's profits is generated from 20 percent of its product line. B. 80 percent of a firm's products are marketed to only 20 percent of the population. C. 20 percent of the total demand for products comes from 80 percent of the target market. D. 20 percent of a firm's products are never marketed to 80 percent of consumers. E. 20 percent of heavy users account for 80 percent of the total demand.
E. 20 percent of heavy users account for 80 percent of the total demand.
4. According to your text, why are brand loyal customers an important contributor to a firm's long-term success and profitability? A. Brand loyal customers typically exhibit more price sensitivity. B. Brand loyal customers write positive reviews of the firm. C. Brand loyal customers write negative reviews of the competition. D. Brand loyal customers typically don't use coupons to reduce the price of the product. E. Brand loyal customers typically exhibit less price sensitivity.
E. Brand loyal customers typically exhibit less price sensitivity.
13. Which of the following statements regarding supply chain management is NOT true? A. The term supply chain management became common in the 1990s. B. Supply chain management seeks to coordinate the various flows within a supply chain. C. Decisions made in one area of the supply chain will affect other areas, sometimes negatively. D. In a supply chain, all companies rely on related companies whose activities add value to the final product. E. Each channel within a supply chain acts independently of the other channels.
E. Each channel within a supply chain acts independently of the other channels.
56. Darius has a Facebook and a Twitter account, actively uses Instagram, and has his own personal blog. He has a large network of social media friends and is very effective at influencing those people to act. Based on Darius' ability to drive other people to act on social media, he would have a high A. prestige score. B. sway score. C. persuasion score. D. influence score. E. Klout score.
E. Klout score.
21. According to the 2010 U.S. Census, which is the only southern state that lost seats in the House of Representatives due to population shifts out of the state? A. Texas B. Arizona C. Florida D. South Carolina E. Louisiana
E. Louisiana
44. What does the criteria accessible mean regarding market segments? A. Segments must be large enough for the firm to make a profit by serving them. B. The size and purchasing power of the segment should be clearly identified. C. Marketers should develop strategies that can attract a market to its products. D. Markets should be clearly identified with appropriate strategies developed for each. E. Marketers must be able to reach and serve the segment.
E. Marketers must be able to reach and serve the segment.
62. Differentiate between the following statements to determine which one is TRUE regarding the design of a distribution network. A. The more facilities in the network, the lower the overall inventory in the system. B. The fewer the facilities in the network, the more operating expense incurred. C. More facilities results in delays in delivery due to network communication issues. D. More facilities lead to lower transportation costs from production sites and suppliers to the warehouses. E. More facilities result in faster delivery to customers since facilities will be closer to markets.
E. More facilities result in faster delivery to customers since facilities will be closer to markets.
7. Compare the following statements and select the one that is accurate regarding a profit maximization strategy. A. For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors. B. A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer. C. Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time. D. A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle. E. Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.
E. Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.
75. Which of the following is also called the Advertising Act? A. the Anti-Price Discrimination Act B. the Robinson-Patman Act C. the Clayton Antitrust Act D. the Federal Trade Commission Act E. The Wheeler-Lea Act
E. The Wheeler-Lea Act
51. What can be said of the level of competition when selecting a target market? A. The more intense the competition within a segment, the more attractive it is to marketers. B. The more competitors there are within a segment, the less of a chance there is for price wars. C. The more competitors there are within a segment, the less a company will have to spend to reach out to consumers. D. A market segment is less attractive to marketers if there are only a few competitors for that segment. E. The more competitors there are, the more a firm will have to invest in promotion to increase market share.
E. The more competitors there are, the more a firm will have to invest in promotion to increase market share.
67. Which of the following is NOT a reason for the global strength of U.S. brands? A. The U.S. economy rebounded from the most recent financial crisis at a slightly faster pace than many European countries. B. American companies collectively benefit from the success of U.S. tech companies. C. The Internet and the language associated with it are rooted in American brands and American imagery. D. Social networking sites have been important tools in promoting American brands internationally. E. There are few tariffs levied against U.S. brands imported into other countries.
E. There are few tariffs levied against U.S. brands imported into other countries.
25. In a brand recall strategy, how can marketers tell if consumers are truly able to identify the brands they have seen and distinguish between those and brands that they have not been exposed to? A. They ask consumers questions about details of the brand. B. They ask consumers to compare the brand to a person, animal, or car. C. They repeat the technique several times. D. They ask consumers what comes to mind when they think about the brand. E. They use decoys that consumers could not possibly have seen.
E. They use decoys that consumers could not possibly have seen.
53. One of the earliest examples of social media's impact on a brand occurred with Kryptonite, which has been a leading producer of bicycle locks for more than three decades. How was this firm impacted by social media? A. Kryptonite was a little-known brand until social media users began raving about the company products, leading to an unprecedented increase in sales. B. Kryptonite enjoyed steady sales until negative product reviews on Yelp and YouTube drastically reduced company sales, causing the firm to go out of business. C. Users posted videos showing how the bike lock could be employed for other uses around the house, and this led to an increase in company sales. D. Users contacted the company about sponsoring a bike competition and this led to social media product endorsements by all types of different companies. E. Users posted videos showing how the company's bike locks could be opened with a pen and this forced the company to change its design.
E. Users posted videos showing how the company's bike locks could be opened with a pen and this forced the company to change its design.
27. When the makers of Snickers candy bars decided to make a line of ice cream treats, they came up with Snickers ice cream bars. This is an example of A. a product extension. B. brand revitalization. C. cannibalization. D. co-branding. E. a brand extension.
E. a brand extension.
74. The primary disadvantage of the percentage-of-sales budgeting method occurs when A. a firm's sales increase. B. money is leftover when the budgeting period ends. C. there is not enough time to properly execute the method. D. demand for the firm's products increase. E. a firm's sales decline.
E. a firm's sales decline.
12. Clif Bar & Company, makers of energy and nutrition bars, expanded their product line to include Clif Kid Z Bars. These bars are specifically designed to provide the right kind of nutrition for growing children. For this product, Clif Bar & Company is segmenting the market based on A. lifestyle. B. customer convenience. C. motivation. D. gender. E. age.
E. age.
72. All of the following are legal under the Robinson-Patman Act EXCEPT: A. charging different prices if it is part of a quantity discount program. B. promising to match competitor's prices if the consumer produces proof of the lower price. C. charging a different price for a product that has changed in quality. D. charging different prices as a result of a going-out-of-business sale. E. allowing a significant price reduction on an artificially high retail price.
E. allowing a significant price reduction on an artificially high retail price.
56. The potential savings in developing and marketing the product is the major advantage of A. a differentiated targeting strategy. B. a geographic targeting strategy. C. a niche marketing strategy. D. a specialized marketing strategy. E. an undifferentiated targeting strategy.
E. an undifferentiated targeting strategy.
45. A strategy in which two or more products are packaged together and sold at a single price is called price A. pushing. B. grouping. C. packaging. D. skimming. E. bundling.
E. bundling.
29. Fenton has a food truck in which he sells mainly burgers and fries. He decided to expand his product line to begin serving grilled chicken sandwiches as well. Fenton is noticing that his existing customers now order the chicken over the burgers, and his sales have not increased, in fact, they have decreased slightly. This is most likely due to A. poor marketing of the burger option. B. revitalization. C. low brand equity. D. differentiation. E. cannibalization.
E. cannibalization.
70. The second step in deciding how best to position a product is to A. analyze competitors' positions. B. evaluate consumer feedback. C. assess the product's profit potential. D. conduct test marketing on the product. E. clearly define the product's competitive advantage.
E. clearly define the product's competitive advantage.
51. All of the following are ways listed in your text that customers engage with brands via social media EXCEPT A. consumers acting as brand advocates. B. consumers sharing brand information. C. consumers seeking discounts. D. consumers seeking contact with customer service. E. consumers using search engines to find a product.
E. consumers using search engines to find a product.
75. When it comes to measuring nonprofit brand equity, your text states that social media tools are particularly important for nonprofit marketers because they A. are the easiest promotional tools to use. B. don't have to be managed by a marketing staff. C. work better than other promotional tools. D. can be used to reach a global audience. E. cost less than other promotional tools.
E. cost less than other promotional tools.
43. Dividing the inventory on hand by the average daily usage or sales is the calculation for A. days of stock. B. inventory turns. C. stockout. D. inventory supply. E. days of supply.
E. days of supply.
72. According to your text, an effective nonprofit brand should be all of the following EXCEPT A. unique. B. pleasing to the eye and ear. C. easy to remember. D. reflective of the organization. E. detailed and thought-provoking.
E. detailed and thought-provoking.
19. You placed an order online at Staples.com for a printer and ink cartridges. As part of the checkout process, you were asked to provide your e-mail address. Now you receive e-mails from Staples.com regarding products you might like. This is an example of A. a paid display ad. B. integrated marketing communications. C. sales promotion. D. an informative advertisement. E. direct marketing.
E. direct marketing.
5. Intermediaries through which the flow of products travels are called A. logistics chains. B. core carriers. C. supply chains. D. logistic channels. E. distribution channels.
E. distribution channels.
64. The term that your text uses for a brand marketed under the same name in multiple countries is A. international brand. B. multinational brand. C. exported brand. D. worldwide brand. E. global brand.
E. global brand.
57. A couple living in the United States travels to China and buys huge amounts of designer purses for a much lower price than could be purchased at home. They import the purses back into the States where they sell them for less than the normal market price. The purses are considered to be A. illegal imports. B. black market goods. C. contraband D. smuggled goods. E. gray market goods.
E. gray market goods.
7. Mars, Inc., makers of Snickers candy bars launched its You're Not You When You're Hungry promotion campaign. The company's television commercials portrayed regular people disguised as celebrities behaving badly because they were hungry. Along with the commercials, print ads were released featuring inversion illusions showing the difference between someone whose hunger is satisfied and someone whose hunger is clearly not. In addition, the print ads included a coupon for a Snickers candy bar. This type of promotional strategy is referred to as A. an integrated promotion mix. B. an integrated marketing concept. C. an integrated advertising mix. D. integrated promotion communications. E. integrated marketing communications.
E. integrated marketing communications.
70. Deceptive pricing involves A. charging different customers different prices for the same product. B. two or more companies colluding to set a product's price C. selling exports to another country at an unreasonably low price. D. adding hidden taxes to products that are imported or exported. E. intentionally misleading customers with price promotions.
E. intentionally misleading customers with price promotions.
38. Which of the following is NOT an advantage of magazine/newspaper advertising? A. its ability for small businesses to advertise their goods to the local community B. its ability to target specific audiences C. its appeal toward high-involvement consumer products D. its potential for narrowcasting E. its use as a primary information source
E. its use as a primary information source
24. A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue is called A. behavioral segmentation. B. socioeconomic segmentation. C. psychological segmentation. D. social segmentation. E. lifestyle segmentation.
E. lifestyle segmentation.
28. Those activities that focus on delivering the right product, to the right place, to the right customer, at the right time, in the right quantity, in the right condition, and at the right price is referred to as A. transportation management. B. value chain optimization. C. distribution. D. production management. E. logistics.
E. logistics.
50. Sales promotions that allow consumers to accumulate points or other benefits for doing business with the same company are known as A. allowances. B. rebate programs. C. contests. D. premium programs. E. loyalty programs.
E. loyalty programs.
45. Which of the following is NOT a job function of a purchasing manager as outlined in your text? A. select appropriate suppliers B. negotiate contracts C. monitor supplier performance D. place purchase orders E. manage warehouse inventory
E. manage warehouse inventory
40. On the store shelf at Walgreens, there are two types of sunscreen. Coppertone Sport Spray, which is a _______ brand, and Walgreens Continuous Spray Sport, which is a _______ brand. A. private label; manufacturer B. manufacturer; generic C. private-label; generic D. licensed; private label E. manufacturer; private-label
E. manufacturer; private-label
5. Market segmentation produces relatively homogenous groups of consumers called A. consumer segments. B. consumer targets. C. market sectors. D. consumer clusters. E. market segments.
E. market segments.
16. American households that have between $100,000 and $250,000 in investable assets are one of the fastest growing segments in the United States and are referred to as A. ultra-rich. B. the well-to-dos. C. the massively wealthy. D. ultra-prosperous. E. mass affluent.
E. mass affluent.
62. College Prep Tutors is a business that tutors high-school students who are preparing to take the ACT test as part of their college entrance requirements. Because it possesses a unique offering that is desirable to a specific market, College Prep Tutors would most likely use what type of target market strategy? A. differentiated targeting B. lifestyle marketing C. undifferentiated targeting D. mass marketing E. niche marketing
E. niche marketing
74. According to your text, efficient and effective international transportation has, in part, contributed to the rise in A. domestic shipping rates. B. the number of distribution centers worldwide. C. multinational firms. D. tariffs and export fees. E. outsourcing and offshoring.
E. outsourcing and offshoring.
12. One of the most important concepts in marketing is the price elasticity of demand, which is the A. degree to which the price of a product affects consumers' purchasing behavior. B. point at which the costs of producing a product equal the revenue made from selling the product. C. price that consumers consider reasonable and fair for a product. D. percentage a product is marked up in response to consumer demand. E. percentage change in quantity demanded in response to a percentage change in price.
E. percentage change in quantity demanded in response to a percentage change in price.
2. One of the most important strategic decisions a firm faces is _______ because it reflects the value the product delivers to consumers as well as the value it captures for the firm. A. advertising B. promotion C. profit management D. production management E. pricing
E. pricing
31. In the Twilight series movies, main character Edward Cullen can be seen driving a Volvo car. This is an example of A. direct marketing. B. media marketing. C. co-branding. D. joint marketing. E. product placement.
E. product placement.
29. Which element(s) of the four Ps of the marketing mix is/are affected by logistics? A. product, price, and place B. place only C. product and place D. product only E. product, price, place, and promotion
E. product, price, place, and promotion
19. Bob's Custom Millwork is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Bob does not make any products until he receives an order from the customer. What type of marketing strategy does this represent? A. push strategy. B. supply strategy. C. demand strategy. D. forecast strategy. E. pull strategy.
