BA 370 EXAM 2

Which of the following statements best describes global expansion through a strategic alliance

A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other

Which of the BRIC countries has one of the youngest populations in the world and is increasingly adopting global attitudes

India

Which of the following is currently a negative factor for foreign investment in India

India's infrastructure for supply chain management is not up-to-date

Which statement about India's population is true

India's workforce is highly skilled, particularly in technology

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents

Reverse engineering

In the marketing of services, empowerment means allowing employees to make decisions about how service is provided to customers

TRUE

India is one of the fastest-growing markets and has one of the youngest populations in the world

TRUE

It would be logical for bathing suit marketers to use geographic segmentation

TRUE

New-to-the-world products that create new markets can add tremendous value to firms

TRUE

When purchasing a mobile phone, the product you are buying is more than just the phone

TRUE

Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

equity

Culture affects

every aspect of consumers' purchase decisions

One of the key characteristics of brainstorming sessions is

no idea is immediately accepted or rejected

The old cliché "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

When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling

trade promotions

What type of event exposes retailers to large numbers of new products in a concentrated location

trade shows

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product

unsought product

The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take

TRUE

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service

TRUE

To determine if a new product is commercially viable, a firm can conduct premarket testing

TRUE

To maximize potential, segments and target markets can and should be defined by more than just geography

TRUE

When Buffalo Bank required all customers to use its online banking services, over 20 percent of its customers closed their accounts. In this scenario, Buffalo Bank's service fell outside customers' zone of tolerance

TRUE

When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the holiday-themed box featuring green and white bells. What Jaclyn is seeing is referred to as the secondary package

TRUE

When consumers see their friends using an innovation, it often persuades them to try it too

TRUE

When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy

TRUE

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

When the iPad Mini came out, Sasha spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Sasha is an innovator

TRUE

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy

concentrated

Once a firm has done an analysis of the most viable markets for its products, then it must

conduct an internal assessment of its capabilities

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns

consistent with underlying cultural values in a country

The perceptions of __________ are being measured in a perceptual map

consumers

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because

consumers may view their roles differently in different countries

Food preparation, lawn maintenance, and housecleaning 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

If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are

how we live our lives to achieve our goals

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie

ideal point

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is

identifiable

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of

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 if the company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality 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

During the __________ stage of the product life cycle, sales are low and profits are small or negative

introduction

The __________ is a specific price at which manufacturers encourage retailers to sell a product

manufacturer's suggested retail price

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

observability

Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows adidas to use a differentiated targeting strategy to

obtain a bigger share of the shoe market

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation

occasion

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)

occasion segmentation

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment

profitability

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

profitability

Regina wants to position her financial services company. Regina can position her services according to all of the following except

profitability

Salina is working to create greater brand awareness for her company's new line of personal digital assistants. To increase brand awareness, the least important information that should be included in promotions is

the product history

The diffusion of innovation theory focuses on

the rate at which consumers are likely to adopt a new product or service

Which of the following defines a value proposition

the unique value that a product or service provides to customers

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

reachable

With access to the Internet nearly universal in the United States, many potential market segments have become more

reachable

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on

the value proposition

The most important consideration when a firm chooses a global product strategy should be

the needs of the target market

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider

the number of competitors, entry barriers, and product substitutes

Which of these is not one of the main components of a value proposition

the price of the product or service being offered

The concept of __________ refers to the area between customers' expectations regarding desired service and their minimum levels of acceptable service

the zone of tolerance

Services marketing managers have learned that more employees will support a quality-oriented process if

they are involved in setting the goals

Global marketers typically find distribution in developing countries is more complex because

they must go through many different types of distribution channels

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because

they were not involved in setting the goals

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation

brainstorming

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in

alpha testing

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

alpha testing

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

alpha testing

Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of

an associated service

Brands can be owned by

any firm in the supply chain

A product is __________ that can be offered through a voluntary marketing exchange

anything of value to consumers

Segmentation, targeting, and positioning

are part of a firm's marketing strategy

In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used

as a response to perceived unfair trade practices

To determine the market potential for its particular product or service, a firm should use

as many metrics as it can obtain

What aspect of the product is being described when a used car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan

associated services

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions

assurance

The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence

assurance

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl

because the Super Bowl offers an opportunity to create significant brand awareness

