MARK 3000 test 1

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about A. its value. B. the environment. C. the cost to manufacture the product. D. the economic outlook. E. the product's new advertising campaign.

A. its value.

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described? A. market-oriented B. sales-oriented C. production-oriented D. value-based marketing E. economics-oriented

A. market-oriented

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals. A. supply chain management B. value communication C. value capture D. retail management E. promotion

A. supply chain management

A relational orientation is based on the philosophy that buyers and sellers develop A. a complete understanding of each other's needs. B. a long-term relationship. C. a price-value comparison matrix. D. supply chain synergy. E. a marketing value transaction focus.

B. a long-term relationship.

What percentage of U.S. adults now recycle their soda bottles and newspapers? A. 10% B. 20% C. 50% D. 75% E. 90%

C. 50%

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.

D. select a target market.

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.

D. self-values, self-concept, and lifestyles.

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

E. concentrated

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

E. consumers

The centerpiece of the marketing environment analysis framework is A. green marketing. B. corporate partners. C. culture. D. competitive intelligence. E. consumers.

E. consumers.

Typical demographic data include all of the following EXCEPT A. gender. B. income. C. race. D. education. E. language differences.

E. language differences.

Marketers cater to the ________ cohort with larger fonts in signage and seating options in stores. A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. Millennials

A. Baby Boomer

From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

A. Baby Boomers

________ is the cost to the customers or the fee the bank charges those customers for borrowing money. A. Interest B. A service charge C. A tax D. A tariff E. A user fee

A. Interest

__________ factors, such as the purchase situation, often override or influence psychological and social issues influencing consumers' purchase decisions. A. Situational B. Extended habitual C. Postpurchase dissonance D. Interpersonal E. Economic

A. Situational

Select the statement that best describes the key traits of Generation Y. A. This generation puts a strong emphasis on work/life balance, and some are technologically savvy. B. This generation mostly uses the Internet for the purposes of checking e-mail, the news, and the weather. C. This generation focuses on health care and wellness services. D. This generation was the first generation of latchkey children. E. This generation—including its oldest members—has had access to the Internet for their entire lives.

A. This generation puts a strong emphasis on work/life balance, and some are technologically savvy.

__________ are the three types of attribute sets. A. Universal, retrieval, and evoked B. University, relatives, and expression C. United, relations, and exploration D. Urban, random, and exchange E. Unanimity, rule, and express

A. Universal, retrieval, and evoked

Dawn flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent flyer program). Still, she uses an online fare comparison website each time to see whether a competitor has a better price or a more convenient schedule. Dawn uses __________ to decide which airline to fly. A. a compensatory decision rule B. a noncompensatory decision rule C. habitual decision making D. social factors E. temporal factors

A. a compensatory decision rule

Jonathan prefers shirts made with 100% cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy. A. a compensatory decision rule B. a noncompensatory decision rule C. habitual decision making D. social factors E. temporal factors

A. a compensatory decision rule

When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from A. an external source. B. an internal locus of control. C. a reference source. D. an internal source. E. a situational factor group.

A. an external source.

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

A. benefit

When studying culture, the challenge for marketers is to determine whether culture A. can help to identify a particular group that might be interested in the marketer's products. B. is regional or subregional. C. reinforces stereotypes. D. is related to educational achievement. E. offers opportunities for competitors.

A. can help to identify a particular group that might be interested in the marketer's products.

The three components of an attitude are A. cognitive, affective, and behavioral. B. connected, applicable, and bearable. C. confident, achievable, and believable. D. consistent, affordable, and particular. E. controlled, uncontrolled, and visible.

A. cognitive, affective, and behavioral.

For which of the following purchases would consumers most likely engage in limited problem solving? A. college courses B. a new car C. a home D. coffee to go, for a regular coffee drinker E. a location for a large wedding reception

A. college courses

An online retailer needs to be able to measure how well its website converts purchase intentions into actual purchases. This is known as the A. conversion rate. B. collection ratio. C. consumer index. D. customer total. E. buyer quotient.

A. conversion rate.

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. This type of advertising will be more useful to marketers engaged in __________ segmentation. A. demographic B. psychographic C. behavioral D. benefits E. geographic

A. demographic

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

A. differentiated its product.

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

A. ease of accessing or developing distribution channels and brand familiarity.

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to A. emphasize the benefits these consumers are looking for in a college education. B. lower the price for this market segment. C. offer alternative courses based on geographic location. D. employ loyalty marketing strategies. E. use micromarketing strategies.

A. emphasize the benefits these consumers are looking for in a college education.

Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals A. enables firms to make appropriate adjustments. B. allows managers to demonstrate their effectiveness. C. offers insights into value-based pricing. D. should be followed by eliminating underperforming SBUs. E. allows firms to better assess customer loyalty.

A. enables firms to make appropriate adjustments.

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

A. evaluate performance

The consumer's level of involvement can lead to two types of buying decisions: __________ and __________. A. extended problem solving; limited problem solving B. culturally influenced; autonomous C. economic; social D. physiological/safety; esteem/self-actualization E. habitual; extended

A. extended problem solving; limited problem solving

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is A. external. B. easier to understand. C. easier to control. D. the same as the immediate environment. E. internal.

A. external.

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs. A. functional B. prepurchase C. social D. psychological E. functional and psychological

A. functional

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A. geodemographic

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores. A. geodemographic B. benefit C. psychographic D. loyalty E. geographic

A. geodemographic

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

A. geodemographic

The many demands on consumers today have made it more difficult for marketers to A. grab consumers' attention. B. decide what to offer. C. deliver products just-in-time. D. differentiate between the needs of seniors and Baby Boomers. E. offer green marketing solutions.

A. grab consumers' attention.

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is A. identifiable. B. responsive. C. profitable. D. reachable. E. substantial.

A. identifiable.

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through A. increased choices. B. higher prices. C. protection from false advertising. D. fair debt collection practices. E. fewer competitors.

A. increased choices.

From a firm's perspective, the biggest advantage of RFID is A. it enables the firm to track an item from the moment it was manufactured. B. it tells the firm who is buying the product and how it is being used. C. it provides demographic information on the consumer for marketing use. D. it is less expensive to use than other forms of marketing research. E. it eliminates the need for communicating with the supply chain.

A. it enables the firm to track an item from the moment it was manufactured.

Among the factors affecting the consumer decision-making process is/are __________, the way consumers spend their time and money to live. A. lifestyle B. conspicuous consumption C. the demonstration effect D. external validation E. life standards

A. lifestyle

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's A. lifestyle. B. geodemographics. C. demographics. D. loyalty. E. PRIZM segment.

A. lifestyle.

Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors' strengths, weaknesses, and A. likely reaction to Yuri's promotional activities. B. demographics. C. just-in-time processes. D. satisfaction quotient as perceived by customers. E. ethical values.

A. likely reaction to Yuri's promotional activities.

Which of the following is LEAST likely to provide a sustainable competitive advantage? A. lowering prices B. having a well-known brand name C. achieving high levels of customer satisfaction D. using patented technology E. creating an efficient supply chain

A. lowering prices

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as A. market intermediaries. B. monopolists. C. regulators of consumer demand. D. wholesale specialists. E. intermediate promoters.

