Marketing

70. Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a ________. The challenger observes what has made the leader successful and improves upon it. "competitor myopia" "second mover advantage" "strategic sweet spot" "blue ocean strategy" "red ocean strategy" Difficulty: 2 QuestionID: 18-2-70 Page-Reference: 613 Skill: Recall

"second mover advantage"

58. Harley-Davidson sponsors the Harley Owners Group (H.O.G.) worldwide clubs, which gives Harley owners "an organized way to share their passion and show their pride." This is an example of which of the following? A frequency marketing program A basic customer relationship A club marketing program A partner relationship A structural benefit provided for top customers Difficulty: 2 QuestionID: 01-2-58 Page-Reference: 17 Skill: Recall

A club marketing program

10. An example of deceptive promotion could include which one of the following? A company that lured customers to the store for a bargain that is out of stock A company that refused to advertise sale prices in the local paper A company that advertised a large price reduction from a phony high retail list price A company that used misleading labelling A company that exaggerated its package contents through subtle design Difficulty: 2 QuestionID: 04-2-10 Page-Reference: 111 Skill: Applied

A company that lured customers to the store for a bargain that is out of stock

71. Trends in people's views of organizations indicate that which of the following has increased in the past 20 years? Employees' loyalty to their employers Confidence in Canadian political organizations A loss of confidence in big businesses Distrust of small, local businesses Employees' view of work as a source of satisfaction Difficulty: 3 QuestionID: 03-2-71 Page-Reference: 96 Skill: Recall

A loss of confidence in big businesses

9. Currently, Diego Calabresa is employed by a firm that conducts marketing research and creates ads for other companies that help them target and promote their products to the right markets. Who is Diego's employer? A financial intermediary A physical distribution firm A marketing service agency A reseller A green marketer Difficulty: 2 QuestionID: 03-2-09 Page-Reference: 74 Skill: Applied

A marketing service agency

71. Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? Services differentiation Channel differentiation People differentiation Product differentiation Price differentiation Difficulty: 2 QuestionID: 08-2-71 Page-Reference: 268 Skill: Recall

Channel differentiation

64. Which group determines a product's position relative to competing products? Manufacturers Wholesalers Retailers Consumers Suppliers Difficulty: 1 QuestionID: 08-2-64 Page-Reference: 263-264 Skill: Recall

Consumers

50. Which of the following is a disadvantage of web-based research? Speed Low costs Almost instantaneous results Control over who respondents are Ease of administration Difficulty: 2 QuestionID: 05-2-50 Page-Reference: 161 Skill: Recall

Control over who respondents are

35. About 43.5 percent of young Canadians aged 20 to 29 now live with their parents. This is indicative of what syndrome? Crowded nest Shrinking household Empty nest Lone-parent family Early independence Difficulty: 3 QuestionID: 03-2-35 Page-Reference: 81 Skill: Recall

Crowded nest

60. ________ are subtle stimuli that determine where, when, and how a person responds to an idea. Cues Drives Messages Personalities Impulses Difficulty: 2 QuestionID: 06-2-60 Page-Reference: 200 Skill: Recall

Cues

10. Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on which of the following? Company history Current profitability Market analysis growth Cash cows Technological weaknesses Difficulty: 2 QuestionID: 18-2-10 Page-Reference: 601 Skill: Recall

Current profitability

47. A sound marketing strategy begins with which of the following? Customer analysis Positioning Differentiation Promotion SWOT analysis Difficulty: 2 QuestionID: 02-2-47 Page-Reference: 53 Skill: Recall

Customer analysis

26. In routine buying situations, which members of the buying centre have formal or informal power to select or approve the final suppliers? Users Influencers Gatekeepers Deciders Buyers Difficulty: 1 QuestionID: 07-2-26 Page-Reference: 225 Skill: Recall

Deciders

65. ________ products give both high immediate satisfaction and high long-run benefits. Deficient Pleasing Desirable Salutary Threatening Difficulty: 1 QuestionID: 04-2-65 Page-Reference: 129 Skill: Recall

Desirable

39. If Under Armour were move into non-performance leisure wear or begin making and marketing Under Armour fitness equipment, this would represent which strategy for growth? Product development Market development Market penetration Diversification Partner development Difficulty: 3 QuestionID: 02-2-39 Page-Reference: 50 Skill: Applied

Diversification

36. Approaches to marketing strategy and practice often pass through which of the three following stages? Formulated marketing, intrepreneurial marketing, and innovative marketing Entrepreneurial marketing, intrepreneurial marketing, and innovative marketing Entrepreneurial marketing, formulated marketing, and strategic marketing Entrepreneurial marketing, formulated marketing, and intrepreneurial marketing Innovative marketing, strategic marketing, and formulated marketing Difficulty: 1 QuestionID: 18-2-36 Page-Reference: 607 Skill: Recall

Entrepreneurial marketing, formulated marketing, and intrepreneurial marketing

31. Which method could a marketing researcher use to obtain information that people are unwilling or unable to provide? Observational Survey Questionnaire Focus groups Personal interviews Difficulty: 2 QuestionID: 05-2-31 Page-Reference: 154 Skill: Recall

Observational

60. Loft Industries sells roof trusses to contractors and builders and would like to conduct research to determine how customers assess customer service. Which of the following research instruments would be best for this firm? People meters Checkout scanners Questionnaires Eye cameras BlueEyes technology Difficulty: 2 QuestionID: 05-2-60 Page-Reference: 165 Skill: Applied

Questionnaires

47. What is the least pressing at the top in Maslow's Hierarchy of Needs? Physiological needs Social needs Esteem needs Self-actualization needs Safety needs Difficulty: 2 QuestionID: 06-2-47 Page-Reference: 198-199 Skill: Recall

Self-actualization needs

60. Dove wanted to do more than just sell its beauty care products. The company was on a quest to discover "real beauty" and help women be happy just the way they are. As a result, the Dove Campaign for Real Beauty was successfully launched in 2004. Dove was practising which type of marketing? Sense-of-mission Consumer-oriented Customer-value Innovative Societal Difficulty: 2 QuestionID: 04-2-60 Page-Reference: 127-128 Skill: Applied

Sense-of-mission

80. Which of the following is the first step in the marketing control process? Setting goals Measuring performance Taking corrective action Defining the mission Evaluating the causes of gaps between expected and actual performance Difficulty: 1 QuestionID: 02-2-80 Page-Reference: 62 Skill: Recall

Setting goals

84. Which of the following measures the profits generated by investments in marketing activities? SWOT analysis A marketing audit An executive summary Marketing ROI A budget Difficulty: 1 QuestionID: 02-2-84 Page-Reference: 63 Skill: Recall

Marketing ROI

13. Which of the following is a product-oriented business definition? "To make the Internet buying experience fast, easy, and enjoyable" "To bring aspiration and innovation to every athlete in the world" "To deliver low prices every day" "To be the guardian of our customers' financial dreams" "To rent rooms" Difficulty: 2 QuestionID: 02-2-13 Page-Reference: 44 Skill: Applied

"To rent rooms"

29. Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________. "red ocean strategy" "strategic sweet spot" "common platform" "blue ocean strategy" "strategic platform" Difficulty: 1 QuestionID: 18-2-29 Page-Reference: 604 Skill: Recall

"blue ocean strategy"

30. Tomorrow's leading companies will succeed by creating "blue oceans" of uncontested market space. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating all new demand and rendering rivals obsolete. "strategic sweet spots" "common platforms" "value innovation" "strategic platform" "service nichers" Difficulty: 3 QuestionID: 18-2-30 Page-Reference: 604 Skill: Recall

"value innovation"

45. Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition? A buyer gets a new idea from an advertisement. A buyer gets a new idea at a trade show. A buyer is unhappy with a current supplier's price. A buyer receives a call from a salesperson offering better service terms. A buyer learns about a new product at an industry convention. Difficulty: 2 QuestionID: 07-2-45 Page-Reference: 230 Skill: Recall

A buyer is unhappy with a current supplier's price.

68. Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis? A company is more able to change a threat than a weakness. A company is more able to change a weakness than a threat. A company can be more negatively affected by a weakness than by a threat. A company can be more negatively affected by a threat than by a weakness. A company can more easily identify threats than weaknesses. Difficulty: 3 QuestionID: 02-2-68 Page-Reference: 59 Skill: Applied

A company is more able to change a weakness than a threat.

9. An example of deceptive pricing could include which one of the following? A company advertised a large price reduction from a phony high retail list price. A company lured customers to the store for a bargain that is out of stock. A company refused to advertise sale prices in the local paper. A company misrepresented a product's features in an ad. A company used misleading labelling. Difficulty: 2 QuestionID: 04-2-09 Page-Reference: 111 Skill: Applied

A company refused to advertise sale prices in the local paper.