In the case of Band-Aid adhesive bandages, the brand name has

become synonymous with the product itself

The product life cycle is theoretically __________ with regard to sales and profits

bell shaped

The light beer commercial with the slogan "less filling, tastes great" was based on __________ segmentation

benefit

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation

benefit

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using

benefit segmentation

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of

beta testing

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product

beta testing

Which of the following is not one of the four criteria used for determining how "good" a brand is, or how much equity it has

brand conceptualization

Today, many developed countries are experiencing __________ population growth

zero or negative

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'__________, the difference between what her customers want and what they will accept before going elsewhere

zone of tolerance

When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel

zone of tolerance

When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another 20 minutes. John didn't mind waiting; he had arrived well ahead of the standard check-in time and this wait time fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept

zone of tolerance

"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is not a valid reason?

"It's a way to show the position of the company throughout the product's life cycle."

In training service providers, service quality goals should be general to allow for the various needs of consumers

FALSE

All products and services are intangible

FALSE

Global expansion often begins with

exporting of goods

The introduction stage of the product life cycle is characterized by negative or low profits

TRUE

Changes in tariffs and quotas are

government actions that reduce competition from international firms

Changes in _________ have been a driving force for growth in global markets for decades

technology

Fiona is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Fiona estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Fiona estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Fiona make on this new segment?

$72,240

__________ segmentation is the segmentation method most directly related to value creation for consumers

Benefit

_______ reflect(s) the mental and emotional links that consumers make between a brand and its key product attributes

Brand associations

__________ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

Brand dilution

Which country has a large literate population which has helped it move up to become the world's seventh largest economy

Brazil

Which of these is not one of the BRIC countries

Bulgaria

A personal digital assistant programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool

CRM

One of the major tools used by marketers to meet the needs of loyal customers is

CRM

Which country has a rapidly aging population due to its one-child policy

China

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals

China

With a median age of 36.3 years, ________ is one of the most rapidly aging countries in the world

China

Which of the following is a potential negative factor for foreign investment in China

China's population is aging rapidly

Which of the following statements regarding global segmentation, targeting, and positioning is true

Companies must continually adjust products and marketing strategies to meet the changing needs of global markets

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach

Demographic

Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country

FALSE

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension

FALSE

In a joint venture, the burden of ownership, control, and profits is not shared

FALSE

In entertainment licensing, the major risk to licensees is that the brand will become overexposed

FALSE

Which of these trade agreements represents the highest level of integration among participating nations

EU

_________ means allowing employees to make decisions about how service is provided to customers

Empowerment

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

FALSE

A company's product line consists of its various product mixes

FALSE

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive

FALSE

A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is an example of glocalization

FALSE

A customized carved cedar wood sign for your house is an example of a convenience product

FALSE

A decrease in a company's product depth will always hurt its marketing efforts

FALSE

A familiar brand name always helps the sales of a product

FALSE

A product label is just a required sticker on a package

FALSE

A value proposition compares the price of a product to its benefits

FALSE

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services

FALSE

An effective global pricing strategy can be easily established by setting the same prices in every market around the world

FALSE

As it relates to positioning, a self-values map displays the position of products or brands in the consumer's mind

FALSE

As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle. FALSE Typewriters are in the decline stage. Firms with products in the decline stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.

FALSE

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category

FALSE

Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.

FALSE

Comprised of 28 member countries, the European Union represents the highest level of integration of any trade agreement

FALSE

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country

FALSE

Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products

FALSE

For a company like Pepsi-Cola, brand dilution occurs when it sells more product than the competition

FALSE

For the average college student, a retirement account would be a shopping product

FALSE

Infrastructure is defined as the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions such as schools, post offices, and prisons

FALSE

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix

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

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation

FALSE

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters

FALSE

On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available

FALSE

One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas

FALSE

Private-label brands are imitations often sold by street vendors

FALSE

Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss

FALSE

Russia lags behind most European countries in use of the Internet.

