Market strat

2. (p. 181) _____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly. A. Penetration pricing B. Odd-even pricing C. Skimming D. Prestige pricing

C. Skimming

12. Company A uses loyalty cards to track and analyze customer buying patterns and to offer customers coupons and incentives tailored to their buying behavior. Which of the market knowledge systems does the company use? A. Marketing databases B. Competitive intelligence systems C. Internal records systems D. Client contact and salesforce automation systems

12. Company A uses loyalty cards to track and analyze customer buying patterns and to offer customers coupons and incentives tailored to their buying behavior. Which of the market knowledge systems does the company use? A. Marketing databases B. Competitive intelligence systems C. Internal records systems D. Client contact and salesforce automation systems

13. What system of information collection best illustrates a marketing database? A. "Cookies" or electronic signatures placed at a customer's personal computer B. Detailed sales and inventory about the fastest-selling items in a particular store C. Companies' annual and other financial reports, and government documents D. Customer information captured from sales persons

A. "Cookies" or electronic signatures placed at a customer's personal computer

8. This is an example of using product features as a determinant attribute in positioning. A. "This is the quietest dishwasher made in America." B. "Buying a car is like getting married." C. "We know it's perfect, but we take another 1,000 hours just to be sure." D. "Tests prove Pedigree is more nutritious than IAMS, costs less than IAMS, and tastes great, too."

A. "This is the quietest dishwasher made in America."

2. Which of the following statements is true of the top-down approach in sales forecasting? A. A central person or persons take the responsibility to prepare an overall forecast B. Once each part of the firm prepares its own sales forecast, the parts are aggregated to create the forecast as a whole C. Firms can break their anticipated demand into pieces and sum the components to create the summary forecast D. Various combinations of market segments and/or product lines can be combined to build a business plan that looks viable

A. A central person or persons take the responsibility to prepare an overall forecast

10. Principle-oriented consumers are consumers who A. Are motivated by abstract and idealized criteria for products or services B. Shop for products that demonstrate the consumer's success C. Are guided by the need for social or physical activity, variety, and risk taking D. Provide consumer-inputs to marketers during product development

A. Are motivated by abstract and idealized criteria for products or services

12. Which of the following marketing questions underlines the market-attractiveness of a firm? A. Are there unmet or underserved needs we can satisfy? B. Can we perform against critical success factors? C. Stage of competing products in product life cycle: Is the timing right? D. Can we differentiate?

A. Are there unmet or underserved needs we can satisfy?

13. What is not true of the criteria for defining a corporate mission? A. Basic customer needs tend to change over time, but products endure B. Many firms specify their domain in physical terms C. Statements focusing only on basic customer needs can be too broad to provide clear guidance D. Statements that specify domains in physical terms can lead to slow reactions to customer demand changes

A. Basic customer needs tend to change over time, but products endure

26. Cash cows are A. Businesses with a high relative share of low-growth markets B. Low-share businesses in low-growth markets C. The market leaders in a high-growth industry D. Businesses in high-growth industries with low relative market shares

A. Businesses with a high relative share of low-growth markets

12. Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of A. Conjoint analysis B. Cluster analysis C. Logit analysis D. Discriminant analysis

A. Conjoint analysis

2. (p. 209) Sony was the pioneer and early share leader in the videocassette recorder industry with its Betamax technology. But Matsushita's longer-playing and lower-priced VHS format equipment proved much more popular with consumers, and dethroned Sony as industry leader. This example underlines that A. Firms cannot always rely on their competencies to maintain share leadership in a market B. The number of firms competing for a share of the market will decrease if there are few barriers to entry C. Market fragmentation will occur if potential customers have homogeneous functional needs D. Pioneers in new product-markets always manage to leverage their competitive advantages as the market grows

A. Firms cannot always rely on their competencies to maintain share leadership in a market

11. (p. 189) The pioneer's brand can become the standard of reference customers use to evaluate other brands, making it more difficult for followers to convince existing customers that their new brands are superior to the older and more familiar pioneer. Which advantage of being a pioneer does this explain? A. First choice of market segments and positions B. Economies of scale and experience C. Distribution advantages D. High switching costs for early adopters