A. market intermediaries.

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.

A. micromarketing.

When pursuing a market development strategy, expanding into international markets is generally A. more risky than expansion in domestic markets. B. impossible due to negative attitudes about American products. C. executed with the help of international trade subsidies. D. simplified by creating new products for export markets. E. the only option offering substantial opportunities for growth.

A. more risky than expansion in domestic 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

A. segment perceptions

oanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow's hierarchy of needs? A. self-actualization B. safety C. love D. esteem E. physiological

A. self-actualization

As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping prices below those charged by competitors.

A. sharing information across the organization.

The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers' decisions. A. situational B. psychological C. shopping D. interpersonal E. economic

A. situational

André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk. A. social B. financial C. performance D. psychological E. physiological

A. social

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.

A. substantial.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities A. that build on their strengths relative to those of their competitors. B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.

A. that build on their strengths relative to those of their competitors.

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.

A. the high cost of finding new customers.

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

A. the unique value that a product or service provides to customers

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.

A. the value proposition.

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because A. they speak different languages and come from different cultures. B. Asians do not respond to marketing efforts. C. there are not enough Asians in the United States to effectively target. D. each major city tends to have only one group of Asians in large numbers. E. one strategy is likely to be more expensive than multiple strategies.

A. they speak different languages and come from different cultures.

When an office supply store offers self-checkout, extended hours at its stores, and online shopping with next-day delivery, it is trying to address what social trend? A. time-poor society B. greener consumption C. health and wellness D. privacy concerns E. tech savvy

A. time-poor society

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a(n) __________ marketing orientation. A. transactional B. external C. relational D. internal E. value driven

A. transactional

Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers A. value contributing to a greener environment. B. are economically irrational. C. are responding to global corporate pressure for social responsibility. D. would prefer an SUV. E. are greenwashing.

A. value contributing to a greener environment.

Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is A. wireless payments from mobile devices. B. location-based social media applications. C. mobile devices completely replacing desktop and laptop computers. D. devices that block smartphone usage in retail stores. E. RFID tags.

A. wireless payments from mobile devices.

Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers'__________ risk. A. psychological B. financial C. performance D. social E. physiological

B. financial

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

B. geographic segmentation.

Strategic efforts to supply consumers with environmentally friendly merchandise are called A. reduce, reuse, recycle. B. green marketing. C. the green generation. D. the inconvenient truth. E. earth marketing.

B. green marketing.

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called A. fake greening. B. greenwashing. C. greenbaiting. D. green puffery. E. red marketing.

B. greenwashing.

Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was likely shocked and concerned about A. his financial situation. B. his lack of privacy. C. the marketer's lack of cultural awareness. D. his telephone bill. E. his technological comfort.

B. his lack of privacy.

Which of the following is the third step in the marketing planning process? A. define the business mission B. identify opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. situation analysis

B. identify opportunities

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? A. planning phase B. implementation phase C. evaluation phase D. control phase E. strategy phase

B. implementation phase

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that A. everyone is equal. B. income in the United States has become more unevenly distributed. C. everyone has been equally affected by the recession. D. there is increasing purchasing power among lower income groups. E. middle-income consumers are quickly becoming upper-income consumers.

B. income in the United States has become more unevenly distributed.

According to the text, fourteen cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons EXCEPT A. calls for greater social responsibility. B. increased income from a larger number of subscribers. C. increasing access to faster broadband capabilities. D. the economic status of consumers. E. pressures from the Federal Communications Commission.

B. increased income from a larger number of subscribers.

When Diana went to college, tuition was $650 per semester. Now that same college charges $6500 per semester. This number reflects a persistent increase in price known as A. currency fluctuation. B. inflation. C. recession. D. interest. E. deflation.

B. inflation.

Firms use a differentiated targeting strategy because A. it is easier than mass marketing. B. it helps to 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.

B. it helps to obtain a bigger share of the market.

Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will most likely engage in a(n) __________ process. A. impulse buying B. limited problem solving C. extended problem solving D. ritual consumption E. affective decision

B. limited problem solving

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his A. postpurchase dissonance. B. locus of control. C. reference group identification. D. attribute sets. E. social risk.

B. locus of control.

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.

B. responsive.

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented

Many entrepreneurs are successful through marketing efforts designed to A. mimic existing products on the market. B. satisfy unfilled needs. C. raise social consciousness. D. gain monopoly power. E. push a new technology even if people aren't ready for it.

B. satisfy unfilled needs.

When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to A. identify her need. B. search for information about cars. C. evaluate alternatives. D. purchase a new car. E. assess her satisfaction with the car she purchased.

B. search for information about cars.

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

B. self-concepts

Some websites allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent? A. psychological B. social C. situational D. motives E. perception

B. social

Marketers know that, compared to high school graduates who are working full time, college students A. will earn less over their working lifetime. B. spend their disposable income differently. C. are less likely to buy textbooks. D. have almost identical spending patterns. E. are more likely to drink beer and less likely to drink wine.

B. spend their disposable income differently.

Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from A. the Sears catalog. B. the Consumer Reports website. C. the local Better Business Bureau. D. the website for Best Buy (an electronics retail chain). E. Psychology Today magazine.

B. the Consumer Reports website.

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve determining A. how Disney World crowds will affect his business. B. which employees to promote or fire. C. how to allocate resources among his four stores. D. what new government regulations might create opportunities or threats. E. when to shift from a customer excellence to an operational excellence strategy.

C. how to allocate resources among his four stores.

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms' A. business mission. B. market segmentation strategy. C. positioning strategy. D. customer excellence strategy. E. target market.

C. positioning strategy.

Which element of the marketing mix is most relevant to the activity "creating value"? A. promotion B. purchasing C. product D. price E. place

C. product

A(n) ___________ is a group of products that consumers may use together or perceive as similar in some way. A. SBU B. STP C. product line D. market segment E. promotional service

C. product line

Marketing was once an afterthought to A. accounting. B. economics. C. production. D. finance. E. none of these—marketing was never an afterthought.

C. production.

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

C. psychographic

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

C. psychographic

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 twenty miles. She can't afford to purchase a PRIZM or 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

C. real estate values by subdivision

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

C. retailers

When discussing the marketing planning process, STP stands for A. strategies, tactics, and plans. B. strategize, target, and promote. C. segmentation, targeting, and positioning. D. situation analysis, trend spotting, and planning. E. sustaining, trending, and positioning.

C. segmentation, targeting, and positioning.

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

D. Benefit

What is MOST likely to happen when inflation increases? A. Consumers buy more discretionary merchandise. B. Consumers buy fewer personal care and home entertainment products. C. Off-price and discount retailers suffer from lower sales. D. Consumers buy lower priced foods. E. Consumers buy less food.

D. Consumers buy lower priced foods.

__________ attributes are product or service features that are important to buyers and that are used to differentiate among choices. A. Retrieval B. Financial C. Social D. Determinant E. Safety/performance

D. Determinant

Tweens are part of which generational cohort? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

D. Generation Y

In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers A. incomes rose dramatically. B. interest rates fell to compensate for increased inflation. C. Mexican products became less expensive while U.S.-made products became comparatively more expensive. D. Mexican products became more expensive while U.S.-made products became comparatively less expensive. E. U.S.-made products became less attractive to purchase.

