BA 370 UNIT 2 TEST

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All of the following are benefits of new product development to a firm A. reducing the costs of production. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. keeping up in a market with short product life cycles where sales come mostly from new products.

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

Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

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

"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. A. macromarketing B. micromarketing C. benefit-based D. differentiated E. undifferentiated

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

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

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

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

Global expansion often begins with A. franchising. B. exporting of goods. C. joint ventures. D. direct investment. E. strategic alliances.

Globalization refers to the processes by which goods, services, capital, people, information, and ideas A. are onshored and offshored. B. flow across national borders. C. are integrated through IMF facilitation. D. are similar in various markets. E. affect corporate culture.

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? A. What retailers should be used to sell the swimwear? B. Will retailers purchase the swimwear if it becomes available? C. What wholesale price should be charged? D. What promotional plan will work best? E. In which season should we introduce the product?

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

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

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

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

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

Which of the following is currently a negative factor for foreign investment in India? A. India's population is fairly old and aging fast. B. India's retail environment lacks modern supply chain management facilities and systems. C. India prevents foreign investors from entering into joint ventures. D. India has no shopping malls or other large commercial centers. E. India lacks a skilled workforce.

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

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

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

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

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

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

All of the following are stages in the product life cycle except A. introduction. B. growth. C. evaluation. D. maturity. E. decline.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of __________ segmentation. A. geographic B. psychographic C. demographic D. benefits E. behavioral

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? A. convenience B. unsought C. shopping D. luxury E. routine

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

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

Most customers want to achieve a fair solution following a service failure. All of the following factors affect a person's perceptions of "fairness" in these kinds of situations except A. the nature or severity of the service failure. B. the customer's experience with other firms. C. the firm's policy on service recovery. D. observed treatment of other customers. E. stories of service recovery told by friends and family.

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

The National Institutes of Health (NIH) sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of A. early adopters. B. market testers. C. an R&D consortia. D. reverse engineers. E. concept testers.

The XYZ Company is collaborating with a competitor on a globally based opportunity for mutual benefit, but the two competitors are not investing in one another. This is an example of A. franchising. B. a joint venture. C. a strategic alliance. D. a direct investment. E. an equity partnership.

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 A. pretesting. B. product launch. C. test marketing. D. product development. E. concept testing

When a firm pools its resources with that of a local firm to enter a new market, they create a(n) A. franchise. B. export promotion. C. joint venture. D. direct investment. E. strategic alliance.

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. A. innovator B. laggard C. late majority D. early majority E. early adopter

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

Which of the following is true of profits in the maturity stage of the product life cycle? A. They are negative. B. They are low. C. They peak or are declining. D. They are rapidly rising. E. They are slowing rising.

You Eye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the A. premarket testing process. B. alpha testing process. C. beta testing process. D. evaluation process. E. concept testing process.

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

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

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. A. substantial B. perceptive C. identifiable D. reachable E. quantifiable

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. A. communication B. product C. promotion D. distribution E. pricing

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

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

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

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

The ___________ gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate A. communications B. knowledge C. standards D. delivery E. acceptance

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

When a product is successful in the introductory stage of the product life cycle, A. it moves directly into the maturity stage. B. it is most likely to begin to launch spinoffs. C. competition becomes less important. D. it may start to see profits toward the end of this stage. E. marketing costs increase significantly.

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

A company has a new concept for a lightweight electric scooter that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to A. the cost of research and development. B. the price of the final product. C. the cost to manufacture the product. D. marketing and advertising costs. E. the respondent's purchase intentions if the product were made available.

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

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

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

After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except A. its satisfaction of technical requirements. B. its satisfaction of performance. C. customer acceptance. D. its satisfaction of the firm's financial requirements. E. its satisfaction of the firm's manufacturing requirements.

All of the following are major trade agreements affecting global marketing except A. NAFTA. B. EU. C. GNI. D. ASEAN. E. CAFTA.

All of the following scenarios illustrate a reason why a firm would eliminate an item within a product line except A. the firm decided to refocus marketing efforts elsewhere. B. the firm must respond to evolving markets. C. the product undermined its own brand. D. the product being eliminated is unprofitable. E. the firm has decided to capture new markets.

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? A. sell the same products in both the home country market and the host country B. sell only products native to the home country C. sell a product similar to that sold in the home country, but include minor adaptations D. sell only products native to the various global markets E. sell totally new products or services

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

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

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. A. introduction B. growth C. evaluation D. maturity E. decline

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

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

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

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

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

Global distribution networks that involve middlemen, exporters, importers, and different transportation systems generally lower costs and prices for products.