43. Because of increasing ________, Canadians will demand higher quality products, books, magazines, travel, computers, and Internet services. numbers of nontraditional families family size levels of education social class awareness ethnic diversity Difficulty: 2 QuestionID: 03-2-43 Page-Reference: 83 Skill: Recall

levels of education

39. There is a trend in Canada toward rediscovering the flavour of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This reflects a change in ________ . variety-seeking behaviour subculture lifestyle personality life cycle Difficulty: 2 QuestionID: 06-2-39 Page-Reference: 196 Skill: Applied

lifestyle

55. When WalMart customizes its merchandise store by store to meet shopper needs, it is practising ________. niche marketing psychographic marketing local marketing social segmentation individual marketing Difficulty: 2 QuestionID: 08-2-55 Page-Reference: 260 Skill: Applied

local marketing

57. Bob and Phyllis Cords own two retail stores, one in Madoc and one in Belleville. Alhough the towns are only 40 kilometres apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________. local marketing psychographic segmentation clustering mass customization intermarketing Difficulty: 2 QuestionID: 08-2-57 Page-Reference: 260 Skill: Applied

local marketing

74. The market follower must keep its manufacturing costs and prices ________ or its product quality and services ________. stable; low low; high high; low fair; low low; fair Difficulty: 3 QuestionID: 18-2-74 Page-Reference: 615 Skill: Recall

low; high

79. "Less-for-much-less" positioning involves meeting consumers' ________. quality performance requirements at a lower price lower quality requirements in exchange for a lower price lower quality requirements at the lowest possible price high quality requirements at a discounted rate high quality requirements at the lower possible price Difficulty: 1 QuestionID: 08-2-79 Page-Reference: 271 Skill: Recall

lower quality requirements in exchange for a lower price

5. The _____________ consists of the demographic, economic, natural, technological, political, and cultural factors that are affecting your company. microenvironment macroenvironment internal environment marketing mix global environment Difficulty: 1 QuestionID: 03-2-05 Page-Reference: 72 Skill: Recall

macroenvironment

54. Most of the market is in the hands of the ________, the firm with the largest market share. market challenger market follower market leader market nicher market analyzer Difficulty: 1 QuestionID: 18-2-54 Page-Reference: 610 Skill: Recall

market leader

61. The ________ usually leads the other firms in price changes, new product introductions, distribution coverage, and promotion spending. market leader direct leader market challenger target leader market nicher Difficulty: 1 QuestionID: 18-2-61 Page-Reference: 610-611 Skill: Recall

market leader

44. Charlie Nolan, executive vice-president of National Central Bank, is going through all of the stages of the buying process to purchase a computer system for the bank. Charlie is facing a(n) ________ situation. straight rebuy modified rebuy new task buying limited budget independent buying Difficulty: 2 QuestionID: 07-2-44 Page-Reference: 229 Skill: Applied

new task buying

55. Forty percent of the market is in the hands of Company A. Another 30 percent is in the hands of Company B. Twenty percent is in the hands of Company C, and the remaining 10 percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market ________. leader challenger follower nicher strategist Difficulty: 3 QuestionID: 18-2-55 Page-Reference: 610 Skill: Applied

nicher

78. Computer mouse and interface device maker Logitech is only a fraction the size of giant Microsoft. Yet through skillful ________, it dominates the PC mouse market, with Microsoft as its runner-up. employment tactics niching brand imaging vertical marketing benchmarking Difficulty: 3 QuestionID: 18-2-78 Page-Reference: 615 Skill: Applied

niching

20. The following quote best describes ________: "The marvels of modern technology include the development of a soda can which, when discarded, will last forever, and a . . . car, which when properly cared for, will rust out in two or three years." planned obsolescence product failure short-term planning nonfunctional warranty excessive markups Difficulty: 2 QuestionID: 04-2-20 Page-Reference: 114-115 Skill: Recall

planned obsolescence

62. In the marketing management functions, a SWOT analysis should ________ a marketing plan. precede coincide with follow evaluate take priority over Difficulty: 2 QuestionID: 02-2-62 Page-Reference: 59 Skill: Recall

precede

38. Setting prices below cost, threatening to cut off business with suppliers, and discouraging the purchase of a competitor's products are all examples of ________. routine competition excessive materialism predatory competition acquisitions barriers to entering a market Difficulty: 2 QuestionID: 04-2-38 Page-Reference: 119 Skill: Recall

predatory competition

67. Profitability increases as a business gains share relative to competitors in its ________. higher market direct market communication market served market valued market Difficulty: 2 QuestionID: 18-2-67 Page-Reference: 613 Skill: Recall

served market

28. Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________. separate entity strategic business unit (SBU) cash cow star business portfolio Difficulty: 2 QuestionID: 02-2-28 Page-Reference: 47 Skill: Applied

strategic business unit (SBU)

86. Juanita Castro is looking at whether her company's strategies are well matched to its opportunities. Juanita is utilizing ________. marketing control operating control strategic control SWOT analysis a marketing audit Difficulty: 2 QuestionID: 02-2-86 Page-Reference: 63 Skill: Applied

strategic control

63. During the ________ stage of the business buying decision process, the buying centre assesses the proposals. proposal solicitation supplier selection product value analysis order-routine specification performance review Difficulty: 2 QuestionID: 07-2-63 Page-Reference: 231 Skill: Recall

supplier selection

17. McDonald's new mission says "being our customers' favorite place and way to eat." To be successful, McDonald's needs to now turn this mission into detailed ________. sets of strategies sets of tactics product mixes sets of promotional tools supporting objectives Difficulty: 3 QuestionID: 02-2-17 Page-Reference: 44 Skill: Recall

supporting objectives

40. Fifty-five-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. market segment target market well-defined market differentiated market undifferentiated market Difficulty: 1 QuestionID: 08-2-40 Page-Reference: 257 Skill: Recall

target market

54. Companies can build customer relationships at many levels, depending on the nature of the ________. shopping habits consumer expectation product and service customer perceived value target market Difficulty: 3 QuestionID: 01-2-54 Page-Reference: 16 Skill: Recall

target market

18. Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a profitable focus on buyers who have relatively modest means. This is an example of ________. convenience social marketing market segmentation target marketing value packing Difficulty: 2 QuestionID: 01-2-18 Page-Reference: 9 Skill: Applied

target marketing

85. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." It may seem to the cottagers who frequent The Landing that time has stood still, and yet Casey Brickly can track electronically their purchases at the store and their favourite menu items at the restaurant/lounge. This is a testament to the impact of which factor of the macroenvironment? technological environment demographic environment economic environment political and social environment cultural environment Difficulty: 2 QuestionID: 03-2-85 Page-Reference: 88 Skill: Applied

technological environment

81. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." What geographic shift impacting where and how people work could result in some customers for The Landing spending more time at cottage properties instead of at the office? interprovincial mobility SOHOs urban migration telecommuting home province return Difficulty: 2 QuestionID: 03-2-81 Page-Reference: 82 Skill: Applied

telecommuting

80. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Though the baby boomers currently represent the largest market for The Landing, the next age cohort, raised in the shadow of the boomers, to be of interest will be ________. the Millennials the Gen Yers the Gen Xers the Baby Boom echo the Slackers Difficulty: 2 QuestionID: 03-2-80 Page-Reference: 78 Skill: Applied

the Gen Xers

21. The world leader in advising companies in their business strategies is considered to be ________. Spencer Hammond Worldwide Consulting Incorporated Philip Kotler Harvard University the SRI Consulting Firm the Boston Consulting Group Difficulty: 2 QuestionID: 02-2-21 Page-Reference: 47 Skill: Recall

the Boston Consulting Group

11. Very low expectations set by marketers for a market offering can likely result in ________. disappointment in loyal customers decreased customer satisfaction misidentification of a target market failed understanding of their customers' needs the attraction of too few customers Difficulty: 2 QuestionID: 01-2-11 Page-Reference: 7 Skill: Recall

the attraction of too few customers

63. The leading firm normally gains the most when the ________. rest of the market follows far behind total market expands personal communication channels expand integrated marketing effort expands major competitors enter the market Difficulty: 2 QuestionID: 18-2-63 Page-Reference: 611 Skill: Recall

total market expands

62. To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________. hire and train new employees evaluate current employees run smaller companies out of business, causing them to sell out to larger companies try to expand their market share further, even if market size remains constant shut down current company locations and reopen in highly populated areas Difficulty: 3 QuestionID: 18-2-62 Page-Reference: 611 Skill: Recall

try to expand their market share further, even if market size remains constant

43. Sigmund Freud believed that people are ________ how their behaviour is shaped by many of the psychological forces. socially conscious of unsure of aware of status-driven about unaware of Difficulty: 2 QuestionID: 06-2-43 Page-Reference: 197 Skill: Recall

unaware of

36. Jolene Enterprises mass-produces an all-purpose floor cleaner, mass-distributes it, and mass-promotes it. This firm uses ________ marketing. segmented undifferentiated traditional differentiated niche Difficulty: 1 QuestionID: 08-2-36 Page-Reference: 257 Skill: Applied

undifferentiated

42. Developing a strong position within several segments creates more total sales than ________ marketing across all segments. undifferentiated differentiated niche target individual Difficulty: 3 QuestionID: 08-2-42 Page-Reference: 259 Skill: Recall

undifferentiated

59. When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. differentiated undifferentiated concentrated customized localized Difficulty: 2 QuestionID: 08-2-59 Page-Reference: 260 Skill: Recall

undifferentiated

37. A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. differentiated marketing undifferentiated marketing segmented marketing concentrated marketing mass customization Difficulty: 2 QuestionID: 08-2-37 Page-Reference: 257 Skill: Applied

undifferentiated marketing

68. Higher shares tend to produce higher profits only when ________ fall with increased market share. unit costs higher markets sales product values numbers of customers Difficulty: 3 QuestionID: 18-2-68 Page-Reference: 613 Skill: Applied

unit costs

23. Critics who believe that the marketing system poorly serves disadvantaged consumers claim that the ________ pay more for inferior goods. wealthy uneducated urban poor rural poor elderly Difficulty: 2 QuestionID: 04-2-23 Page-Reference: 115 Skill: Recall

urban poor

25. Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. benefit user status usage rate psychographic occasions Difficulty: 1 QuestionID: 08-2-25 Page-Reference: 252-253 Skill: Applied

usage rate

76. Which of the following explains why few companies have been successful in shutting down critics who post complaints on the Web? The criticism is usually interpreted as protected speech. The courts have typically refused to hear any cases against individual critics. Web sites using "I hate" or "sucks" in the title along with a company's name can be easily confused with the company's actual website. Registering domain names to prevent critical websites is a lengthy process. Companies have found that it is more effective to respond in kind with attacks against critics. Difficulty: 2 QuestionID: 03-2-76 Page-Reference: 99 Skill: Recall

The criticism is usually interpreted as protected speech.