D. Mexican products became more expensive while U.S.-made products became comparatively less expensive.

Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person's word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences. A. reference group B. situational C. cognitive D. cultural E. evoked

D. cultural

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

Which of the following is an example of greenwashing? A. A company markets a product made from recycled glass bottles. B. A company charges more for a hybrid car than for a similar gas model. C. A company donates money to a school reading project so it can advertise itself as environmentally friendly. D. The Smiths installed energy-saving light bulbs in their rental apartment buildings. E. The corner Laundromat only stocks phosphate-free detergent in its vending machines.

C. A company donates money to a school reading project so it can advertise itself as environmentally friendly.

Which generation is also known as Millennials? A. Baby Boomer B. Gen X C. Gen Y D. Gen Z E. the Digital Natives

C. Gen Y

Which of the following is TRUE regarding modern gender roles? A. Gender roles are a constant cultural norm. B. Modern standards require firms to produce gender neutral advertising for every product. C. Gender roles have been blurred in the past several years. D. Gender boundaries should never be crossed in marketing efforts. E. Gender roles are unimportant to marketers.

C. Gender roles have been blurred in the past several years.

Julie has been doing the family's weekly shopping since she was twelve, although she doesn't particularly like doing it. She tends to question what salespeople tell her and demands convenience. Julie demonstrates characteristics of the __________ generational cohort. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C. Generation X

Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are more cynical than their parents, and are less likely to believe advertising claims than the generation(s) before them. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

C. Generation X

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in A. rural areas. B. smaller states. C. New York, Los Angeles, and Chicago. D. coastal resort areas. E. Great Lakes agricultural areas.

C. New York, Los Angeles, and Chicago.

__________ refer(s) to the process by which consumers select, organize, and interpret information. A. Attitude B. Learning C. Perception D. Values E. Consumption

C. Perception

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

C. Positioning

The 1936 ________ specifically outlawed price discrimination toward wholesalers, retailers, or other producers and required sellers to make ancillary services or allowances available to all buyers on proportionately equal terms. A. Sherman Antitrust Act B. Clayton Act C. Robison-Patman Act D. Financial Reform Law E. Do Not Spam Law

C. Robison-Patman Act

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through slotting allowances, which are payments to retailers in return for shelf space. Combined, these four firms have A. identical marketing mixes. B. customer excellence. C. a sustainable competitive advantage. D. achieved product excellence. E. violated laws governing competition.

C. a sustainable competitive advantage.

Negative attitudes are typically difficult for marketers to change because A. most consumers' attitudes depend on prices. B. consumers weigh performance risk against functional needs when assessing their attitudes. C. attitudes are learned and long lasting. D. attitudes shift consumers from limited to extended problem solving situations. E. consumers' attitudes are derived from unchanging decision rules.

C. attitudes are learned and long lasting.

im 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 that he'd 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.

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

The idea of value-based marketing requires firms to charge a price that A. covers costs and generates a modest profit. B. includes the value of the effort the firm put into the product or service. C. captures the value customers perceive that they are receiving. D. prioritizes customer excellence above operational excellence. E. matches competitors' prices.

C. captures the value customers perceive that they are receiving.

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. clearly articulate the firm's vision or marketing strategy objectives. D. select target markets. E. develop a marketing mix, so that an appropriate segment can later be identified.

C. clearly articulate the firm's vision or marketing strategy objectives.

Zappo's online shoe and clothing store has a unique way of dealing with abandoned shopping carts. If a site visitor places items into the shopping cart and then leaves the site without making a purchase, several days later Zappo's sends a humorous email saying, "Let us show you what your shopping cart did while you were gone," along with a photo of a cute dog intended to represent the shopping cart. This attention-getting device is designed to improve the site's A. postpurchase dissonance. B. selective perception. C. conversion rate. D. reference group influence. E. position in the evoked set.

C. conversion rate.

Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of A. regional culture. B. generational cohort characteristics. C. country culture. D. a red/blue marketing campaign. E. the Walmart Effect.

C. country culture.

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups A. will create inflationary expectations. B. will disappear as ethnicity becomes a stronger cultural determinant. C. creates opportunities to provide value to each group. D. will vanish once the recession ends. E. is attributable to technological expertise of immigrant groups.

C. creates opportunities to provide value to each group.

Before going on his first business trip to China, Brad asked his Chinese-American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders. A. reference group B. situational C. cultural D. cognitive E. evoked

C. cultural

Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to A. cultural expectations. B. male domination in corporate boardrooms. C. differing demographic data for potential and past viewers. D. marketers' general perceptions. E. multiyear advertising contracts that cannot be broken.

C. differing demographic data for potential and past viewers.

Marketers particularly want their brands and products to be in consumers'__________ sets. A. universal B. retrieval C. evoked D. deterministic E. behavioral

C. evoked

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set. A. universal B. retrieval C. evoked D. deterministic E. behavioral

C. evoked

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

C. geodemographic; lifestyle

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

D. customer loyalty.

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

D. demographic

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

D. differentiated targeting

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

D. diversification

Introducing newly developed products or services to a market segment the company is not currently serving is called A. product development. B. market development. C. market penetration. D. diversification. E. product proliferation.

D. diversification.

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with A. an evoked set. B. psychological needs. C. social concerns. D. evaluative criteria. E. biased information.

D. evaluative criteria.

The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called A. interest destabilization. B. inflation. C. recession. D. foreign currency fluctuations. E. global financial impact.

D. foreign currency fluctuations.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does A. to value each person in the organization. B. for each generational cohort. C. to avoid cultural clashes. D. from a consumer's point of view. E. to sensitize organization members to ethical values.

D. from a consumer's point of view.

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.

D. generally profitable.

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 U.S., 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.

D. geodemographic segmentation.

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. geodemographic segmentation; lifestyle or benefit segmentation E. lifestyle segmentation; geographic segmentation

D. geodemographic segmentation; lifestyle or benefit segmentation

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________. A. obsessive personality; laissez-fair approach B. formal search function; casual search function C. increased search anxiety; decreased search anxiety D. internal locus of control; external locus of control E. focused sense of information; unfocused sense of information

D. internal locus of control; external locus of control

Marketers are particularly interested in postpurchase behavior because it A. involves both compensatory and noncompensatory consumers. B. offers insights into information search methods. C. avoids situational conflicts. D. involves actual rather than potential customers. E. involves both actual and potential customers.

D. involves actual rather than potential customers.

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.

D. is a more expensive method for identifying potential customers.

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

D. is likely more costly than an undifferentiated strategy.

A competitive advantage based on location is often sustainable because A. mobile marketing has not yet proven its value for most customers. B. real estate prices have been dropping. C. few marketers are aware of its importance yet. D. it is not easily duplicated. E. the Internet has diminished the importance of brick and mortar stores.