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

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.

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

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

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.

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

16. Listening to the customer is the first step in service recovery. T/F

A delivery gap always results in a service failure. T/F

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

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.

Brands are assets that can be legally protected through trademarks.

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

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.

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.

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

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

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

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. T/F

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

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

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

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)? A. occasion segmentation B. geographic segmentation C. lifestyle segmentation D. benefit segmentation E. loyalty segmentation

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

Because a market is saturated, firms may attempt to enter new geographical markets that may be less saturated. For example, pharmaceutical companies are realizing that they need to turn to ____________ for continued growth in the coming years. A. BRIC countries B. third-world countries C. communist countries D. Germany E. France

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

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

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

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using A. franchising. B. exporting. C. joint ventures. D. direct investment. E. strategic alliances.

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

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

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

According to Hofstede's cultural dimensions concept, which BRIC country posts notably high scores in the dimensions of uncertainty avoidance and power distance? A. Brazil B. Russia C. India D. China E. Iran

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 A. engage in micromarketing for hard-to-fit shoe customers. B. obtain a bigger share of the shoe market. C. use mass marketing techniques. D. utilize geographic segmentation. E. generate economies of scale in advertising expenditures.

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. A. transportation B. communication C. distribution D. commerce E. population

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

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

Gandolph's Tires sells the same tire globally, but it uses different advertisements based on the country and culture. This is an example of A. cultural shift. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices

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

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

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

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of A. target marketing. B. test marketing. C. product marketing. D. product launching. E. premarket testing.

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

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

. Effective service recovery entails all of the following except A. listening to the customer. B. estimating the damage. C. providing a fair solution. D. resolving the problem quickly. E. involving customers in the service recovery where possible.

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

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

33. Even if they succeed, new-to-the-world products are A. generally not profitable. B. not adopted by everyone at the same time. C. not capable of creating new markets. D. not subject to the law of first movers. E. typically very short-lived.

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

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

Which of the following statements is true with regard to growth in global markets? A. A country's infrastructure does not impact growth in the global market. B. The number of Russian Internet users is decreasing at a rate of 10 percent annually. C. Russia's population is expected to increase by one-third in the next half century. D. Changes in technology, especially communications, have been a driving force for growth in global markets for decades. E. Brazil does not welcome foreign investors.

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

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

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 A. glocalization. B. reverse innovation. C. franchising. D. a strategic alliance. E. purchasing power parity.

Pioneer or breakthrough products A. will likely result in late maturity buying. B. can change consumer preferences. C. incorporate reverse engineering outputs. D. require the use of concept testing services. E. must be geographically centered.

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

Today, many developed countries are experiencing __________ population growth. A. slight B. zero or negative C. rapid D. moderate E. significant

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

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

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. A. specialty B. shopping C. convenience D. ritual E. impulse

A company is assessing opportunities in the BRIC companies and determines that _________ is one of the youngest populations in the world and is increasingly adopting global attitudes. A. Russia B. Brazil C. India D. Italy E. China

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 Tapestry analysis, so she will most likely use __________ as a basis for targeting her market. A. voter registration lists B. the city phone book C. real estate values by subdivision D. public school enrollment data E. new construction data

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

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

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

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

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

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

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

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

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

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

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

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

__________ provides the equipment or systems needed to perform a task in a job setting. A. Service infrastructure B. Quality mechanics C. Instrumental support D. Dynamic support E. Customer interface architecture

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. A. innovator B. laggard C. late majority D. early majority E. early adopter

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy A. is the cheapest option. B. requires the use of advanced advertising techniques. C. rarely works. D. is likely more costly than an undifferentiated strategy. E. is ineffective without multiple brand names.

A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this country due to its population of young, well-educated, technically-skilled workers who are fluent in English. A. Russia B. China C. Brazil D. India E. Chile

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

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

All of the following are recommended strategies for service recovery except A. listening to the customer. B. finding a fair solution. C. resolving problems quickly. D. silencing an irate customer before the individual makes any angry outbursts. E. following procedural fairness when solving problems.

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

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? A. Federal Trade Commission B. Federal Communications Commission C. Consumer Product Safety Administration D. Food and Drug Administration E. Interstate Commerce Commission

. In the product development process, what takes place between concept testing and market testing? A. securing financial backing B. conducting marketing research C. brainstorming D. determining potential ROI E. performing product development

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

. 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. A. innovator B. laggard C. late majority adopter D. early majority adopter E. early adopter

. Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products. A. relative advantage B. compatibility C. observability D. complexity E. trialability

A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. A. tariff B. duty C. trading bloc D. trade agreement E. quota

Which country is Europe's largest Internet market, with Internet users growing at a rate of 10 percent annually? A. Great Britain B. Spain C. France D. Germany E. Russia

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

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.