55. Which of the following has encouraged marketers to pursue environmentally sustainable strategies? The competition act The black market The green movement Deregulation Green intervention Difficulty: 2 QuestionID: 03-2-55 Page-Reference: 87-88 Skill: Recall

The green movement

41. Which of the following demographic trends is likely the most responsible for the increasing number of people who telecommute? The migration toward metropolitan and suburban areas The move from rural to metropolitan areas The increasing number of nontraditional households The growing percentage of married couples who do not have children The declining number of manufacturing workers Difficulty: 3 QuestionID: 03-2-41 Page-Reference: 82-83 Skill: Applied

The migration toward metropolitan and suburban areas

95. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Which of the following scenarios would mean that Fun-Spot had become a market nicher? The park is overhauled to meet only the needs of the physically disabled. Fun-Spot develops a promotion to attract college students every Friday. Activities for families with young children are reduced. The restaurant is closed and replaced with a food court. Fun-Spot adds a video game arcade to attract gamers. Difficulty: 2 QuestionID: 02-2-95 Page-Reference: 54-55 Skill: Applied

The park is overhauled to meet only the needs of the physically disabled.

39. Mass marketers, such as Walmart and Zellers, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? Undifferentiated marketing Differentiated marketing Target marketing Concentrated marketing Micromarketing Difficulty: 1 QuestionID: 08-2-39 Page-Reference: 257 Skill: Applied

Undifferentiated marketing

88. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." In the scenario, how does Herb segment his market? Loyalty status Usage rate Income Geographically Demographically Difficulty: 2 QuestionID: 08-2-88 Page-Reference: 252-253 Skill: Applied

Usage rate

61. Which of the following is good advice about creating research questionnaires for Mark Hammel, research specialist at New Wave Data, to follow? Use care in the wording and ordering of questions. Questions do not have to be arranged in any given order. Ask difficult questions in the beginning to "weed out" uninterested respondents. Ask personal questions in the middle of the instrument. Use impressive vocabulary to convey the importance of the questionnaire. Difficulty: 3 QuestionID: 05-2-61 Page-Reference: 165 Skill: Applied

Use care in the wording and ordering of questions.

12. _____________ are called the internal public. Consumers Neighbourhood residents Local communities Workers and managers Environmental groups Difficulty: 2 QuestionID: 03-2-12 Page-Reference: 75 Skill: Recall

Workers and managers

6. A company that buys from a larger organization and sells at a profit to smaller retailers is called _____________. a corporation a marketing services agency Walmart a consumer watchdog a reseller Difficulty: 1 QuestionID: 03-2-06 Page-Reference: 74 Skill: Applied

a reseller

79. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Which of the following demographic forces has most likely influenced the recent upscale atmosphere of the area surrounding Witmer Lake? baby boomers reaching their peak earning and spending years Gen Xers displacing the lifestyles of baby boomers Millennials beginning to assert their buying power the changing structure of the American family the growing ethnic diversity of the country Difficulty: 2 QuestionID: 03-2-79 Page-Reference: 78 Skill: Applied

baby boomers reaching their peak earning and spending years

93. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." It takes the unified efforts of several departments at Fun-Spot to make the amusement park a success. The purchasing department, restaurant management, theatre group, and others all work in harmony to deliver a superior product. This is an example of the benefits of a strong _________. diversification strategy marketing ROI value-delivery network value chain market segment Difficulty: 2 QuestionID: 02-2-93 Page-Reference: 51 Skill: Applied

value chain

43. Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. market development product development business portfolio value chain value delivery network Difficulty: 1 QuestionID: 02-2-43 Page-Reference: 51 Skill: Recall

value chain

17. Benchmarking has become a powerful tool for increasing a company's ________. brand image mass appeal employee training services distribution channels competitiveness Difficulty: 2 QuestionID: 18-2-17 Page-Reference: 602 Skill: Recall

competitiveness

3. To plan effective marketing strategies, the company needs to find out all it can about its competitors. It must constantly compare its marketing strategies, products, prices, channels, and promotion with those of close competitors. This is an example of ________. benchmarking competitor analysis customer value analysis product leadership continuous innovation Difficulty: 2 QuestionID: 18-2-03 Page-Reference: 599 Skill: Recall

competitor analysis

68. A society's ________ are expressed in how people view themselves, organizations, society, nature, and the universe. social codes cultural values demographics public policies economies Difficulty: 1 QuestionID: 03-2-68 Page-Reference: 95 Skill: Recall

cultural values

21. Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as ________. customer value analysis competitive customer analysis power analysis advertising specialty analysis benchmarking Difficulty: 2 QuestionID: 18-2-21 Page-Reference: 602 Skill: Recall

customer value analysis

93. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." One of Seagull Terrace's regular guests has created a blog devoted to her summer stays at the resort. This has the potential to attract new guests to Seagull Terrace and is an example of ________________. partner relationship management perceived customer value supply chain management customer-generated marketing not-for-profit marketing Difficulty: 2 QuestionID: 01-2-93 Page-Reference: 19 Skill: Applied

customer-generated marketing

91. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." Ted Jones returns to Seagull Terrace with his family year after year. He feels that although it can be an expensive holiday he derives great pleasure from its scenic views, fine dining, and comfortable rooms. Ted's conclusion, after weighing the pros and cons, is known as ________________. customer relationship management customer-perceived value lifetime customer value the value proposition customer equity Difficulty: 2 QuestionID: 01-2-91 Page-Reference: 14 Skill: Applied

customer-perceived value

50. FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________. loyalty relationship marketing customer-perceived value social relationships a societal marketing campaign Difficulty: 3 QuestionID: 01-2-50 Page-Reference: 14 Skill: Applied

customer-perceived value

66. In customer relationship management (CRM), findings about customers discovered through ________ techniques often lead to marketing opportunities. data warehousing data mining customer strategy customer loyalty management value network Difficulty: 2 QuestionID: 05-2-66 Page-Reference: 167-168 Skill: Recall

data mining

30. Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________. short-term oriented decentralized limitation free product oriented centralized Difficulty: 2 QuestionID: 02-2-30 Page-Reference: 48 Skill: Recall

decentralized

67. Under a ________, a supplier monitors and replenishes a buyer's stock automatically as needed. vendor-managed inventory negotiated contract stand-alone contract periodic purchase order blanket contract Difficulty: 2 QuestionID: 07-2-67 Page-Reference: 232 Skill: Recall

vendor-managed inventory

7. Greg Williams now has the buying power to purchase the computer system he has wanted for the past six months. Greg's want now has become a(n) ________. need necessity demand exchange transaction Difficulty: 1 QuestionID: 01-2-07 Page-Reference: 6 Skill: Applied

demand

47. The ________ environment consists of factors that affect consumer purchasing power and spending patterns. cultural political technological economic natural Difficulty: 1 QuestionID: 03-2-47 Page-Reference: 85 Skill: Recall

economic

80. Total government spending is determined by ________ rather than by any ________ to develop this market. price; contracts elected officials; contracts elected officials; marketing effort marketing effort; elected officials' effort product and service availability; marketing strategies Difficulty: 3 QuestionID: 07-2-80 Page-Reference: 235 Skill: Recall

elected officials; marketing effort

19. Most companies aim competition against ________. their biggest competitor the market leader weak competitors new competitors distant competitors Difficulty: 2 QuestionID: 18-2-19 Page-Reference: 602 Skill: Recall

weak competitors

72. Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and it allows suppliers to send new-product information directly to Pace retailers. In this scenario, Pace Hardware is using a(n) ________. extranet intranet search engine trading exchange reverse auction Difficulty: 2 QuestionID: 07-2-72 Page-Reference: 232 Skill: Applied

extranet

32. The ________ is the most important consumer buying organization in society; the roles and influences of different members have been researched extensively. family social class membership group subculture reference group Difficulty: 2 QuestionID: 06-2-32 Page-Reference: 191 Skill: Recall

family

15. Defining the problem and research objectives is the _______ step in the marketing research process. third first second fourth last Difficulty: 2 QuestionID: 05-2-15 Page-Reference: 150-151 Skill: Recall

first

44. The ________ in North America came about because of concern for the loss of the atmosphere's ozone layer, toxic wastes, litter, and the damage caused by strip mining and forest depletion. first wave of modern environmentalism second wave of modern environmentalism current wave of environmentalism second wave of consumerism first wave of enlightened marketing Difficulty: 2 QuestionID: 04-2-44 Page-Reference: 121 Skill: Recall

first wave of modern environmentalism

38. According to the textbook, the major advantage of survey research is its ________. flexibility interactive design ease and speed to complete duplicability simplicity Difficulty: 2 QuestionID: 05-2-38 Page-Reference: 157 Skill: Recall

flexibility

39. Small companies sometimes succeed in the short run in spite of themselves. They make mistakes but not costly mistakes. Over time, these companies may do a better job scanning market research trying to fine-tune their competitive strategies and programs. These companies are moving toward more ________ marketing. diversified formulated entrepreneurial intrepreneurial targeted Difficulty: 1 QuestionID: 18-2-39 Page-Reference: 607 Skill: Recall

formulated

71. The market challenger may launch a full ________, matching the competitor's product, advertising, price, and distribution efforts. It attacks the competitor's strengths rather than its weaknesses. indirect attack direct attack frontal attack multiple attack strength attack Difficulty: 2 QuestionID: 18-2-71 Page-Reference: 614 Skill: Recall