D. it is not easily duplicated.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? A. dress B. symbols C. demographics D. language E. social trends

D. language

Tomas, a bank employee, doesn't feel that his coworkers accept him. He decides to dress more casually, as they do, hoping to be accepted. Which level of Maslow's hierarchy of needs is Tomas trying to work on? A. esteem B. physiological C. safety D. love E. self-actualization

D. love

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

D. loyalty

Many states have laws regulating the prices businesses charge during emergencies like hurricanes. These laws are designed to protect consumers whose __________ state may impair their ability to make sound purchase decisions. A. shopping B. social C. theoretical D. temporal E. physical

D. temporal

Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his regulars will encourage them to A. assist him in meeting his functional needs. B. always include his firm in their universal set. C. extend problem solving beyond ritual consumption. D. internalize impulse attitudes. E. spread positive word of mouth.

E. spread positive word of mouth.

Marketing channel management is also known as A. endless chain marketing. B. a transactional orientation. C. wholesaling. D. product design. E. supply chain management.

E. supply chain management.

There is a saying, "Never go to the grocery store hungry." This saying suggests that a consumer's __________ state may adversely affect purchasing decisions. A. shopping B. social C. theoretical D. external E. temporal

E. temporal

Postpurchase cognitive dissonance is especially likely for products that are A. cheap, poorly made, and made of plastic. B. personally valuable, antique, or foreign-made. C. simple, easily copied, and new. D. psychologically soothing, purchased impulsively, and part of a consumer's evoked set. E. expensive, infrequently purchased, and associated with high levels of risk.

E. expensive, infrequently purchased, and associated with high levels of risk.

A consumer's external social environment includes A. impulse, habitual, and limited problem solving processes. B. functional and psychological needs. C. universal, retrieval, and evoked sets. D. cognitive, affective, and behavioral environments. E. family, reference groups, and culture.

E. family, reference groups, and culture.

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy. A. customer excellence B. global excellence C. locational excellence D. operational excellence E. product excellence

E. product excellence

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

E. profitability

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.

E. profitability.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT A. substantial. B. responsive. C. profitable. D. reachable. E. realistic.

E. realistic.

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.

E. responsive.

Maslow's hierarchy of needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are A. material goods, safety, and love. B. community, family, and self. C. safety, stability, and striving. D. health, wealth, and happiness. E. safety, love, and esteem.

E. safety, love, and esteem.

A home security company will advertise the need for home surveillance products to appeal to which level of Maslow's hierarchy of needs? A. safety B. love C. esteem D. self-actualization E. physiological

A. safety

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. situation analysis is a continuous process. C. customers rarely remain loyal to companies. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.

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

A. occasion

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)? A. occasion segmentation B. geographic segmentation C. lifestyle segmentation D. benefit segmentation E. loyalty segmentation

A. occasion segmentation

Limited problem solving usually relies on A. past experience more than on external information. B. situational stimuli and attitudes. C. external search for information. D. financial analysis of performance risk. E. evaluation of the universal set.

A. past experience more than on external information.

There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection? A. physiological risk B. social risk C. financial risk D. functional risk E. psychological risk

A. physiological risk

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? A. planning B. implementation C. control D. segmentation E. metrics

A. planning

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of A. positioning. B. targeting. C. segmentation. D. a market segment. E. market penetration.

A. positioning.

When you register your telephone number with the Do Not Call Registry, you are responding to a need for A. privacy. B. enhanced information flow. C. lower phone bills. D. marketing contact. E. tactical communication skills.

A. privacy.

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation

A. product development

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would 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.

A. providing classes at convenient times and offering online courses.

Americans often equate bigger with better, and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process. A. psychological B. financial C. performance D. social E. physiological

A. psychological

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often became __________, influencing other consumers' behavior. A. reference groups B. internal loci of control C. cultural icons D. cognitive parameters E. evoked images

A. reference groups

In New England, foot-long sandwiches are called grinders, while in many other parts of the country they are called subs. This is an example of the impact of A. regional culture. B. country culture. C. generational factors. D. social trends. E. regulatory factors.

A. regional culture.

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.

A. responsive.

Marketers frequently design customer relationship management programs to A. retain loyal customers. B. attract consumers who have safety needs. C. reinforce postpurchase cognitive dissonance. D. increase internal information search. E. improve profit margins.

A. retain loyal customers.

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? A. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes. B. 3M Corporation, implementing new software to improve communication with its suppliers. C. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. D. Nike, opening hundreds of new company stores in high-traffic shopping areas. E. McDonald's, lowering prices on its coffee drinks.

B. 3M Corporation, implementing new software to improve communication with its suppliers.

Customer retention programs are based on what concept? A. Customer excellence is the easiest macro strategy to follow. B. Customer relationships should be viewed from a lifetime value perspective. C. It is important to maximize profits in the first few months of a customer relationship. D. Segmentation, targeting, and positioning analysis should not be rushed. E. Firms must spend large amounts of money to retain customers.

B. Customer relationships should be viewed from a lifetime value perspective.

The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was one of the results mentioned in the text? A. Honest telemarketers found it easier to reach customers. B. Dishonest telemarketers have still been able to get through. C. Consumers received more telemarketing calls than ever. D. Companies have increased their emphasis on telemarketing approaches. E. The Do Not Call Registry was disbanded due to its ineffectiveness.

B. Dishonest telemarketers have still been able to get through.

Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions. A. An external locus of control B. High involvement C. Low involvement D. Differential content E. Internet advertising

B. High involvement

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

B. Micromarketing

After defining the business mission, what should a firm do next to develop a marketing plan? A. Conduct an STP analysis. B. Perform a situation analysis. C. Develop a positioning strategy. D. Select a target market. E. Implement the four Ps.

B. Perform a situation analysis.

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. D. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. E. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

B. Recent consumer studies have indicated that Chinese consumers prefer American cars.

Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on A. a compensatory decision rule. B. a noncompensatory decision rule. C. habitual decision making. D. social factors. E. temporal factors.

B. a noncompensatory decision rule.

Apple computer users tend to like the company and love its products. Apple has nurtured this __________ component of its customers' attitudes. A. social B. affective C. psychological D. cognitive E. physiological

B. affective

Thanh has to decide which college to attend. This is the most important, riskiest, and most expensive decision she has ever made. She will be engaged in A. low involvement decision making. B. extended problem solving. C. habitual decision making. D. prepurchase dissonance. E. limited problem solving.

B. extended problem solving.

Marketers in the United States are paying increasing attention to ethnic groups because A. they represent a majority of the population in non-urban areas of the country. B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. C. they are more susceptible to marketing messages. D. government subsidies assist marketers attempting to communicate value to these groups. E. country culture is replacing regional culture as a key marketing consideration.

B. approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

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.

B. are part of a firm's marketing strategy.

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 resumés, 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.

B. benefit segmentation.

Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with A. criteria reevaluation. B. buyer's remorse. C. competitive leverage. D. purchase uncertainty. E. consumer vulnerability.

B. buyer's remorse.

The firms that work along with the focal firm to provide goods and services to consumers are viewed as A. cultural cohorts. B. corporate partners. C. cartels. D. cooperatives. E. customers.

