BUSA 221 Final Ch13-21

Parker was granted a job interview for an IT audit position at a bank. She wanted to get a haircut for the interview, but because she is new in town and does not know the salons in the area, she made a decision based on her reading of online reviews. She walked into Style It Up and told the stylist she wanted a layered cut. The stylist ended up giving Parker a blunt cut with no layers and charged her $125. Parker was not pleased. Which of the following exemplifies the salon acting quickly and taking ownership of the service failure?

Apologize for the error and set Parker up with a more experienced stylist to correct the cut on the spot, free of charge.

Greg is the owner of a full-service car wash. For the month of December he paid $2,000 in rent, $700 in utilities, $2,250 in salaries, and $50 on advertising. A full service car wash costs $10.50. Unit variable costs per car wash are $2.50. How many full-service car washes does Greg need to sell to break even each month?

625

Which of the following consumers visited a convenience retailer?

Although it cost 30 cents more than he usually pays, Elijah was starving and purchased a candy bar at 7-Eleven.

Which of the following exemplifies a customer touchpoint?

Bed, Bath, and Beyond sends Daisy a coupon for 20 percent off her next purchase via postal mail, however, Daisy does not receive the coupon because she recently moved and forgot to have her mail forwarded.

At which step in building an advertising campaign do marketers focus on creating the content of the campaign's message?

Create advertisements.

Which of the following statements about defining objectives for an advertising campaign is true?

Deciding which objective to follow is based on the product and needs of the audience.

Maura, a college student, was researching affordable laptop computers on Google. A sponsored advertisement for Dell computers appeared at the top of her search results. Maura clicked on the link and watched a video showing the multiple benefits and price options of a Dell laptop. Maura liked what she saw and ended up purchasing one. She shared the ad link with Ling, her roommate, who is also searching for an affordable laptop. In this scenario, who represents the sender in the communication process?

Dell

In November the appliance store priced its front-loading washing machines at $899.00 and sold 50 units. In December they reduced the price to $799.00 and sold 53 units. Which of the following statements is accurate regarding this situation?

Demand is inelastic and total revenue fell from November to December.

Which of the following reasons explains why a marketer would use different elements of the promotional mix to communicate product messages?

Each element exerts influence on different segments of the target market.

In the context of new product development, which of the following actions by Farmel Inc., a pharmaceutical firm, is unethical?

Holding off on marketing a new and vastly improved cancer drug until it recovered investments on the existing drug

Before communicating a message to consumers, what must marketers as senders of that message do first?

Identify a target audience.

What should companies do to guard against a breach of security in their CRM systems?

Install powerful firewalls to protect customer data.

Which of the following is true about non-store retailing?

It is a growing industry as companies look for unique ways of engaging customers.

What is true of the first step of the CRM process?

It is the step during which a firm will identify its current customers.

Which of the following would be the best way for companies to avoid the knowledge gap?

Listen to customers.

Which of the following describes a general rule that should guide service recovery?

The customer is always right.

Understanding how customers make their purchases and how they communicate with the firm characterizes which step of the CRM process?

Understand How Customers Interact

Direct marketing can be offline or digital. All of the following are examples of digital media, except

Walter, an employee at American Eagle, sending an email to Abercrombie & Fitch about a job opportunity.

Sales managers have identified a set of six key criteria that generally predict salesperson success. Those characteristics include

a good personality, a customer focus, an optimistic outlook, an ability to communicate, resilience, and adaptiveness.

At a local fair, a smartphone company hosted a booth and brought several models of its phones for customers to play with and look at up close. Customers were then encouraged to fill out comment cards letting the company know which of the models was their favorite. At the end of the fair, the company would randomly select a card and the owner of that card would win the smartphone of his or her choice. This is an example of

a sweepstakes.

The ________ of convenience retailers makes up for their ________ variety and assortment of merchandise.

accessibility; limited

All of the following are tests that marketers can use to measure the effectiveness of an advertising campaign except

ad revenue.

All of the following are methods that companies can use to better understand customer expectations except

adherence to marketing plan.

CRM technologies allow marketers to do all the following except

adopt a broad approach, focusing on the needs of the entire market.

Product claims made through the use of ________ cannot technically be proven false, so its use is considered legal.

advertising puffery

The use of pretests and posttests are two tools used to measure the effectiveness of

advertising.

Of the following products, which would fall closest to the "primarily intangible" side of the tangibility spectrum?

an online tutorial

There are several reasons why a career in personal selling is attractive to job seekers. One of the more compelling reasons is the fact that the job itself allows an individual a flexible way to earn a living. This is an aspect of the job that reflects

autonomy.