FALSE

Sales of private-label brands continue to decline in the United States, particularly in big-box stores such as Costco

FALSE

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs

FALSE

The BRIC countries are Bolivia, Russia, Italy, and China

FALSE

The Gaps Model allows systematic examination of all aspects of the product creation process

FALSE

The STP process is made up of strategy, targeting, and promotion

FALSE

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation

FALSE

The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority, and laggards

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

The maturity phase of the product life cycle is characterized by greatly reduced competition

FALSE

The more familiar customers are with a brand, the harder their decision-making process will be

FALSE

There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations

FALSE

Using intermediaries in global distribution networks generally lowers costs and prices for products

FALSE

When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing

FALSE

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation

FALSE

Among the various international trade agreements, the North American Free Trade Agreement represents the highest level of integration across individual nations

FASLE

The Big Mac Index is a measure of economic health in a country

FASLE

What U.S. government agency has the primary responsibility in reviewing food and package labels to ensure claims made by the manufacturer about the product are true

Food and Drug Administration

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is not a disadvantage of franchising

Franchising is the riskiest way to enter a foreign market

The most common measure of market potential of an economy is a country's

GDP.

Which of the following is not one of the major trade agreements affecting global marketing

GNI

The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles

TRUE

Which country's government has recently made significant changes that will modernize the retail environment, such as allowing joint ventures and direct ownership in some cases

India

__________ is the process by which ideas are transformed into new products and services that will help firms grow

Innovation

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap

Instrumental support

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product

Introductory price promotions

Which of the following is not true regarding secondary packaging

It is of little value to the average consumer

Which of the following is not a characteristic of products in the maturity stage of the product life cycle?

Laggards are a major focus of marketing efforts

__________ are customers who modify existing products according to their own ideas to suit their specific needs

Lead users

__________ is an extreme form of a targeting strategy

Micromarketing

Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico

NAFTA

Which of the following is not one of the five groups in the diffusion of innovation curve

Non-adopters

How is consumer panel data collected during the test marketing phase of a new product introduction

Panelists scan their receipts on a home scanning device

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings

Positioning

The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase

Price competition with protracted price wars erodes profits

__________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints

Procedural

__________ is the number of items within a product line

Product line depth

The communications gap can be reduced by managing customer expectations

TRUE

According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance and power distance

Russia

Which country is Europe's largest Internet market, with Internet users growing at a rate of 14 percent annually

Russia

Which of the following is currently a negative factor for foreign investment in Russia

Russia is known for corruption, creating ethical dilemmas for firms

If you visit a Kentucky Fried Chicken restaurant in China, along with KFC's regular menu items, you will find congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg, on the menu. This is an example of which global product strategy

Sell totally new products or services

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is not one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch

Should slotting allowances be given to get the product into stores

________ is another term for private-label brands

Store brands

Which of the following products actually lost market share due to its attempt at sustainable packaging

Sun Chips

The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—is helping it diffuse more quickly

TRUE

The failure rate for new products is high

TRUE

The first step in the STP process is to establish an overall strategy

TRUE

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country

TRUE

A delivery gap always results in a service failure

TRUE

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers

TRUE

A product is anything that is of value to a consumer and can be offered through a voluntary exchange

TRUE

Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial

TRUE

Brands are assets that can be legally protected through trademarks

TRUE

Brands enable customers to quickly differentiate one firm or product from another

TRUE

China is now the second-largest economy and the third-largest market for U.S. exports

TRUE

Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she ordered one from Lands' End without thinking too much about it. This demonstrates how brands facilitate purchases

TRUE

Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment it might not get with Diet Coke

TRUE

Colin wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country

TRUE

Direct investment offers the firm complete control over its operations in the foreign country

TRUE

Effective packaging and labels send consumers the signal "Buy me."