A. First choice of market segments and positions

23. A manufacturer is moving downstream in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company? A. Forward vertical integration B. Related diversification C. Backward integration D. Conglomerate diversification

A. Forward vertical integratio

20. (p. 179) In the Introduction stage of the Product Life Cycle, firms should focus on all but which of the following? A. Improve product quality B. Using a skimming or penetration pricing strategy C. Intensive channel use D. High level of communication to promote the product

A. Improve product quality

3. If in a certain country, the population growth has slowed, and more product-markets are maturing the result is most likely to be one of A. Intense competition and increase in brand extensions B. Lower competition among products within a single market segment C. Multimillion-dollar businesses that serve large market segments D. Many new media that appeal to broad and wide interest groups

A. Intense competition and increase in brand extensions

13. Identify the limitation of product positioning analysis. A. It does not tell the marketer which positions are most appealing to customers B. It does not include a tool to identify gaps where an opportunity for developing a new product exists C. It does not include a tool indicating how products within a category compare on the level of as many attributes are relevant D. It does not indicate how alternative products are positioned relative to one another in customers' minds

A. It does not tell the marketer which positions are most appealing to customers

11. (p. 215) What action step must a leader take to improve customer satisfaction as competition enters, or prepares to enter the market? A. Leader should take steps to improve not only the physical product but customers' perceptions of it as well B. Leader's sales promotion emphasis should shift from building selective demand to stimulating primary demand C. Leader should continue sales promotion efforts aimed only at stimulating trial among later adopters D. Sales-force efforts should shift from servicing existing customers to prospecting for new accounts

A. Leader should take steps to improve not only the physical product but customers' perceptions of it as well

10. A distinct subset of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering is known as a A. Market segment B. Target market C. Penetrated market D. Marketing mix

A. Market segment

8. Diffusion of innovation theory allows A. Marketers to estimate how rapidly an innovation is likely to be adopted by the target market B. Consumers to gauge the feasibility of product acceptance within their reference groups C. Management to estimate how quickly innovation can seep into an organizational culture D. Marketers to manipulate customer attitudes from the time they first hear about the new product until they adopt it

A. Marketers to estimate how rapidly an innovation is likely to be adopted by the target market

15. What is the expansion for the acronym SMART used in specifying corporate objectives? A. Specific, Measurable, Attainable, Relevant, and Time-bound B. Structured, Manageable, Acceptable, Related, and Theoretical C. Standardized, Manageable, Accountable, Relevant, and Targeted D. Structured, Marketable, Accountable, Reusable, and Targeted

A. Specific, Measurable, Attainable, Relevant, and Time-bound

6. Honeydew, a well-known confectionery, plans to introduce a walnut fudge candy. It asks some of its regular customers to sample it and provide their opinion. In this way, the management hopes to estimate the likely number of buyers for the product, if introduced in their store. Honeydew used the _____ method of forecasting. A. Survey B. Judgment C. Statistical D. Analogy

A. Survey

9. Dell attempted to maintain its long-standing low-cost position by reducing the number of technicians in its customer call centers. As a result, increasing number of customers spent 30 minutes or more on hold before they found a technician to solve their problem. This affected Dell's customer satisfaction rating in the United States and its sales and profit growth stagnated. This scenario highlights A. The increased importance of service B. Strategic inertia C. The company's market-orientation focus D. The impact of information technology

A. The increased importance of service

3. Statistical methods are not recommended for new product managers charged with forecasting sales for a new product because A. There is no history in their venture on which to base a statistical forecast B. These methods tend to not base their assumption of the future on the past C. It does not include a method to forecast impact on consumer demand of different combinations of attributes D. It is not based on what people actually do