The failure rate for new products is high.

The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy clearly.

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

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

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.

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service. T/F

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

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

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. T/F

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

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.

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." T/F

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

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.

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

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

A U.S. company is analyzing its business prospects in Brazil. Marketing executives understand which of the following statements to be true regarding this market? A. In Brazil, Facebook has 65 million members, making it the company's second-largest market, behind the United States. B. Censorship issues in Brazil are highly complex. C. Brazil is currently the world's fifth largest economy. D. The relations between the United States and Brazil are complicated due to the fall of Brazil's economy. E. Brazil holds the status of one of the slowest developing economies in the world.

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

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

A toothpaste tube is an example of a ________ package. A. primary B. secondary C. brand positioning D. private-label E. convenience

Which of the following statements regarding global segmentation, targeting, and positioning is true? A. Companies must continually adjust products and marketing strategies to meet the changing needs of global markets. B. Global segmentation, targeting, and positioning activities are far less complicated than the same activities in the domestic market. C. When developing a global STP strategy, it is best to define segments by geography alone. D. Segmentation, targeting, and positioning activities for global markets do not differ substantially from that of domestic markets. E. The "golden rule" for global STP activities for firms is to never alter a firm's marketing mix to serve the needs of global markets.

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

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

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

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

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

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

. All of the following are included in the five dimensions used by consumers to determine overall service quality except A. assurance. B. reliability. C. acceptability. D. responsiveness. E. empathy.

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

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

7. 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 A. reverse engineering. B. licensing technology. C. customer input. D. R&D consortia. E. clinical trials

When Disney flooded retail stores with products based on its movie, this illustrated A. strategic brand alteration. B. rebranding. C. brand licensing. D. brand repositioning. E. brand scaling.

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

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

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

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

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

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

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

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 A. exporting. B. a strategic alliance. C. a joint venture. D. direct investment. E. franchising.

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

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

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. A. specialty B. convenience C. unsought D. shopping E. sought

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

Private-label brands are imitations often sold by street vendors.

Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss). T/F

. A product in the __________ stage of the product life cycle has a high number of competitors and competitive products. A. introduction B. growth C. decline D. development E. maturity

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

Tariffs artificially lower prices and therefore lower demand.

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

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

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

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

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

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

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

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

The Service Gaps Model encourages the systematic examination of all aspects of the product creation process. T/F

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

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

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

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

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

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.

Many services marketers use training and standardization to reduce service perishability. T/F

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.

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

Sales of private-label brands continue to increase, particularly in big-box stores such as Costco and Trader Joe's.

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.

The building blocks of service quality are reliability, responsiveness, assurance, empathy, and tangibles. T/F

The communications gap can be reduced by managing customer expectations. T/F

In parts of Europe, including Belgium, Italy, Spain, Greece, and France, sales are allowed only twice a year, in January and June or July.

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

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 A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

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

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

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

Adidas, Pepsi, Kitchen-Aid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer. A. national B. retailer C. international D. premium E. family

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. A. demographic B. psychographic C. behavioral D. benefits E. geographic

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 A. alpha testing. B. product launch. C. test marketing. D. beta testing. E. concept testing.

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. A. franchising B. exporting C. joint venture D. direct investment E. strategic alliance

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

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates A. the product launch. B. the company's evaluation of results. C. premarket demonstrations. D. alpha testing. E. beta testing.

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

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

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

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

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

The Apple iPod changed the way people listen to music but it also created an entirely new industry devoted to accessories such as cases, ear buds, docking stations, and speakers. The Apple iPod is considered a A. pioneer product. B. introductory product. C. mature product. D. diffused product. E. early adopted product.

The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 60 or more demographic and lifestyle characteristics. This market research tool is an example of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

The components of global market assessment include all of the following except A. ethnic analysis. B. infrastructure and technological analysis. C. analysis of government actions. D. sociocultural analysis. E. economic analysis.

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

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

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

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

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product? A. unsought product B. shopping product C. convenience product D. line extension E. secondary product

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

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

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

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

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

When the sequel to eventually shows up on their regular television networks, this group might watch it. A. laggards B. early majority C. late majority D. early adopters E. innovators

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

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

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 A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

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

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

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. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's A. premarket test. B. launch. C. evaluation. D. research and development. E. test marketing.