E. pull strategy.
23. If demand is unstable, as it often is in the introductory and growth stages of the product life cycle, it might be best for a firm to use a A. push strategy. B. supply strategy. C. demand strategy. D. forecast strategy. E. pull strategy.
E. pull strategy.
68. Almost half of the ton-miles moved in the United States are moved by A. air transportation. B. pipelines. C. cyberspace. D. trucks. E. railroads.
E. railroads.
25. Since consumers have the tendency to compare prices on almost everything they buy, marketers should attempt to capitalize on this tendency when setting prices by determining the price consumers will consider fair and reasonable for a product. This is known as the A. benchmark price. B. break-even point. C. dynamic price. D. reasonable price. E. reference price.
E. reference price.
27. Justine went to the specialty grocery store by her office after work. When looking at the offerings at the meat counter, she was surprised to see ground beef selling for $4.49/lb. At her normal grocery store, she can get the same quality beef for $3.29/lb., a price Justine feels is reasonable. $3.29/lb. for ground beef is Justine's A. benchmark price. B. break-even point. C. dynamic price. D. reasonable price. E. reference price.
E. reference price.
64. A firm that sells mainly to end-user consumers is referred to as a A. wholesaler. B. supplier. C. distributor. D. broker. E. retailer.
E. retailer.
43. If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic? A. odd pricing B. price bundling C. prestige pricing D. price skimming E. seasonal discounts
E. seasonal discounts
34. According to your text, the primary reason firms rely on inventory management is A. to avoid an abundance of stock sitting in a warehouse. B. so they can predict how much product to manufacture at the lowest cost. C. to facilitate the movement of product from the warehouse to the end-customer. D. to be able to forecast future production runs of a product. E. so that customer service won't suffer from lack of product in any given location.
E. so that customer service won't suffer from lack of product in any given location.
45. The goal of sales promotion is to A. inform the consumer of the product's benefits. B. build a trusting relationship with a customer over a long period of time. C. promote positive relations between a firm and its stakeholders. D. promote goodwill with customers and the community at large. E. stimulate quicker and more frequent purchases of a product.
E. stimulate quicker and more frequent purchases of a product.
54. Warehouse activities can be organized into three basic functions: A. storage, shipping, and restocking. B. sorting, allocating, and movement. C. production, assembly, and storage. D. receiving, storing, and movement. E. storage, movement, and production.
E. storage, movement, and production.
38. Private label brands are also referred to as A. manufacturer brands. B. generic brands. C. co-brands. D. licensed brands. E. store brands.
E. store brands.
46. All of the following could be considered ineffective packaging of your personal brand when preparing for an interview EXCEPT A. typographical errors on your resume. B. poor grammar in your e-mails. C. unprofessional attire for an interview. D. showing up late to an interview. E. talking about your personal accomplishments.
E. talking about your personal accomplishments.
26. What is offered by your text as a reason for the decreased viewership of top-rated TV programs? A. the increased use of sexual innuendo in the programs B. the greater number of advertisements consumers have to watch C. the overall decline in the subject matter and acting talent in the programs D. the increased use of profanity and violence in the programs E. the greater number of channels available to consumers
E. the greater number of channels available to consumers
12. The three primary objectives of an advertising campaign are A. to promote goodwill, to arouse interest, and to sell. B. to excite, to entice, and to engage. C. to inform, to entertain, and to influence. D. to entertain, to remind, and to sell. E. to inform, to persuade, and to remind.
E. to inform, to persuade, and to remind.
64. What is the aim of a public relations campaign? A. to coordinate promotion mix elements to provide a consistent message about the firm B. to keep the product before the public in an effort to reinforce previous promotional activity C. to communicate directly with the consumer in an effort to provoke a response D. to stimulate quicker and more frequent purchases of a product E. to promote positive relations between a firm and its stakeholders
E. to promote positive relations between a firm and its stakeholders
36. Co-branding involves A. one company linking two of its brands. B. two companies issuing two different products, but using the same name. C. one company issuing two different products, but packaging them under different names. D. two or more companies using the same supplier for its products. E. two or more companies issuing a single product.
E. two or more companies issuing a single product.
33. Scotts Fertilizer has a 4-step program for lawn care. Each step features a different product. Scotts sells the fertilizer as a set containing one bag of each of the 4-step products. If Scotts decided to sell each product individually rather than as a set, it would be an example of which pricing strategy? A. dumping B. dynamic pricing C. minimal pricing D. underpricing E. unbundling
E. unbundling
36. Firms typically segment international markets using three general bases: global, regional, and A. national. B. cultural. C. political. D. economic. E. unique.
E. unique.
Which of the following reasons explains why a marketer would use different elements of the promotional mix to communicate product messages?
Each element exerts influence on different segments of the target market.
Compare the following statements and select the one that reflects your text's assertion as to why educated consumers are prime targets for marketing strategies.
Educated consumers are more likely to earn significantly more money throughout the course of their lifetime.
Which of the following statements best explains the importance of effective strategic planning for a firm?
Effective strategic planning improves the likelihood that marketers will select, adapt, and execute the right marketing actions to maximize both short- and long-term success for a firm.
social media
Electronic, two-way communication that allows users to share information, content, ideas, and messages to create a customizable experience.
_____ means allowing employees to make decisions about how a service is provided to customers
Empowerment
Which of the following is true of making ethical decisions?
Ethical decisions do not only make good business sense but can also make profits.
Compared to other generational groups, baby boomers have the greatest familiarity with and most use for digital communication, social media, and other forms of technology.
F
One reason why it is important for marketers to analyze their competitors' position in the marketplace is to help firms promote an idealistic perception of their competitive offerings among their customers.
F
In training service providers, service quality goals should be general to allow for the various needs of consumers
False
Latosha was employee of the month at Jersey Mike's Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension
False
Many services marketers use training and standardization to reduce service perishability
False
Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss
False
The Gaps model allows systematic examination of all aspects of the product creation process
False
The knowledge gap is where the rubber meets the road, where the customer directly interacts with the service provider
False
The marketing of services differs from the marketing of products because services are tangible and separable from the service provider
False
Which of the following statements best represents how marketers assess the competitive environment with respect to strategic planning?
Firms look at both direct and indirect competitors in strategic planning because they both compete with the firm.
sponsorship
Firms that often sponsor YouTube or Instagram celebrities who in turn endorse the firms' products. These so-called online influencers are often compensated in multiple ways for their endorsements.
Select the statement that best summarizes the four dimensions of corporate social responsibility.
For firms to reach all of the people affected by their business practices, they should consider four dimensions of CSR: economic, legal, ethical, and philanthropic.
Which of the following is the accurate cause of a recession?
GDP declines for two or more consecutive quarters.
sales implementation
How the sales plan is practiced by the sales force through recruitment, compensation design, and sales force motivation.
After World War II, this organization helped to stabilize the world's economic system.
IMF
Before communicating a message to consumers, what must marketers as senders of that message do first?
Identify a target audience.
In order to know who to direct their advertising to, marketers must first know who their consumers are. Marketers must demonstrate this knowledge during which step in building an advertising campaign?
Identify the target audience.
Which of the following examples best describes repositioning?
In response to new regulations limiting the sale of wine over the Internet in some states, a wine seller began to focus its strategy on in-store consumers in those states.
decoding
In the communication process, how the receiver perceives and interprets the sender's message.
encoding
In the communication process, the transformation of the sender's ideas and information into a message that usually includes words, symbols, and/or pictures.
paid display advertising
Includes everything from banner ads to YouTube video advertising. These ads generate awareness as well as (hopefully) drive traffic to a website.
The iPad Pro is Apple's most advanced iPad and contains the most advanced technology. It is designed to work with the new Apple Pencil, which can magnetically attach to and pair with the iPad Pro for charging. Apple is appealing to a segment of the market that is comfortable with technology and already owns some sort of digital tablet. If Apple were to utilize the VALS framework to segment its market for the iPad Pro, which psychographic segment should it target?
InnovatorsCorrect
What should companies do to guard against a breach of security in their CRM systems?
Install powerful firewalls to protect customer data.
receiver
Interprets the message transmitted by the sender in the communication process.
product approach
Involves salespeople who sell a particular product or set of products.
How does evaluating product attributes help a firm highlight its competitive advantage?
It helps the firm identify the attributes that place its product in a special category of value to the customer.
Which of the following is true about non-store retailing?
It is a growing industry as companies look for unique ways of engaging customers.
Fields & Greens will often cater community events, such as the annual 5K race that attempts to raise money for the town's recreational center. Catering such events keeps the restaurant engaged with the interests of the community and attracts new customers. What psychographic variable is Fields & Greens applying in this case?
Lifestyle
Which of the following would be the best way for companies to avoid the knowledge gap?
Listen to customers.
________ strategies emphasize increased sales of existing goods and services to existing customers.
Market penetration
customer focus
Measures how well a CRM program prioritizes customers based on each customer's profitability
share of customer
Measures the quantity of purchase dollars each customer spends on the company's products rather than the number of customers.
advertising
Nonpersonal promotional communication about goods, services, or ideas that is paid for by the firm identified in the communication.
paid search
Online advertising in which a company pays to be a sponsored result of a customer's Web search.
digital marketing
Online marketing that can deliver content immediately to consumers through digital channels, devices, and platforms to build or promote a company's marketing message.
Valdivo Inc. is a manufacturing firm that specializes in sports-related equipment. Valdivo has taken the initiative to enhance employee relations and improve the manufacturing process. Which element of excellence does Valdivo's initiative exemplify?
Operational
________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.
Operational excellence
customer approach
Organizes the sales territory around the customer.
Compare the following statements to determine which one accurately depicts how income is distributed across the U.S. population.
Over the past several decades, income for the highest wage earners grew at a much quicker pace than for households in the bottom wage earning bracket.
In ethical decision making, what element of the marketing mix is affected when a firm is deciding whether or not to outsource jobs to other members of the supply chain?
Place
________ decisions relate to location, distribution, inventory management, and even where to put an item in a store.
Place
Which statement best differentiates the place and promotion elements of the marketing mix?
Place includes the activities a firm undertakes to make its product available to potential customers; promotion refers to all the activities that communicate the value of a product and persuade customers to buy it.
geographic approach
Places salespeople within an exclusive territory.
An expensive boutique hotel in your city offers valet parking, an extensive wine list, a Culinary Institute of America-trained chef and hotel rooms starting at $400 (average hotel rate in your city is $145) per night. A salesperson from a local marketing firm that offers a coupon (discount) book filled with two-for-one dinner deals from many local businesses has contacted the manager of this hotel to see if she is interested in being promoted through this coupon book. Should the manager purchase space in this book?
Positioning involves the various activities that the business undertakes to create a perception of the product or service in the consumer's mind. Companies position the product based on their target markets. The luxury hotel is attempting to position itself as high-end with a high price, extra services like valet parking, and an upscale restaurant. Using a promotion such as a coupon does not fit into the position that the hotel would like to create. All the factors of the marketing mix must be coordinated to effectively position a product.
Apple's classic and iconic white packaging makes its brand among the most recognizable and visible in the computer, tablet, and smartphone market. Which area of excellence does Apple's iconic white packaging exemplify?
Product
Etsy is an e-commerce site where different shops can sell handcrafted, vintage, custom, or other unique goods—from jewelry to apparel to kitchen cabinet hardware—at different price ranges; shops are located around the world. On which element of the marketing mix does Etsy focus its efforts?
Product
The central element in the marketing mix is ________, the element around which all other marketing mix decisions revolve.
Product
________ is a strategy that focuses on providing high-quality and value-adding items for customers.
Product excellence
Select the statement that best describes the relationship between product excellence and consumer perception.
Product excellence is determined by a consumer's perception of the product's value and quality.
trade sales promotions
Promotion tools directed at B2B firms, including wholesalers and retailers, rather than individual consumers.
________ typically involves changing one or more marketing mix elements, often product or promotion.
Repositioning
Summarize the main reasons a firm would want to reposition its products. Use an example to support your response.
Repositioning involves reestablishing a product's position to respond to changes in the marketplace. In marketing, one constant is that customers are always changing. Needs and wants shift over time and consumers' perceptions of market offerings will also shift, especially as new products and competitors come onto the scene and lifestyles change. In extreme cases, firms may decide not to reposition, but instead abandon an existing product to develop a new one. In most cases, however, as customer segments change, firms will reposition themselves after considering their own marketing mix and their competitors' positions. For Five Guys, a market leader in its industry, careful repositioning of products is important to keep ahead of competitive threats. Five Guys, however, does not make hasty repositioning decisions. Its past repositioning efforts led to mixed results, as was demonstrated by their decision to reposition new menu items based on customer feedback. Some people asked for coffee, so the company's restaurants began to serve it. Some people wanted chicken sandwiches, so it was added to the menu. Unfortunately, not enough people wanted coffee, so it often tasted old and terrible. Not enough people wanted the chicken, either, so the quality suffered. Concerned that negative word-of-mouth about these new menu items would circulate and hurt its core business, Five Guys decided to stop serving coffee and chicken and return to its limited menu. This move has proven successful.
A maker of an energy drink with a high caffeine content decided to boost profits by marketing to children younger than 15. Which of the following ethical values did it most obviously violate?
Responsibility
sweepstakes
Sales promotions based on chance such that entry is the only requirement to win.
contests
Sales promotions in which consumers compete against one another and must demonstrate skill to win.
loyalty programs
Sales promotions that allow consumers to accumulate points or other benefits for doing business with the same company or a group of companies
rebates
Sales promotions that allow consumers to recoup a specified amount of money after making a single purchase.
independent sales representatives/manufacturer's reps
Salespeople who do not work directly for the firm but rather represent various firms and products on a contractual basis.
inside salespeople
Salespeople who sell to external customers from within the organization.
outside salespeople
Salespeople who visit customers in the field for selling purposes
captive salespeople
Salespeople who work directly for a sales firm.