After putting the words "beach," "resort," and "vacation" into his browser, Antoine received an email with a discounted price on a beach resort vacation. This was likely a function of

bots.

Social media campaigns can be measured using which of the following set of tools?

bounce rates, click paths, and conversion rates

Farouk was recently hired by Monet, an office supplies company, to sell its specific line of printer ink to different greeting card manufacturers. When he introduces himself, he specifically states that he is a sales associate for Monet Office Supplies. Farouk may best be described as

captive salesperson.

Which step of the personal-selling process is often the most difficult because it requires the salesperson to overcome the fear of being rejected?

closing the sale

Which of the following is not a key characteristic of the personal-selling environment?

consistent schedule

The ultimate goal of the approach step of the personal-selling process is to

convince the customer that the salesperson is offering something of value.

Small data files stored on websites that can generate a user profile about a consumer are a type of invisible marketing influence known as

cookies.

A company can determine the value of its CRM program by calculating its

customer equity ratio.

A sales representative of Audi, an automobile manufacturer, diligently follows up with its customers to offer post-sales service that other companies do not offer. This action increases the firm's opportunity to improve the financial return on its investment in those customers. This method of judging CRM effectiveness is called

customer equity.

A sales representative of Audi, an automobile manufacturer, diligently follows up with its customers to offer post-sales service that other companies do not offer. This action increases the firm's opportunity to improve the financial return on its investment in those customers. This method of judging CRM effectiveness is called Multiple Choice

customer equity.

The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as

customer focus.

A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in

customer relationship management.

The process by which companies get new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases is referred to as

customer relationship management.

This method of data mining involves creating customer profiles based on demographic characteristics and purchase patterns.

customer segmentation analysis

The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of

customer.

After reviewing data on communication methods, which of the following would a firm that sells a complex computer system most likely find effective?

digital ad with a how-to video

Which of the following list accurately captures the four types of digital sellers?

digital malls, digital marketplaces, auction sites, and buying club sites

Jenna is a sales representative for Tupperware. She will often go to people's homes to demonstrate effective and innovative ways to use its products. This form of non-store retailing is known as

direct selling

In the communication process, when ideas and information are transformed into words, symbols, or pictures this is known as

encoding.

The Federal Communications Commission (FCC) was created to

enforce laws that prohibit obscene, indecent, and profane content from being broadcast on radio or television networks.

The main goal of the first step in the personal-selling process is to

find qualified prospects.

The ________ step of the personal-selling process is a critical step in creating customer satisfaction and building long-term relationships with customers.

follow-up

The first step in the customer relationship management process is to

identify current customers.

A key aspect of self-regulation is that it eliminates the need to

include government resources.

A situation in which a specific change in price causes only a small change in the amount purchased is referred to as

inelastic demand.

The Daily Gazette charges $1.00 for its newspaper and has 150,000 subscribers. The publishers decided to reduce the price of the paper to $0.75 in hopes of attracting new subscribers. However, the price reduction resulted in only 500 new subscribers. This represents demand that is

inelastic.

Franco is considered to be tech-savvy by his friends. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. What type of product adopter is Franco?

innovator

In order to protect customer privacy, companies should

institute and follow their own privacy policies.

Mars, Inc., makers of Snickers candy bars launched its You're Not You When You're Hungry promotion campaign. The company's television commercials portrayed regular people disguised as celebrities behaving badly because they were hungry. Along with the commercials, print ads were released featuring inversion illusions showing the difference between someone whose hunger is satisfied and someone whose hunger is clearly not. In addition, the print ads included a coupon for a Snickers candy bar. This type of promotional strategy is referred to as

integrated marketing communications.

A firm that places its products in grocery stores, vending machines, convenience stores, delis, street vendors, and so forth is most likely utilizing which type of distribution strategy?

intensive

Many messages are not actually received by consumers because the transmission of the message

is disrupted by distractions called noise.

An ad that reads, "This offer will only last for 24 hours! Buy now or miss out!" is considered a form of direct response advertising because

it is trying to elicit an immediate response or action—in this case, a purchase.

The customer relationship management process is best described as being

iterative

Wilbur does not like change. He thinks the cell phone he currently owns is just fine even though it doesn't have all the features of new phones on the market. Wilbur hopes that he doesn't lose this phone because the company doesn't make this style anymore and he doesn't want to get anything different. What type of adopter is Wilbur?

laggard

These adopters can be a challenge for marketers because they are not easily motivated or persuaded to make a change.

laggards

A customer's ________ allows a company to predict whether that customer will generate the most profit over a long period of time.

lifetime value (LTV)

Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?

lifetime value analysis

Making sure that consumers see a clearly defined marketing message at least three times is important because

that is the average number of times a consumer must see a message before he or she makes a purchase decision.