A. There is no history in their venture on which to base a statistical forecast

1. (p. 178) Which of the following observations about pioneering firms is incorrect? A. They are always the market share leaders as the new product categories mature B. They must change and adapt their strategies as their products move through a life cycle C. Capitalizing on early advantage, some of them earn substantial revenues and profits D. They can be overtaken by followers that offer better products, superior customer service, or lower prices

A. They are always the market share leaders as the new product categories mature

5. (p. 185) New-to-the-world products can be defined as A. True innovations that are new to the firm and create an entirely new market B. A product category that is new for the company introducing it, but not new to customers in the target market C. Existing products that are targeted at new applications and new market segments D. Items providing improved performance brought out to replace existing products

A. True innovations that are new to the firm and create an entirely new market

8. Matrix Computer Inc.'s focus on large organizational customers caused the company to devote too little effort to the fast growing segment of small technology start-ups. This example illustrates that the firm A. Was prone to strategic inertia B. Can be classified as a drifting organization C. Emphasized the usage of an adaptive strategic planning process D. Implemented market-oriented concepts

A. Was prone to strategic inertia

15. Salesforce automation software helps companies to A. Gather and analyze information about competitors' activities and related business trends B. Disseminate real-time product information to salespeople to satisfy customer needs C. Record annual reports, other financial reports, online and government databases D. Keep track of information about which goods or services were sold from which region

B. Disseminate real-time product information to salespeople to satisfy customer needs

6. (p. 186) These items may be moderately new to both the firm and the customers in its established product-markets. A. Repositioning B. Additions to existing product lines C. New product lines D. Improvements in or revisions of existing products

B. Additions to existing product lines

27. Which of the following is part of using customer equity to estimate the value of alternative marketing actions? A. Attempting to assess the economic value using cost data B. Calculating the lifetime values of each of its customers C. Assessing the shareholder value of each marketing action D. Using external data exclusively

B. Calculating the lifetime values of each of its customers

5. Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product's or service's being user-friendly are examples of which type of categorization based on such attributes? A. Simple physically based attributes B. Complex physically based attributes C. Essentially abstract attributes D. Price

B. Complex physically based attributes

1. Which level of strategy provides direction on the company's mission, the kinds of businesses it should be in, and its growth policies? A. Business-level strategy B. Corporate strategy C. Marketing strategy D. Service strategy

B. Corporate strategy

17. "Primary data collected when cheaper and faster secondary data will do. Quantitative data collected without first collecting qualitative data." These are examples of things that could go wrong in which step of the marketing research process? A. Reporting results to the decision maker B. Determining data sources and types of data and research approaches required C. Designing research: type of study, data collection approach, sample, etc D. Identifying managerial problem and establishing research objectives

B. Determining data sources and types of data and research approaches required

4. What is primary focus of marketing strategy? A. Decisions about the organization's scope and resource deployments across divisions B. Effective allocation and coordination of resources to meet organizational objectives within a specific product-market C. Addressing which competitive advantage best matches the needs and wants of the customers in the target segment D. How a business unit competes within its industry

B. Effective allocation and coordination of resources to meet organizational objectives within a specific product-market

22. Theaters, orchestras, and other performing arts organizations often reach audiences outside major metropolitan areas by promoting matinee performances with lower prices and free public transportation to attract senior citizens and students. Identify the strategy being employed in this case. A. Expansion by diversifying B. Expansion by selling existing products to new segments C. Expansion by developing new products for current customers D. Expansion by increasing penetration of current product-markets

B. Expansion by selling existing products to new segments

14. (p. 193) Which of the following elements belongs to the successful late entrants' market strategy? A. Leapfrogging the pioneer with superior product technology B. Focusing on peripheral target markets or niches C. Larger entry scale than the pioneer D. Heavy promotional expenditures

B. Focusing on peripheral target markets or niches

19. A company trying to increase its market share for its current products is most likely to follow which of the following strategies? A. Diversification B. Market penetration C. Market development D. Product development

B. Market penetration

1. Identify the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that led them to respond in similar ways to a particular product offering and marketing program. A. Target marketing B. Market segmentation C. Product positioning D. Diversification