In 2015, Nike signed an 8-year, $1 billion apparel deal with the NBA. This is an example of a deal for _______ rights. A. branding B. licensing C. product line D. rebranding E. repositioning

In a competitive market, perceived value is determined by consumers mostly A. by quantitative analysis of brand personalities. B. in relation to the value of its close competitors. C. by weighing primary versus secondary benefits. D. by trying out different products. E. through brand association and brand licensing.

In addition to extensive online and outdoor advertising, Under Armour has intensified its ______ efforts by signing Washington Nationals baseball star Bryce Harper to the biggest endorsement deal for an MLB player. A. logo B. branding C. social media D. value E. differentiation

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

Matt was passionate about Hollister. 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 A. social marketing. B. brand loyalty. C. self-actualization. D. motivation. E. brand extension.

Once a firm has done an analysis of the most viable markets for its products, then it must next A. determine the competition and develop strategies to overcome it. B. conduct an internal assessment of its capabilities. C. conduct an external analysis of the target market's economy, culture, and regulatory barriers. D. develop a product to meet the needs of those markets. E. achieve success with the product in its home market.

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. A. pretesting B. beta testing C. test marketing D. alpha testing E. concept testing

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

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 told him that, even more important, working the way he did to correct the error could result in A. a smaller empowerment gap. B. increased customer purchases and positive word of mouth. C. a full refund for the customer. D. a larger service gap. E. less instrumental support.

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

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

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

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

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

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 A. the value proposition. B. product attributes. C. symbols. D. competitive comparisons. E. profitability.

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

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

When Cisco Systems Inc. of San Jose, California, and Tata Consultancy Services of Mumbai, India, entered into a relationship, they both continued to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or the other might have lacked. This relationship is best described as A. NAFTA. B. a strategic alliance. C. CAFTA. D. an international partnership. E. a joint venture.

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

For luxury carmakers, the lowest-end models in their product lines often represent only a small portion of their sales. Yet these models are critically important when it comes to attracting new customers and, potentially, establishing their lifelong A. awareness of the brand. B. perceived value of the brand. C. loyalty to the brand. D. product identification of the brand. E. association of the brand.

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

If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are A. visual images of how we should live our lives. B. our underlying motivations. C. how we live our lives to achieve our goals. D. motivations turned into perceptual maps. E. determined by demographics.

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. A. specialty B. shopping C. convenience D. ritual E. impulse

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

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

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. A. pretesting B. product launch C. test marketing D. product development E. concept testing

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

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

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

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

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

.A delivery gap is the difference between the firm's service standards and the actual service it provides to customers. T/F

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

Even as growth in its gross domestic product has slowed, China maintains a thriving retail market, likely to reach the $8 trillion mark soon and surpass the United States as the world's largest.

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

Fashion trends tend to experience short product life cycles.

Firms that primarily sell products view service as a method to maintain a sustainable competitive advantage. T/F

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

Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports.

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.

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

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

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

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

Sometimes all that needs to be done to satisfy a customer complaint is to listen to the customer. T/F

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.

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

All of the following are included in the main criteria used for determining how "good" a brand is, or how much equity it has except A. brand awareness. B. brand loyalty. C. brand associations. D. brand conceptualization. E. perceived value.

All of the following are one of the main components of a value proposition except A. the target market. B. the name of the product or brand being offered. C. the product/service category or concept being offered. D. the price of the product or service being offered. E. the unique point of difference or benefits offered.

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

Despite multiple upturns and downturns in its economy, Russia's overall growth prospects appear promising, especially as a consumer market. However, there are still multiple dilemmas for firms trying to market their goods and services. These dilemmas include all of the following Russia's A. aging population and low both rates. B. widespread corruption. C. international sanctions. D. involvement in China. E. fluctuations in oil prices.

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. All of the following are disadvantages of franchising except A. The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. B. The franchisee might end up becoming a competitor. C. Franchising limits profit potential, since profits will have to be split with the franchisee. D. Franchising is the riskiest way to enter a foreign market. E. All of these are disadvantages a firm must consider.