Starbucks evaluates the cost of doing business with each of its customers. For example, Emily visits Starbucks three times per week, every week. Each time Emily visits Starbucks, she spends $5.25. In four years, Emily will spend a total of $3,276. Young visits Starbucks one time per week, every other week. Each time Young visits Starbucks, he spends $3.25. In four years, Young will spend a total of $338. Starbucks concludes that it should focus on retaining Emily as a customer because losing her will cost significantly more than losing Young. In this scenario, Starbucks is conducting a

lifetime value analysis.

Hillary hates shopping in person because of the long lines and the crowds. This is why she loves shopping on Amazon. She takes advantage of its subscription services and has recently started using its Amazon Fresh services. Hillary has been an Amazon loyalist for years. Recognizing this, Amazon wants to do what it can to maximize her status as a long-time customer. This CRM strategy is known as

lifetime value.

As Sebastian approaches Best Buy, a notification advertising the store's sales appears on his smartphone. This is best described as

location-based advertising.

Dick's Sporting Goods offers its customers the opportunity to sign up for a Scorecard, which allows them to earn points on purchases. After a certain number of points are earned, the customer receives a cash award. In addition, the Scorecard entitles customers to member-only savings. This is an example of a

loyalty program.

Different factors can vary the overall cycle of a product's life. Those factors include a marketer's estimates of the length of a product's life, the product type, and the product's

marketing mix.

A competitor copying products and selling them at a lower price is considered a ________ in new product development.

moderate risk

If a firm seeks to use data from its CRM system to address a research question, but the data does not yield useful answers, the firm should

modify its data capture and collection process.

Omnichannel retailing is a(n) ________ retailing approach that allows the customer to have a(n) ________ customer experience across all of a retailer's distribution platforms.

multichannel; integrated

Dell doesn't currently offer a smartphone in its product line. However, if the company decided to enter the market by producing a smartphone of its own, it would be classified as what type of product?

new category entry

Gen Ex Innovations Inc. is a leading multinational corporation that manufactures various consumer goods. It enters the video gaming industry by developing a new gaming console, Edge. Gen Ex hopes that Edge will help it compete better in the already-established gaming console market. In this scenario, Gen Ex has introduced a

new category entry.

With regard to closing strategies,

no salesperson can rely on only one strategy.

Salespeople that work the field by traveling to potential or existing customers with the intent to sell is characteristic of which type of salesperson?

outside salesperson

A firm may choose this pricing objective because it encourages a greater volume of purchases and therefore maximum revenue.

penetration pricing

Firms will use this form of pricing in competitive markets as a way to encourage trial and adoption of the product by consumers.

penetration pricing

Jed doesn't like his new haircut but obviously cannot return it. This is because services are

perishable.

Kenya is a learning specialist for McGraw-Hill Education. At the national sales meeting, she was awarded Learning Specialist of the Year not just for the number of product adoptions she achieved in her territory, but also for her product knowledge, her responsiveness to customers, and the new relationships she forged with important decisions makers. Which of the following promotional elements is being measured in this scenario?

personal selling

The integrated marketing communications tool that allows a salesperson to influence a customer's purchase decision is called

personal selling.

Enzo's is a family friendly Italian restaurant that not only takes pride in its traditional, homestyle cooking, but also in its dining experience. It wants people to enter feeling like they've just walked into their grandmother's kitchen. To communicate its marketing message of home and hearth to its customers, it is using which method of marketing communication?

physical space

When a company relies on such elements as store design or employee uniforms to convey a marketing message, it is using the marketing communication method known as

physical space.

Social media marketing relates to all four elements of the marketing mix. When social media makes it possible for a store to be anywhere that the customer is, social media is impacting the _____ element of the marketing mix.

place

Jin walks past a person carrying a red bag decorated with a red and white bull's-eye and immediately knows he is near a Target store. Target's use of the red and white bull's-eye on its packaging is an example of which type of marketing communication method?

point of purchase

Collusion to set a product's price is a key characteristic of this unethical pricing practice.

price fixing

In the new product development process, immediately after a firm conducts a business analysis, it may move on to create a prototype of the good, which takes place during which next stage of the process?

product development

The marketing mix element where most of an organization's communications with the marketplace occurs is

promotion.

The goal of an integrated marketing communications strategy is to coordinate the various promotion mix elements to

provide consumers with a clear and consistent message about the firm's products.

Tristan has been calling on the same customer for years. He handles all of the company's orders and quickly resolves any issues that may come up. On occasion, Tristan takes some of the company employees out to dinner and has even given them tickets to local sporting events. Tristan is involved in

relationship selling.