B. Market segmentation

16. The design, collection, analysis, and reporting of research intended to gather data pertinent to a particular marketing challenge or situation is referred to as A. Data-mining B. Marketing research C. Marketing databases D. Project research

B. Marketing research

8. (p. 188) To establish a foothold in a future new market, or preempt a market segment, a firm must introduce A. New-to-the-world products; improvements or revisions to existing products B. New-to-the-world products; additions to existing product line; repositionings C. Additions to or revisions of existing product line; repositionings; cost reductions D. New-to-the-world product; new product line

B. New-to-the-world products; additions to existing product line; repositionings

25. Which of the following is a limitation of the growth-share matrix? A. Since the matrix uses multiple variables as a basis for categorizing a firm's business, it is complex to understand B. Outcomes of this analysis are highly sensitive to variations in how growth and share are measured C. It is unable to analyze the impact of investing resources in different businesses on the firm's future earnings D. The model fails to consider that firms can generate cash from businesses with strong competitive positions in mature markets

B. Outcomes of this analysis are highly sensitive to variations in how growth and share are measured

1. What term is used to refer to the size of current users who are already using a particular product at the time of forecast? A. Target market B. Penetrated market C. Market potential D. Test market

B. Penetrated market

12. Which of the following statements is consistent with the marketing orientation? A. Pricing is based on production and distribution costs B. Pricing is based on perceived benefits the product provides. C. Credit is a necessary evil. D. Promotion should emphasize product features

B. Pricing is based on perceived benefits the product provides.

13. Possible shifts in customer needs and behavior, the entry or exit of competitors, and changes in their strategies are considered during this step of constructing a market-attractiveness/competitive-position matrix for evaluating potential target markets. A. Select market-attractiveness and competitive-position factors B. Project future position for each segment C. Rate segments on each factor, and plot results on matrices D. Weigh each of the market-attractiveness and competitive-position factors

B. Project future position for each segment

5. Why are early entrants into newly emerging industries, particularly industries based on new technologies, especially likely to be internally focused and not very market-oriented? A. Strong competition during the formative years B. Rapid growth in demand for the new product C. Customer demand less than available supply D. Resource constraints are rarely an immediate threat to survival

B. Rapid growth in demand for the new product

16. The profitability criterion is measured in terms of which of the following indexes? A. Percentage change in sales B. Return on net assets C. Price/earnings ratio D. Percentage cost savings from new processes

B. Return on net assets

4. Company A is a tire manufacturer and uses factors like the number and age of vehicles currently on the road in the country, predictions of GDP for the region, and other relevant factors to forecast market potential. Which of the following methods is the method Company A uses for a more accurate forecast? A. Analogy B. Statistical method C. Observation D. Surveys

B. Statistical method

6. The tendency for firms to automatically continue strategies that were successful in the past, even though current market conditions are changing, is referred to as A. Marketing myopia B. Strategic inertia C. Cognitive dissonance

B. Strategic inertia

11.) Which of the following is considered an important tool for communicating and coordinating expectations and responsibilities throughout the firm? A. Value statement B. Written marketing plan C. Detailed market analysis D. Positioning statement

B. Written marketing plan

4. (p. 182) The shakeout stage in a product life cycle is signaled by A. An expansion of the product line to attract new segments B. Limited purchase of the product due to lack of awareness C. A drop in the overall growth rate and substantial price cuts D. Stability in terms of demand, technology, and competition

C. A drop in the overall growth rate and substantial price cuts

15. (p. 195) Identify the firm characteristic of mass-market penetration for new product pioneers. A. Limited marketing skills and resources B. A prospector with good capability for continued new product innovation C. Ability to shift from stimulation of primary demand to stimulation of selective demand D. Limited financial resources to commit to building capacity prior to demand growth