B. corporate partners.

To attract and maintain habitual purchasers, marketers spend considerable effort A. analyzing consumer data for postpurchase dissonance signals. B. creating strong brands and store loyalty. C. cultivating cultural decision making. D. reducing financial risk and increasing psychological payout. E. offering alternative brands.

B. creating strong brands and store loyalty.

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to A. generate cost-based performance ratios. B. evaluate performance and make adjustments. C. increase product excellence without reducing customer excellence. D. develop segmentation strategies. E. choose a business mission.

B. evaluate performance and make adjustments.

Once consumers have recognized a need, they begin to search for ways to satisfy that need. The internal search is characterized by A. looking through the internal records of a firm, often found on the company website. B. examining personal memories and knowledge. C. using the Internet to find what other consumers feel about a specific product or service. D. consulting close friends and families before expanding the search to a wider, external group. E. the influence of advertising.

B. examining personal memories and knowledge.

Learning refers to a change in a person's thought process or behavior that arises from A. attitudes. B. experience. C. risk analysis. D. cultural norms. E. postpurchase dissonance.

B. experience.

Because Americans are working longer hours without increases in real, disposable income, and are using an army of communication devices to keep up with the demands in their personal and work lives, retailers are A. increasing their budgets for traditional advertising outlets like television and radio. B. making their products available whenever and wherever consumers want them. C. outsourcing marketing communications to global production facilities. D. focusing only on those demographic cohorts that have time to relax. E. de-emphasizing U.S. sales and expanding globally.

B. making their products available whenever and wherever consumers want them.

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

A(n) __________ is a need or want strong enough to cause the person to seek satisfaction. A. locus of control B. motive C. attitude D. perception E. learning curve

B. motive

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time. A. ethnic background B. needs, wants, and ability to purchase C. culture D. just-in-time processes E. demographics

B. needs, wants, and ability to purchase

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas 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. use geographic segmentation. E. generate economies of scale in advertising expenditures.

B. obtain a bigger share of the shoe market.

Marketers fear negative word of mouth because when consumers are dissatisfied, they A. are less likely to say something than when they are satisfied. B. often want to complain to many people. C. buy more of the product to prove they were correct in their criticism. D. often file a lawsuit. E. don't buy any of the company's other products.

B. often want to complain to many people.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates A. weaknesses. B. opportunities. C. strengths. D. threats. E. strategic plans.

B. opportunities.

Generally, people buy one product or service instead of another because they A. want to get the lowest price possible. B. perceive it to be the better value for them. C. prefer to avoid doing extended problem solving. D. have conducted a thorough internal search for information. E. are unaware of key determinant attributes.

B. perceive it to be the better value for them.

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business. A. communication B. political/regulatory C. Constitutional D. social E. technological

B. political/regulatory

Which of the following is the best way to build a sustainable competitive advantage using product excellence? A. being the first to offer customers desired features, even if competitors can copy them easily B. positioning the product using a clear, distinctive brand image C. having the most features on each model D. focusing on being cutting edge and continually eliminating older features that are still in use by customers E. copying the market leader's features, but at a lower cost

B. positioning the product using a clear, distinctive brand image

Many teenagers, both male and female, have clothes they purchased in the past that they would not be caught dead in today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel A. cognitive bias. B. postpurchase cognitive dissonance. C. psychological risk. D. need recognition. E. physiological risk.

B. postpurchase cognitive dissonance.

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.

B. product attributes.

In most companies, portfolio management is typically done at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting

B. product line

The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely A. decrease national cultural identity. B. reduce regional cultural differences. C. make it difficult to collect demographic information. D. create a demand for a new generational cohort. E. make it more difficult for companies to differentiate their products.

B. reduce regional cultural differences.

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. A. competitive response B. resource allocation C. product line D. market growth E. mission statement

B. resource allocation

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize A. that operational excellence is an important macro strategy. B. the lifetime value of customers. C. that product excellence leads to loyal customers. D. the importance of making decisions based on short-term results. E. that as long as customers bring in some revenue, costs do not matter.

B. the lifetime value of customers.

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about A. privacy of communications. B. the time-poor society. C. green marketing. D. increased costs of air travel. E. federal restrictions on advertising.

B. the time-poor society.

Marketing provides the critical function of __________ when companies expand globally. A. managing production efficiency B. understanding customers C. managing personnel D. forecasting economic growth E. evaluating government stability

B. understanding customers

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.

B. what their customers need.

Brenda was planning a small dinner party and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store, she also found a buy one, get one free deal and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the __________ and ended up spending less than she'd planned. A. in-store demonstrations B. packaging C. in-store promotion D. product placement E. store atmosphere

C. in-store promotion

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.

C. lower overall risk.

Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

C. market penetration

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

C. market segments

An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm to A. increase value to the consumer through media effectiveness promotion. B. tailor their marketing messages. C. meet inventory needs. D. communicate with consumers on social media sites. E. replace services with products.

C. meet inventory needs.

The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be. A. financial risk and performance risk B. search for alternatives and alternatives found C. needy state and desired state D. universal set and evoked set E. external and internal information search

C. needy state and desired state

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. PRIZM analysis

C. perceptual map

Every year before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is probably concerned with __________ risk. A. psychological B. financial C. performance D. social E. physiological

C. performance

Delta Airlines is among the companies experimenting with selling products and services on its Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website--users can book a trip in Delta's Ticket Agent application without ever leaving Facebook. Which element of the marketing mix does this represent? A. product and value creation B. price and value capture C. place and value delivery D. promotion and value communication E. positioning and value promotion

C. place and value delivery

Effective marketing doesn't just happen. It is A. promoted through STP analysis. B. possible only for seasoned marketing executives to achieve. C. planned. D. introduced through control phase SBUs. E. the result of competitors' failures.

C. planned.

Black Friday, as the day after Thanksgiving has come to be known in the U.S., is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called doorbusters, and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process. A. the purchase situation B. lifestyle C. setting high expectations D. perception E. learning

C. setting high expectations

Taking steps to encourage customer loyalty is one way to A. test new products. B. promote efficiency. C. sustain an advantage over competitors. D. develop new pricing strategies. E. improve supply chain effectiveness.

C. sustain an advantage over competitors.

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.

C. symbols.

The greater the discrepancy between a consumer's needy state and the desired state, the greater A. time needed to satisfy the need. B. the effort consumers will invest in searching for alternatives. C. the consumer's need recognition will be. D. the size of the universal set will be. E. the amount of external information search will be needed.

C. the consumer's need recognition will be.

In the consumer decision process, we decide how much time and effort to expend searching for information based partly on A. postpurchase dissonance. B. the outcome of the alternative evaluation process. C. the degree of perceived risk associated with the product or service being considered. D. the results of habitual decision making. E. the results of the external search.

C. the degree of perceived risk associated with the product or service being considered.

The metrics used to evaluate a firm vary depending on the level of the organization at which the decision is made, and A. the corporate consciousness of the firm. B. the profit realized on the merchandise. C. the resources the manager controls. D. the internal structure of the company. E. external factors, such as the economy and the cost of materials.

C. the resources the manager controls.

The consumer decision process model represents A. the concept of habitual decision making. B. the retrieval of an evoked set based on physiological needs. C. the steps that consumers go through before, during, and after making purchases. D. the shift from an internal to an external locus of control. E. the types of decisions all consumers must make.