Which of the following is not a way that companies can reduce the risk of new product failures?
Skip steps in the development process to market a product sooner.
Ground Café plans to engage in marketing activities that will increase sales of its organic whole bean Columbian coffee by 5 percent and its organic ground Italian espresso by 10 percent by the end of the year. This is an example of a(n) ________ marketing objective.
Specific
In Houston, Texas, at the intersection of West Gray and Shepard, Starbucks operates three different coffee shops in less than a quarter mile distance. Which of the following best indicates why Starbucks chose this strategy
Starbucks believes that to be successful they need to place coffee shops that are convenient and easily accessible to customers.
Which of the following statements regarding strategic planning is not accurate?
Strategic planning is a one-time process completed when a firm outlines its objectives.
Stephen Hawking is one of Hazel's heroes and inspired her to become a scientist. She models her approach to scientific research after Hawking. Her goal is to one day help advance Hawking's theory on cosmology with a more contemporary take on the relationship between the general theory of relativity and quantum mechanics. According to the VALS framework, Hazel would be classified as a(n)
Striver
Rewind is a music store that dedicates an entire section of its store to vinyl records and cassette tapes. It also sells refurbished record players and cassette decks. Rewind is appealing to a segment of the market that do not own smartphones and are not inclined to download music off the Internet. If Rewind were to utilize the VALS framework to segment its market for vinyls and cassettes, which psychographic segment should it target?
Survivors
A maker of high-performance fitness monitors risks losing domestic market share if it doesn't market globally like its main competitors—this exemplifies a global marketing decision based on necessity. However, if this same maker markets globally in order to accommodate the need of business travelers seeking to track their fitness while on the road, this would exemplify a global marketing decision based on demand.
T
A marketing strategy is a set of actions taken to achieve organizational objectives.
T
If marketing is succeeding, all functional areas are able to operate effectively.
T
In periods of inflation, the purchasing power of money declines.
T
Marketers create value for customers when they develop products that allow consumers to satisfy their needs and wants through exchange relationships.
T
One of the biggest sociocultural changes in the United States over the past half century has been the shift from a nation of primarily one-income families to one in which two-income families and single-parent households predominate.
T
Professionally speaking, the same marketing principles used in business settings can help you market yourself and help you to reach your professional goals.
T
The true meaning of a marketing campaign can get lost in translation, which is why firms must be cautious about promoting in different languages.
T
The better a firm understands the difference between customers' needs and wants, the more effectively it can ________ its message to convince customers to buy its good or service.
Target
Taxes on imports and exports between countries are called
Tariffs
sales assessment
The act of evaluating the sales performance of an organization and its sales force.
Which of the following statements about currency manipulation is true?
The artificial control of the value of a country's currency can lead to one country having an advantage over another.
motivation
The basis of a continued commitment to working toward a goal.
incentives
The component of compensation that is variable.
salary
The component of compensation that is fixed.
objections
The concerns or reasons customers offer for not buying a product.
Which of the following describes a general rule that should guide service recovery?
The customer is always right.
The difference between a wholesaler and a distributor is that a distributor
The difference between a wholesaler and a distributor is that a distributor
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
The firm's policy on service recovery
intrinsic motivation
The innate desire to complete a task or engage in an activity.
Which of the following sets of characteristics is representative of a low-involvement purchase?
The item to be purchased is inexpensive, frequently purchased, an item of limited risk and requires little forethought.
What can be said of the level of competition when selecting a target market?
The more competitors there are, the more a firm will have to invest in promotion to increase market share.
social media marketing
The most popular form of digital marketing that utilizes online social networks and applications as a method to communicate mass and personalized messages about brands and products.
reach
The percentage of the target market that has been exposed to a promotional message (television advertisement, online advertisement, billboard, etc.) at least once during a specific time period.
conversion rate
The percentage of users who take a desired action, such as making a purchase.
bounce rate
The percentage of visitors who enter a website and then quickly depart, or bounce, rather than continuing to view other pages within the same site.
closing
The point at which the salesperson asks the prospect for the sale.
sales control
The practice of aligning sales results with the greater objectives of the organization.
Customer Relationship Management (CRM)
The process by which companies get new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases.
Search Engine Optimization (SEO)
The process of driving traffic to a company's website from "free" or "organic" search results using search engines.
feedback
The receiver's response to the sender's message that closes the communication process.
What has been one of the biggest sociocultural changes in the United States over the past half century?
The shift from one-income families to two-income and single-parent households
direct marketing
The total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media for the purpose of soliciting a response from a prospect or customer.
lifetime value (LTV)
The total profit a customer brings to a company during the time that the individual or firm is a customer.
Martin operates a car wash and is in the process of developing a marketing plan to open up a second location on the east side of town. Which of the following would best represent an opportunity in his SWOT analysis?
There are no car washes in the heavily populated east side of town.
Which of the following statements about sales representatives that practice direct selling is true?
They provide customers with high levels of interaction, service, and product knowledge.
allowances
Trade promotions that typically involve paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store or local expense to promote a specific product.
Hilton Hotels trains its front desk employees to dress neatly and conservatively to project a professional image. This relates to the service dimension of tangibles
True
In marketing services, empowerment means allowing employees to make decisions about how service is provided to customers
True
One use of marketing research is to provide an effective means to understand consumers service expectations and their perceptions of service quality
True
Sometimes all that needs to be done to satisfy a customer complaint is to listen to a customer
True
The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles
True
The communications gap can be reduced by managing customer expectations
True
The iPhone is sold under the Apple brand, has smartphone features with product quality that is highly rated, is well-regarded as a stylish phone in several colors and sizes, and is packaged in a way that highlights the sleekness of its design. These characteristics describe the iPhone's actual product component.
True
The zone of tolerance refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service
True
When Buffalo Bank required all customers to use its online banking services, over 20 percent of their customers closed their accounts. In this scenario, Buffalo Bank's service fell outside the customers zone of tolerance
True
geotracking
Use of a consumer's geographic location to determine what goods will come up in a search and at what price.
A firm that lists "increase sales" as its marketing objective may have trouble formulating a strategy around it because the objective is too
Vague
Direct marketing can be offline or digital. All of the following are examples of digital media, except
Walter, an employee at American Eagle, sending an email to Abercrombie & Fitch about a job opportunity.
Which of the following questions would a firm ask if it were using the ethical decision-making framework regarding its product?
What default privacy settings should be built into a website?
Which of the following statements about wholesalers is accurate?
Wholesalers purchase large quantities of product and sell off smaller quantities at a higher per-unit price.
You are the manager of a grocery store (supermarket) that sells a varied menu of prepared foods like pizza, wings, sandwiches, salads, sushi, hot meals, Chinese, and other foods besides your other grocery items. Identify some of your indirect competitors.
Your direct competition is other grocery stores and the specific businesses that sell the same prepared foods that you do, such as restaurants, delis and pizza shops. Your indirect competition could come from the consumer purchasing the elements that make up the prepared foods and who cook their meal at home, frozen or microwaveable meals, and vending machines. Some indirect competitors could be various restaurants
According to recent data from ACNielsen, 60 percent of consumers researching products through online sources learned about a specific brand or retailer from A. a social networking site. B. the company webpage. C. a search engine. D. a newspaper website. E. a product comparison website.
a
Among consumers who write product reviews online, a majority do so to A. give recognition for a job well done. B. receive a product discount. C. punish the company for a product defect. D. bond with others. E. feel personally empowered.
a
Nonprofit organizations need to use the value stakeholders associate with the organization to raise the funds and support required to accomplish its mission. It is easier for a nonprofit organization to do this if A. it has high brand equity. B. it is relevant to only a small, focused group of consumers. C. its brand is similar to that of its competitors. D. it is relatively unknown. E. it has low brand equity.
a
Randi's family has always owned Toyota vehicles and has been very happy with them. Now that Randi is ready to buy her first vehicle, she doesn't even want to look at other manufacturers because she feels that Toyota's are the best. Randi is exhibiting brand A. loyalty. B. recognition. C. equity. D. discrimination. E. exclusion.
a
The makers of Breyers ice cream have come up with a new line called Breyers Blasts! This line of ice cream combines Breyers ice cream with well-know products such as Oreo cookies, Snickers candy bars, and Reese's peanut butter cups. This is an example of A. co-branding. B. brand extension. C. dual branding. D. partner branding. E. brand revitalization.
a
The practice of charging different customers different prices for the same product is called A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
a
The strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity is referred to as A. brand revitalization. B. brand extension. C. cannibalization. D. brand marking. E. brand recouping.
a
Watch manufacturer Festina designed a diving watch called the Profundo. The quality promised by Festina in making the Profundo is that this watch stays waterproof. To back up its claim, the watch is sold in a transparent bag filled with distilled water, convincing customers of the watch's high quality. This most likely is an example of how packaging A. reinforces the brand's image. B. upstages the brand's image. C. contributes to low brand equity. D. can turn off a customer through gimmicks. E. differs completely from advertising.
a
What social brand monitoring tool allows a firm to capture its brand across most social media sites by monitoring over 100 platforms, isolating relevant keywords and measuring the brand's impact online? A. Social Mention B. Google Alerts C. Twitter Search D. Technorati E. Klout
a
What type of research involves asking consumers what comes to mind when they think about the brand? A. free association B. aided recall C. unplanned response D. unaided recall E. free thought
a
When building a successful brand, it is important that all of the marketing decisions, promotions, and employees reinforce the brand by providing a(n) _______ experience in the minds of consumers. A. consistent B. unique C. memorable D. simplistic E. impressive
a
Which of the following is a variable cost? A. delivery cost B. salaries C. advertising cost D. insurance E. rent
a
Price is the amount of money, time, or effort that
a buyer exchanges with a seller to obtain a product
Drink to Your Health wants to introduce a new line of rice-milk based smoothies to its menu, but wants to make sure that enough people would like it enough to order it. Drink to Your Health set up a booth outside a local grocery store and invited passersby to do a blind taste test comparing samples made from dairy milk and samples made from rice milk. This type of research is known as
a field experiment.
Sales managers have identified a set of six key criteria that generally predict salesperson success. Those characteristics include
a good personality, a customer focus, an optimistic outlook, an ability to communicate, resilience, and adaptiveness.
In marketing terms, what is a person looking to satisfy if he or she feels deprived of basic necessities such as food, clothing, shelter, transportation or safety?
a need
At a local fair, a smartphone company hosted a booth and brought several models of its phones for customers to play with and look at up close. Customers were then encouraged to fill out comment cards letting the company know which of the models was their favorite. At the end of the fair, the company would randomly select a card and the owner of that card would win the smartphone of his or her choice. This is an example of
a sweepstakes.
The ________ of convenience retailers makes up for their ________ variety and assortment of merchandise.
accessibility; limited
In countries like the United States, services
account for an increasing share of jobs
All of the following are tests that marketers can use to measure the effectiveness of an advertising campaign except
ad revenue.
By providing good customer service, firms______ their products or services
add value to
All of the following are methods that companies can use to better understand customer expectations except
adherence to marketing plan.
CRM technologies allow marketers to do all the following except
adopt a broad approach, focusing on the needs of the entire market.
As the ethnic makeup of the United States continues to change, which of the following strategies would allow marketers to address this change and reach out to more diverse consumer groups?
advertise in multiple languages
A new ice cream shop in town allows customers to create their own sundaes using various flavors of ice cream and toppings. The store owners have decided to have a contest for the most unique customer creation. They are asking customers to create a sundae, take a picture of their creation and post it on their Facebook page as well as on Instagram so people can vote for their favorite. The winning creation will be featured on the shop's menu. This use of social media relates to which promotional tool?
advertising
Jason just completed an advertising campaign for a new dog shampoo, and he wants to know if it generated consumer awareness. What method should he use to evaluate it?
advertising effectiveness study
Product claims made through the use of ________ cannot technically be proven false, so its use is considered legal.
advertising puffery
The promotion mix includes which combination of elements?
advertising, sales promotion, public relations, personal selling
The use of pretests and posttests are two tools used to measure the effectiveness of
advertising.
Read with Us is a local bookstore and café that just received a big box of donations filled with titles such as Winnie the Pooh, Curious George, Harold and the Purple Crayon, and Horton Hears a Who. Which demographic variable should the bookstore consider when it organizes these books for its market?
age
A firm with a complex product is researching the effectiveness of their new product instructions. The researcher discovers that two participants in the study researched the product and how it worked before participating in the experiment. This is an example of
an extraneous variable.
Of the following products, which would fall closest to the "primarily intangible" side of the tangibility spectrum?
an online tutorial
Corporate social responsibility refers to
an organization's obligation to maximize its positive impact and minimize its negative impact on society.
What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers?
an undifferentiated targeting strategy
The service dimension called _______ refers to the ability of the firms employees to convey trust and confidence
assurance
There are several reasons why a career in personal selling is attractive to job seekers. One of the more compelling reasons is the fact that the job itself allows an individual a flexible way to earn a living. This is an aspect of the job that reflects
autonomy.