C. Ability to shift from stimulation of primary demand to stimulation of selective demand

4. The competitive environment in some industries is witnessing developments such as build-to-order processes, mass-customization of products, and computer-aided design technology. What reason can be attributed to the rising importance of marketing segmentation in such an environment? A. Population growth has increased, and more product-markets are maturing B. Social and economic forces have resulted in customers with less disposable incomes C. An increasing trend toward microsegmentation exists in which extremely small market segments are targeted D. Competitive inertia during the market shakeout period as the market transitions from product maturity to the decline stage

C. An increasing trend toward microsegmentation exists in which extremely small market segments are targeted

7. "Gatorade's" original target market consisted of athletes who needed to replenish water and salts lost through perspiration. "Specialized" and "Gary Fisher" target bicyclists who wish to ride on single-track trails or back-country terrain. Which type of segmentation do these examples highlight? A. Demographic B. Geographical C. Behavioral D. Geodemographic

C. Behavioral

7. Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a "close and comfortable shave" highlights which determinant attribute? A. Features B. Manufacturing process C. Benefits D. Endorsements

C. Benefits

9. Consumers evaluate product or brand alternative on the basis of desired characteristics and how valuable each characteristic is. This is referred to as the A. Purchase influence for the product B. Buying situation for the consumer C. Choice criteria of the consumer D. Centralized purchasing structure

C. Choice criteria of the consumer

28. The following performance measures: market share, brand awareness and brand preference are all measures of which of the following performance criteria. A. Profitability B. Contribution to owners C. Competitive strength D. Growth

C. Competitive strength

3. A Sri Lankan tea producer is positioning its teas in the same way that wine has been positioned for years. What does this positioning strategy signify? A. Consumers often know a lot about the essential physical attributes of many products, especially household products B. Consumers generally understand the physical attributes well enough to use them as a basis for choosing between alternatives C. Consumers often evaluate goods and services on factors other than physical properties, including their past experiences D. Consumers can typically evaluate a product better on the basis of what it is than what it does

C. Consumers often evaluate goods and services on factors other than physical properties, including their past experiences

18. A survey on customer feedback for an auto dealer company found that about 75 percent of customers' satisfaction scores were accounted for order processing, delivery, and post-sale services. This finding substantiates which of the following statements? A. Customer satisfaction increases due to the product-oriented approach B. Spending more on emphasizing product features creates a sustainable competitive advantage C. Customer satisfaction is influenced by factors other than the product itself D. Pricing is based on production and distribution costs

C. Customer satisfaction is influenced by factors other than the product itself

5. Which of the following is not an objective entailed in the market segmentation process? A. Identifying a homogeneous segment that differs from other segments B. Specifying criteria that define the segment C. Developing strategic alliances in the decline stage of the product D. Determining segment size and potential

C. Developing strategic alliances in the decline stage of the product

7. Which of the following is not a valid reason for the decline in the use of live test markets? A. They are expensive to conduct B. Competitors can buy checkout scanner data without bearing test marketing expenses C. Differences exist between what people imagine about a product in a test market and what is actually delivered D. Competitors engage in marketing tactics to mislead the company by distorting normal purchasing patterns in a category

C. Differences exist between what people imagine about a product in a test market and what is actually delivered

4. (p. 212) Identify a market leader's action aimed at stimulating selective demand among later adopters. A. Maintaining/improving customer satisfaction and loyalty B. Encouraging/simplifying repeat purchase C. Differentiated positioning against competitive offerings D. Reducing attractiveness of switching

C. Differentiated positioning against competitive offerings

17. In expressing corporate objectives aimed at enhancing shareholder value, a firm combining its debt and market value of its stock, and then subtracting the capital invested in the company, is using the _____ approach. A. Return on capital B. Economies of scale C. Economic value added D. Cash conversion cycle

C. Economic value added

9. The speed of the adoption process Is based upon the all of the following except A. Relative simplicity of the new product B. Ease with which the central idea of the new product is communicated C. Extent to which its trial can be accomplished on a large-scale basis D. Relative advantage of the new product over other products