If a company is sponsoring content created specifically for endorsing its brand or product, the Federal Trade Commission

requires this intent to be disclosed.

A product labeled "new and improved" would fall within the category of a

revamped product.

Which of the following helps sales managers determine many elements of their sales plan, including salesperson quotas, compensation, and sales force size?

sales goals

A manager's responsibility for the formulation and implementation of a sales plan used to deploy salespeople to interact with customers is known as

sales management.

Which of the following is the best source of information about in-person customer interactions and is particularly helpful in gathering specific customer information such as contact information and purchase preferences?

sales personnel

Geographic, product, customer, and combination approaches are all different methods of

sales territory management.

What is the difference between success and failure in the marketing communication process?

the ability to effectively communicate a marketing message

All of the following are necessary for omnichannel retailing success, except

segregated channel operations.

The communication gap is described as the gap between a company's

service delivery and external messaging.

After relocating for his job and moving into a larger apartment, Aslan needed to purchase several new pieces of furniture and other household items to fill the space. He made several large consecutive purchases on WayFair, an online furniture retailer. A WayFair sales representative, recognizing the flurr of activity on his account, categorized Aslan as a highly profitable customer and offered him executive account status. This type of CRM strategy is called

share of customer.

To judge the effectiveness of its CRM strategy, Apple might use its CRM data to guide contacts that lead to service appointments, warranty extensions, and future purchases. As the quantity of the purchase dollars increase, the more effective the CRM strategy will likely be. This is known as

share of customer.

During a service, production and consumption occur

simultaneously.

All of the following are types of invisible marketing influences except

sponsorship.

Social media advertising is different from traditional advertising in that traditional advertising is

static.

Ensuring that a firm's CRM data analysis applications can access the data the firm has collected from individual or business customers is characteristic of which step of the CRM process?

store and analyze information

La-Mart, a retail chain, uses recency-frequency-monetary analysis to create monthly mailing lists every month and sends out promotional material to its customers. La-Mart is at which step of its customer relationship management process?

store and analyze information

In which closing method does the salesperson review how the firm's product will address the potential customer's needs and provide overall value?

summarization close

All of the following are common techniques for overcoming the objections of potential customers except

summarization.

Marta needs to pick up a few groceries, a gift for her son to take to a second-grade birthday party, and some items to restock her toolbox. She only wants to make one stop. Which of the following retailers should she visit?

supercenter

Included among the 10 general categories of retailers are supermarkets, department stores, drugstores, service retailers, and e-tailers, as well as

supercenters, warehouse retailers, convenience retailers, specialty retailers, and off-price retailers.

Excellent website design can help a firm build strong customer relationships by making sure it includes

superior customer service tools such as chat features.

What issue is an ever-present concern for customers regarding CRM systems?

the worry that customer data is not secure

When it comes to the communication gap, the best way for a company to manage customer expectations is

to be realistic about the services it provides.

Which of the following is the objective of persuasive advertising?

to increase demand for an existing product

The main objective of reminder advertising is

to keep the product before the public in the effort to reinforce previous promotional activity.

Why is the Service Gaps Model used to help develop marketing strategy?

to manage the gap between customer expectations and perceptions

Diligent follow up with a customer after a sale is critical because it opens opportunities for the salesperson

to uncover new customer needs or wants and secure additional sales.

Any point at which a customer and the company come into contact is called a

touch point.

Maria is searching for a new pair of running shoes. She conducts a Google search, which leads her to Zappos. On the Zappos website, Maria reads reviews of the shoes she is interested in. She engages in a chat with the customer service representative about the return policy, and ultimately decides to purchase the shoes. Each of these interactions Maria has with Zappos is known as a(n)

touchpoint.

A common mistake that takes place during the price-choosing step of the price-setting process is when marketers choose to charge someone less than they are willing to pay—in other words, they engage in

underpricing.

A business is trying to determine which customers buy its products online versus going to its retail stores. By doing so, the firm is engaged in which step of the customer relationship management process?

understanding how customers interact

Predictive modeling is a data analysis technique that

uses algorithms to try to determine the future actions of customers.

Marcelo is preparing a monthly report for his supervisor regarding plant operations. While Marcelo is happy to report that production increased by 20 percent this month, he needs to let his supervisor know that material charges, delivery costs and utilities to run the plant also increased significantly. These represent the plant's ________ costs.

variable

To encourage customers to buy more, firms will offer their products and services at lower prices. This is a key characteristic of the pricing objective known as

volume maximization.

Honesdale Beverage sells beverage products to restaurants and businesses—basically to anyone other than the end user. Honesdale Beverage is a(n)

wholesaler.