One of the reasons service failures need to be addressed quickly is to
avoid negative word of mouth from upset customer
A family traveling in their car is looking for a place to eat off the highway. One of the children in the car sees a sign up ahead with the face of Ronald McDonald on it and exclaims, let's go to McDonald's! This is most likely an example of brand A. discrimination. B. recognition. C. preference. D. equity. E. labeling.
b
According to your text, brand revitalization often begins with A. redesigning the product. B. rebuilding trust with consumers. C. revamping its promotional campaign. D. rebuilding trust with stockholders. E. employee training and education.
b
According to your text, pricing resembles a game of A. checkers. B. chess. C. cards. D. blackjack. E. roulette.
b
According to your text, social media can support the goal of building a successful brand in two main ways: by allowing the firm to develop deeper relationships with customers, and by A. allowing the firm to offer coupons and discounts to a larger number of customers. B. generating positive-word-of-mouth communication about the brand across social networks. C. having the ability to track the competition on social networks. D. reducing the number of other promotional activities the firm has to engage in. E. allowing firms to build a customer database to use to promote other products.
b
All of the activities of designing and producing the container for a product are referred to as A. housing. B. packaging. C. labeling. D. containment. E. sorting.
b
Cannibalization occurs when A. a brand has been mismanaged and must be revitalized in order remain a viable brand. B. new products take sales away from the firm's existing products rather than generating additional revenues. C. two or more companies collude to set prices, forcing smaller brands to leave the marketplace. D. a firm develops a new product but does not allocate enough funds to promote the product successfully. E. existing products have such a strong market share that new products fail to gain acceptance with consumers.
b
Consumers will be more price sensitive when A. some or all of the purchase price is paid by others. B. the price they have to pay is more than they anticipated. C. the cost of not getting the expected benefits of a purchase is high. D. a product's price is within the range that they perceive as fair or reasonable. E. they perceive the price as a gain rather than a forgone loss.
b
For an airline, the price of economy-class seats on any given flight may fluctuate over time. For example, the airline may try to fill economy-class seats by lowering the price as the day of the flight draws closer, or try to fill business-class seats first by raising prices on economy tickets. This is an example of A. market pricing. B. dynamic pricing. C. price skimming. D. odd pricing. E. seasonal discounts.
b
Of all developed countries, the people living in _______ are the most brand and status conscious and are generally accepting of foreign brands. A. the United States B. Japan C. China D. France E. Spain
b
Target stores use an image of a white dog with a red bulls-eye around one of its eyes. In marketing terms, what does this represent for Target? A. an identifier B. a brand mark C. a brand image D. a patent E. a brand feature
b
The brand image that bears your name and that must be managed 24-hours-a-day, 7-days-a-week, 365-days-a-year, is referred to as your A. primary brand. B. personal brand. C. unique brand. D. social brand. E. brand equity.
b
The degree to which customers can identify the brand under a variety of circumstances is referred to as brand A. awareness. B. recognition. C. loyalty. D. equity. E. marking.
b
The value the firm derives from consumers' positive perception of its products is called A. brand capture. B. brand equity. C. brand profit. D. brand relevance. E. brand esteem.
b
What aspect of product development should firms try to achieve when developing a successful brand? A. The product should be unique to the marketplace in order to be competitive. B. The product should provide value to the customers that will be using it. C. The product should be aligned with a customer service department to handle complaints. D. The product should be able to be manufactured as quickly as possible. E. The product should be promotable through advertising and personal selling.
b
What firm tops the list of the most valuable global brand? A. Microsoft B. Coca-Cola C. McDonald's D. Toyota E. IBM
b
What tool for monitoring a social brand allows a firm to set up alerts about your company, good, service or brand so that you're e-mailed whenever they appear online? A. Social Mention B. Google Alerts C. Twitter Search D. Technorati E. Klout
b
When recommending products, which of the following do social media users tend to trust the most? A. a company's website B. friends and family C. product review sites D. a company's Facebook page E. reviews posted on independent blogs
b
Which of the following is NOT a fixed cost? A. rent B. material C. salaries D. insurance E. advertising costs
b
Which of the following is most helpful in facilitating a brand's expansion into new markets? A. changing the brand's image for each new market B. having a high level of brand equity C. advertising on only one platform D. delivering a different brand message for the new environment E. reinventing the product for the new environment
b
Which of the following statements regarding pricing is TRUE? A. Marketers should keep prices low during the introductory stage of the product life cycle. B. Pricing strategies should be reevaluated throughout the product life cycle. C. Choosing a price is a one-time decision that is made for each individual product. D. Initiating price increases is one of the least challenging aspects of pricing. E. A price-skimming strategy is often used during the growth and maturity stages of the product life cycle.
b
Which of the following is not one of the ethical values spelled out in the AMA's Code of Ethics?
balance
Which of the following is an example of paid display advertising?
banner ad
After putting the words "beach," "resort," and "vacation" into his browser, Antoine received an email with a discounted price on a beach resort vacation. This was likely a function of
bots.
Which of the following is an example of a convenience product?
bottled water
Social media campaigns can be measured using which of the following set of tools?
bounce rates, click paths, and conversion rates
When a consumer connects thoughts about a brand to memories about a brand, this is known as
brand associations.
Colgate's mouthwash, dental floss, and toothbrushes are examples of
brand extension.
When the makers of Arm and Hammer Baking Soda created toothpaste containing baking soda as one of its ingredients, it was attempting to broaden its current brand with a new product. This strategy is called
brand extension.
Which component of brand equity represents the degree to which customers can identify the brand under a variety of circumstances?
brand recognition
The point at which the costs of producing a product equal the revenue made from selling the product is calculated during a
break-even analysis
A marketer is trying to uncover the true opinions of a group of consumers, but they are unwilling to express themselves, so instead he asks them to compare his brand to an automobile, a country and a person. What technique is the marketer using? A. free association B. aided recall C. projective technique D. brand recognition E. brand recall survey
c
A pricing strategy that involves constantly updating prices to reflect changes in supply, demand, or market conditions is called A. market pricing. B. demand pricing. C. dynamic pricing. D. flexible pricing. E. penetration pricing.
c
A strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company's brand is called A. dual branding. B. brand extension. C. co-branding. D. partner branding. E. brand revitalization.
c
A successful brand adds value to organizations in many ways, but which of the following is NOT one of those ways? A. by generating loyal customers B. by generating recognizable goods and services C. by reducing competition D. by generating more revenue E. by fostering more donations for nonprofit organizations
c
According to your text, what is the biggest challenge in global branding? A. coming up with different brand strategies for different countries B. grouping nations with consumers that have similar tastes and brand preferences C. staying easily recognizable at any location, while remaining compatible with local culture and traditions D. translating promotional materials into another language so that the meaning does not get lost E. adhering to the regulations of other countries when promoting the product
c
According to your text, which of the following marketers in today's world is most likely positioned for success? A. a marketer who is creative at crafting messages onto print ads B. a marketer who sticks to the traditional forms of advertising C. a marketer who connects with his or her audience through social media D. a marketer who understands that the use of social media carries no risk E. a marketer who is creative at crafting messages onto digital materials
c
As a marketing tool, packaging A. is not very important for communicating to the consumer. B. is only crucial to a few products, since most products are heavily promoted in other ways. C. gives a product a chance to stand out among all the other choices on a store shelf. D. does little to help promote and reinforce brand image. E. is not something that marketers are involved with.
c
Brand marks are elements of a brand that can be expressed in all of the following ways EXCEPT with A. symbols. B. colors. C. words. D. designs. E. figures.
c
In 2012, the most valuable nonprofit brand in the Youth Interest category was A. Stand Up for Kids. B. Big Brothers, Big Sisters of America. C. Girls Scouts of the USA. D. Young Life. E. Boy Scouts of America.
c
Products developed by a retailer and sold only by that specific retailer are known as A. manufacturer brands. B. generic brands. C. private label brands. D. licensed brands. E. co-brands.
c
Research indicates that emerging middle-class consumers in developing countries desire brand names that sound A. British. B. German. C. American. D. French. E. Chinese.
c
The Jeep brand of vehicles provides consumers with a unique blend of freedom and adventure. One of their advertising campaigns featured the tagline Have fun out there. Jeep. to highlight how the Jeep brand is about being free and adventuresome. This unique set of associations that consumers will make with the Jeep brand is referred to as brand A. recognition. B. marking. C. image. D. awareness. E. equity.
c
To be successful, brand messaging should A. strive to explain the product in detail. B. contain many different messages. C. be consistent and concise. D. be complex and varied. E. keep consumers guessing.
c
What could be the potential downside of continually offering discounts as a type of promotional strategy? A. It could pave the way for more competition to enter the marketplace. B. It could have the effect of overpricing the product. C. It could potentially devalue the brand and its relationship with its customers. D. It could cause the firm to have to repackage its product. E. It could lower a firm's brand recognition.
c
When analyzing the most common sources of product information and the percentage of social media users that prefer each source, it was found that compared to other sources, users prefer A. a company's website. B. a live chat with a company employee. C. consumer-generated reviews and product ratings. D. a company's Twitter page. E. a company's Facebook page.
c
When it comes to measuring brand equity, which type of research is particularly helpful in identifying the sources of brand equity and its role in consumer decisions? A. quantitative research B. brand recognition research C. qualitative research D. brand recall surveys E. product development research
c
Which component of a successful brand allows firms to engage customers through online surveys and social media tools? A. Deliver a quality product. B. Create a consistent brand image. C. Capture feedback. D. Create consistent brand messaging. E. Evaluate competitor's products.
c
Which of the following is NOT true regarding a brand extension strategy? A. It is best to have high brand equity before pursuing a brand extension strategy. B. Firms must make sure that the extension lives up to the quality consumers expect from the brand. C. A brand extension strategy is the same thing as a product extension strategy. D. A brand extension strategy allows new products to profit from recognition the brand already enjoys. E. Brand extensions must be implemented with an eye towards avoiding cannibalization.
c
Which of the following statements regarding monitoring a social brand is true? A. There are not very many social monitoring tools currently on the market, and the ones that are available tend to be expensive. B. The social monitoring tools currently available on the market are difficult to set up. C. Firms that use social monitoring tools are better prepared to facilitate an ongoing dialogue with customers to strengthen brand loyalty over time. D. Unless a firm has a website or is selling its product in some sort of online format, there is no need to monitor social network activity. E. Most social network monitoring sites only allow monitoring of one particular platform.
c
Young and Rubicam, a global advertising agency, developed the BrandAsset Valuator, which suggests that brand equity is based on which of the following four dimensions? A. image, loyalty, messaging, and recognition B. differentiation, recognition, knowledge, and image C. differentiation, relevance, esteem, and knowledge D. relevance, recognition, image and esteem E. loyalty, esteem, image, and recognition
c
Farouk was recently hired by Monet, an office supplies company, to sell its specific line of printer ink to different greeting card manufacturers. When he introduces himself, he specifically states that he is a sales associate for Monet Office Supplies. Farouk may best be described as
captive salesperson.
Which step of the personal-selling process is often the most difficult because it requires the salesperson to overcome the fear of being rejected?
closing the sale
Dopson's Hardware was in bad financial shape...
communcation
The Fantastically Fit health club has just opened a new location in your neighborhood. The club has mailed a flyer to all households in the area that contains information about the club and a coupon for a one-month free membership. In doing so, Fantastically Fit is MOST LIKELY attempting to
communicate value
If there is a difference between the actual service provided to customers and the service the firm has promoted, a ___ gap exists
communication
Physicians regularly overstate the expected recovery time from surgery, knowing that managing patients expectations will reduce the ___ gap associated with their service
communication
The ____ gap can be reduced by managing consumers' expectations
communication
Firms can close a ____ gap by being more realistic about the services they can provide and managing customer expectations
communications
When there is a significant difference between the services customers receive and the services the firm promotes, the firm has a
communications gap
For novel problems that involve some level of risk, consumers will consider multiple decision-making criteria and a more complex decision-making process known as ______ decision making.
compensatory
The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a
competitive advantage
Anandi wanted to know if her main rival in the personalized dog clothing business was increasing her prices. She talked to her rival's distributors, her suppliers, and some of her customers to get this information. Anandi was engaging in
competitive intelligence.
All of the following are actions a firm would take in the first step of the marketing research process except
conduct exploratory research.
Which of the following is not a key characteristic of the personal-selling environment?
consistent schedule
Taylor is looking to purchase a new car. He will only look into purchasing a brand made in his home country because he believes that doing so is the appropriate and moral thing to do. Taylor is demonstrating
consumer ethnocentrism.
The ________ rate is the percentage of users who take a desired action, like making a purchase.
conversion
The ultimate goal of the approach step of the personal-selling process is to
convince the customer that the salesperson is offering something of value.
Small data files stored on websites that can generate a user profile about a consumer are a type of invisible marketing influence known as
cookies.
Firms develop a competitive advantage by
creating more value for customers than those of other firms.
Country A prices its currency lower than it is actually worth. This gives it an advantage in selling exports because it can price its products cheaper than other countries' products. This is an example of
currency manipulation.
An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is
customer complaints
A sales representative of Audi, an automobile manufacturer, diligently follows up with its customers to offer post-sales service that other companies do not offer. This action increases the firm's opportunity to improve the financial return on its investment in those customers. This method of judging CRM effectiveness is called
customer equity.
A sales representative of Audi, an automobile manufacturer, diligently follows up with its customers to offer post-sales service that other companies do not offer. This action increases the firm's opportunity to improve the financial return on its investment in those customers. This method of judging CRM effectiveness is called Multiple Choice
customer equity.
The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as
customer focus.
A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in
customer relationship management.
The process by which companies get new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases is referred to as
customer relationship management.