C. the steps that consumers go through before, during, and after making purchases.

If values provide goals, and self-concept is the way we see ourselves, lifestyles are A. visual images of how we should live our lives. B. our underlying motivations. C. the way we live our lives to achieve our goals. D. motivations turned into perceptual maps. E. determined by demographics.

C. the way we live our lives to achieve our goals.

One of the goals of value-based marketing is A. to provide the greatest value for the least profit. B. to sell products for the highest possible price. C. to offer greater value than competitors offer. D. to determine the value of the brand. E. to sell to all consumers, regardless of their needs.

C. to offer greater value than competitors offer.

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? A. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. B. Nike should consider exiting the athletic shoe market. C. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. D. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company. E. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets.

D. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company.

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.

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

Which of these is NOT one of the main components of a value proposition? 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.

D. The price of the product or service being offered.

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage. A. customer value B. a mission statement C. marketing metrics D. a firm's target markets E. a product plan

D. a firm's target markets

Over the past few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing A. a business mission statement. B. a strategic vision. C. team-building exercises. D. a marketing strategy. E. competitive assessments.

D. a marketing strategy.

Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. D. a sustainable competitive advantage. E. producer excellence.

D. a sustainable competitive advantage.

Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except A. creating ready-to-eat meals that would allow Gretchen to have freshly prepared meals. B. developing meals with precut and premeasured ingredients that would allow Gretchen to cook them at home. C. staying open late. D. advertising their products heavily on daytime television. E. using creative checkout procedures so Gretchen can finish her shopping quickly.

D. advertising their products heavily on daytime television

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT A. purchasing power. B. interest rates. C. inflation. D. age. E. currency exchange rates.

D. age.

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

D. benefit

The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture A. is socially important. B. is passed from generation to generation orally or by written guides. C. competes with or complements U.S. traditional culture. D. can be used as a relevant identifier for a particular target group. E. is an important immediate marketing environment variable.

D. can be used as a relevant identifier for a particular target group.

Though he has never owned a Jaguar, Jerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Jerry a car, the company would need to change the __________ component of Jerry's attitude. A. social B. affective C. functional D. cognitive E. physiological

D. cognitive

Value creation through place decisions for a consumer product involves A. putting the product in the front of the store. B. designing creative displays to capture consumers' attention. C. pricing products differently at different stores. D. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. E. focusing exclusively on Internet sales to reduce supply chain costs.

D. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential

D. market growth rate

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.

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

According to the text, younger consumers deal with having a lack of leisure time by A. sleeping less. B. eating unhealthy fast food meals. C. watching television programs on their laptops. D. multitasking. E. spending less time on the phone.

D. multitasking.

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision. A. evoked set B. reference group C. physiological risk D. performance risk E. financial risk

D. performance risk

In recent years, cellular (mobile) service providers have worked hard to eliminate dead zones, providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on __________ value creation. A. product B. price C. promotion D. place E. financial

D. place

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy. A. diversification B. market development C. market penetration D. product development E. product penetration

D. product development

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent? A. market penetration B. product penetration C. market development D. product development E. diversification

D. product development

Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling a __________ need. A. functional B. postpurchase C. safety D. psychological E. functional and psychological

D. psychological

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs. A. functional B. postpurchase C. safety D. psychological E. situational

D. psychological

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life. A. regional cultures B. inflationary expectations C. political affiliations D. purchase behavior E. cultural values

D. purchase behavior

College students can be a less __________ market segment because students' media habits are quite diverse. A. substantial B. perceptive C. identifiable D. reachable E. quantifiable

D. reachable

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.

D. reachable.

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions. A. interpersonal B. extended habitual C. postpurchase dissonance D. store atmosphere E. social

D. store atmosphere

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

D. the number of competitors, entry barriers, and product substitutes.

One drawback to marketing products on smartphones compared to other kinds of web experiences is A. few people use their smartphones for shopping. B. more people access the Web through laptops than smartphones. C. the cost of mobile apps makes it prohibitive for most companies. D. the smaller screen means that less information must convey the same brand image. E. consumers are cynical and don't believe advertising on smartphones.

D. the smaller screen means that less information must convey the same brand image.

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many American consumers' concept of A. culture. B. demographics. C. scenario planning. D. value. E. green marketing.

D. value.

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.

D. what the target market would consider the most important features.

The poorest 10 percent of the U.S. population earned less than _______ per week in 2010. A. $2500 B. $1801 C. $1265 D. $920 E. $374

E. $374

The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents. A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E. Generation Z

Which of the following groups has never lived without easy access to the Internet and other digital technologies? A. Baby Boomers B. Generation W C. Generation X D. Generation Y E. Generation Z

E. Generation Z

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers? A. She should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation. B. She should ignore the sales data; this is not an appropriate marketing metric. C. She should give each manager a raise, tied to the store results. D. She should review at least ten years of sales data about her stores' performance before making a decision. E. She should seek more information about why the stores had different results before making a decision.

E. She should seek more information about why the stores had different results before making a decision.

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized? A. Strength B. Opportunity C. Weakness D. Segment E. Threat

E. Threat

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

E. a clear, distinctive, and desirable understanding of its products relative to competing products.

Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's A. social concerns. B. political parties. C. demographics. D. generational cohorts. E. culture.

E. culture.

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through A. promotional excellence. B. product excellence. C. operational excellence. D. global excellence. E. customer excellence.

E. customer excellence.

Many of today's college graduates will make their living providing goods and services to baby boomers, the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment. A. psychological B. behavioral C. social D. product-based E. demographic

E. demographic

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.

E. evaluate the attractiveness of each segment.

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process? A. need recognition B. postpurchase evaluation C. information search D. situational analysis E. evaluation of alternatives

E. evaluation of alternatives

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by A. impulse, habitual, and limited problem solving process. B. functional and psychological profit. C. universal, retrieval, and evoked sets. D. cognitive, affective, and behavioral environment. E. family, reference groups, and culture.

E. family, reference groups, and culture.

Airlines were among the first retailers to embrace loyalty segmentation when they created A. business-class seating. B. 30-day advance pricing. C. fuel surcharges. D. in-flight movies. E. frequent flyer programs.

E. frequent flyer programs.

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets. A. functional and social B. postpurchase and prepurchase C. safety and situational D. psychological and physiological E. functional and psychological

E. functional and psychological

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'__________ needs. A. functional and social B. postpurchase and prepurchase C. safety and situational D. psychological and physiological E. functional and psychological

E. functional and psychological

Which of the following is NOT an element of the factors affecting consumers' search processes? A. perceived benefits versus perceived costs of search B. locus of control C. actual risk D. perceived risk E. functional versus psychological need

E. functional versus psychological need

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

E. geodemographic

Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives. A. compensatory decisions B. personal problem solving C. extended problem solving D. reference group consumption E. habitual decision making

E. habitual decision making

When Kelly began searching for a new car to replace her old, rusty one, she probably relied on __________ sources of information. A. interpersonal and sensual B. compensatory and noncompensatory C. ritual and spiritual D. psychological and functional E. internal and external

E. internal and external

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

E. lifestyle.

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage. A. segmentation strategy B. set of metrics C. market development strategy D. diversification strategy E. macro, or overarching, strategy

E. macro, or overarching, strategy

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to use its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match its core competencies.