When the U.S. government determined the prices of solar panels imported from China were artificially low due to illegal subsidies, it imposed a ______ to help domestic firms compete. A. comparative inflation rate B. countertrade exchange C. quota D. tariff E. currency exchange rate

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

Where on a product's packaging would one most likely find nutrient content and country of origin? A. inside the secondary package B. inside the primary package C. on the company website D. on the label E. on the store shelf display

Which country has a rapidly aging population due to its one-child policy? A. Brazil B. Russia C. India D. China E. Japan

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals? A. Brazil B. Russia C. Iran D. China E. Afghanistan

Which of the following is least likely to be a source of ideas for new products? A. R&D efforts B. licensing agreements C. consumer research D. geodemographic segmentation E. brainstorming

Which of the following reflects the maturity stage of the product life cycle? A. Sales: low; Profits: negative or low; Typical consumers: innovators; Competitors: one or few B. Sales: rising; Profits: rapidly rising; Typical consumers: early adopters and early majority; Competitors: few but increasing C. Sales: declining; Profits: declining; Typical consumers: laggards; Competitors: low number of competitors and products D. Sales: peak; Profits: peak to declining; Typical Consumers: late majority; Competitors: high number of competitors and competitive products E. Sales: peak; Profits: increase; Typical Consumers: laggards; Competitors: low number of competitors

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

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

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. A. knowledge B. communication C. standards D. delivery E. empowerment

Sean relocated 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 A. intangibility. B. professional competence. C. perishability. D. inseparability. E. heterogeneity.

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

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ______ service characteristic. A. empathy B. reliability C. assurance D. tangibles E. responsiveness

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

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

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

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

32. All of the following are reasons for the high failure rate of new products except A. failing to assess the market properly. B. neglecting to do appropriate product testing. C. targeting the wrong segment. D. overextending a firm's abilities. E. failing to introduce lower-priced alternatives.

All of the following are potential benefits of brand extension except A. allowing the perception of a brand with a quality image to be carried over to the new product. B. lowering marketing costs. C. boosting sales of the core brand. D. spending less on creating brand awareness and associations. E. eliminating competition.

Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves. A. consultants B. middle managers C. corporate executives D. production control managers E. frontline employees

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 A. substantial. B. perceptive. C. identifiable. D. reachable. E. responsive.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix A. a more flexible supply chain strategy. B. a perceptual map of the imaging landscape. C. more product features than the competition offers. D. lower prices than the competition offers. E. a clear, distinctive, and desirable understanding of their products relative to competing products.

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

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

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

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

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

Harley Davidson's cake decorating kit tried to appeal to the brand's unparalleled consumer loyalty, but it was considered too tame by their consumer base. This is an example of A. corporate branding. B. brand extraction. C. brand collusion. D. brand personality destruction. E. brand dilution.

How did consumers respond when Chobani reduced the size of its Greek yogurt containers by 12 percent? A. They did not notice the change. B. They were happy the company reduced the product size, rather than increase the price. C. They stopped buying Chobani altogether. D. They organized a boycott of the product. E. They used social media to complain about the change.

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

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.

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

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

A familiar brand name always helps the sales of a product.

A product label is just a required sticker on a package.

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

All products and services are intangible. T/F

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.

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

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

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

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.

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

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

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

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

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

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

The knowledge gap is where "the rubber meets the road," where the customer directly interacts with the service provider. T/F

The loyalty program My Starbucks Rewards, which allows members to pay via their mobile device and earn points toward discounts and free offers, enables Starbucks to gather the purchase behavior data, appropriately segment that customer, and offer customers deals within a week.

The marketing of services differs from the marketing of products because services are tangible and separable from the service provider. T/F

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

When Mars manufactures M&M's, Snickers, and other confectionary products, or when Trek designs bicycles, each company's core question is: How do we produce this product in the least expensive manner?

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.

. Which of the following refers to variability in a service's quality? A. heterogeneity B. perishability C. service gap D. delivery gap E. communications gap

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 A. providing classes at convenient times and offering online courses. B. discount pricing for students taking more than twelve credit hours. C. the higher average salaries earned by college graduates. D. the great variety of classes offered. E. the number of Nobel Prize winners on the faculty.

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

All of the following are characteristics of products in the maturity stage of the product life cycle except A. laggards are a major focus of marketing efforts. B. price competition is intense. C. marketing costs increase as firms defend their market share. D. the market may become saturated because nearly all potential customers have adopted the product.

All of the following are considered an important function of labels on products and packages except A. protecting against damage to the product. B. providing consumer information to assist in purchasing. C. identifying the brand and building brand image. D. promoting the brand or complementary brands. E. listing the ingredients.

All of the following are considered part of the "actual product" level of the product offer except A. product warranty. B. features. C. design. D. quality. E. brand name.