frontal attack

27. A(n) ________ controls the flow of information to others in the buying centre. user influencer buyer gatekeeper decider Difficulty: 1 QuestionID: 07-2-27 Page-Reference: 225 Skill: Recall

gatekeeper

48. The purchasing agent at your company is working with engineers and users to define the items to purchase by describing general characteristics and quantities needed. He is also ranking the importance of reliability, durability, and price. The buyer is preparing a(n) ________. value analysis product specifications list general need description order-routine specification product proposal Difficulty: 2 QuestionID: 07-2-48 Page-Reference: 230 Skill: Recall

general need description

52. In the generally accepted stages of the business buying process, the step following problem recognition is ________. proposal solicitation supplier search product value analysis general need description performance review Difficulty: 2 QuestionID: 07-2-52 Page-Reference: 230 Skill: Recall

general need description

16. The ________ will form an important opinion on your company whether they are your customers or not. business reseller government general public marketing intermediary Difficulty: 3 QuestionID: 03-2-16 Page-Reference: 75 Skill: Applied

general public

47. Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be difficult to ________. find enough secondary data to support the findings orchestrate co-operation among participants encourage honest responses to questions generalize from the results find a representative sample Difficulty: 2 QuestionID: 05-2-47 Page-Reference: 159 Skill: Recall

generalize from the results

41. Walmart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Walmart is pursuing ________ as a growth strategy. market penetration product development demographic market development geographic market development diversification Difficulty: 2 QuestionID: 02-2-41 Page-Reference: 50 Skill: Applied

geographic market development

72. When firms use symbols, colours, or characters to convey their personalities, they are using ________ differentiation. image people company reputation subliminal Difficulty: 1 QuestionID: 08-2-72 Page-Reference: 268 Skill: Recall

image

61. New laws and their enforcement, affecting business around the world, will continue to ________. become standardized increase remain steady decrease threaten the American domestic economy Difficulty: 2 QuestionID: 03-2-61 Page-Reference: 91 Skill: Recall

increase

51. Which of the following statements about income distribution in Canada is true? Wealth is widespread among Aboriginal reserves. Canadians in the top 5 percent of wage earners account for approximately 25 percent of the total income earned. This distribution of income has created an untiered market. The earnings of Canada's middle class are increasing. The median earnings among the top 20 percent of Canadian full-time workers decreased over 16 percent since the last census. Difficulty: 3 QuestionID: 03-2-51 Page-Reference: 86 Skill: Recall

Canadians in the top 5 percent of wage earners account for approximately 25 percent of the total income earned.

87. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind? Although more women hold jobs outside the home today than when The Attic Trunk first opened, husband-wife involvement in the buying process has remained relatively unchanged. Children have considerable amounts of disposable income and have a strong influence on family buying decisions. Women today account for 50 percent of all technology purchases. Men today account for about 40 percent of all food purchases. Women influence nine out of ten new home and vacation purchases. Difficulty: 1 QuestionID: 06-2-87 Page-Reference: 194 Skill: Applied

Children have considerable amounts of disposable income and have a strong influence on family buying decisions.

19. Internet use among ________ exceeds time spent listening to radio and watching TV combined. Aboriginal Canadians French Canadians Chinese Canadians gay and lesbian Canadians mature Canadians Difficulty: 3 QuestionID: 06-2-19 Page-Reference: 187 Skill: Recall

Chinese Canadians

31. An example of a company exhibiting blue-ocean thinking is ________. Amazon's digital music download services a Starbucks opening in the vicinity of an independent coffee house Nike's brand image of the "swoosh" Whirlpool's full line of medium-price appliances supported by good service Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment Difficulty: 3 QuestionID: 18-2-31 Page-Reference: 604 Skill: Applied

Cirque du Soleil's reinvention of the circus as a higher form of modern entertainment

70. Which trend related to people's attitudes toward others suggests less demand for theatre-going and greater demand for home-improvement, home-office, and home-entertainment products? The green movement Globalization Cocooning Renewed patriotism Sustainability Difficulty: 3 QuestionID: 03-2-70 Page-Reference: 96 Skill: Recall

Cocooning

4. Bill, in his role as regional manager needs to carefully conduct a ________ which involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. The marketing management process Benchmarking Customer-centred analysis Market leading Competitor analysis Difficulty: 2 QuestionID: 18-2-04 Page-Reference: 599 Skill: Recall

Competitor analysis

76. ________ is one of the best ways to increase share of customer. Targeting new customers Using bait and switch Cross-selling Relationship selling Partnership marketing Difficulty: 3 QuestionID: 01-2-76 Page-Reference: 22 Skill: Recall

Cross-selling

35. ________________ is a term that critics apply to the marketing system: that advertising messages are everywhere, from websites and emails to unwanted direct mail and catalogues to television commercials and product tie-ins to billboards and store signage. Cultural pollution High advertising and promotion costs Deceptive practices False wants and too much materialism The balance between private goods and social goods Difficulty: 2 QuestionID: 04-2-35 Page-Reference: 118 Skill: Applied

Cultural pollution

12. ________ is(are) the most basic cause(s) of a person's wants and behaviour. Culture Brand personality Cognitive dissonance Societal factors Selective perception Difficulty: 1 QuestionID: 06-2-12 Page-Reference: 186 Skill: Recall

Culture

51. Which of the following is the term for customers who make repeat purchases and tell others about their positive experiences with a product or service? Satisfied customers Customer evangelists Butterflies Full partners Social customers Difficulty: 2 QuestionID: 01-2-51 Page-Reference: 14 Skill: Recall

Customer evangelists

50. Lexus, American Express, British Airways, and Ritz-Carlton Hotels will do almost anything to build long-term customer loyalty and to capture customer lifetime value. These companies are pursuing which of the following competitive marketing strategies? Employee intimacy Operational excellence Differentiation Product leadership Customer intimacy Difficulty: 2 QuestionID: 18-2-50 Page-Reference: 609 Skill: Applied

Customer intimacy

94. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. If Bridgehead were to provide superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers, which of the four value disciplines would it be employing? Differentiation Overall cost leadership Operational excellence Focus Customer intimacy Difficulty: 2 QuestionID: 18-2-94 Page-Reference: 609 Skill: Applied

Customer intimacy

73. Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration of which of the following? Share of customer Market share Profitability Customer lifetime value Market share maintenance Difficulty: 2 QuestionID: 01-2-73 Page-Reference: 21 Skill: Applied

Customer lifetime value

45. Of the following, which is the most important concept of modern marketing? Customer relationship management Societal marketing Consumer-generated marketing Properly trained salespeople Low prices Difficulty: 2 QuestionID: 01-2-45 Page-Reference: 13 Skill: Recall

Customer relationship management

63. Typically, customer information is buried deep in separate databases, plans, and records of many different company functions and departments. To overcome such problems, which of the following should you try? Customer satisfaction management More sophisticated hardware Customer relationship management Decreased marketing intelligence A marketing information system Difficulty: 1 QuestionID: 05-2-63 Page-Reference: 167 Skill: Recall

Customer relationship management

21. Your marketing department is currently researching the gender, race, occupations, and other statistics of your target market that can be easily measured. Which environment is being researched? Cultural Psychographic Economic Geographic Demographic Difficulty: 1 QuestionID: 03-2-21 Page-Reference: 76 Skill: Applied

Demographic

21. Which type of research would be best suited for identifying which demographic groups prefer diet soft drinks and why they have this preference? Exploratory Descriptive Causal Experimental Secondary Difficulty: 2 QuestionID: 05-2-21 Page-Reference: 150 Skill: Applied

Descriptive

74. Which of the following is most true about conducting international marketing research? It is on the decrease due to high costs. Cultural differences are not great enough to skew results. There is a lack of qualified research personnel. Despite the costs of international research, the costs of not doing it are higher. Interpretations of quality are consistent among different countries. Difficulty: 3 QuestionID: 05-2-74 Page-Reference: 173 Skill: Recall

Despite the costs of international research, the costs of not doing it are higher.

45. Which of the following is the most logical reason for Procter & Gamble's offering products that compete with one another on the same supermarket shelves? Different people want a greater selection. Procter & Gamble has little competition. Different people want different mixes of benefits from the products they buy. Retailers request it. It creates healthy competition. Difficulty: 3 QuestionID: 08-2-45 Page-Reference: 258 Skill: Applied

Different people want different mixes of benefits from the products they buy.

8. Which of the following questions represents the consumer's perspective on the postpurchase issues stage of the consumption process? What are the best sources of information to learn more about alternative choices? Does the product provide pleasure or perform its intended function? How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision? Is acquiring a product a stressful or a pleasant experience? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-08 Page-Reference: 185 Skill: Recall

Does the product provide pleasure or perform its intended function?

9. Which of the following questions represents the market's perspective on the postpurchase issues stage of the consumption process? What are the best sources of information to learn more about alternative choices? What cues do consumers use to infer which products are superior to others? How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision? Is acquiring a product a stressful or a pleasant experience? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-09 Page-Reference: 185 Skill: Recall

Does this person tell others about his or her experiences with the product?