After listening to customer requests for travel routes to the Northwest, Southwest Airlines has added cross-country routes to both Seattle and Portland. By providing its customers with benefits that meet their needs, Southwest is providing
customer value
The perceived benefits, both monetary and nonmonetary, that customers receive from a product compared to the cost associated with obtaining it is referred to as
customer value
The Gaps model is designed to highlight those areas where
customers believe they are getting less or poorer services than they should
Which of the following contains an example of an independent variable that cannot be manipulated by researchers?
customers' ages
Marketers can take advantage of the variable nature of services by
customizing services to meet customers' needs
According to your text, men and women, typically between 18 and 49 years old, who reach a large number of potential consumers through social media are referred to as A. product gurus. B. opinion leaders. C. social networking stars. D. super influencers. E. online persuaders.
d
According to your text, what two facets of nonprofit organizations makes branding more critical for them as compared to for-profit organizations? A. limited funds and complex goals B. varied audiences and limited funds C. limited staff and complex goals D. complex goals and varied audiences E. global presence and varied audiences
d
Recent research indicates that approximately _______ of consumers search for and purchase a low-priced product using an in-store shopping app or online search engine. A. 5% B. 20% C. 75% D. 40% E. 90%
d
The fact that a consumer who has tried and likes a product and therefore, is more likely to continue buying it regardless of outside influences exemplifies the fact that A. consumers are not that knowledgeable in evaluating alternative products. B. brand image is the main reason consumers continue to purchase a brand. C. advertising a brand is the surest way to ensure repeat purchasing. D. brand equity increases a firm's ability to succeed in a difficult competitive environment. E. consumers do not like change when it comes to buying products.
d
The name, term, symbol, design, or any combination of these that a firm uses to identify and differentiate its products is its A. label. B. trademark. C. trade name. D. brand. E. copyright.
d
The process of broadening the use of an organization's current brand to include new products is called A. product extension. B. brand revitalization. C. cannibalization. D. brand extension. E. co-branding.
d
The unique set of associations target customers or stakeholders make with a brand is referred to as A. brand recognition. B. brand marking. C. brand value. D. brand image. E. brand equity.
d
Tiffany is well-known as a luxury brand of jewelry. The iconic Tiffany blue box, along with its blue jewelry bag, has been used for over 100 years. By communicating class and sophistication, Tiffany's packaging is an example of how packaging A. can take the place of advertising. B. contributes to low brand equity. C. can mislead a customer. D. promotes a brand's image. E. takes away from a brand's image.
d
When determining the top most valuable global brand in 2012, three criteria were used: (1) the financial performance of the branded product, (2) the ability of the brand to draw a premium price or significantly impact the company's profits, and (3) the A. amount of money spent in order to promote the product. B. number of competitors competing against the product. C. role the brand plays in corporate philanthropy efforts. D. role the brand plays in influencing consumers. E. length of time the product has been on the market.
d
When it comes to using social media to respond to customer complaints, Research by ACNielsen found that 42 percent of 18-34 year olds expect customer support within _______ of a question or complaint. A. 30 minutes B. 1 hour C. 8 hours D. 12 hours E. 24 hours
d
Which brand in 2012 was ranked as the most loved brand on social media, in part because of the specials it offered to its most loyal customers? A. McDonalds B. Barnes and Noble C. Macy's D. Starbucks E. Subway
d
Which of the following established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition? A. the Sherman Antitrust Act B. the Robinson-Patman Act C. the Clayton Antitrust Act D. the Federal Trade Commission Act E. The Wheeler-Lea Act
d
Which of the following is NOT a component of building a successful brand? A. Deliver a quality product. B. Create a consistent brand image. C. Create consistent brand messaging. D. Monitor the competitive environment. E. Capture feedback.
d
Which of the following shows how social media can utilize consumers as brand advocates? A. A company searches through social media sites looking for negative product reviews so it can address the issues. B. A company tracks visits to its website to better target its audience. C. A company encourages customers to enter a contest on its website for a chance to win a free product. D. A company encourages customers to post pictures promoting the brand and the lifestyle it represents. E. A company airs its Super Bowl television ad after the game on YouTube.
d
Which qualitative technique for measuring brand equity helps marketers understand which brands stand out in a consumer's memory and what the strength of his or her association is with the brand? A. free association B. aided recall C. projective technique D. brand recognition E. brand recall survey
d
Yield management is a strategy for maximizing a firm's A. production. B. supply. C. operating costs. D. revenue. E. demand.
d
Marketers will conduct consumer interviews and observational studies to identify and confirm how consumers perceive a product's value. According to your text, what specific type of data will these tools yield about consumers' perceptions?
data about problems the product is solving for the consumers
A container of cookies boldly states that it has half the calories of its competitor; however, the container has half the number of cookies as the competitor. This is an example of
deceptive packaging
A _____ gap exists when a firm knows what it needs to do to meet customers' service expectations but sometimes fails to do it
delivery
A __________ gap is the difference between a firm's service standards and the service it provides to customers
delivery
The customers at Marielle's coffee shop want to gran a quick cup of coffee before the train to the city. Marielle's shop is suffering from a
delivery gap
A firm marketing its product in the United States and abroad may have to tweak the product for its international customers and as such may have to market it differently. What type of targeting strategy would work best for this situation?
differentiated
Rico's firm manufactures homemade salsa. His product is sold around the country, but he adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those customers prefer the extra heat and spice. Rico also markets the product differently based on the region of the country where it is sold. This represents what type of targeting strategy?
differentiated
Which of the following list accurately captures the four types of digital sellers?
digital malls, digital marketplaces, auction sites, and buying club sites
In a competitive environment, the situation in which products that perform the same function compete against one another is referred to as
direct competition.
The total number of activities a seller engages in to encourage the exchange of goods and services with the buyer is known as
direct marketing.
Jenna is a sales representative for Tupperware. She will often go to people's homes to demonstrate effective and innovative ways to use its products. This form of non-store retailing is known as
direct selling
Randall arrived at the hotel to find that although he had a guaranteed reservation the hotel had no more rooms available...
distributive fairness
When travelers are bumped from overbooked flights they are frequently offered vouchers good for future travel. The dollar value is...
distributive fairness
Amazon.com started out as a bookseller; it now sells a range of products from apparel to furniture to food, as well as offers live-stream video through its Amazon Prime service. Amazon's decision to move beyond books correlates with which type of marketing growth strategy?
diversification.
Market segmentation refers to
dividing a larger market into smaller groups based on meaningfully shared characteristics.
Along the service-product continuum, which of the following would be considered the most service dominant?
doctor
A strategy in which two or more products are packaged together and sold at a single price is called price A. pushing. B. grouping. C. packaging. D. skimming. E. bundling.
e
According to your text, why are brand loyal customers an important contributor to a firm's long-term success and profitability? A. Brand loyal customers typically exhibit more price sensitivity. B. Brand loyal customers write positive reviews of the firm. C. Brand loyal customers write negative reviews of the competition. D. Brand loyal customers typically don't use coupons to reduce the price of the product. E. Brand loyal customers typically exhibit less price sensitivity.
e
All of the following are legal under the Robinson-Patman Act EXCEPT: A. charging different prices if it is part of a quantity discount program. B. promising to match competitor's prices if the consumer produces proof of the lower price. C. charging a different price for a product that has changed in quality. D. charging different prices as a result of a going-out-of-business sale. E. allowing a significant price reduction on an artificially high retail price.
e
All of the following are ways listed in your text that customers engage with brands via social media EXCEPT A. consumers acting as brand advocates. B. consumers sharing brand information. C. consumers seeking discounts. D. consumers seeking contact with customer service. E. consumers using search engines to find a product.
e
All of the following could be considered ineffective packaging of your personal brand when preparing for an interview EXCEPT A. typographical errors on your resume. B. poor grammar in your e-mails. C. unprofessional attire for an interview. D. showing up late to an interview. E. talking about your personal accomplishments.
e
Co-branding involves A. one company linking two of its brands. B. two companies issuing two different products, but using the same name. C. one company issuing two different products, but packaging them under different names. D. two or more companies using the same supplier for its products. E. two or more companies issuing a single product.
e
Darius has a Facebook and a Twitter account, actively uses Instagram, and has his own personal blog. He has a large network of social media friends and is very effective at influencing those people to act. Based on Darius' ability to drive other people to act on social media, he would have a high A. prestige score. B. sway score. C. persuasion score. D. influence score. E. Klout score.
e
Deceptive pricing involves A. charging different customers different prices for the same product. B. two or more companies colluding to set a product's price C. selling exports to another country at an unreasonably low price. D. adding hidden taxes to products that are imported or exported. E. intentionally misleading customers with price promotions.
e
Fenton has a food truck in which he sells mainly burgers and fries. He decided to expand his product line to begin serving grilled chicken sandwiches as well. Fenton is noticing that his existing customers now order the chicken over the burgers, and his sales have not increased, in fact, they have decreased slightly. This is most likely due to A. poor marketing of the burger option. B. revitalization. C. low brand equity. D. differentiation. E. cannibalization.
e
If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic? A. odd pricing B. price bundling C. prestige pricing D. price skimming E. seasonal discounts
e
In a brand recall strategy, how can marketers tell if consumers are truly able to identify the brands they have seen and distinguish between those and brands that they have not been exposed to? A. They ask consumers questions about details of the brand. B. They ask consumers to compare the brand to a person, animal, or car. C. They repeat the technique several times. D. They ask consumers what comes to mind when they think about the brand. E. They use decoys that consumers could not possibly have seen.
e
Justine went to the specialty grocery store by her office after work. When looking at the offerings at the meat counter, she was surprised to see ground beef selling for $4.49/lb. At her normal grocery store, she can get the same quality beef for $3.29/lb., a price Justine feels is reasonable. $3.29/lb. for ground beef is Justine's A. benchmark price. B. break-even point. C. dynamic price. D. reasonable price. E. reference price.
e
On the store shelf at Walgreens, there are two types of sunscreen. Coppertone Sport Spray, which is a _______ brand, and Walgreens Continuous Spray Sport, which is a _______ brand. A. private label; manufacturer B. manufacturer; generic C. private-label; generic D. licensed; private label E. manufacturer; private-label
e
Private label brands are also referred to as A. manufacturer brands. B. generic brands. C. co-brands. D. licensed brands. E. store brands.
e
The term that your text uses for a brand marketed under the same name in multiple countries is A. international brand. B. multinational brand. C. exported brand. D. worldwide brand. E. global brand.
e
When it comes to measuring nonprofit brand equity, your text states that social media tools are particularly important for nonprofit marketers because they A. are the easiest promotional tools to use. B. don't have to be managed by a marketing staff. C. work better than other promotional tools. D. can be used to reach a global audience. E. cost less than other promotional tools.
e
When the makers of Snickers candy bars decided to make a line of ice cream treats, they came up with Snickers ice cream bars. This is an example of A. a product extension. B. brand revitalization. C. cannibalization. D. co-branding. E. a brand extension.
e
Which of the following is NOT a reason for the global strength of U.S. brands? A. The U.S. economy rebounded from the most recent financial crisis at a slightly faster pace than many European countries. B. American companies collectively benefit from the success of U.S. tech companies. C. The Internet and the language associated with it are rooted in American brands and American imagery. D. Social networking sites have been important tools in promoting American brands internationally. E. There are few tariffs levied against U.S. brands imported into other countries.
e
which has been a leading producer of bicycle locks for more than three decades. How was this firm impacted by social media? A. Kryptonite was a little-known brand until social media users began raving about the company products, leading to an unprecedented increase in sales. B. Kryptonite enjoyed steady sales until negative product reviews on Yelp and YouTube drastically reduced company sales, causing the firm to go out of business. C. Users posted videos showing how the bike lock could be employed for other uses around the house, and this led to an increase in company sales. D. Users contacted the company about sponsoring a bike competition and this led to social media product endorsements by all types of different companies. E. Users posted videos showing how the company's bike locks could be opened with a pen and this forced the company to change its design.
e
The convenience of ________ is that consumers are able to make purchases off their mobile devices.
e-tailers
For a firm to deliver value to a customer, it must ensure that its product or service is physically available or
easily accessible to customers.
Marketers use this type of appeal when they want people to become more connected to the product and brand.
emotional appeal
empowerment of employees helps to address the delivery gap because
employees directly involved with the customer can respond effectively at the moment the problem occurs
A retailer that wants to ensure it maintains its brand across all retailing channels requires investment in
employees that can reflect the culture of a retail firm.
Using technology and _____ are two ways a delivery hap can be reduced in size
empowering employees
When Dr. Horton checked in at the Ritz Carlton, it was 3am...
empowering employees to meet customers' needs
In the communication process, when ideas and information are transformed into words, symbols, or pictures this is known as
encoding.
Understanding the specific changes that impact the market environment is a key aspect to understanding how that market environment might affect the future of a firm. This key aspect is known as
environmental scanning.
Better Bags sells fashionable, all-purpose bags of various sizes made from recycled materials such as paper, cork, and plastic. After analyzing the accessories market in town and noticing that no other shop sells fashionable, environmentally friendly bags, it decided to move its operation from online only to its own shop on Main Street, right next to a supermarket that continues to use plastic bags (though it does sell reusable grocery bags for 99 cents each). Most shoppers who go into the supermarket are commuters who usually go in the evening and walk out with few enough items to fit inside their brief cases or purses, though some will walk out holding overflow items in their hands. However, the shoppers want to carry as little as possible on their walk or bus rides home. The shop did well during its first six months, especially among
environmentally conscious young professionals who rely on public transportation to get around.
According to your text, what step in deciding how to position a product should be done on a continual basis since consumer tastes change for almost every product?
evaluate feedback
The attributes a consumer considers important about a certain product are referred to as
evaluative criteria.
Consider a scenario in which the U.S. dollar depreciates, and U.S. goods and services become more affordable to European consumers. This change in the currency can improve tourism businesses in the United States, as it would cost less for a European tourist to travel to the States. Which of the following economic factors accounts for this scenario?
exchange rate
Graduate school would be considered a product purchased using ________ problem solving because it requires ________-level involvement.
extended; high
Josiah is a real estate agent who is looking to sell a three-bedroom house with a recently renovated garage. There is a large studio apartment above the garage ideal for a single person or couple; it has a separate entrance. He immediately calls up Levi and Gin, who are expecting their second child and have recently invited Gin's elderly mother to move in with them. Which demographic segmentation variable did Josiah consider in this case?
family size
All of the following are outcomes of a successful marketing strategy except
fewer direct competitors.
Without successful marketing, there is no need for a firm to expand its business or invest in capital expenditures. Which key functional area would be most affected by this lack of growth and investment?
finance
The main goal of the first step in the personal-selling process is to
find qualified prospects.
One key goal of marketing is to
focus on satisfying the needs of the customer.
The ________ step of the personal-selling process is a critical step in creating customer satisfaction and building long-term relationships with customers.
follow-up
Martha, a sales associate for Carlton Cards, is at a potential customer's office making her sales presentation. Which step of the personal selling process will Martha move to after her presentation concludes?
handling objections
A key aspect of self-regulation is that it eliminates the need to
include government resources.