All of the following statements regarding brand loyalty are true A. the marketing costs of reaching loyal customers are typically very high. B. brand-loyal customers are unlikely to switch to competitor's brands. C. brand-loyal customers generate positive word of mouth. D. firms tend to reward brand loyal customers with extra benefits. E. brand-loyal customers do not need persuasion to buy the firm's brands.

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

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

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

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

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

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 A. spread positive word of mouth to other physicians. B. buy one for each office in their practices. C. reposition his products. D. create demand among the late majority. E. not need any service or support when using the product.

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 A. identifiable. B. responsive. C. profitable. D. reachable. E. substantial.

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 A. advertising regulations differ in other countries, including advertising to children. B. print media are different in Europe, and it would be difficult to create a global campaign. C. literacy rates are significantly lower in Europe, and print ads would be ineffective. D. research indicates that European children do not eat breakfast as often as American children. E. domestic advertising agencies cannot earn commissions on advertising they place overseas.

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy. A. communication B. product C. cultural D. distribution E. pricing

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

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

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

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. A. knowledge B. standards C. ethics D. delivery E. communications

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

During the __________ stage of the product life cycle, there are few but an increasing number of competitors. A. growth B. introduction C. maturity D. decline E. innovation

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

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? A. psychographics B. demographics C. geographics D. geodemographics E. behavior

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 A. rebranded. B. reformulated. C. licensed to a premium shampoo manufacturer. D. extended as a brand. E. co-branded.

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

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? A. $72,240 B. $98,000 C. $108,000 D. $128,000 E. $410,000

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

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 A. open a McDonald's franchise. B. directly invest in McDonald's. C. export McDonald's products to other countries. D. form a strategic alliance with McDonald's. E. form a joint venture with McDonald's.

Generally, firms entering foreign markets begin with A. less risky strategies first. B. direct investment. C. importing. D. decentralized production. E. the riskiest, but most profitable endeavor.

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

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

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 A. differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets. B. copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market. C. he had not applied for or received international certification that was required for working outside the United States. D. he was unfamiliar with the code of ethics for advertising in other countries. E. he did not have the budget for a global rollout.

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

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

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

Imagine that you are the marketing manager of a hotel chain that wants to implement a customer reward and loyalty program. You research the firm Sabre Hospitality Solutions, which offers its services to global and boutique hotel chains to develop and execute these types of programs. Sabre Hospitality Solutions is a company that focuses on A. customer relationship management. B. building brand awareness. C. building brand associations. D. increasing perceived value. E. increasing brand equity.

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. A. communication B. product C. cultural D. distribution E. pricing

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company A. differentiated its product. B. streamlined its delivery process. C. created a new class of micromarketing. D. defined consumers' basic needs. E. redefined mass customization.

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

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

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

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

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

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

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

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

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

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? A. reliability B. responsiveness C. assurance D. empathy E. tangibles

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

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

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

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

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 A. reverse innovation. B. glocalization. C. ethnic sensitivity. D. promotional flex. E. unethical marketing practices.

When Amanda shops for lipstick, she always buys Really Red by Cover Girl. This is an example of A. brand loyalty. B. brand awareness. C. brand association. D. brand equity. E. perceived value.

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. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

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. A. zone of tolerance B. delivery gap C. zone of intolerance D. service gap E. patience zone

When Kraft's Philadelphia cream cheese changed its packaging from round to oval to ensure front-facing displays that can't spin and to fit more into the same shelf space, this was a subtle way in which the firm _________ its product. A. repositioned B. branded C. sustained D. individualized E. privatized

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

When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of China, Chinese consumers were left more confused than intrigued. To address or avoid such issues, one important cultural classification scheme that firms can use is Geert Hofstede's cultural dimensions concept. Hofstede proposes that cultures differ on all of the following dimensions except A. collectivism. B. individualism. C. masculinity. D. time orientation. E. indulgence.

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. A. responsive B. perceptive C. identifiable D. reachable E. quantifiable

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

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

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

Which of the following defines a value proposition? A. the unique value that a product or service provides to customers B. a special discount offer dropping the price C. an advertisement that talks about value D. a display of the position of products or brands in the consumer's mind E. the one feature that will prompt a customer to buy the product

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

Which of the following is one of the global entry strategies? A. direct investment B. countertrade C. offshoring D. infrastructure development E. trade agreements

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve? A. innovators, early adopters, early majority, late majority, laggards B. early adopters, early majority, innovators, late majority, laggards C. innovators, early majority, early adopters, late majority, laggards D. early majority, late majority, early adopters, innovators, laggards E. innovators, late majority, early adopters, early majority, laggards

he Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of? A. empathy B. tangibles C. responsiveness D. assurance E. reliability

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

36. All of the following groups are included in the diffusion of innovation curve except A. innovators. B. non-adopters. C. late majority. D. early majority. E. early adopters.