TRUE

Even if products succeed, not all consumers adopt new-to-the-world products at the same time

TRUE

Fashion trends tend to experience short product life cycles

TRUE

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage

TRUE

Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling

TRUE

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy

TRUE

Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation

TRUE

Global expansion often begins when a firm receives an order for its product from another country

TRUE

Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing expenditures, benefiting businesses like Coca-Cola

TRUE

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

Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered a specialty product

TRUE

Listening to the customer is the first step in service recovery

TRUE

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations

TRUE

Manufacturers, wholesalers, and retailers can all own brands

TRUE

Most Americans tend to take access to global products and services for granted

TRUE

New product development adds value to a firm's products and services through innovation

TRUE

Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products

TRUE

One use of marketing research is to provide an effective means to understand consumers' service expectations and their perceptions of service quality

TRUE

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be

TRUE

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products

TRUE

Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer

TRUE

Sophia owns a string of boutiques in Italy. As such she is allowed to have sales only twice a year, in January and June or July

TRUE

The EU recently recommended common guidelines for its member countries regarding advertising to children

TRUE

Which of the following scenarios is not a reason a firm would eliminate an item within a product line

The firm has decided to capture new markets

What is the best situation in the Circles for a Successful Value Proposition framework

The firm's offering overlaps with customer needs/wants but not with competitors' offerings

Which of the following statements regarding brand loyalty is not true

The marketing costs of reaching loyal customers are typically very high

Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta

The same product design and features in all countries, with variations in the promotional campaigns country by country

What do the BRIC countries have in common

They are experiencing significant levels of economic growth

Why should marketers be aware of the BRIC countries

They are likely to be the source of most market growth

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"

They are not specific

How did consumers respond when Chobani reduced the size of its Greek yogurt containers from 6 ounces to 5.3 ounces

They used social media to complain about the change

Which of the following is the best example of a family brand

Tostitos Multigrain Scoops and Tostitos Chunky Salsa

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask

Will respondents purchase the software if it becomes available

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask

Will retailers purchase the swimwear if it becomes available

Which of the following best describes the direct investment global entry strategy

With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country

The Doritos advertising effort of "Live Mas," which is Spanish for "Live More," is meant to suggest a lifestyle aspiration. If consumers make a connection between the Doritos brand and this promotional effort, then Doritos has created

a brand association

When a company launches a new product line with an existing brand name, this is known as

a brand extension

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables in order to give customers

a clear, distinctive, and desirable understanding of their products relative to competing products

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu

a line extension

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of

a tariff

The United States imports more goods from China than it exports to China. This is known as

a trade deficit

Which of the following is not one of the five dimensions used by consumers to determine overall service quality

acceptability

In countries like the United States, services

account for an increasing share of jobs

By providing good customer service, firms __________ their products or services

add value to

Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because

advertising regulations differ in other countries, including advertising to children

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service

augmented product

Jim wants to position his firm against his competitors. In doing so he should

avoid looking too much like the competitor so that he'd confuse the target segment

One of the reasons service failures need to be addressed quickly is to

avoid negative word of mouth from upset customers

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable

awareness

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as

brand dilution

A _______ refers to the use of the same brand in a different product line

brand extension

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness

brand extension

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in

brand extension

When a restaurant chain, Big Burgers, launches its own brand of frozen meals, this is an example of a

brand extension

Matt was passionate about Abercrombie & Fitch. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of

brand loyalty

Efforts to change a brand's focus to target new markets or change the image of a brand are called

brand repositioning

Jenna always buys Stacy's brand pita chips. She does not even consider alternatives. Jenna is a __________ customer

brand-loyal

Brand dilution occurs when

brands are overextended and customer perceptions about the core brand are adversely affected

The basic reason manufacturers spend time and money building their own brands is to

build brand equity

Pioneer or breakthrough products

can change consumer preferences

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed

In many cases, pioneers lose their market lead and initial market share to imitators who

capitalize on the pioneers' weaknesses

Which of the following is not one of Hofstede's cultural dimensions

certainty assurance

The first step in the STP process is to

clearly articulate the firm's vision or marketing strategy objectives

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies

concentrated

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of

co-branding

As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized that problems in __________ exist in many African markets

communication

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy

communication

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

communication

Firms can close a __________ gap by being more realistic about the services they can provide and managing customer expectations

communication

If there is a difference between the actual service provided to customers and the service the firm has promoted, a __________ gap exists

communication

In China, state control of media is high, so companies are challenged to find ways to get their message to customers. This demonstrates one of the difficulties in crafting a global ________ strategy