37. Most companies are started by individuals who live by their wits. They visualize an opportunity, construct flexible strategies on the backs of envelopes, and knock on every door to gain attention. What stage in marketing strategy are these individuals in? Exponential marketing Formulated marketing Entrepreneurial marketing Intrepreneurial marketing Innovative marketing Difficulty: 1 QuestionID: 18-2-37 Page-Reference: 607 Skill: Recall

Entrepreneurial marketing

45. ________ is a management approach that involves developing strategies that both sustain the environment and produce profits for the company. Consumerism New clean technology Environmental sustainability Social responsibility Ethical decision making Difficulty: 1 QuestionID: 04-2-45 Page-Reference: 121 Skill: Recall

Environmental sustainability

43. ________ is an organized movement of concerned citizens and government agencies to protect and improve people's living environment. Consumerism Environmentalism Social responsibility Enlightened marketing Sense-of-mission marketing Difficulty: 1 QuestionID: 04-2-43 Page-Reference: 120 Skill: Recall

Environmentalism

12. Through which of these sources of information is a competitor most likely to reveal intelligence information? Annual reports Ad hoc exhibits URLs Product releases Internal marketing conferences Difficulty: 1 QuestionID: 05-2-12 Page-Reference: 149 Skill: Recall

Annual reports

62. Which of the following statements about the supplier selection stage of the business buying decision process is true? Price is the only factor businesses consider before making a purchase decision. Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier. Price and warranty are the only two factors businesses consider before making a purchase decision. Buyers do not negotiate for better terms before making a final supplier selection. Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behaviour, and honest communication. Difficulty: 2 QuestionID: 07-2-62 Page-Reference: 231 Skill: Recall

Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behaviour, and honest communication.

24. Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called? Benefit Behavioural Age and life cycle Psychographic Demographic Difficulty: 1 QuestionID: 08-2-24 Page-Reference: 252 Skill: Applied

Benefit

28. ________ and ________ segmentation provide the best basis for segmenting business markets according to many marketers. This is also true for consumer markets. Benefits; buying behaviour User status; user loyalty Geographic; demographic Age and life-cycle; psychographic Income; usage rate Difficulty: 2 QuestionID: 08-2-28 Page-Reference: 255 Skill: Recall

Benefits; buying behaviour

84. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. The quality control manager and line inspector at A-1 could help to determine which suppliers had the capabilities of producing specific types of steel. What role can each play in the purchase decision process? Influencer Gatekeeper Decider Buyer User Difficulty: 3 QuestionID: 07-2-84 Page-Reference: 225 Skill: Applied

Influencer

56. Which sustainable marketing principle requires that a company seek real product and marketing improvements? Consumer-oriented Innovative Customer-value Sense-of-mission Market-oriented Difficulty: 1 QuestionID: 04-2-56 Page-Reference: 127 Skill: Recall

Innovative

84. Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong? Innovator Early adopter Early majority Late majority Laggards Difficulty: 2 QuestionID: 06-2-84 Page-Reference: 209 Skill: Applied

Innovator

22. Which of the following is most likely true about a straight rebuy? It requires little customer relationship management. It is more complex than a new-task situation. It often involves products with low risks. It occurs when a buyer wants to locate the best deal on the market. It involves more opportunities for "out" buyers than other types of purchasing situations do. Difficulty: 3 QuestionID: 07-2-22 Page-Reference: 223 Skill: Applied

It often involves products with low risks.

64. Which of the following is true about customer relationship management (CRM)? It relies on information produced through primary research. Its aim is to maximize profit margins. Its aim is to increase the efficiency of each customer touch point. Its aim is to maximize customer loyalty. Most companies who first implemented CRM have greatly benefited from the results. Difficulty: 2 QuestionID: 05-2-64 Page-Reference: 167 Skill: Recall

Its aim is to maximize customer loyalty.

57. Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore. Which of the following best describes Favorite Memories? Market follower Market challenger Market seeker Market nicher Full market coverer Difficulty: 1 QuestionID: 02-2-57 Page-Reference: 54-55 Skill: Applied

Market nicher

76. ________ is profitable because the needs of the target customer segment are better met than when other firms casually attempt to sell to the same segment. Benchmarking Differentiated marketing Market niching Vertical marketing Dynamic marketing Difficulty: 2 QuestionID: 18-2-76 Page-Reference: 615 Skill: Recall

Market niching

2. What are the four steps to designing a customer-driven marketing strategy? Market segmentation, targeting, differentiation, and positioning Positioning, market selection, mass marketing, and targeting Market segmentation, differentiation, partitioning, and targeting Market alignment, market segmentation, differentiation, and market positioning Market recognition, market preference, market targeting, and market insistence Difficulty: 2 QuestionID: 08-2-02 Page-Reference: 244-245 Skill: Recall

Market segmentation, targeting, differentiation, and positioning

31. Which department in a company carries the primary responsibility for achieving profitable growth? Accounting Product development Operations Human resources Marketing Difficulty: 2 QuestionID: 02-2-31 Page-Reference: 49 Skill: Recall

Marketing

2. The following is an accurate description of modern marketing: Marketing is maximizing profits. Selling and advertising are synonymous with marketing. Marketing is all about sales. Marketing involves satisfying customers' needs in a socially responsible and ethical manner. Marketing is used only by for-profit organizations. Difficulty: 2 QuestionID: 01-2-02 Page-Reference: 5 Skill: Recall

Marketing involves satisfying customers' needs in a socially responsible and ethical manner.

16. __________ is defined as the art and science of choosing target markets and building profitable relationships with them. Customer relationship management Value proposition Segmentation Marketing management Customer satisfaction Difficulty: 2 QuestionID: 01-2-16 Page-Reference: 9 Skill: Conceptual

Marketing management

34. Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature college-aged students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following? Baby boomers Seniors Gen Xers Millennials The SOHO market Difficulty: 1 QuestionID: 03-2-34 Page-Reference: 80 Skill: Applied

Millennials

89. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. Because of industry design changes, A-1 Stampings Inc. must modify product specifications, prices, terms, and, perhaps, suppliers. This represents which type of buying situation? Modified rebuy Redesign situation New task situation Complex buying Straight rebuy Difficulty: 3 QuestionID: 07-2-89 Page-Reference: 232 Skill: Applied

Modified rebuy

81. Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"? More-for-the-same More-for-less Same-for-less Less-for-much-less More-for-more Difficulty: 2 QuestionID: 08-2-81 Page-Reference: 271 Skill: Recall

More-for-less

75. Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use? More-for-the-same More-for-more Repositioning The-same-for-less More-for-less Difficulty: 1 QuestionID: 08-2-75 Page-Reference: 270 Skill: Applied

More-for-more

77. What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price? More-for-the-same More-for-less Same-for-less Less-for-much-less All-or-nothing Difficulty: 3 QuestionID: 08-2-77 Page-Reference: 271 Skill: Recall

More-for-the-same

14. Which of the following advertising situations would most likely be considered "puffery"? Mr. Clean coming to a housewife's rescue to help clean a dirty stovetop Noticing toned thighs and legs as a result of using the Thigh Master for only five weeks Children growing into attractive adults as a result of drinking milk A retired couple drinking a vitamin and protein shake and then going bicycling A sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on the horizon Difficulty: 2 QuestionID: 04-2-14 Page-Reference: 112 Skill: Applied

Mr. Clean coming to a housewife's rescue to help clean a dirty stovetop

27. ______________ is(are) often used to identify smaller, better-defined target groups. User rates Multiple segmentation bases Loyalty segmentation Positioning Mass marketing Difficulty: 3 QuestionID: 08-2-27 Page-Reference: 253 Skill: Recall

Multiple segmentation bases

59. The legislation created that requires certain commodities to be properly labelled or described in advertising for the purpose of indicating material content or quality is called the ________. Competition Act Food and Drug Act Consumer Packaging and Labelling Act National Trade-mark and True Labelling Act Motor Vehicle Safety Act Difficulty: 2 QuestionID: 03-2-59 Page-Reference: 91 Skill: Recall

National Trade-mark and True Labelling Act

11. ______________ are called local publics. Workers Managers Volunteers Boards of directors Neighbourhood residents and communities Difficulty: 2 QuestionID: 03-2-11 Page-Reference: 75 Skill: Recall

Neighbourhood residents and communities

16. Which of the following is considered an important Canadian subculture by marketers? Non-Aboriginal Canadians Co-ethnic consumers Immature consumers Hispanic Canadians French Canadians Difficulty: 2 QuestionID: 06-2-16 Page-Reference: 186 Skill: Recall

French Canadians

60. Which of the following are market challenger strategies? Expand total market and protect market share Expand market share and follow closely Full frontal attack and indirect attack Follow closely and follow at a distance Customer, market, quality-price, service and multiple niching Difficulty: 3 QuestionID: 18-2-60 Page-Reference: 610 Skill: Recall

Full frontal attack and indirect attack

73. Which of the following is the most common approach to marketing organization? Geographic Product management Functional Divisional Combination Difficulty: 3 QuestionID: 02-2-73 Page-Reference: 62 Skill: Recall

Functional

75. Berman Electric, a chain of 18 appliance stores, has a marketing organization in which specialists head different marketing activities. What is this type of organization called? Geographic Product Organic Functional Market Difficulty: 2 QuestionID: 02-2-75 Page-Reference: 62 Skill: Applied

Functional

81. Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into groups headed by a sales manager, an advertising manager, and a customer-service manager. What type of organization is this? Geographic Product Functional Customer Market Difficulty: 1 QuestionID: 02-2-81 Page-Reference: 62 Skill: Applied

Functional

25. Noora DeLange is helping her company develop a marketing program for a new product line. The program involves emphasizing experience over acquisition and uses a marketing pitch that is less overt than the company's previous programs. The marketing program is most likely designed to appeal to which of the following demographic groups? Gen Xers Nontraditional households "Metropolitan" populations Millennials Manufacturing workers Difficulty: 3 QuestionID: 03-2-25 Page-Reference: 79 Skill: Applied

Gen Xers

26. Which of the following best explains why Gen Xers as a group may be more economically cautious than baby boomers? Gen Xers grew up during times of corporate downsizing and recession. Gen Xers watched much of their savings evaporate during the recession of the late 1980s. Gen Xers are not as materialistic as members of other generations. Gen Xers tend to seek more guidance from the financial services industry. Gen Xers are more focused on saving for retirement than baby boomers are. Difficulty: 3 QuestionID: 03-2-26 Page-Reference: 79 Skill: Recall

Gen Xers grew up during times of corporate downsizing and recession.