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

A _______ refers to the use of the same brand in a different product line. A. line extension B. brand extension C. product mix extension D. co-brand E. brand license

All of the following are included in Hofstede's cultural dimensions except A. power distance. B. certainty assurance. C. masculinity. D. individualism. E. time orientation.

All of the following are included in the four product life cycle stages except A. introduction. B. stagnation. C. maturity. D. growth. E. decline.

All of the following were considered a new-to-the-world product or service when introduced except A. Wi-Fi. B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs. C. Microsoft's Windows operating system. D. the MP3 player. E. flat-screen TVs

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

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. A. innovator B. laggard C. late majority adopter D. early majority adopter E. early adopter

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 A. culture. B. real income. C. airport capabilities. D. political status. E. religious institutions.

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

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

Firms can measure the success of a new product by all of the following factors except A. satisfaction of its technical requirements. B. fewer competitors in the market. C. satisfactory sales and profits. D. customer acceptance. E. satisfactory performance.

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

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 A. seniority B. knowledge C. standards D. delivery E. communication

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. A. co-brand B. brand extension C. premium brand D. joint brand E. natural brand

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 A. opening a franchise. B. exporting her products. C. forming a strategic alliance with another company. D. entering a joint venture with a local firm. E. making a direct investment in another country.

The __________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less. A. knowledge B. communication C. delivery D. standards E. empowerment

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

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? A. loyalty segmentation B. benefit segmentation C. psychographic segmentation D. geodemographic segmentation E. demographic segmentation

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 A. e-books. B. refrigerators. C. the VCR. D. smartphones. E. None of these; no product can stay in the maturity phase and survive for very long

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

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

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 A. the product life cycle is not a useful concept. B. it is often impossible to identify with precision where a product is in the product life cycle. C. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. D. the idea has been discredited by recent research. E. the product life cycle works only for certain types of firms.

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 A. the variability associated with service quality performance. B. empowerment of employees to meet customers' needs. C. procedural fairness. D. specific service standards. E. public relations to increase puffery.

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. A. innovator B. laggard C. late majority D. early majority E. early adopter

When Marcia booked a room at the Pleasant Valley Hotel, she expected that her room would be ready when she got there, the swimming pool would be heated, the advertised singer would be able to sing, and the breakfast would be fresh. When she arrived, she had to wait for her room, found the swimming pool to be 50 degrees, realized the singer could not carry a tune, and the free continental breakfast was stale. The Pleasant Valley Hotel was experiencing a severe ___________ gap. A. communications B. knowledge C. standards D. delivery E. expectations

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

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 A. a consortia. B. reverse innovation. C. competitive engineering. D. pioneering. E. beta testing.

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

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask? A. How long will it take to bring the software to market? B. Will respondents purchase the software if it becomes available? C. Who will determine the price to be charged? D. Where should the product be sold? E. Which computer trade show will be used to introduce the product?

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

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

Which of the following are the two components of a global marketing strategy? A. understanding foreign currency fluctuations and developing products that can be priced accordingly B. determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage C. understanding the supply chain and distribution networks in foreign markets D. developing culturally appropriate advertising messages and cultivating "domestic" habits among foreign consumers E. adapting to foreign regulations and targeting as many people as possible

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

A U.S. firm is analyzing its business prospects in China. Marketing executives understand which of the following to be true of this potential market? A. China's leadership, which maintains communist political ideals, has not embraced market-oriented economic development, which has led to startlingly slow gains. B. Recent developments in China have led to dramatically decreased living standards and levels of personal freedom. C. China's strict censorship rules present serious challenges; a post on Facebook could lead to jail time. D. China's economy has recently seen a substantial decrease in its Global Retail Development Index (GRDI). E. China's growth gross domestic in its gross domestic market has increased.

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

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

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

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 A. currency differences. B. antidiscrimination regulations prohibiting segmentation and targeting in developing countries. C. differences in the way consumers see themselves and in the way they see products and services. D. complications due to franchising issues. E. the taxes imposed by some foreign countries on marketing activities.

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

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

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

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. A. knowledge B. empowerment C. communication D. standards E. tangibility

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

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

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

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

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

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

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 A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.

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 A. more brand awareness. B. higher degrees of brand loyalty. C. greater perceived value. D. a better brand image. E. more product line depth.