C. Extent to which its trial can be accomplished on a large-scale basis

5. (p. 215) The marketing action of developing a product line with features that are more appealing to a specific segment of potential customers is characteristic of the A. Market expansion strategy B. Contraction strategy C. Flanker strategy D. Confrontation strategy

C. Flanker strategy

14. The most useful mission statements focus on being A. Functional and broad B. Physical and specific C. Functional and specific D. Physical and broad

C. Functional and specific

11. Brendin Co. is a retail chain specializing in business and casual wear for working women. Each week, all Brendin retail outlets receive sales information about their garments in terms of style and color; merchandise category (e.g., dress or casual); store, area, or region; and for various time periods. This is an example of the use of A. Marketing databases B. Competitive intelligence systems C. Internal records systems D. Client contact and salesforce automation systems

C. Internal records systems

10. Identify the incorrect statement concerning the positioning grid. A. It provides a visual representation of the positions of various products in a competitive set B. Where more than two attributes are to be considered, multidimensional grids are produced C. It indicates how products within a category compare on the level of as many attributes as are relevant D. It identifies gaps that may exist either because of technical constraints or lack of prospective customers

C. It indicates how products within a category compare on the level of as many attributes as are relevant

10. Arguably, in terms of value, the least important group in the diffusion of innovations curve is: A. Early majority B. Late majority C. Laggards D. None of the above

C. Laggards

13. (p. 193) Pioneers that are able to maintain their preeminent position well into the market's growth stage have supported their early entry with one or more marketing strategy elements. Identify the strategy that allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them. A. Broad product lines B. Heavy promotional expenditures C. Large entry scale D. High product quality

C. Large entry scale

5. For which category of new products is the observational method of preparing an evidence-based forecast not possible? A. New product lines B. Improvements in or revisions of existing products C. New-to-the-world products D. Repositionings

C. New-to-the-world products

6. Which of the following statements emphasizes the impact of income in segmenting markets geographically? A. Mobile service providers are focusing attention on the 65-plus segment to improve penetration B. Toyota has launched an online information service aimed at women as they directly influence eight out of ten vehicle purchases C. Nokia has launched a subsidiary to create an ultra-exclusive mobile telephone targeting customers buying prestige products D. The increase in the number of working women has created needs for specialized goods and services

C. Nokia has launched a subsidiary to create an ultra-exclusive mobile telephone targeting customers buying prestige products

21. Stepan Co. successfully introduced detergents for washing clothes, dishes, and carpets. Each detergent capitalized on the image of baking soda as an effective deodorizer and on the high level of recognition of the Stepan Co. brand. This example illustrates the use of a A. Market penetration strategy B. Diversification strategy C. Product development strategy D. Market development strategy

C. Product development strategy

3. (p. 211) This is a marketing objective for share leaders. A. Delineate into niche target markets in product growth stage B. Stimulate selective demand among innovators C. Retain existing customers and ensure brand loyalty D. Stimulate secondary demand to help speed up overall market growth

C. Retain existing customers and ensure brand loyalty

11. "British Leyland was formed through a series of mergers involving a number of British car manufacturers. It did not have a clear identity because it was new and manufactured a variety of brands, including Rover, Triumph, and Austin-Morris." Which constraint associated with an intense position does this example illustrate? A. Repositioning may result in alienating the product's current users despite the success with its newly targeted group B. Success in repositioning efforts may well ensure losing the current group of users C. The dilution of an existing intense position as a result of consolidation D. The temptation to overexploit the position by using the brand name on line extensions and new products

C. The dilution of an existing intense position as a result of consolidation

18. In forecasting the Customer Lifetime Value of a customer which of the following is least important: A. Historical purchase data B. Forecasting future purchases C. The nature of the products purchased

C. The nature of the products purchased

1. (p. 207) All of the following are reasons why followers are attracted to rapidly growing markets except A. It is easier to gain share when a market is growing B. The price competition is likely to be less intense C. The share gains are seldom worth more in a growth market than in a mature market D. It is necessary to make sure that the firm keeps pace with the technology