Sam was called to meet with his boss...
increased number of purchases and positive word of mouth
Empowerment becomes important when the service is
individualized
Ethical standards are important to the marketing research industry because they help gain the trust of consumers. Without that trust,
individuals will be less willing to participate in research.
A situation in which a specific change in price causes only a small change in the amount purchased is referred to as
inelastic demand.
The Daily Gazette charges $1.00 for its newspaper and has 150,000 subscribers. The publishers decided to reduce the price of the paper to $0.75 in hopes of attracting new subscribers. However, the price reduction resulted in only 500 new subscribers. This represents demand that is
inelastic.
For product marketers, the creation of a new or significantly improved product offering is referred to as
innovation
Franco is considered to be tech-savvy by his friends. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. What type of product adopter is Franco?
innovator
When marketers state that services are ________ they are referring to the fact that services are produced and consumed at the same time
inseparable
Sean moved to take a new job, and when he got sick he needed to find a doctor. He discovered during the visit that he didn't like that one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective this situation highlights
insperability
In order to protect customer privacy, companies should
institute and follow their own privacy policies.
Barnes and Noble bookstores have computers available for associates to search for book requests
instrumental support
Rob was complaining to another member of the lawn crew...
instrumental support
______ represents the system and equipment resources that providers need to be able to close the delivery gap
instrumental support
Because services are _______, it is often difficult for marketers to convey the benefits to consumers
intangible
Colin has been directed by his boss to determine whether their company is meeting customers' service quality expectations. One of Colins problems is that services are _____, making evaluation of services difficult
intangible
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
intangible
Mars, Inc., makers of Snickers candy bars launched its You're Not You When You're Hungry promotion campaign. The company's television commercials portrayed regular people disguised as celebrities behaving badly because they were hungry. Along with the commercials, print ads were released featuring inversion illusions showing the difference between someone whose hunger is satisfied and someone whose hunger is clearly not. In addition, the print ads included a coupon for a Snickers candy bar. This type of promotional strategy is referred to as
integrated marketing communications.
A firm that places its products in grocery stores, vending machines, convenience stores, delis, street vendors, and so forth is most likely utilizing which type of distribution strategy?
intensive
Deceptive pricing involves
intentionally misleading customers with price promotions.
If consumers think about their previous experiences with a product or a brand when shopping for products, this is referred to as
internal information search.
Secondary data comes from which two types of sources?
internal or external
Stretch Fit is an athletic sock manufactured by a footwear company that specializes in running shoes and cross-trainers. These soft, comfortable socks are made of a unique fabric that when worn, stretches to fit any size or shape foot. In addition, they contain moisture-wicking, beads that both massage the foot and help prevent odor. With its first-to-market promotional campaign, Stretch Fit managed to capture a large percentage of its target market. Based on this description, Stretch Fit is at which stage of its product life cycle?
introduction
An ad that reads, "This offer will only last for 24 hours! Buy now or miss out!" is considered a form of direct response advertising because
it is trying to elicit an immediate response or action—in this case, a purchase.
The customer relationship management process is best described as being
iterative
Which of the following provides the most reliable picture of a country's purchasing power?
its income distribution
A _____ gap reflects the difference between a customers' expectations and the firms' perception of those customer expectations
knowledge
David's marketing research returned finding customers were staying away from his books store. David is likely suffering from a_____ gap
knowledge
Firms can close the ____ gap by matching customer expectations with actual service through the use of marketing metrics
knowledge
For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitor. Few customers took advantage of this service. This is an example of a _____ gap is services marketing`
knowledge
Wilbur does not like change. He thinks the cell phone he currently owns is just fine even though it doesn't have all the features of new phones on the market. Wilbur hopes that he doesn't lose this phone because the company doesn't make this style anymore and he doesn't want to get anything different. What type of adopter is Wilbur?
laggard
These adopters can be a challenge for marketers because they are not easily motivated or persuaded to make a change.
laggards
Which category of product adopters relies on others for information and buys a product because their friends have already done so?
late majority
Stores such as Bass Pro Shops focus their attention on consumers who like to fish, hunt, and pursue other outdoor activities. This represents the form of segmentation called ________ segmentation.
lifestyle
Fields & Greens is a farm-to-table restaurant that boasts great food and a unique atmosphere. When you walk into the restaurant, you're immediately struck by the light streaming through the floor-to-ceiling windows, the open floor plan punctuated by picnic-style tables of various sizes, and the soundtrack of birds singing and brooks babbling. Fields & Greens' marketers wanted to bring the outdoors in with the hopes of appealing to nature lovers and outdoor recreationalists. What psychographic variable is Fields & Greens applying in this case?
lifestyleCorrect
A customer's ________ allows a company to predict whether that customer will generate the most profit over a long period of time.
lifetime value (LTV)
Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?
lifetime value analysis
Starbucks evaluates the cost of doing business with each of its customers. For example, Emily visits Starbucks three times per week, every week. Each time Emily visits Starbucks, she spends $5.25. In four years, Emily will spend a total of $3,276. Young visits Starbucks one time per week, every other week. Each time Young visits Starbucks, he spends $3.25. In four years, Young will spend a total of $338. Starbucks concludes that it should focus on retaining Emily as a customer because losing her will cost significantly more than losing Young. In this scenario, Starbucks is conducting a
lifetime value analysis.
Hillary hates shopping in person because of the long lines and the crowds. This is why she loves shopping on Amazon. She takes advantage of its subscription services and has recently started using its Amazon Fresh services. Hillary has been an Amazon loyalist for years. Recognizing this, Amazon wants to do what it can to maximize her status as a long-time customer. This CRM strategy is known as
lifetime value.
Travis has an athletic shoe store and is currently preparing a market summary. To be most effective, the competition section of his market summary should
list both direct and indirect competitors
When confronted with an angry and emotional customer, the best first step toward service recovery is to
listen carefully and with empathy until the customer feels he or she has been heard
Because customers have different needs and expectations, the key to distributive fairness in service recovery is to
listen to the customer
Service employees at the airlines flight cancellation desks frequently encounter travelers who get emotional about canceled or delayed flights
listen to the customer
As Judy approaches Target, a notification advertising the store's weekly specials appears on her smartphone. This is best described as
location-based advertising
As Sebastian approaches Best Buy, a notification advertising the store's sales appears on his smartphone. This is best described as
location-based advertising.
Dick's Sporting Goods offers its customers the opportunity to sign up for a Scorecard, which allows them to earn points on purchases. After a certain number of points are earned, the customer receives a cash award. In addition, the Scorecard entitles customers to member-only savings. This is an example of a
loyalty program.
Successful branding consists of four key steps. What is the focus of delivering a quality product?
making sure the product provides value to the customers that will be using it.
Which of the following demographic groups in the United States is expected to double in size in the next 50 years?
males and females 65 years and over
Read with Us is a local bookstore and café that just received a big box of donations filled with titles such as The Wedding Planner, What to Expect When You're Expecting, Siblings without Rivalry, and The New Father. Which demographic variable should the bookstore consider when it organizes these books for its market?
marital status and family size
Which marketing strategy would a firm be using if it decided to begin selling its products in another market, for example, region, state, or country, for the first time?
market development
Lakeside Kayaks has noticed that its customers tend to gravitate toward red and yellow kayak accessories, so to encourage sales of its red and yellow kayaks, it moved these kayaks to the front of the store, along with a sign announcing 10 percent off all oars, lifejackets, or fishing equipment. These actions are common among firms that utilize a(n) ________ growth strategy.
market penetration
People for Pets is a business that markets to pet owners. Its inventory of products and services include mugs, calendars, and key chains, as well as pet daycare, pet sitting, and pet grooming. People for Pets recently introduced a new month-long promotion: For every two or more products purchased, get a free daycare, sitting, or grooming service. These actions correlate with which type of marketing growth strategy?
market penetration
All of the following are marketing growth strategies except
market positioning.
Meena owns an online shop specializing in items made from recycled fabrics and fabric remnants. She designs every tote bag, infinity scarf, headband, bandana, and fabric jewelry on her own, as well occasional pieces of apparel, such as tank tops, shorts, skirts, and pants. To reflect her product line and to capture the attention of the right market, Meena calls her shop, "Style It Up: Accessories and More." Meena's shop name exemplifies her careful attention to
market segmentation.
Factors such as competition, societal change, economic uncertainty, and evolving customer demand are all part of a firm's
marketing environment
Market penetration, product development, market development, and diversification are all examples of
marketing growth strategies
Typically, when a firm decides to reposition a product, it must also change one or more
marketing mix elements.
Different factors can vary the overall cycle of a product's life. Those factors include a marketer's estimates of the length of a product's life, the product type, and the product's
marketing mix.
A firm's ________ is the set of marketing actions taken to accomplish marketing objectives leading to higher profits, stronger brands, and larger market share.
marketing strategy.
Often marketers will create desires for products in people that do not really need them. The end result of this is
materialism
By changing a standard from "be nice to customers to "greet every customer, and if possible by name", a service marketing manager has created a ______ goal
measurable
When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment be clearly identified. In other words, it should be
measurable
A competitor copying products and selling them at a lower price is considered a ________ in new product development.
moderate risk
If a firm seeks to use data from its CRM system to address a research question, but the data does not yield useful answers, the firm should
modify its data capture and collection process.
Omnichannel retailing is a(n) ________ retailing approach that allows the customer to have a(n) ________ customer experience across all of a retailer's distribution platforms.
multichannel; integrated
An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the group runs to a cooler to find something to quench their thirst. Inside the cooler are water bottles, cans of soda, fruit juices, and Gatorade. Immediately, the boys fight over the Gatorade, showing that it is clearly the best choice. In this ad, liquid refreshment represents a _____, while Gatorade represents a _____.
need; want
Gen Ex Innovations Inc. is a leading multinational corporation that manufactures various consumer goods. It enters the video gaming industry by developing a new gaming console, Edge. Gen Ex hopes that Edge will help it compete better in the already-established gaming console market. In this scenario, Gen Ex has introduced a
new category entry.
College Prep Tutors is a business that tutors high-school students who are preparing to take the ACT test as part of their college entrance requirements. Because it possesses a unique offering that is desirable to a specific market, College Prep Tutors would most likely use what type of target market strategy?
niche marketing
A targeting strategy that involves pursuing a large share of a small market segment is referred to as
niche marketing.
For a business entering a market where large segments of the market are targeted by multiple firms, the best strategy for this business is to target a large share of a small market segment with a unique product. This is known as
niche marketing.
With regard to closing strategies,
no salesperson can rely on only one strategy.
Michaels is an arts and crafts shop that sells everything from paint to silk flowers. If Michaels were to pursue a diversification growth strategy, which of the following actions would most align with this strategy?
open a Michaels café
Salespeople that work the field by traveling to potential or existing customers with the intent to sell is characteristic of which type of salesperson?
outside salesperson
A firm may choose this pricing objective because it encourages a greater volume of purchases and therefore maximum revenue.
penetration pricing
Firms will use this form of pricing in competitive markets as a way to encourage trial and adoption of the product by consumers.
penetration pricing
In assessing ________, the consumer takes into consideration brand performance as it relates to personal parameters and expectations.
perceived quality
When this component of brand equity is high, it usually results in higher sales prices and customer satisfaction.
perceived quality
One of the most important concepts in marketing is the price elasticity of demand, which is the
percentage change in quantity demanded in response to a percentage change in price.
A(n) ________ is a competitive analysis tool that creates a visual picture of where products are located in consumers' minds.
perceptual map
The competitive analysis tool that creates a visual picture of where products are located in consumers' minds is called a
perceptual map.
Because services like airline flights and hotel beds are ______, many marketers attempt to match demand with supply using pricing strategies
perishable
When marketers state that services are _____ they are referring to the fact that services cannot be stored for use in the future
perishable
Yolanda manages a best sleep inn along an interstate highway. She knows from experience that five to ten last minute customers...
perishable
Jed doesn't like his new haircut but obviously cannot return it. This is because services are
perishable.
Kenya is a learning specialist for McGraw-Hill Education. At the national sales meeting, she was awarded Learning Specialist of the Year not just for the number of product adoptions she achieved in her territory, but also for her product knowledge, her responsiveness to customers, and the new relationships she forged with important decisions makers. Which of the following promotional elements is being measured in this scenario?
personal selling
The integrated marketing communications tool that allows a salesperson to influence a customer's purchase decision is called
personal selling.
Loft, a women's clothing retailer, emails customers about Black Friday sales in advance of Black Friday to give customers a sneak peek at what will be available to purchase at deeply discounted prices. For many years, Loft has been known to extend the Black Friday sales by a few days to bring in more customers. This kind of advertising is known as
persuasive advertising
Enzo's is a family friendly Italian restaurant that not only takes pride in its traditional, homestyle cooking, but also in its dining experience. It wants people to enter feeling like they've just walked into their grandmother's kitchen. To communicate its marketing message of home and hearth to its customers, it is using which method of marketing communication?
physical space
When a company relies on such elements as store design or employee uniforms to convey a marketing message, it is using the marketing communication method known as
physical space.
