Marketing Chapter 6

The RFP process is used by buyers to allow customer input into value creation.

False

A buying center whose members reach a decision based on collective agreement is known as an autocratic buying center

False

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

False

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order

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 architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.

False

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

False

B2B marketing refers to buying and selling goods or services to be used by final consumers

False

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

False

Brieana is looking at the results of a syndicated study two years ago. She is looking at primary data.

False

Copycat brands are imitations often sold by street vendors

False

Entering into a global franchise agreement exposes a company to a 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 officers in a foreign country in which it sells its products

False

For a company like Pepsi-Cola, brand dilution occurs when they dilute their product

False

If Microsoft decided to sell mobile phones under the Xbox brand (gaming systems) this would be an example of line extension

False

In both new buy and straight rebuy situations, all members of a buying center will be intensely involved in the purchasing decision

False

In the diffusion of innovation curve, the late majority is the final group of buyers to adopt an innovation

False

Less-developed countries like Switzerland and Britain are expecting rapid population growth

False

Marketing research should be used only to produce favorable recommendations for senior management to consider

False

Most B2B buying situations can be categorized into categories: new buys, structured rebuts, and automatic rebuys.

False

Nearly all small business have consensus buying centers

False

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

False

Resellers differ from procedures in that resellers significantly alter the form of goods they sell

False

Tariffs artificially lower prices and therefore lower demand

False

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

False

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

False

The IMF is the only international organization that deals with the global rules of trade among nations.

False

The Marketing Research Process follows five steps, and in order to be effective they must be followed in order without omitting any steps

False

The North American Free Trade Agreement created an economic and monetary union among three countries

False

The diffusion of innovation curve proposes that purchasers can be divided into 5 groups. First group consists of buyers who want to be the first on the book to have the new product; they are know as early adopters

False

The globalization of consumption is also known as offshoring

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 produce or service similar to that sold in the home country, but include minor adaptions

False

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

False

When entering into a joint venture, the burden of ownership, control and profits is not shared.

False

A major advantage of primary data collection is that it can be tailored to fit the pertinent research question

True

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

True

A product will likely remain in the maturity stage of the product life cycle until a superior product comes along to replace it.

True

A university's purchasing department is required to get at least three bid for any purchase greater than $3,000. This requirement is sued to keep suppliers "on their toes"

True

B2B marketing involves manufacturing, wholesalers, and service firms

True

Before conducting market research, the first question to ask is, "What are we trying to learn?'

True

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

True

Changes in technology, especially communications technology, have been the driving force for growth in the global markets

True

Colin wants information about the infrastructure in the countries his company is planning to export to. He will gather information about the transportation and communications capabilities in each country.

True

Compatibility is important for rapid diffusion of new products because products that are consistent with consumers past behavior will be more readily accepted

True

Effective packaging and labels send the signal: "Buy me"

True

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

True

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

True

Harold is a loyal Coca-Cola drinker. Loyal customer like Harold are typically less price sensitive than other customers, benefiting business like Coca-Cola

True

In the marketing research process, data collection happens after research design

True

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

True

New product development adds value to a firms products and services through innovation

True

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

True

One of the benefits of marketing research is it reduces the uncertainty under which managers make decisions

True

Organizational culture may vary by geography

True

The B2B buying process tends to be more formal than B2C buying

True

The final step of the B2B buying process is a formal vendor analysis.

True

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

True

The majority of new products are failures

True

The most challenging part of applying the product life cycle concept is that managers of not know how long each stage of the cycle will last

True

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

True

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

True

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

tRUE