C. The share gains are seldom worth more in a growth market than in a mature market

1. Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition; and A. the profit that positioning can generate. B. the characteristics built into the product. C. the marketer's decision making intended to create that position. D. the competitive advantage that a position conveys

C. the marketer's decision making intended to create that position.

14. The text notes that over 20% of US consumers are functionally illiterate and word based promotional techniques like signage and packaging are ineffective in reaching them. Which techniques hold promise for effective marketing to this group? A. Use of pictorial information alongside word information. B. Employee training to help consumers avoid embarrassment C. Reliance on words and numbers but with the use of graphics. D. A and B above

D. A and B above

14. Brand equity can be described as: A. How consumers feel, think, and act toward the brand B. The result of brand differences that consumers find meaningful C. The foundation for the prices and profits the brand can achieve D. All of the above

D. All of the above

9. A bank positions itself using its deposit safety attribute. Why would this positioning not create an impact in the consumer's mind? A. Because consumers can consider only those attributes of which they are aware B. Because the positioning effort was kept too simple and complexity was not included C. Because the importance attached to the deposit safety attribute is large and uniform across various consumers D. Because all the alternative brands are perceived to be about equal on that dimension

D. Because all the alternative brands are perceived to be about equal on that dimension

4. Which of the following examples best illustrates perceptual positioning? A. General Foods' breakfast cereal in new chocolate and honey flavors B. Volvo's latest SUV featuring 225 Horsepower and a mileage of 18 miles per gallon C. L'Oreal's new range of water resistant lipstick in fruit flavors D. Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

D. Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

2. Identify a limitation of physical positioning. A. It ignores the early stages of identifying new product offerings B. Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics C. They are rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data D. Customers' attitudes toward a product are often based on social or psychological attributes

D. Customers' attitudes toward a product are often based on social or psychological attributes

9. (p. 188) Improving or revising existing products, additions to existing product lines and cost reductions aim at achieving which of the following objectives? A. Capitalizing on distribution strengths B. Maintaining position as a product innovator C. Exploiting technology in a new way D. Defending a current market-share position

D. Defending a current market-share position

2. What component of strategy involves detailing the desired levels of accomplishment on one or more performance dimensions over specified time periods for the organization as a whole? A. Scope of an organization B. Resource deployments C. Ide ntifying a sustainable competitive advantage D. Goals and objectives of an organization

D. Goals and objectives of an organization

6. A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely alternatives on various determinant attributes the new product may contain. Based on this, infer what step of the positioning process is the firm at? A. Determining customers' most preferred combination of determinant attributes B. Examining the fit between preferences of market segments and current position of product C. Determining product's current location in the product space and intensity D. Identifying relevant set of competitive products serving a target market

D. Identifying relevant set of competitive products serving a target market

20. Amazon.com pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers, even though the expense of such activities postponed the firm's ability to become profitable. This is an example of expansion by A. Diversifying B. Selling existing products to new segments C. Developing new products for current customers D. Increasing market penetration of current product

D. Increasing market penetration of current product

15. Elements such as the threat of new entrants, threat of substitutes, buyer power, competitive rivalry, pertain to which factor? A. Competitive position B. Macro trends C. Firm capabilities and resources D. Industry attractiveness

D. Industry attractiveness

14. Which of the following statements about competitive intelligence systems is incorrect? A. It is a systematic and ethical approach for gathering and analyzing information about competitors' activities and related business trends B. It is based on the idea that more than 80 percent of all information is public knowledge C. It uses online databases, government documents, etc. as its source of information D. It allows the effective capture of customer intelligence from salespeople and account transfers

D. It allows the effective capture of customer intelligence from salespeople and account transfers

16. (p. 196) All of the following are true of firms adopting the niche penetration marketing strategy except A. It is appropriate when a number of different benefit segments are present in the new market B. It is attractive when only a few barriers to the entry of major competitors exist C. It is appropriate when the new market for the new product is more fragmented than expected D. It is appropriate when the product category is likely to experience positive network effects