17. ING, an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over 1 million fans and watched by approximately 300 million viewers worldwide. The ING logo and name appear throughout the race course. ING most likely sponsors the event in order to appeal to which type of public? Financial Local Government General Internal Difficulty: 1 QuestionID: 03-2-17 Page-Reference: 75 Skill: Applied

General

22. The three largest generational groups in Canada are the baby boomers, Millennials, and ________. seniors toddlers teens tweens Generation Xers Difficulty: 1 QuestionID: 03-2-22 Page-Reference: 77 Skill: Recall

Generation Xers

11. Which of the following statements regarding marketing intelligence is true? The advantage of using competitive intelligence is negligible. All marketing intelligence is available for free. Marketing intelligence relies upon privately held information. Marketing intelligence gathering is more focused on gaining insights into consumer activities than competitors' activities. Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands. Difficulty: 3 QuestionID: 05-2-11 Page-Reference: 148 Skill: Recall

Good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brands.

91. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. A-1 Stampings Inc. could diversify and create other products, requiring new products and services from suppliers. This would represent which type of buying situation? Modified rebuy Redesign situation New task situation Complex buying Straight rebuy Difficulty: 3 QuestionID: 07-2-91 Page-Reference: 232 Skill: Applied

New task situation

21. _________segmentation focuses on when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item. Behavioural Psychographic Impulse Occasion Emergency Difficulty: 2 QuestionID: 08-2-21 Page-Reference: 251 Skill: Recall

Occasion

51. Which of the following is a disadvantage of online focus groups? Participants must be in a central location. Online focus groups can lack the real-world dynamics of more personal approaches. Results take longer to tabulate and analyze. The cost of online focus groups is greater than that of most other qualitative research methods. The format of focus groups can be varied. Difficulty: 2 QuestionID: 05-2-51 Page-Reference: 161 Skill: Recall

Online focus groups can lack the real-world dynamics of more personal approaches.

49. ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. Personality Perception Selective grouping Learning Self-actualization Difficulty: 2 QuestionID: 06-2-49 Page-Reference: 199 Skill: Recall

Perception

74. A company that produces and heavily markets cigarettes, with many promotions aimed at young (although legal age) nonsmokers, most likely follows which of the following as a guiding principle? The philosophy that companies should have a social conscience The philosophy that companies can do in good conscience whatever the market and legal systems allow The philosophy of environmentalism The philosophy of consumer-oriented marketing The philosophy of consumerism Difficulty: 1 QuestionID: 04-2-74 Page-Reference: 132 Skill: Applied

The philosophy that companies can do in good conscience whatever the market and legal systems allow

32. Which of the following is a useful tool for identifying growth opportunities? The BCG matrix The business portfolio The product/market expansion grid The value chain The value-delivery network Difficulty: 1 QuestionID: 02-2-32 Page-Reference: 49 Skill: Recall

The product/market expansion grid

26. Several companies, some of them operating through the Internet, offer "paycheque advances." Consumers are encouraged to take out a loan against a paycheque they expect to receive in the near future. These short-term loans with high-interest rates, and high penalties for late payments, are often marketed to consumers who do not have traditional bank accounts. These companies could most easily be criticized for which of the following? Shoddy products Poor service to disadvantaged consumers High-pressure selling High advertising and promotion costs Excessive markups Difficulty: 2 QuestionID: 04-2-26 Page-Reference: 116 Skill: Applied

Poor service to disadvantaged consumers

73. Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? Unique selling product Unique services practice Unique sales pitch Unique selling proposition Unique strategic practice Difficulty: 3 QuestionID: 08-2-73 Page-Reference: 269 Skill: Recall

Unique selling proposition

30. Though often criticized, the selling concept is particularly appropriate and effective with which of the following types of products? Convenience Shopping Specialty Unsought Luxury Difficulty: 3 QuestionID: 01-2-30 Page-Reference: 11 Skill: Recall

Unsought

36. The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers would be most likely to decide to do which of the following? Hold the pharmaceuticals division's share Implement a harvest strategy Use money from a cash cow to promote the pharmaceuticals division Divest the SBU Diversify the pharmaceutical division Difficulty: 3 QuestionID: 02-2-36 Page-Reference: 47 Skill: Applied

Use money from a cash cow to promote the pharmaceuticals division

9. Which of the following are fundamental questions that a marketing management team considers when assessing competitors? What are competitors' employment strategies? What is each competitor's mission statement? What are various competitors' strengths and weaknesses? What are various competitors' locations? What are the competitors' prices? Difficulty: 2 QuestionID: 18-2-09 Page-Reference: 600 Skill: Recall

What are various competitors' strengths and weaknesses?

85. What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." Positioning statement Service differentiation Concentrated segmentation Competitive advantage Responsible target marketing Difficulty: 2 QuestionID: 08-2-85 Page-Reference: 272 Skill: Applied

Positioning statement

71. Lexus works to keep customers happy after each sale, aiming to delight the customer in order to gain a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision process? Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behaviour Difficulty: 2 QuestionID: 06-2-71 Page-Reference: 202 Skill: Applied

Postpurchase behaviour

53. Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the business buying process when he decided to replace his old coops? Problem recognition General need description Product specification Product value analysis Performance review Difficulty: 1 QuestionID: 07-2-53 Page-Reference: 230 Skill: Applied

Problem recognition

58. Which of the following marketing activities is forbidden by the Competition Act? Sales of misbranded food Disclosure of personal information Resale price maintenance Commodity labelling Cosmetics advertising Difficulty: 3 QuestionID: 03-2-58 Page-Reference: 91 Skill: Recall

Resale price maintenance

81. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. In this scenario, which of the following is an example of primary data? The list of local corporations from the Chamber of Commerce Competitor information gleaned from pamphlets Responses to the 75 surveys The names of the 75 companies that received surveys Competitors' websites Difficulty: 1 QuestionID: 05-2-81 Page-Reference: 154 Skill: Applied

Responses to the 75 surveys

68. Michael Quinones is a customer service agent for a national car rental business. He has access to the company's intranet, which provides performance reports, shared work documents, contact information, and detailed information about customers. Which of the following is this access most likely to enable Michael to do during interactions with customers? Analyze primary data Use data mining techniques Share information with value-network partners Reward customer loyalty with an upgrade or discount Evaluate marketing intelligence Difficulty: 2 QuestionID: 05-2-68 Page-Reference: 169-170 Skill: Applied

Reward customer loyalty with an upgrade or discount

69. ________ can adopt one of two competitive strategies: they can challenge the leader or they can play along with competitors and not rock the boat. Runner-up firms Market nichers Market followers Localized marketers Market developers Difficulty: 2 QuestionID: 18-2-69 Page-Reference: 613 Skill: Recall

Runner-up firms

40. Fifteen percent of Canadian households report that they have a home office. These workers are referred to as the ________ market. metropolitan SOHO mobile independent contract Difficulty: 2 QuestionID: 03-2-40 Page-Reference: 83 Skill: Recall

SOHO

69. The main section of the marketing plan presents a detailed ________ analysis of the current marketing situation. who, when, where when, where, how SWOT competitor economic Difficulty: 2 QuestionID: 02-2-69 Page-Reference: 60 Skill: Recall

SWOT

85. Which of the following would not be useful in determining marketing ROI? A marketing dashboard Brand awareness Market share SWOT analysis Customer equity Difficulty: 2 QuestionID: 02-2-85 Page-Reference: 63 Skill: Recall

SWOT analysis

72. Baker Enterprises produces several new products that have low appeal but may benefit consumers in the long run. What is the most accurate classification of these products? Deficient Pleasing Salutary Desirable Unpleasing Difficulty: 2 QuestionID: 04-2-72 Page-Reference: 129 Skill: Applied

Salutary

78. Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? More-for-the-same More-for-less Same-for-less Less-for-much-less All-or-nothing Difficulty: 2 QuestionID: 08-2-78 Page-Reference: 271 Skill: Recall

Same-for-less

5. Business and consumer markets are similar in this regard. Satisfaction of needs through purchases Nature of the buying unit Market structure and demand Types of decisions Decision processes Difficulty: 3 QuestionID: 07-2-05 Page-Reference: 219 Skill: Recall

Satisfaction of needs through purchases

6. When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy? Market segmenting Mass marketing Differentiation Targeting Positioning Difficulty: 1 QuestionID: 08-2-06 Page-Reference: 245 Skill: Applied

Targeting

1. As indicated in the chapter opener, change in the ________ environment has had the most impact on the marketing strategy at Xerox. Technological Natural Economic Cultural Political Difficulty: 2 QuestionID: 03-2-01 Page-Reference: 70-71 Skill: Applied

Technological

5. At which step of the five-step marketing process do we examine five core customer and marketplace concepts, including needs and wants, market offerings, value and satisfaction, exchanges and relationships, and markets? The first step The second step The third step The fourth step The fifth step Difficulty: 2 QuestionID: 01-2-05 Page-Reference: 6 Skill: Recall

The first step

49. It is most accurate to say that customers buy from stores and firms that offer which of the following? The highest value for the dollar The highest customer-perceived value The highest level of customer satisfaction The most attractive company image The most concern for society's interests Difficulty: 3 QuestionID: 01-2-49 Page-Reference: 14 Skill: Applied