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 and promising only what can be delivered or possibly even a little less

communication

When there is a significant difference between the service customers receive and the service the firm promotes, the firm has a _______ gap

communications

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities

compatibility

One of the categories of products for which brand extension is especially logical is

complementary goods

A toothpaste tube is an example of a ________ package

convenience

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods

convenience

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except

coordination of delivery and storage

Brands are assets that can be legally protected through

copyrights and trademarks

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer

core customer value

Sometimes brand names become synonymous with a product itself. If that happens, the brand

could lose its trademark status

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that

countries with high purchasing power today may not continue to show the same growth in the future

By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by

creating diversification and reducing risk

In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n) __________ gap exists

delivery

Exchange control refers to the regulation of a country's

currency exchange rate.

An excellent, inexpensive, and readily accessible method for assessing customers' service expectations is

customer complaints

Companies that develop customized-business software often work closely with their users when installing their products. This close contact often creates new product ideas through

customer input

The Gaps Model is designed to highlight those areas where

customers believe they are getting less or poorer service than they should

Marketers can take advantage of the variable nature of services by

customizing services to meet customers' needs

During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market

decline

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle

decline

Your text notes that global markets are the result of several fundamental changes. Which of the following is not one of those changes

declining fuel costs allowing cost-effective shipping to global markets

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation

decreasing product mix breadth

A __________ gap can be closed by getting employees to meet or exceed service standards

delivery

A __________ gap is the difference between the firm's service standards and the service it provides to customers

delivery

A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it

delivery

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

delivery

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

delivery

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market

demographic

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation

demographic

Television advertising has recently expanded to include "mini-ads," which are short ads lasting 5 to 10 seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be more useful to marketers engaged in __________ segmentation

demographic

The National Hockey League redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were female. This is an example of __________ segmentation

demographic

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them

demographics and geography; lifestyle or benefit segmentation

Psychographics is the segmentation method that delves into how consumers

describe themselves

To meet or exceed customers' expectations, marketers must

determine what those expectations are

Which of the following are the two components of a global marketing strategy

determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage

Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by

developing brand names that have no preexisting meaning in any known language

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because

differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets

As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and

differences in the way consumers see themselves and in the way they see products and services

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company

differentiated its product

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy

differentiated targeting

The process by which the use of a new product or service spreads throughout a market group is referred to as

diffusion of innovation

Marketers with luxury brands use brand extension cautiously in order to avoid

diluting the core brand

NCD Company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market

direct investment

Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

direct investment

Which of the following is one of the global entry strategies

direct investment

Core Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global _________ strategy

distribution

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

distributive fairness

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of

distributive fairness

Along the service-product continuum, which of the following would be considered the most service dominant

doctor's office

As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small

early adopter

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category

early adopter

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group

early majority

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them

early majority

The value of a brand is often calculated by assessing the

earning potential of the brand over the next 12 months

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider

ease of accessing or developing distribution channels and brand familiarity

For a brand name to be effective, it needs to be

easy for consumers to recognize and remember.

The potential benefits of brand extension do not include

eliminating competition

Empowerment of employees helps address the delivery gap because

employees directly involved with the customer can respond effectively at the moment the problem occurs

Using technology and __________ are two ways a delivery gap can be reduced in size

empowering employees

When Dr. Horton checked in at the Ritz-Carlton, it was 3 a.m. He had been traveling for over 12 hours and was exhausted. His suit, which he needed for a speech that morning, looked like he had slept in it. Karen, the night clerk, offered to find a 24-hour dry cleaner and have the suit cleaned while Dr. Horton got a few hours of sleep. Karen's actions are an example of

empowerment of employees to meet customers' needs

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and

establishing an early market share lead

One of the potential benefits to a firm of introducing new-to-the-world products or services is

establishment of a completely new market

Effective service recovery entails all of the following except

estimating the damage

The components of global market assessment include all of the following except

ethnic analysis

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

evaluate the attractiveness of each segment

Which of the following is not a stage in the product life cycle

evaluation

According to purchasing power parity theory, if __________ is(are) in equilibrium, products will cost the same in each country

exchange rates

When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who

export goods to other countries

When a company decides to minimize risk and enter a global market by shipping its products to buyers in other countries, this is known as