In Maslow's hierarchy of needs, what need must be satisfied first before a person will seek to satisfy any other need?
physiological
As an online subscription retailer, Fabletics sells most of its athletic wear online, which means that marketing decisions related to ________ are most important.
place
Social media marketing relates to all four elements of the marketing mix. When social media makes it possible for a store to be anywhere that the customer is, social media is impacting the _____ element of the marketing mix.
place
Which marketing mix element involves decisions regarding location and inventory management?
place
The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as
positioning
The marketing mix, often known as the four Ps of marketing, represent areas that a firm can adjust to influence demand for its goods, services, or ideas. If a firm wanted to adjust the cost of a service by 2 percent to stay competitive, on which of the four Ps would it be focusing?
price
This positioning strategy allows a firm to highlight its competitive advantage as a cost-savings firm that offers quality goods at low-selling prices.
price/quality relationship
Because services like cruises and car rentals are perishable many marketers use
pricing strategies to match supply with demand
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
procedural fairness
________ refers to the perceived fairness of the process with which a firm handles customer complaints
procedural fairness
Babbel is a subscription-based language learning app available in 14 different languages. On which element of the marketing mix is Babbel concentrating?
product
After extensively surveying its existing market, a car manufacturer learns that its customers are seeking alternative fuel vehicles to the conventional gasoline-run cars they currently own. In response to this feedback, the car manufacturer introduced a new vehicle that utilizes hybrid technology. This action correlates with which type of marketing growth strategy?
product development
In response to a report published by the Centers for Disease Control about the relationship between obesity and heart disease, a popular fast food chain eliminated the extra-large serving size for all its menu items and introduced a new line of salads and healthy food alternatives, for example, a 99 percent lean turkey burger. This action correlates with which type of marketing growth strategy?
product development
In the new product development process, immediately after a firm conducts a business analysis, it may move on to create a prototype of the good, which takes place during which next stage of the process?
product development
Cotopaxi creates innovative outdoor products that not only inspires consumers to go on great adventures, but to look good while they're at it. It offers a variety of technical and lifestyle backpacks, including the Del Dia, the Luzon, the Inca, and the Tarak—each backpack line features a variety of styles, weights, and sizes. These different lines represent the company's
product mix breadth
Which distribution center function focuses on collecting goods with similar characteristics and facilitating proper inventory controls?
product sortation
Which of the following accurately represents the 4 Ps of the marketing mix?
product, price, place, and promotion
When a company uses elegant packaging for its products, it's using that packaging to ________ its brand image.
promote
Hanger Tea is a tea product that supplies tea bags in the shape of T-shirts on little hangers. These tea hangers literally hang off the rim of a cup or a mug. This form of unique packaging is a way for the tea company to
promote its brand image.
The four Ps are product, price, place, and
promotion
The owners of Have It Your Way Hot Dogs have decided to place an advertisement in the local minor league baseball team's program booklet. Which element of the marketing mix does this represent?
promotion
The marketing mix element where most of an organization's communications with the marketplace occurs is
promotion.
Sophia is a marketing manager at PinVid Inc., a new DIY craft store, who plans to use advertising and sales promotions to communicate the value of a new How-To video series that the company just launched. Advertising and sales promotions reflect elements of the firm's
promotional mix
The goal of an integrated marketing communications strategy is to coordinate the various promotion mix elements to
provide consumers with a clear and consistent message about the firm's products.
Managers of fast food restaurants struggle with rapid turnover of personnel...
provide emotional support and concern for their employees
After observing a customer verbally abuse a waiter, the first thing a manager can do to ensure quality service is to
provide emotional support to the waiter
What is the key to creating value?
providing consumers with benefits that meet their needs and wants
Service providers often encounter rude and unreasonable consumers. Services marketing can reduce the delivery gap, even for those customers by
providing support and incentives for their employees
Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most likely use which type of segmentation strategy?
psychographic segmentation
Carlos makes the same amount of money as he did last year, but lately he never seems to have enough money to make ends meet. Where he used to be able to save money each month, now he barely has enough to pay his bills. Carlos is experiencing a reduction in his
purchasing power.
After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Les has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a
push strategy
When a company produces a good based on a sales forecast, stores them, and then waits until an order for the product is requested, this is known as a(n)
push strategy
Diego works for an electronics firm. If he wanted to know how many people prefer to respond to emails on their smart phones or on their tablets, he would most likely conduct ________ research; but if he wanted to understand why people prefer to respond to emails using a smart phone or a tablet, he would most likely conduct ________ research.
quantitative; qualitative
Which of Cleo's actions during the process of buying a new car took place in the problem recognition stage?
realizing that driving a car was the only practical way to get to work
Tristan has been calling on the same customer for years. He handles all of the company's orders and quickly resolves any issues that may come up. On occasion, Tristan takes some of the company employees out to dinner and has even given them tickets to local sporting events. Tristan is involved in
relationship selling.
Cheryl will only let Martine cut her hair...
reliability
The new hotel manager asked the chef are you sure you know how to cook a beef wellington? Which service demension
reliability
The marketing of services differs from product marketing because services are all of these except
renewable
If a company is sponsoring content created specifically for endorsing its brand or product, the Federal Trade Commission
requires this intent to be disclosed.
When choosing where to eat lunch, Veronica's major service criterion is speed...
responsiveness
In digital marketing, as compared to other types of marketing,
results can easily be measured
A product labeled "new and improved" would fall within the category of a
revamped product
A product labeled "new and improved" would fall within the category of a
revamped product.
Revel Ecce Motors, an automobile dealer for Xoin Automobiles, sold 25 cars in January 2014. January usually accounts for 4 percent of Revel's annual sales volume. Using this information, Revel estimates that it will sell 625 cars in 2014. This scenario exemplifies
sales forecasting.
Which of the following helps sales managers determine many elements of their sales plan, including salesperson quotas, compensation, and sales force size?
sales goals
A manager's responsibility for the formulation and implementation of a sales plan used to deploy salespeople to interact with customers is known as
sales management.
Which of the following is the best source of information about in-person customer interactions and is particularly helpful in gathering specific customer information such as contact information and purchase preferences?
sales personnel
Geographic, product, customer, and combination approaches are all different methods of
sales territory management.
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 services before purchasing. Many hotels use _________ to overcome the problem of inseparability of services
satisfaction guarantees
When you type in "comfortable jeans," the website for Jazzy Jeans appears first in the list. This is an example of
search engine optimization
Which of the following is an example of information search behavior during the consumer purchase decision process?
searching a company's website for product specifications
A pet accessories company learns that people are buying more of its pet beds after featuring a series of videos showing kittens and puppies fast asleep and cuddling together in these beds. This finding is reflective of a(n)
sentiment analysis.
Kayla is the new manager of a resort hotel. She knows from reviewing her customer complaints that service quality is not specific...
set specific, measurable goals based on customers expectations
Ocean Bound has several retail shops within a 15-minute drive from the most popular beach destinations. However, there are many people that live within walking distance of the beach as well as many looking to buy beach-related trinkets or to replace an emptied bottle of sunscreen without having to leave the beach. Ocean Bound is looking to apply a geographic segmentation strategy based on customer convenience in this case. What specific strategy would you recommend?
set up kiosks near the beach restroom and shower areas
After relocating for his job and moving into a larger apartment, Aslan needed to purchase several new pieces of furniture and other household items to fill the space. He made several large consecutive purchases on WayFair, an online furniture retailer. A WayFair sales representative, recognizing the flurr of activity on his account, categorized Aslan as a highly profitable customer and offered him executive account status. This type of CRM strategy is called
share of customer.
To judge the effectiveness of its CRM strategy, Apple might use its CRM data to guide contacts that lead to service appointments, warranty extensions, and future purchases. As the quantity of the purchase dollars increase, the more effective the CRM strategy will likely be. This is known as
share of customer.
Of the four main categories of products, which category encapsulates those products that require moderate consumer involvement in that they must devote some time to comparing brands and product features?
shopping products
Which of the following is not a recommended strategy for service recovery
silencing an irate customer before the individual makes any angry outbursts
During a service, production and consumption occur
simultaneously.
The external marketing factor that refers to the combination of social and cultural factors that affect individual development is
sociocultural
Because of the unique nature of these products, consumers are less likely to settle for a similar product, if one even exists. Which product classification does this describe?
specialty products
The three basic characteristics of a quality marketing objective is that it be
specific, measurable, and realistic.
All of the following are types of invisible marketing influences except
sponsorship.
By setting appropriate service standards and measuring service performance, firms can attempt to close a ____ gap
standards
If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a ____ gap exists
standards
Training service providers to know exactly what a good job entails is setting service
standards
Which service gap is the Ritz Carlton Hotel trying to address when it spends up to 1700 to train a new employee
standards gap
Social media advertising is different from traditional advertising in that traditional advertising is
static.
Ensuring that a firm's CRM data analysis applications can access the data the firm has collected from individual or business customers is characteristic of which step of the CRM process?
store and analyze information
La-Mart, a retail chain, uses recency-frequency-monetary analysis to create monthly mailing lists every month and sends out promotional material to its customers. La-Mart is at which step of its customer relationship management process?
store and analyze information
What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement?
strategic fit
According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and
strategic fit.
The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is known as
strategic planning.
The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is referred to as
strategic planning.
Which market segment criterion refers to the fact that segments must be large enough for the firm to make a profit by serving them?
substantia
In which closing method does the salesperson review how the firm's product will address the potential customer's needs and provide overall value?
summarization close
Divine Cocoa is a chocolate manufacturing company. While most of Divine Cocoa's competitors produce only milk and dark chocolate varieties, Divine Cocoa sells more than 50 different varieties of flavored chocolates. Divine Cocoa sources fine, rare cocoa beans that do not have high-quality substitutes, which adds value to their chocolate varieties and makes it difficult for other chocolate manufacturers to copy. Divine Cocoa has a(n) ________ in the chocolate manufacturing market.
sustainable competitive advantage
Once marketers at Levi's discovered that growing the cotton needed to make its jeans used a great deal of water, it joined the Better Cotton Initiative to teach farmers how to grow cotton with less water. This is an example of Levi's commitment to
sustainable marketing.
Patagonia, a California-based clothing company, is deeply committed to the environment. The company makes fleece jackets out of recycled bottles, uses solar panels to generate most of the electricity at its headquarters, and even tells its customers in its advertisements to think twice before buying anything, all in an effort to reduce its carbon footprint. This is an example of how Patagonia is engaged in
sustainable marketing.
Green Leaves seeks to encourage increased use of reusable bags by creating a new market space for "shoppers with a conscience." To achieve this, the firm creates differential value for consumers and makes contributions to society by reducing costs and environmental impact. Which overall environmental marketing strategy does this exemplify?
sustainable value innovation
A local cafe has decided to buy its salad greens only from those growers that produce it organically. This is an example of
tactical greening.
Monique was looking for a venue for her wedding reception. When she visited one potential location...
tangibles
After Franklin opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group, which will be his
target market.
Carson has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1) students from the nearby college campus, (2) families with small children, and (3) young adult males. Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as
targeting
When a company is deciding which group of market segments they will focus their efforts on to maximize sales, they are engaging in
targeting
When marketers evaluate each market segment and determine which segment or segments present the most attractive opportunity to maximize sales, this process is known as
targeting
Which external environmental change gives marketers the opportunity to help customers satisfy their needs and wants almost immediately and seeming without limit?
technological
Making sure that consumers see a clearly defined marketing message at least three times is important because
that is the average number of times a consumer must see a message before he or she makes a purchase decision.
What is the difference between success and failure in the marketing communication process?
the ability to effectively communicate a marketing message
In contrast to offline publicity, when consumers post about an organization via such online publicity tools as social media,
the company's marketers have no control over what the consumers post.
What about experimental research allows marketing researchers to examine the causal relationship between variables?
the fact that they can control and then manipulate the research setting
Marketing is defined as
the process of creating, communicating, and delivering value to customers and managing those relationships in ways that benefit the organization and its employees, customers, investors, and society as a whole.
The concept of sustainable marketing refers to
the process of creating, communicating, and delivering value to customers in a way that incorporates the concept of sustainability.
When marketers segment based on psychographics, the market is divided into groups according to
the reason why the consumer made the purchase.
Which of the following is an accurate definition of the marketing strategy?
the set of marketing actions taken to accomplish marketing objectives
What is the problem associated with service quality standards such as "be nice" or "do what customers want"
they are not specific
When corporate headquarters announced new services quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees support because...
they were not involved in setting the goals
Federal, state, and local governments enact regulations for two main purposes: to ensure businesses compete fairly with each other and
to ensure businesses don't take advantage of consumers.
What is the purpose of market scanning?
to identify direct and indirect competitors
Which of the following is the objective of persuasive advertising?
to increase demand for an existing product
The main objective of reminder advertising is
to keep the product before the public in the effort to reinforce previous promotional activity.
Many product-dominant firms use quality service
to maintain a sustainable competitive advantage
Why is the Service Gaps Model used to help develop marketing strategy?
to manage the gap between customer expectations and perceptions
Diligent follow up with a customer after a sale is critical because it opens opportunities for the salesperson
to uncover new customer needs or wants and secure additional sales.
Any point at which a customer and the company come into contact is called a
touch point.
Maria is searching for a new pair of running shoes. She conducts a Google search, which leads her to Zappos. On the Zappos website, Maria reads reviews of the shoes she is interested in. She engages in a chat with the customer service representative about the return policy, and ultimately decides to purchase the shoes. Each of these interactions Maria has with Zappos is known as a(n)
touchpoint.
What are two of the most common and effective strategies marketers can use for raising prices?
unbundling and escalator clauses
A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of
unbundling.
A common mistake that takes place during the price-choosing step of the price-setting process is when marketers choose to charge someone less than they are willing to pay—in other words, they engage in
underpricing
A common mistake that takes place during the price-choosing step of the price-setting process is when marketers choose to charge someone less than they are willing to pay—in other words, they engage in
underpricing.
A business is trying to determine which customers buy its products online versus going to its retail stores. By doing so, the firm is engaged in which step of the customer relationship management process?
understanding how customers interact
An electrician, new windows, and a new roof all fall under which type of product category?
unsought products
When a firm employs a differentiated targeting strategy, it simultaneously pursues several different market segments. For each segment, it usually
uses a different marketing mix strategy for each.
Predictive modeling is a data analysis technique that
uses algorithms to try to determine the future actions of customers.