The highest customer-perceived value

53. As international trade barriers come down and global markets expand, environmental issues are having ________ impact on international trade. a neutral a positive a decreased a greater more impact on cultural differences and less Difficulty: 2 QuestionID: 04-2-53 Page-Reference: 125 Skill: Recall

a greater

52. Companies can develop ________, which serves as a guide to the future. It shows how the company's products and services, processes, and policies must evolve and what new technologies must be developed to get there. new clean technology cradle-to-cradle practices pollution prevention product stewardship a sustainability vision Difficulty: 2 QuestionID: 04-2-52 Page-Reference: 124 Skill: Recall

a sustainability vision

35. The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________. measurable accessible substantial actionable profitable Difficulty: 2 QuestionID: 08-2-35 Page-Reference: 256 Skill: Applied

accessible

6. Four common sources of internal data include the __________, operations, the sales force, and the marketing department. owners stockholders accounting department competition Web Difficulty: 2 QuestionID: 05-2-06 Page-Reference: 147 Skill: Recall

accounting department

33. When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. accessible measurable reachable actionable differentiable Difficulty: 2 QuestionID: 08-2-33 Page-Reference: 257 Skill: Recall

actionable

83. Consumers learn about new products for the first time and make the decision to buy them during the ________. need recognition stage adoption process evaluation process trial process quality assessment Difficulty: 1 QuestionID: 06-2-83 Page-Reference: 207-208 Skill: Recall

adoption process

8. When Burger King targets children, teens, adults, and seniors with different ads and media, it is practising ________ segmentation. demographic age and life cycle psychographic behavioural generational Difficulty: 1 QuestionID: 08-2-08 Page-Reference: 247 Skill: Applied

age and life cycle

35. People change the goods and services they buy over time because of the two changing factors of ________. belief and attitude perception and personality age and life-cycle stage groups and learning family and tradition Difficulty: 2 QuestionID: 06-2-35 Page-Reference: 195 Skill: Recall

age and life-cycle stage

76. Blake is in the process of buying a new car. He is highly involved in the purchase and perceives significant differences among his three favourite models. Blake's next step is most likely to be ________. postpurchase behaviour alternative evaluation opinion leadership cognitive dissonance purchase decision Difficulty: 2 QuestionID: 06-2-76 Page-Reference: 204 Skill: Applied

alternative evaluation

78. Marketers describe the way the consumer processes information to arrive at brand choices as ________. alternative evaluation information search purchase decision situational factors postpurchase dissonance Difficulty: 1 QuestionID: 06-2-78 Page-Reference: 204 Skill: Recall

alternative evaluation

72. Rather than challenging head-on, the challenger can make ________ on the competitor's weaknesses or on gaps in the competitor's market coverage. a direct attack a frontal attack an indirect attack an individual attack a cautious attack Difficulty: 2 QuestionID: 18-2-72 Page-Reference: 614 Skill: Recall

an indirect attack

4. In some ways, business markets are ________ consumer markets. much larger than smaller than approximately the same as somewhat larger than less complex than Difficulty: 2 QuestionID: 07-2-04 Page-Reference: 219 Skill: Recall

approximately the same as

12. Most companies use demographic variables in market segmentation because they ________. are easy to measure in comparison to many other methods create smaller segments than other methods do do not involve stereotypes create more easily reached segments than other methods do involve fewer attributes to consider than other methods do Difficulty: 2 QuestionID: 08-2-12 Page-Reference: 247 Skill: Recall

are easy to measure in comparison to many other methods

4. While it is very important for all companies to complete the task, there ________ to segment a market. is one single best way are limited ways is a most effective way is no single way are four ways Difficulty: 2 QuestionID: 08-2-04 Page-Reference: 245 Skill: Recall

are limited ways

20. Once all of strategic business units (SBUs) have been identified, successful companies will often __________. assess the attractiveness of its SBUs identify businesses in which to invest decide whether to harvest any businesses complete short-range planning increase these units Difficulty: 2 QuestionID: 02-2-20 Page-Reference: 47 Skill: Recall

assess the attractiveness of its SBUs

18. Being a smaller underdog can sometimes help a company. For example, knowing how major competitors react gives the company clues on how best to ________ competitors or how best to ________ the company's current positions. remove; decrease attack; increase attack; defend value; change decrease; defend Difficulty: 3 QuestionID: 18-2-18 Page-Reference: 602 Skill: Applied

attack; defend

64. A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. lifestyle motive belief attitude perception Difficulty: 1 QuestionID: 06-2-64 Page-Reference: 200 Skill: Recall

attitude

27. The ________ group is the richest and most affluent of all North Americans. seniors Generation Xers Millennials echo boomers baby boomers Difficulty: 2 QuestionID: 03-2-27 Page-Reference: 78 Skill: Recall

baby boomers

36. Ameriprise Financial has published a Dream Book guide, one of the first steps in their Dream—Plan—Track approach to financial planning, as part of their strategy to attract ________ as customers. baby boomers Gen Xers echo boomers Millennials professionals Difficulty: 2 QuestionID: 03-2-36 Page-Reference: 78 Skill: Recall

baby boomers

27. Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal. good competitor marginal competitor bad competitor market-centred competitor maverick competitor Difficulty: 3 QuestionID: 18-2-27 Page-Reference: 604 Skill: Applied

bad competitor

16. Jeanie's Cakes is a Winnipeg icon. The company regularly compares its products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. This is an example of _____________. competitive advantage benchmarking sales promotion advertising synergy publicity Difficulty: 1 QuestionID: 18-2-16 Page-Reference: 602 Skill: Applied

benchmarking

62. Most attempts to target children and minority groups provide ________ to target customers. benefits education disadvantages harm expenses Difficulty: 2 QuestionID: 08-2-62 Page-Reference: 262 Skill: Recall

benefits

38. To ensure an adequate and available supply of key scarce materials, many companies are now willing to ________. decrease levels of demand buy and hold large inventories of the materials eliminate distribution and warehousing partners experiment with just-in-time technologies reduce the length of the supply chain Difficulty: 2 QuestionID: 07-2-38 Page-Reference: 227 Skill: Recall

buy and hold large inventories of the materials

42. Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities; that is, "we are what we have." Under this premise, consumers ________. buy products to support their self-images use brand personalities are affected by subconscious motivations are attracted to products that fit in with their existing attitudes conduct the information search Difficulty: 2 QuestionID: 06-2-42 Page-Reference: 197 Skill: Recall

buy products to support their self-images

3. The field was often referred to as ________, reflecting an emphasis on the actual exchange of goods for money. exchange theory buyer behaviour purchase behaviour consumer psychology shopping practices Difficulty: 2 QuestionID: 06-2-03 Page-Reference: 184 Skill: Conceptual

buyer behaviour

29. Often people who have formal authority to select the suppliers and arrange terms of purchase for items a company uses are called ________. users buyers influencers deciders gatekeepers Difficulty: 2 QuestionID: 07-2-29 Page-Reference: 225 Skill: Recall

buyers

20. When you are considering the actual users of products, those who control buying information, those who influence the decisions, those who do the actual buying, and those who make the buying decisions you are considering the _____________. supplier development team cross-functional team quality management centre buying centre partnership management team Difficulty: 2 QuestionID: 07-2-20 Page-Reference: 225 Skill: Recall

buying centre

30. A buying centre is not a fixed, formally identified unit within an organization but, rather, a set of ________ assumed by different people for different purchases. budgetary limits informal job titles buying roles status roles marketing positions Difficulty: 3 QuestionID: 07-2-30 Page-Reference: 225 Skill: Recall

buying roles

27. Companies who use brand ambassadors are participating in ________. opinion leading traditional marketing buzz marketing direct marketing values marketing Difficulty: 2 QuestionID: 06-2-27 Page-Reference: 190 Skill: Recall

buzz marketing

71. A problem with the rapidly expanding use of e-purchasing is that it ________. can erode established customer-supplier relationships saves less time than expected generates more transactions to document generates less cost savings than predicted reduces the amount of time purchasing people can spend on strategic issues Difficulty: 2 QuestionID: 07-2-71 Page-Reference: 236 Skill: Recall

can erode established customer-supplier relationships

81. One unique thing about government buying is that it is _______. affected by environmental factors decided by a buying centre carefully watched by outside publics affected by organizational factors prone to human error Difficulty: 2 QuestionID: 07-2-81 Page-Reference: 234 Skill: Recall

carefully watched by outside publics

26. According to the Boston Consulting Group approach, ________ are low-growth, high-share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. stars cash cows question marks dogs champions Difficulty: 2 QuestionID: 02-2-26 Page-Reference: 47 Skill: Recall

cash cows

27. In the Boston Consulting Group (BCG) matrix, ________ require less investment to hold their market share. dogs low-share businesses SBU revenues overseas operations cash cows Difficulty: 2 QuestionID: 02-2-27 Page-Reference: 47 Skill: Recall

cash cows

39. Experimental research is best suited for gathering ________ information. exploratory causal interactive preferential descriptive Difficulty: 2 QuestionID: 05-2-39 Page-Reference: 157 Skill: Recall

causal

13. In most organizations the buying activity can be divided into the buying ________ and the buying ________. centre; decision process time; reorder point economic order quantity; reorder point committee; time deciders; influencers Difficulty: 3 QuestionID: 07-2-13 Page-Reference: 223 Skill: Recall

centre; decision process

23. Perhaps the most important demographic trend in Canada for marketers to consider is the ________. mobility of families changing age structure of the population slowing birth rate increasing number of professional jobs aging population Difficulty: 3 QuestionID: 03-2-23 Page-Reference: 77 Skill: Recall

changing age structure of the population

74. A ________ person heads up the company's entire marketing operation and represents marketing on the company's top management team. chief executive officer (CEO) chief financial officer (CFO) chief operating officer (COO) chief marketing officer (CMO) chief information officer (CIO) Difficulty: 1 QuestionID: 02-2-74 Page-Reference: 62 Skill: Recall

chief marketing officer (CMO)