D. It is appropriate when the product category is likely to experience positive network effects

8. Which of the following illustrations exemplifies behavioral segmentation? A. Uni-Marts, Inc., a convenience store, focuses on small towns and rural areas, thereby avoiding big competitors B. In the United States, car companies have found ways to cater to the needs of the multicultural segment C. The sales of certain kinds of products such as trade magazines are tied closely to occupational type D. Over the years, Volvo has emphasized safety whereas Jaguar has emphasized styling, quickness, and status

D. Over the years, Volvo has emphasized safety whereas Jaguar has emphasized styling, quickness, and status

15. Objective measures, technical orientation and physical brand properties are associated with: A. Perceptual mapping B. Perceptual positioning C. Conceptual positioning D. Physical positioning

D. Physical positioning

7. Which of the following approaches characterize a production-oriented organization? A. Pricing based on perceived benefits provided B. Applying new technology to satisfy customer needs C. Company makes what can be sold D. Primary focus on functional performance and cost

D. Primary focus on functional performance and cost

12. (p. 185) Apple's iPhone's sleek design, innovative software, and functionality enabled Apple to capture a substantial share of the global mobile phone market from competitors like Nokia, Motorola, and Samsung. This example illustrates Apple's ability to take advantage of the pioneers' A. Marketing mistakes B. Limited resources C. Positioning mistakes D. Product mistakes

D. Product mistakes

17. (p. 198) Which of the following marketing programs is used by the niche penetration strategy to increase the customers' ability to buy? A. Moving relatively quickly to expand offerings to appeal to multiple segments B. Offering free trial or extended warranty policies to reduce target customers' perceived risk C. Attempting to maintain margins at level consistent with value of product to early adopters D. Starting with high price but bringing out lower-priced versions in anticipation of competitive entries

D. Starting with high price but bringing out lower-priced versions in anticipation of competitive entries

2. Which of the following involves evaluating the firm's mission and capabilities to deliver what each segment wants, in order to choose which segments it will serve? A. Market penetration B. Market segmentation C. Product development D. Target marketing

D. Target marketing

7. (p. 214) Firms can implement any combination of the given strategies to maintain its leading share position. Firms can choose the preferred combination for a particular product-market of based on all of the following except A. The market's size and its customers' characteristics B. The number and relative strengths of the potential competitors in that market C. The leader's own resources and competencies D. The leader's organizational history and culture

D. The leader's organizational history and culture

3. (p. 180) What is true of the introductory stage in a product life cycle? A. The product is easily available B. The net adoption rate holds steady C. Shakeout or competitive turbulence occurs at the end of this stage D. The length of the product line typically should be relatively short

D. The length of the product line typically should be relatively short

7. (p. 186) Which observation best describes new-to-the-world products? A. They are new to the company but not to the market B. They are often not very innovative in design or operations C. They are aimed at new customer segments or repositioning of existing products D. They try to build primary demand by creating product awareness

D. They try to build primary demand by creating product awareness

11. All of the following are benefits managers gain from applying a common analytical framework across segments to evaluate the potential of alternative market segments except A. To compare the future potential of different segments using the same set of criteria B. To prioritize different segments to decide which segments to target C. To analyze how resources and marketing efforts should be allocated D. To portray how different segments represent equally attractive opportunities

D. To portray how different segments represent equally attractive opportunities

24. Faced with a decline in its current business, a generic drug manufacturer is planning a foray into design, and manufacture of re-locatable modular structures. Which diversification strategy is being employed by the company? A. Related diversification B. Backward integration C. Forward vertical integration D. Unrelated diversification

D. Unrelated diversification

3. What question needs to be specifically addressed while developing a business strategy? A. What business are we in? B. What business should we be in? C. What portion of our total resources should we devote to each business to achieve overall goals and objectives? D. What distinctive competencies can give the business unit a competitive advantage?

D. What distinctive competencies can give the business unit a competitive advantage?