By leveraging the resources and skills of its various component firms, a supply chain provides the end customer with
value
Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber hardware store...
variability
One approach marketers are using to reduce service ______ is to replace people with machines whenever appropriate
variability
Marcelo is preparing a monthly report for his supervisor regarding plant operations. While Marcelo is happy to report that production increased by 20 percent this month, he needs to let his supervisor know that material charges, delivery costs and utilities to run the plant also increased significantly. These represent the plant's ________ costs.
variable
The old restaurant saying, "You are only as good as the last meal served" reflects the fact that services are
variable
To encourage customers to buy more, firms will offer their products and services at lower prices. This is a key characteristic of the pricing objective known as
volume maximization.
Regarding positioning a product, when is competitive analysis most important?
when competitors all appear to offer a similar good or service
The eco-branding strategy tends to succeed in industries
where significant barriers to imitation exist
A firm that buys large quantities of goods from various producers or vendors, warehouses them, and resells to retailers is a
wholesaler
Honesdale Beverage sells beverage products to restaurants and businesses—basically to anyone other than the end user. Honesdale Beverage is a(n)
wholesaler.
When a firm purchases a large quantity of a good and sells it off in smaller quantities at a higher per-unit price, this is an example of
wholesaling.
When John checked into his Orlando hotel the front desk clerk informed John that his room will not be ready for another 20 minutes
zone of tolerance
When managers understand what their service providers are facing on a day-to-day basis by directly observing them and talking to customers it is called "management by walking around"
True
A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as A. price elasticity of demand. B. break-even analysis. C. profit maximization. D. price elasticity of supply. E. marginal revenue.
a
Fenton, a marketer for a major retailer, uses the Internet to aggressively review the prices of products sold by his competitors. Accordingly, he constantly updates his prices based on his findings and what changes he sees in consumer demand. What type of pricing strategy is Fenton most likely using? A. dynamic pricing. B. demand pricing. C. market pricing. D. flexible pricing. E. penetration pricing.
a
Sunny Pines campground, located in the Midwest, promotes the months of September and October as its value camping months. During this time, it offers reduced rates on camper rentals and campgrounds. It does this, in part, because the weather is not as favorable for camping at this time. The pricing tactic Sunny Pines is using to encourage camping during these months is most likely A. seasonal discounts. B. price bundling. C. prestige pricing. D. unbundling. E. odd pricing.
a
The Robinson-Patman Act was passed in 1936 and A. requires sellers to charge everyone the same price for a product. B. established the Federal Trade Commission. C. was designed to protect consumers from false advertising practices. D. established maximum rates for tariffs on imports and exports. E. made illegal the practice of price fixing.
a
The amount a product sells for above the total cost of the product itself is called A. profit margin. B. the break-even point. C. marginal revenue. D. marginal cost. E. the price elasticity of demand.
a
The illegal buying and selling of products outside of sanctioned channels is referred to as the A. black market. B. white market. C. gray market. D. blue market. E. red market.
a
What are two of the most common and effective strategies marketers can use for raising prices? A. unbundling and escalator clauses B. reference pricing and unbundling C. markup pricing and escalator clauses D. prestige pricing and dynamic pricing E. odd pricing and prestige pricing
a
What is marginal revenue? A. the change in total revenue that results from selling one additional product unit B. a percentage change in price that results from a change in quantity demanded C. the total change in revenue that results from a large change in product price D. the change in total revenue that results from producing one additional unit E. the total change in revenue that results from a small change in product price
a
When Apple released its first iPhone in 2007, it charged customers $599. Shortly thereafter, it reduced the price to $399 for the exact same device. Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy? A. price skimming B. volume maximization C. survival pricing D. underpricing E. target pricing
a
Which of the following accurately describes break-even analysis? A. the process of calculating the sales volume needed to achieve a profit of zero B. the process of calculating the point at which fixed costs and variable costs are equal C. the process of calculating the difference between marginal revenue and marginal cost D. the process of calculating the percentage change in quantity demanded in response to a percentage change in price E. the process of calculating how many units of product must be sold to cover fixed costs
a
Which of the following is NOT true regarding global pricing? A. Firms do not encounter any unique challenges when pricing products globally. B. Historically, companies have set prices for products sold internationally higher than the same products sold domestically. C. Technological advancements have made global pricing more transparent. D. Economic conditions over the past decade have impacted global pricing for products. E. Pricing is a critical component of a successful global marketing strategy.
a
Which of the following provides the best source of information for marketers regarding how high they can price a product before customers stop considering the product a good value? A. salespeople B. sales forecasts C. historical pricing data D. advertising staff E. customer service personnel
a
A new Home Depot opened up down the street from Hank's Hardware and has drastically reduced prices on many of the same products that Hank sells, forcing him to go out of business. After Hank closed his store, he noticed that Home Depot began raising its prices to more normal levels. This is an example of A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
b
A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of what pricing strategy? A. price discrimination B. deceptive pricing C. price fixing D. predatory pricing E. price inflation
b
According to your text, one of the most common mistakes in modern pricing is A. failing to correctly calculate the break-even point. B. charging someone less than they are willing to pay. C. covering fixed costs while ignoring variable costs. D. setting the price too high on an introductory product. E. pricing items based on consumers' reference prices.
b
Dumping occurs when A. prices for products are lowered to the point at which revenue just covers costs. B. a company sells its exports to another country at a lower price than it sells the same product in its domestic market. C. a product is exported to a foreign country because demand for the product domestically has waned. D. an abundance of inventory is sold off to discount retailers to recoup costs. E. a company charges less for a product than what customers are willing to pay.
b
Greg is the owner of a full-service car wash. For the month of December he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full service car wash costs $10.50. Unit variable costs per car wash are $2.50. How many full-service car washes does Greg need to sell to break-even each month? A. 713 B. 625 C. 476 D. 543 E. 619
b
In November the appliance store priced its front-loading washing machines at $899.00 and sold 50 units. In December they reduced the price to $799.00 and sold 53 units. Which of the following statements is accurate regarding this situation? A. Demand is elastic and total revenue fell from November to December. B. Demand is inelastic and total revenue fell from November to December. C. Demand is elastic and total revenue rose from November to December. D. Demand is inelastic and total revenue rose from November to December. E. Demand is neither elastic nor inelastic but revenue rose from November to December.
b
Joey set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week for which he charges $25.00 each. Joey spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Joey's weekly revenue? A. $105.00 B. $175.00 C. $148.00 D. $88.00 E. $158.00
b
One of the most commonly used pricing tactics, markup pricing, is also referred to as A. profit margin pricing. B. cost-plus pricing. C. profit-plus pricing. D. dynamic pricing. E. standard pricing.
b
Prestige pricing involves A. adding a certain amount to the cost of each item in a product set. B. pricing a product higher than competitors to signal that it is of higher quality. C. separating out the individual goods that make up a product and pricing each one individually. D. pricing generic label goods at the same price as designer goods. E. constantly updating prices to reflect changes in supply or demand.
b
Taxes on imports and exports between countries are called A. embargoes. B. tariffs. C. market equalizers. D. allowances. E. sanctions.
b
Volume maximization is also referred to as A. price skimming. B. penetration pricing. C. profit maximization. D. survival pricing. E. target pricing.
b
What technological advancement created for mobile devices has unleashed a new era of pricing transparency for consumers? A. text messaging B. wireless apps C. GPS systems D. mobile banking E. SIM cards
b
When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers, wireless headset, and one video game. This is an example of A. underpricing. B. price bundling. C. yield management. D. price skimming. E. survival pricing.
b
Joey set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week for which he charges them $25.00 each. Joey spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Joey's weekly profit? A. $105.00 B. $175.00 C. $148.00 D. $88.00 E. $158.00
c
Your text notes that technology has helped to shift the balance of power from companies to customers. Which of the following exemplifies this statement? A. Companies can use social networking sites to help them better target their audiences. B. The Internet has made it possible for customers to comparison shop for products. C. Data gathered at the point-of-sale can be used by companies to target customers for new products. D. Automated production systems lead to more efficient and cost-effective manufacturing processes. E. The Internet allows companies to advertise on more than one platform.
b
As a pricing tactic, markup pricing is A. difficult to implement. B. a good measure of price sensitivity. C. not very effective at maximizing profits. D. good at capturing the value consumers place on products. E. the most effective pricing tactic overall.
c
Bowman's shoe store just received a shipment of dress boots. The manufacturer's suggested retail price for the boots is $150.00, but Bowman's decides to price the boots at $149.95. What pricing tactic is Bowman's most likely using? A. prestige pricing B. perceived pricing C. odd pricing D. dynamic pricing E. yield pricing
c
Branded products sold through legal but unauthorized distribution channels is referred to as the A. black market. B. white market. C. gray market. D. blue market. E. red market.
c
If luxury brands such as Versace clothing, Lexus automobiles, and Dom Perignon champagne wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic? A. luxury pricing B. cost-plus pricing C. prestige pricing D. dynamic pricing E. odd pricing
c
In the price-setting process, the next step after demand has been evaluated is to A. define the pricing objectives. B. analyze the competitive price environment. C. determine the costs. D. choose a price. E. evaluate the alternatives.
c
Located on a college campus, Ben's Burger Barn charges $4.99 for its burger basket. However, students receive a 10% discount off the price for showing their student ID. This is an example of A. price fixing. B. predatory pricing. C. price discrimination. D. deceptive pricing. E. price inflation.
c
The amount of something (money, time, or effort) that a buyer exchanges with a seller to obtain a product is referred to in marketing terms as A. renumeration. B. value. C. price. D. fee. E. worth.
c
The degree to which the price of a product affects consumers' purchasing behavior is referred to as A. price elasticity. B. dynamic pricing. C. price sensitivity. D. marginal pricing. E. price relevance.
c
The price strategy of unbundling involves A. adding a certain amount to the cost of each item in a product set. B. pricing products a few cents below the next dollar amount. C. separating out the individual goods that make up a product and pricing each one individually. D. placing two or more products together in a package and selling them at a single price. E. constantly updating prices to reflect changes in supply or demand.
c
The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as A. survival pricing. B. mass exporting. C. dumping. D. bundling. E. the gray market.
c
The three largest manufacturers of solenoid values for plumbing applications conspired together so that all three firms would charge the same price for its 3-way valve. This is an example of A. price discrimination. B. predatory pricing. C. price fixing. D. deceptive pricing. E. price inflation.
c
What can be said regarding the role of industry structure on setting price? A. In industry in which there are many buyers and sellers, the pricing impact of any single firm will be quite large. B. In an industry in which there are many buyers and sellers, firms will typically match the price of competitors. C. In an industry in which there are many buyers and sellers, the pricing impact of any single firm will be fairly small. D. In an industry in which a small number of firms compete, the pricing impact of any single firm will be fairly small. E. Marketers should make pricing decisions irrespective of whether there are many or few competitors in the industry.
c
Which of the following has allowed for easier import/export transactions between the United States, Mexico, and Canada? A. the gray market B. the black market C. the absence of tariffs D. the implementation of tariffs E. the implementation of embargoes
c
A service is any intangible offering that involves a deed, performance or effort that
cannot be physically possessed
A pricing tactic in which a firm prices products a few cents below the next dollar amount is called A. even pricing. B. perceived pricing. C. deal pricing. D. odd pricing. E. bargain pricing.
d
A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as a(n) A. protective clause. B. hardship clause. C. materials clause. D. escalator clause. E. control clause.
d
According to your text, which of the elements of the marketing mix is one of the most watched and regulated activities? A. place B. product C. promotion D. price E. profit
d
All of the following are advantages of using a price bundling strategy EXCEPT A. bundled packages can be sold for a higher price. B. it leads to reduced advertising costs. C. it can lead to higher profits for the firm. D. it benefits the consumer more than the firm. E. it leads to reduced selling costs.
d
Charging someone less than they are willing to pay is a practice referred to as A. dumping. B. survival pricing. C. minimal pricing. D. underpricing. E. price skimming.
d
For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is A. inelastic. B. unstable. C. stable. D. elastic. E. marginal.
d
Variable costs are defined as costs that A. vary depending on the type of material used in production. B. change only during economic downturns. C. remain constant even though the product offering varies. D. vary depending on the number of units produced or sold. E. vary depending on the advertising budget for the product.
d
Which of the following statements regarding break-even analysis is TRUE? A. Break-even analysis does not measure the cost of sales. B. Break-even analysis is an accurate measure of fixed costs. C. Break-even analysis is an accurate measure of variable costs. D. Break-even analysis does not measure price sensitivity. E. Break-even analysis reflects how demand may be affected at different price levels.
d
Which of the following statements regarding the gray market is TRUE? A. The gray market is a benefit for manufacturers, but not for consumers. B. The gray market involves the illegal buying and selling of goods. C. The interconnected nature of world economies has made it easier for firms to track gray market exchanges. D. Gray market goods allow consumers to purchase items for less than they could normally. E. Gray market exchanges occur when the price of an item is the same in both countries where the exchange occurs.
d
A couple living in the United States travels to China and buys huge amounts of designer purses for a much lower price than could be purchased at home. They import the purses back into the States where they sell them for less than the normal market price. The purses are considered to be A. illegal imports. B. black market goods. C. contraband D. smuggled goods. E. gray market goods.
e
Compare the following statements and select the one that is accurate regarding a profit maximization strategy. A. For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors. B. A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer. C. Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time. D. A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle. E. Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.
e
One of the most important concepts in marketing is the price elasticity of demand, which is the A. degree to which the price of a product affects consumers' purchasing behavior. B. point at which the costs of producing a product equal the revenue made from selling the product. C. price that consumers consider reasonable and fair for a product. D. percentage a product is marked up in response to consumer demand. E. percentage change in quantity demanded in response to a percentage change in price.
e
One of the most important strategic decisions a firm faces is _______ because it reflects the value the product delivers to consumers as well as the value it captures for the firm. A. advertising B. promotion C. profit management D. production management E. pricing
e
Which of the following is also called the Advertising Act? A. the Anti-Price Discrimination Act B. the Robinson-Patman Act C. the Clayton Antitrust Act D. the Federal Trade Commission Act E. The Wheeler-Lea Act
e