exporting

When entering a foreign market, the least risky strategy is

exporting

Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

exporting her products

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand

facilitates purchasing

Which of the following is not a reason listed in your text for the high failure rate of new products

failing to introduce lower-priced alternatives

Firms can measure the success of a new product by all of the following factors except

fewer competitors in the market

Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of

glocalization

Globalization refers to the processes by which goods, services, capital, people, information, and ideas

flow across national borders

When entering into a franchise agreement, what term is used to refer to the firm that is granted the right to operate a business using the franchise name and business concept

franchisee

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will most likely use a(n) __________ strategy

franchising

Many of the best-known American retailers, like Starbucks and McDonalds, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using

franchising

Airlines were among the first retailers to embrace loyalty segmentation when they created

frequent-flyer programs

Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves

frontline employees

Marketers often create a special marketing mix for loyalty segments because these segments are

generally profitable

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation

geodemographic

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation

geodemographic

Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community

geodemographic

The phrase "birds of a feather flock together" captures the idea of __________ segmentation

geodemographic

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

geodemographic segmentation

Which of the following is least likely to be a source of ideas for new products

geodemographic segmentation

Differences in weather and climate create opportunities for

geographic segmentation

Today, almost every sales rep can immediately check the company's inventory and production schedule electronically. This allows sales reps to sell what is available and make promises to customers that they can keep. This technology has improved service delivery through

greater ability to obtain information

Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer

greater perceived value

Of the five strategies for entering new markets, direct investment creates the

greatest potential risk

Along the service-product continuum, which of the following would be considered the most product dominant

grocery store

During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors

growth

During the __________ stage of the product life cycle, there are few but an increasing number of competitors

growth

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle

growth

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G

has greater control over its marketing strategy

The decision to delete a product is never taken lightly because, generally, manufacturers

have made substantial investments in product development and manufacturing

Concept testing is important because it can

help a firm avoid the costs of unnecessary product development

Innovators are a critical group of new product adopters because they

help the product gain market acceptance

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

heterogeneity

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate

heterogeneity

The old restaurant saying "You are only as good as the last meal served" reflects the fact that services are

heterogeneous

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another

heterogeneous

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds

high costs

The term trade deficit refers to

higher levels of imports than exports

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis

In a competitive market, perceived value is determined by consumers mostly

in relationship to the value of competitors' offerings

One important purpose of a brand is to

increase consumer recognition and awareness of product offerings

Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia commented, "Even more important, working the way you did to correct the error could result in __________

increased customer purchases and positive word of mouth

Effective service recovery efforts can lead to all of the following except

increased dependence on technology to prevent future service failures

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as

individual brands

Empowerment becomes more important when the service is

individualized

When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh

infrastructure

Whenever Donald considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Donald, Jeremy is a(n) __________ in the diffusion of innovation curve

innovator

During the introduction stage of a product's life cycle, typical consumers are

innovators

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve

innovators, early adopters, early majority, late majority, laggards

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 the one he had chosen, and he knew he'd never go back to that doctor. From a marketing perspective, his situation highlights one of the key differences between products and services, known as

inseparability

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time

inseparable

Rob was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job

instrumental support

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation

is a more expensive method for identifying potential customers

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

is likely more costly than an undifferentiated strategy

Brand extension is a popular marketing strategy because

it allows the firm to spend less on creating brand awareness and associations

One key feature of the value of a strong brand is that

it can protect the firm from competition

If a firm promises more than it can deliver

it creates a communication gap

Firms use a differentiated targeting strategy because

it helps obtain a bigger share of the market

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because

it is based on underlying reasons why people make choices

Marketers with successful brands sometimes hesitate to expand their brands because

it is costly to maintain many product lines, and it might weaken the brand's meaning

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that

it is often impossible to identify with precision where a product is in the product life cycle