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

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

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

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

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) A. have memorized the McDonald's menu. B. prefer yellow to other colors. C. know what the Golden Arches brand symbol means. D. recognize increases in product line depth. E. are sensitive to brand repositioning.

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

The product life cycle is theoretically __________ with regard to sales and profits. A. U shaped B. Y shaped C. bell shaped D. circular E. flat lined

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

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

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

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

3. 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. A. knowledge B. standards C. social expectations D. delivery E. communications

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

Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by A. keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B. avoiding the use of the brand name in advertising and focusing on feature and benefits. C. translating advertising copy for the entire ad except the brand name. D. developing brand names that have no preexisting meaning in any known language. E. adhering to the UN Convention on Naming Rights.

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

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. A. introduction B. growth C. evaluation D. maturity E. decline

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 __________. A. product uses; currency rates B. language; trading blocs and social structure C. potential tariffs; symbols D. visible artifacts; underlying values E. verbal communication; logistics

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. A. quantifiable B. substantial C. unequally distributed D. intangible E. inconsequential to customers

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 A. diversify. B. intensify his prototyping. C. expand his early adopter market segment. D. market the same products to similar customers. E. focus on concept testing.

Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. Ferrari might be at risk of which of the following? A. brand awareness B. perceived value C. brand extension D. brand dilution E. line extension

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

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

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

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? A. loyalty segmentation B. benefit segmentation C. psychographic segmentation D. geodemographic segmentation E. demographic segmentation

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

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

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

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

Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's A. positioning. B. licensing. C. association. D. equity. E. solvency.

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. A. franchising B. exporting C. a joint venture D. direct investment E. a strategic alliance

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

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

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

Returnable packaging, use of 3D printing, and flexible packaging are examples of A. recycled packaging. B. environmental packaging. C. responsible packaging. D. sustainable packaging. E. green packaging.

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

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

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

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

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

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 A. access to a wide variety of services. B. greater control by customers over service delivery. C. increased zone of tolerance. D. greater ability to obtain information. E. saving customers time.

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

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

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

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

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

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

All of the following would be part of the launch of a new product except A. determining the marketing budget for the first year of the product. B. finalizing the marketing mix variables. C. determining the price for the product. D. making decisions regarding positioning the product. E. starting to make preliminary decisions about the target market.

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product. A. relative advantage B. compatibility C. observability D. complexity E. trialability

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. A. innovator B. laggard C. late majority D. early majority E. early adopter

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

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. A. substance B. responsiveness C. identification D. reach E. profitability

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 A. substantial. B. responsive. C. profitable. D. reachable. E. realistic.

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

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 A. empower customers to meet their own service needs. B. establish a broad zone of intolerance to reduce customer complaints. C. narrowly define a knowledge gap. D. separate intangibles from tangibles. E. set specific, measurable goals based on customers' expectations.

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

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

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

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

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

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

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 ownership. B. a brand extension. C. brand loyalty. D. brand dilution. E. a brand association.

The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid car, the Prius, is known for being economical, a good value, stylish, and good for the environment. Toyota has the advantage of A. copyrights and trademarks. B. brand awareness. C. brand extensions. D. generic branding. E. brand associations.

The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except A. profits increase as sales increase. B. profits increase as economies of scale are attained. C. some new competitors may enter the market with similar products. D. some competitors will exit in an "industry shakeout." E. price competition with protracted price wars erodes profits

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

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

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

To define the zone of tolerance, firms ask a series of questions about each service quality dimension that relate to all of the following except A. the desired and expected level of service for each dimension, from low to high. B. customers' perceptions of how well the focal service performs, from low to high C. customers' perceptions of how well a competitive service performs, from low to high. D. the importance of each quality service dimension. E. the desired and expected level of service for each dimension, from high to low.

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

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. A. communication B. pricing C. distribution D. exchange E. product

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 A. lifestyle. B. geodemographics. C. demographics. D. loyalty. E. Tapestry segment.

When airlines created frequent-flyer programs, they were among the first retailers to embrace A. geographic segmentation. B. education segmentation. C. lifestyle segmentation. D. convenience segmentation. E. loyalty segmentation.

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

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

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. A. segmenting B. packaging C. positioning D. pricing E. targeting

Which of the following adopter categories refers to the last large group of buyers to enter a new product market? A. late majority B. early majority C. laggards D. early adopters E. innovators

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. A. intangible B. inseparable C. heterogeneous D. durable E. perishable

. Procedural fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss. T/F

8. 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 T/F

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

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

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.

BA 370 UNIT 2 TEST

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