E. match its core competencies.

Successful firms focus their efforts on satisfying customer needs that A. are easiest to satisfy. B. provide minimal core value. C. are important to all generational cohorts. D. competitors have tried and failed to satisfy. E. match their core competencies.

E. match their core competencies.

Firms achieve ___________ through efficient procedures and excellent supply chain management. A. customer excellence B. locational excellence C. customer loyalty D. value-based pricing E. operational excellence

E. operational excellence

Barak is considering buying a hybrid car, but he's not sure that he believes the gas mileage estimates. Barak is concerned about A. physiological risk. B. social risk. C. financial risk. D. safety risk. E. performance risk.

E. performance risk.

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

E. product development

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT A. customers appreciate the kind of service that knowledgeable employees provide. B. employees play a major role in the success of the firm. C. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. D. building customer loyalty depends on a committed workforce. E. the company provides products with a high perceived value.

E. the company provides products with a high perceived value.

For some products, marketers can combine education level with other data like occupation and income to obtain A. a sense of consumers' regional culture. B. consumers' value sensitivity quotient (VSQ). C. the educational value equation. D. complete profiles of individual consumers. E. useful predictions of purchase behavior.

E. useful predictions of purchase behavior.

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing A. all parties to an exchange should be satisfied. B. promotion is the most important consideration, followed by pricing decisions. C. decisions are made regarding how a product is designed. D. customers are not considered until the product is ready for sale. E. distribution is controlled by customers.

A. all parties to an exchange should be satisfied.

People who initiate, organize, operate, and assume the risk of a business venture are called A. entrepreneurs. B. leaders. C. managers. D. professionals. E. consultants.

A. entrepreneurs.

A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result. A. exchange B. market segment C. promotional plan D. transactional orientation E. relational orientation

A. exchange

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or A. improve products and services at the same cost. B. increase prices to increase revenue. C. offset higher hotel rates with lower restaurant prices. D. reduce customer expectations through reduced service. E. lower the quality and the price.

A. improve products and services at the same cost.

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called A. marketing. B. marketing research. C. market share analysis. D. market segmentation. E. market positioning.

A. marketing.

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on? A. price B. place C. promotion D. product E. prototype

A. price

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented

Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented

The idea that a good product will sell itself is associated with the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

A. production-oriented

In the past, manufacturers' representatives did not have up-to-minute data about the products they were selling. Today, manufacturers' representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven by A. sharing information across the organization. B. balancing customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with government regulators of marketing institutions. E. keeping prices below those charged by competitors.

A. sharing information across the organization.

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.

A. star.

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called A. supply chain management. B. a transactional orientation. C. wholesaling. D. value cocreation. E. endless chain marketing.

A. supply chain management.

After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.

A. target marketing.

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product. A. Pricing B. Promotion C. Placement D. A relational orientation E. Value co-creation

B. Promotion

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of A. communicating the value proposition. B. supply chain management. C. creating value. D. capturing value. E. value co-creation.

B. supply chain management.

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and A. a thorough knowledge of his brand messages. B. the ability to buy them. C. knowledge of competing products. D. the ability to negotiate discounts. E. are removed from traditional marketing alternatives.

B. the ability to buy them.

During the market-oriented era, A. a good product would sell itself. B. the customer was king. C. marketing was more important than production. D. advertising and personal selling were emphasized to make the sale. E. firms focused on value.

B. the customer was king.

As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing. A. B2C; B2B B. B2C; C2C C. B2B; B2C D. B2B; C2C E. C2C; B2C

C. B2B; B2C

When a pharmaceutical company develops a new medication, it typically applies for a patent to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish A. an operational excellence macro strategy. B. a market penetration growth strategy. C. a sustainable competitive advantage. D. an efficient supply chain. E. product efficiency.

C. a sustainable competitive advantage.

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in A. a traditional transactional orientation. B. C2C value-driven marketing. C. effective supply chain management. D. value cocreation. E. a virtual monopoly.

C. effective supply chain management.

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. engaging customers and developing long-term relationships. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

C. engaging customers and developing long-term relationships.

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's A. financial statements, to investigate current and past profits. B. brand awareness study, to assess national levels of awareness. C. implementation programs, to see if the promotion was handled consistently in the different stores. D. results for other product lines, to see how important diet products are to the firm. E. analysis of national trends in vitamins and herbal supplements, to help predict future sales.

C. implementation programs, to see if the promotion was handled consistently in the different stores.

The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a(n) A. individual. B. firm. C. industry. D. organization. E. specific product.

C. industry.

Using the BCG portfolio analysis, a dog should be phased out unless A. its marketing manager is a champion of the product. B. additional resources could increase its relative market share slightly. C. it complements or boosts the sales of another product. D. the market has a small chance of rebounding. E. none of these. Dogs should be phased out.

C. it complements or boosts the sales of another product.

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

C. market penetration

During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C. market-oriented

Many U.S. companies first discovered marketing during the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

C. market-oriented

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy. A. product excellence B. targeting C. positioning D. segmentation E. customer excellence

C. positioning

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through A. product. B. price. C. promotion. D. place. E. cost-based measures.

C. promotion.

In delivering value, marketing firms attempt to find the most desirable balance between A. the need for value and the perception of value. B. explicit versus implicit value. C. providing benefits to customers and keeping costs down. D. the desire to satisfy customers and the need to keep customers from running the company. E. the need for product improvement and the need for advertising.

C. providing benefits to customers and keeping costs down.

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.

C. strengths and weaknesses.

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive. A. advertising campaign B. plan to evaluate results C. sustainable competitive advantage D. set of performance metrics E. SWOT analysis

C. sustainable competitive advantage

In value-based marketing, promotion communicates the ________ to customers through a variety of media. A. targeted solution B. operational excellence strategy C. value proposition D. relative market value E. target market definition

C. value proposition

The evolution of marketing progressed along the following continuum: A. sales, marketing, value-based marketing, production. B. marketing, value-based marketing, production, sales. C. value-based marketing, production, sales, marketing. D. production, sales, marketing, value-based marketing. E. sales, value-based marketing, marketing, production.

D. production, sales, marketing, value-based marketing.

The first objective in the evaluate performance phase of the marketing planning process is to A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.

D. review implementation programs and results using metrics.

For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary A. demographic segment. B. positioning. C. SBU. D. target market segment. E. sustainable competitive advantage.

D. target market segment.

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider A. the schedules these airlines offer to be the most convenient in the industry. B. the long-term relationships established by these airlines to be a critical benefit. C. the prices to be slightly lower, but not low enough to have much influence. D. the benefit of lower prices to be greater than the cost of reduced services and less convenience. E. the major airlines to be worthless.