When a product is successful in the introductory stage of the product life cycle

it may start to see profits toward the end of this stage

When a firm pools its resources with that of a local firm to enter a new market, they create a(n)

joint venture

India, like some other countries, may require entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses

joint ventures

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

keeping up in a market where sales come mostly from new products

Parents of young children have been known to drive out of their way so their kids will not see McDonald's Golden Arches and plead with their parents to stop. For McDonald's, the Golden Arches reduce marketing costs because people (including young children)

know what the Golden Arches brand symbol means

A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations

knowledge

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

knowledge

Firms can close the __________ gap by matching customer expectations with actual service through 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 visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing

knowledge

Jackson manages an upscale French restaurant in the Washington, DC, area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his servers to report comments and requests for items that have previously been offered only as specials. Jackson uses this information to reduce the __________ gap in services marketing

knowledge

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process

laggard

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones

laggard

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group

late majority

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service

late majority

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group

late majority

Which of the following adopter categories refers to the last large group of buyers to enter a new product market

late majority

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products

lead users

When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's

legal, banking, and regulatory systems

Generally, firms entering foreign markets begin with

less risky strategies first.

A __________ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee

licensed

Demographic segmentation is segmentation based on all of the following except

lifestyle

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

lifestyle

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation

lifestyle; macromarketing

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product

line extension

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. The first thing these employees should do is to

listen to the customer

For marketers, one of the benefits of having achieved brand loyalty is

lower marketing costs associated with reaching loyal customers

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and

lower overall risk

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

loyalty

Frequent buyer/user award programs are used to

maintain contact with loyal customers

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to

make purchase decisions

Tariffs protect domestic producers by

making imported products more expensive

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts

market segments

Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or

market the same products to similar customers

When selecting a target market, firms will be most successful if they

match the firm's competencies with a market segment's attractiveness

Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only

material output

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle

maturity

Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle

maturity

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense

maturity

In the United States, most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle

maturity

By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing manager has created a(n) __________ goal

measurable

"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) __________ targeting strategy

micromarketing

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

micromarketing

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

misguided geographic segmentation

Another name for a manufacturer's brand is a(n) __________ brand

national

Even if they succeed, new-to-the-world products are

not adopted by everyone at the same time

Where on a product's packaging would one most likely find nutrient content and country of origin

on the label

Franco, a former retailer, has been living in the United States for five years and wants to start a business. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves McDonald's food, he decides to

open a McDonald's franchise.

For new product marketers, early adopters are important because they tend to be

opinion leaders

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because

people already know what the brand means

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the __________ of dental care by reducing the cost to the consumer

perceived value

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds

perceptual map

In the product development process, what takes place between concept testing and market testing

performing product development

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 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening

perishable

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market

pioneer

Gross national income equals GDP

plus the net investment income earned from abroad.

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over 20 years. Donald is __________ his business relative to his competition

positioning

Global pricing strategies should strive to be consistent with

positioning strategies

The diffusion of innovation theory is useful to marketers in helping them

predict which types of customers will buy their product immediately and later

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

premarket testing

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

premarket testing

Tariffs, quotas, and currency exchange policies affect global

pricing strategies

Because services like cruises and car rentals are perishable, many marketers use

pricing strategies to match supply with demand

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product

primary; secondary

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing

private-label brand

One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked

procedural fairness

When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's global ________ strategy

product

We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on

product attributes

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

product development

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix

product launch

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products

product line

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line

product line depth

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

product lines

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product miX

product lines

The complete set of all products offered by a firm is called its

product mix

Which of the following is not part of the "actual product" level of the product offer

product warranty

Which of the following is not one of the important functions of labels on products and packages

protecting against damage to the product

Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product

prototypes

Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to

provide emotional support and concern for their employees

After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to

provide emotional support to the server

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it

provides a way for a firm to differentiate its product offerings from competitors

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus on

providing classes at convenient times and offering online courses

Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by

providing support and incentives for their employees

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation

psychographic

VALS is the most widely used __________ segmentation tool

psychographic

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation

psychographic; demographic

Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market

psychographics

The Big Mac Index is a novel measure of

purchasing power parity

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products

quota

College students can be a less __________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment

reachable

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within 20 miles of her store. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market

real estate values by subdivision

Chris is gathering information about the general economic environment in Nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and

real income

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is attractive relative to all of the following except

realistic

Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been

rebranded

Another name for brand repositioning is

rebranding

Global marketers are under constant pressure to shorten distribution channels in order to

reduce costs

Which of the following is not one of the benefits to a firm of new product development

reducing the costs of production

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is

refrigerators

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

relative advantage

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

relative advantage

Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions

reliability

The new hotel manager asked the chef, "Are you sure you know how to cook Beef Wellington?" Which of the service dimensions was the hotel manager expressing concern about

reliability

The marketing of services differs from product marketing because services are all of these except

renewable

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be

responsive

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

responsive

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings

responsive

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is

responsive

When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions

responsiveness

Brands that are owned by ___________ are called private-label brands

retailers

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood

retailers

Private-label brands are developed and managed by

retailers

Unilever discovered that people in emerging economies could not afford to buy standard sizes of toothpaste or shampoo, so Unilever started selling single-serve packets at very low prices. Later, Unilever discovered that the same approach worked in the United States and started also selling them there. This is an example of

reverse innovation

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

reverse innovation

One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them learn skills needed in today's workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of

reverse innovation.

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage

sales would be low and profits nonexistent, but he would attract golf equipment innovators

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services

satisfaction guarantees

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

satisfying the changing needs of current and new customers

Which of the following would not be used in calculating the profitability of a segment?

segment perceptions

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated

segmentation, targeting, and positioning

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to

select a target market

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me."

self-concepts

Overriding desires that drive how we live our lives are called

self-values

To develop psychographic segments, the marketer must understand consumers

self-values, self-concept, and lifestyles

When the delivery of a service fails to meet customers' expectations, a __________ gap exists

service

Medical services, assisted living care, and active senior travel are all examples of

services an aging population will increase the demand for

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will

set specific, measurable goals based on customers' expectations

Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product

shopping

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product

shopping

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy

shopping

When testing new products, most firms consider the question of whether testing products on animals

should be done when the new product does not contribute to the health and well-being of human users

Which of the following is not a recommended strategy for service recovery

silencing an irate customer before the individual makes any angry outbursts

The shift of population from rural to urban areas in countries such as India helps global marketers by

simplifying the supply chain needed to make goods and services available

A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products

slotting allowance

Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good

specialty; convenience

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely

spread positive word of mouth to other physicians

Which of the following is not one of the four product life cycle stages

stagnation

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 takes time and spends up to $1,700 to train a new employee

standards gap

Which of the following would not be part of the launch of a new product

starting to make preliminary decisions about the target market

Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other

strategic alliance

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

substantial

Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets

surplus

According to your text, _______ packaging is product packaging that is ecologically responsible

sustainable

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's

symbol

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols

Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instruct employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions

tangibles

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue

tangibles

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area

test marketing

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

test marketing

Marketers considering operations and trade with a specific country must consider whether or not the country belongs to a trading bloc. A trading bloc is a group of countries

that have established a formal agreement to manage trade activities.

Which of the following was not a new-to-the-world product or service when it was introduced

the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?

the average number of school-age children in families sending a child to the day care center

A major limitation in the use of internal R&D departments for new idea generation is

the costs associated with an internal R&D department tend to be quite high

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

One of the reasons marketers use loyalty segmentation is

the high cost of finding new customers

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

the intersection between customer needs/wants and the firm's product's benefits

GDP is defined as

the market value of goods and services produced in a country in a year

Many product-dominant firms use quality service

to maintain a sustainable competitive advantage

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product

trialability

Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products

trialability

Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country

underlying values

Global businesses often find it particularly difficult to understand the __________ of a country's culture

underlying values

For products like clothes pins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

undifferentiated targeting

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents

unmet customer needs/wants

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle

until a superior product comes along to replace it

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by

using segmentation, targeting, and positioning

Chris laughed at some of the cultural mistakes companies made in advertising and promotion in international trade while he was in school. Now he was trying to determine what had gone wrong with the campaign he had planned in Latin America for his company's product, and it didn't seem quite as amusing. He narrowed the issues to sociocultural factors. He was looking at both __________ and __________.

visible artifacts; underlying values

A systematic ____________ program collects customer inputs and integrates them into managerial decisions

voice-of-customer

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings

voice-of-customer

At the end of a brainstorming session, participants are often asked to

vote on the best ideas

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars

were not compatible with European market conditions

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider

what the target market would consider the most important features

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

what their customers need

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except

why it took her so long to consider the new product line