D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing. A. production-oriented B. sales-oriented C. market-oriented D. value-based E. retailing-oriented

D. value-based

During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

D. value-based marketing

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing? A. Marketing helps new ventures organize, operate, and assess risk. B. Marketers help address unmet customer needs, regardless of the size of the firm. C. Marketing focuses on the product, but only as one element. Three other areas are Promotion, Price, and Place. D. Marketers are skilled at communicating the value of the product to potential customers. E. Marketing isn't essential now, but it will be in a year or two when the product takes off.

E. Marketing isn't essential now, but it will be in a year or two when the product takes off.

The fundamental goal of marketers when creating goods, services, or combinations of both, is to A. defeat the competition. B. serve all consumers. C. operate according to government regulations. D. stimulate short-term sales. E. create value.

E. create value.

When considering career choices in marketing, many students overlook supply chain management because A. it is considered too quantitative. B. marketing has no responsibility for supply chain management. C. companies generally outsource these activities, so there are rarely supply chain jobs available. D. it only takes place in large, urban areas. E. many of the activities take place behind the scenes.

E. many of the activities take place behind the scenes.

Which element of the marketing mix is most relevant to the activity "delivering value"? A. promotion B. purchasing C. product D. price E. place

E. place

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence

E. planning excellence

A former advertising campaign for GEICO Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.

E. positioning strategy.

When referring to exchange, marketers are focusing on A. the location where products and services are traded. B. the price charged, adjusted for currency exchange rates. C. location-based tactics for creating value. D. promotional offers designed to stimulate barter. E. the trading of things of value.

E. the trading of things of value.

In the broadest terms, the marketplace refers to A. wholesale and retail environments. B. brick-and-mortar stores and the Internet. C. the four Ps. D. channels that are accessible to a given customer. E. the world of trade.

E. the world of trade.

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on A. transaction-oriented marketing. B. premium pricing. C. his seniority at the firm. D. special incentives from tour operators. E. value co-creation.

E. value co-creation.

Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation A. created a net benefit or loss. B. should be reported to senior executives. C. was consistent with the company's mission statement. D. offers opportunities for diversification. E. was due to factors within or outside the firm's control.

E. was due to factors within or outside the firm's control.

Value is A. the lowest cost option. B. represented by brand names. C. the highest priced alternative. D. everyday low prices. E. what you get for what you give.

E. what you get for what you give.

One example of a customer loyalty program is A. a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases. B. a quantity discount offered for large purchases at an office supply store. C. seasonal sales on top selling items. D. an everyday low price policy on all products at a grocery store. E. an extensive customer service training program for new employees at a hair salon.

A. a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases.

Which marketing activity is most directly served by the promotion element of the marketing mix? A. communicating value B. creating value C. capturing value D. delivering value E. producing value

A. communicating value

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy? A. Customer excellence B. Locational excellence C. Operational excellence D. Product excellence E. Purchase excellence

B. Locational excellence

Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings. A. information B. benefits C. relationships D. rebates E. merchandise

B. benefits

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on A. choosing an average price that she will charge all her clients. B. changes in technology allowing consumers to manage their own affairs. C. how different customers perceive the value of her services. D. changes in the economy. E. how much her competitors charge for similar services.

C. how different customers perceive the value of her services.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that A. they can make more money from government contracts than from sales to customers. B. a transactional orientation is the key to long-term profitability. C. none of their competitors would be raising prices. D. lifetime profitability of relationships matters more than profits from a particular transaction. E. if they raised prices they would be in violation of Commerce Department regulations.

D. lifetime profitability of relationships matters more than profits from a particular transaction.

Which of the following is a core aspect of marketing? A. satisfying as many needs as possible B. creating a product that everyone will want to buy C. setting prices lower than all competitors D. making product, place, promotion, and price decisions E. increasing the company's profit

D. making product, place, promotion, and price decisions

The importance of supply chain management is often overlooked in the study of marketing because A. marketing has no responsibility for supply chain management. B. supply chain management doesn't add much value for customers. C. companies do not want customers to know anything about the supply chain. D. many of the activities take place behind the scenes. E. supply chain management is already transparent.

D. many of the activities take place behind the scenes.

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n) A. weakness. B. opportunity. C. strength. D. threat. E. strategic plan.

D. threat.

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is A. pushing her customers to buy products whether they need them or not. B. advising the production and purchasing departments to produce or order smaller quantities of products. C. assisting customers in product recall confirmations. D. avoiding contact with competing firms to maximize value-driven marketing. E. estimating profit per sale to determine whether the firm can survive the slowdown.

B. advising the production and purchasing departments to produce or order smaller quantities of products.

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of A. advising production on how much product to make. B. alerting the logistics department when to ship products. C. advising the customer about new products and markets. D. identifying opportunities to expand. E. synthesizing and interpreting sales, accounting, and customer-profile data.

B. alerting the logistics department when to ship products.

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to A. gain government subsidies. B. attract a different market segment. C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.

B. attract a different market segment.

The basic difference between a good and a service is that a good A. provides intangible benefits. B. can be physically touched. C. is always less expensive than a corresponding service. D. generates greater interest among consumers. E. is more quickly forgotten by consumers.

B. can be physically touched.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.

B. cash cows.

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production era marketing practices.

B. customer relationship management.

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of A. C2C marketing. B. customer relationship management. C. a transactional marketing orientation. D. supply chain management. E. typical production-oriented era marketing practices.

B. customer relationship management.

A __________ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development

B. market development

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed. A. product B. place C. promotion D. price E. primary

B. place

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era. A. production-oriented B. sales-oriented C. market-oriented D. value-based marketing E. retailing-oriented

B. sales-oriented

The marketing goal of getting the right quantities to the right locations at the right time relates to A. communicating the value proposition. B. supply chain management. C. service marketing. D. capturing value. E. price and performance management.

B. supply chain management.

Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing. A. B2B B. B2C C. C2B D. C2C E. BBC

D. C2C

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing. A. B2C B. C2B C. B2B D. C2C E. underground

D. C2C

__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy

D. Positioning

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through A. sharing information across the organization. B. balancing its customers' benefits and costs. C. evaluating strategic competitive partnerships. D. building relationships with customers. E. keeping the faculty members happy.

D. building relationships with customers.

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can A. persuade stores to refuse to carry competitors' products. B. use their power within the supply chain to force weaker firms to accept less favorable pricing. C. control prices and lock in margins. D. create a sustainable competitive advantage. E. justify charging higher prices than competitors do.

D. create a sustainable competitive advantage.

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

D. divide the marketplace into subgroups.

The goal of customer relationship management is to A. manage every customer relationship differently. B. manage every customer relationship to maximum short-term profitability. C. eliminate customers who are profitable, but not highly profitable. D. identify and build loyalty among a firm's customers. E. generate relationships with all of a firm's customers.

D. identify and build loyalty among a firm's customers.

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities

D. implement marketing mix and resources

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in A. a product development growth strategy. B. an operational advantage. C. opportunities for diversification. D. increased long term profits. E. more clearly defined market segments.

D. increased long term profits.

The strategic marketing planning process A. is a five-step process that should always be completed in order. B. is frequently used in reverse. C. begins with establishing specific, measurable outcomes. D. is not always sequential. E. forces marketing managers to think rationally.

D. is not always sequential.