61. It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. elderly child animal minority senior Difficulty: 1 QuestionID: 08-2-61 Page-Reference: 262 Skill: Recall

child

1. Bill has just received a promotion within his company. As the western regional manager in charge of British Columbia, Alberta, Saskatchewan, and Manitoba, he wants to initiate a new competitive marketing strategy. He should start with ________. a private screening competitor analysis management modifications a competitive advantage analysis absolute advantage processing Difficulty: 3 QuestionID: 18-2-01 Page-Reference: 598-599 Skill: Recall

competitor analysis

67. Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________. consumer-generated marketing partner relationship management customer lifetime value community development around a brand selective relationship management Difficulty: 3 QuestionID: 01-2-67 Page-Reference: 19 Skill: Applied

consumer-generated marketing

49. When customers are willing to pay a premium to get precisely what they want and the company can respond quickly to satisfy customer needs, the company has achieved what is called ________. customer intimacy employee intimacy operational excellence promotional intimacy marketing intelligence Difficulty: 1 QuestionID: 18-2-49 Page-Reference: 609 Skill: Conceptual

customer intimacy

53. When it comes to creating ________, Ritz-Carlton sets the gold standard. "It's all about providing a unique, personal, memorable experience." overall cost leadership differentiation focus customer intimacy product leadership Difficulty: 3 QuestionID: 18-2-53 Page-Reference: 609 Skill: Applied

customer intimacy

61. Today the four Ps are compared to the four Cs. Product and place are called ________ and ________, respectively. convenience; customer solution customer cost; convenience communication; customer solution customer solution; convenience communication; convenience Difficulty: 3 QuestionID: 02-2-61 Page-Reference: 58 Skill: Recall

customer solution; convenience

34. Jennifer is doing well in her new position as marketing manager. Having successfully identified and evaluated her major competitors, her company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior ________. target locations customer service employee value employee service customer value Difficulty: 1 QuestionID: 18-2-34 Page-Reference: 606 Skill: Recall

customer value

22. PepsiCo conducts a survey on all Coca-Cola drinkers to assess the company's strengths and weaknesses among their target customers. PepsiCo is using a/an ________. innovative market analysis global marketing strategy competitive marketing strategy customer value analysis blue ocean strategy Difficulty: 2 QuestionID: 18-2-22 Page-Reference: 602 Skill: Applied

customer value analysis

84. A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________. market-centred company geographic-centred company target-centred company customer-centred company branding-centred company Difficulty: 1 QuestionID: 18-2-84 Page-Reference: 617 Skill: Recall

customer-centred company

14. Marketing research is the systematic design, collection, analysis, and reporting of ______________ relevant to a specific marketing situation facing an organization. marketing information systems intelligence data competitive intelligence causality research Difficulty: 1 QuestionID: 05-2-14 Page-Reference: 150 Skill: Conceptual

data

33. One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time. Dr. Albrecht, who runs a solo practice in a small rural town, located some articles on the chemical sterilizer and read about how the machine works. After gathering more information and talking to salespeople, Dr. Albrecht placed his order for the machine. In terms of the buying centre, Dr. Albrecht had the role of ________. initiator decider agent influencer liaison Difficulty: 2 QuestionID: 07-2-33 Page-Reference: 225 Skill: Applied

decider

31. Don Brady is responsible for obtaining price quotations from various vendors. After reviewing them, Don then determines whether or not to include the vendor on the approved vendor list. Don apparently plays two roles, that of ________ and ________. user; buyer buyer; influencer buyer; gatekeeper decider; buyer gatekeeper; influencer Difficulty: 3 QuestionID: 07-2-31 Page-Reference: 225 Skill: Applied

decider; buyer

18. The buying centre of a buying organization is also called the ________. business buyer supplier-development centre buying system business-to-business market decision-making unit Difficulty: 1 QuestionID: 07-2-18 Page-Reference: 225 Skill: Recall

decision-making unit

63. Dale's Drugstore sells cough medicine that is sour and ineffective. his is an example of a ________ product. societal pleasing salutary deficient desirable Difficulty: 1 QuestionID: 04-2-63 Page-Reference: 129 Skill: Applied

deficient

19. Often, the hardest step to take when using the marketing research process is _________________. developing the research plan determining a research approach selecting a research agency defining the problem and research objectives obtaining marketing intelligence Difficulty: 2 QuestionID: 05-2-19 Page-Reference: 150 Skill: Applied

defining the problem and research objectives

10. Ever-Fresh Cleaning products uses ______________information on customers' race, occupation, income, and family life cycle. geographic demographic lifestyle behavioural psychographic Difficulty: 1 QuestionID: 08-2-10 Page-Reference: 247 Skill: Recall

demographic

11. The most popular base for segmenting markets is _____________. geographic gender psychographic behavioural demographic Difficulty: 2 QuestionID: 08-2-11 Page-Reference: 247 Skill: Recall

demographic

23. If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________. earn lower profits; gain higher profits earn higher profits; lose profits earn higher profits; gain more market share lose profits; gain more market share lose profits; gain higher profits Difficulty: 3 QuestionID: 18-2-23 Page-Reference: 603 Skill: Recall

earn higher profits; gain more market share

36. When competing products differ greatly, business buyers are more accountable for their purchase choices and tend to pay more attention to ________. economic factors emotional choice intuition personal factors creative factors Difficulty: 3 QuestionID: 07-2-36 Page-Reference: 227 Skill: Recall

economic factors

1. Despite the data glut that marketing managers receive, they frequently complain that they lack ________. enough information of the right kind timely information accurate information reliable information valid information Difficulty: 2 QuestionID: 05-2-01 Page-Reference: 145 Skill: Recall

enough information of the right kind

23. You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research. causal experimental secondary survey exploratory Difficulty: 1 QuestionID: 05-2-23 Page-Reference: 150 Skill: Applied

exploratory

29. Events like Buy Nothing Day, started in Vancouver in 1992 by cartoonist Ted Dave, now span the globe. Buy Nothing Day's purpose is to criticize the marketing system for creating ________. too few social goods environmental problems shoddy products false wants and too much materialism predatory competition Difficulty: 2 QuestionID: 04-2-29 Page-Reference: 116-117 Skill: Applied

false wants and too much materialism

12. Deceptive promotion overstates the product's ________ or ________. true price; performance design; features packaging; costs features; performance availability; package contents Difficulty: 2 QuestionID: 04-2-12 Page-Reference: 111 Skill: Recall

features; performance

11. Business goods and services demand tends to change more, and more quickly, than the demand for consumer goods and services does. This type of changing demand is referred to as ________ demand. supplier derived inelastic elastic fluctuating Difficulty: 1 QuestionID: 07-2-11 Page-Reference: 220 Skill: Recall

fluctuating

73. Many firms prefer to ________ rather than ________ the leader. follow; challenge challenge; follow challenge; support support; challenge follow; support Difficulty: 3 QuestionID: 18-2-73 Page-Reference: 615 Skill: Recall

follow; challenge

42. Proposals ________ include promoting the use of sustainable ingredients, recycling and reducing solid wastes, and managing energy consumption. related to the right to be informed related to consumer protection for preserving the world for future consumption relating to quality of life related to the right to charge any price for the product Difficulty: 2 QuestionID: 04-2-42 Page-Reference: 120 Skill: Recall

for preserving the world for future consumption

35. Not surprisingly, large multi-national companies have large marketing departments. They conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising. These are all called ________ competitive marketing strategies. informal red ocean blue ocean formal technical Difficulty: 2 QuestionID: 18-2-35 Page-Reference: 607 Skill: Recall

formal

12. The business buying decision process is often more ________ than the consumer buying decision process is. For example, large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval where small purchasers may not. independent creative relationship-oriented formalized concentrated Difficulty: 2 QuestionID: 07-2-12 Page-Reference: 220 Skill: Recall

formalized

28. Someone who provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing is often called a(n) ________. user gatekeeper decider influencer buyer Difficulty: 2 QuestionID: 07-2-28 Page-Reference: 225 Skill: Recall

gatekeeper

5. Global Food Incorporated has decided to localize its products and services to meet local market demands. It would be wise to use ________ segmentation. image benefit end-use customer geographic Difficulty: 1 QuestionID: 08-2-05 Page-Reference: 245 Skill: Recall

geographic

43. ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. extra research; costs sales analysis; sales increased sales; increased costs geographic segmentation; demographic segmentation attitudes; perceptions Difficulty: 2 QuestionID: 08-2-43 Page-Reference: 259 Skill: Applied

increased sales; increased costs

48. A country with a(n) ________ economy has rich markets for many different kinds of goods. industrial service developing subsistence multicultural Difficulty: 2 QuestionID: 03-2-48 Page-Reference: 85 Skill: Recall

industrial

8. Mark is the national marketing manager for Pepsi. He might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands from a/an ________ point of view. However, from a/an ________ point of view, the customer really wants "thirst quenching." market; industry industry; market industry; competitive market; consumer's company's; consumer's Difficulty: 2 QuestionID: 18-2-08 Page-Reference: 600 Skill: Applied

industry; market

10. Bernie's Funeral Home produces caskets, a product with a very stable demand even though the price has changed several times in the past two years. Caskets are a product with ________ demand. joint service elastic inelastic fluctuating Difficulty: 2 QuestionID: 07-2-10 Page-Reference: 220 Skill: Applied

inelastic

9. ABC Enterprises sold 9000 units @ $2.99/unit in July. The firm sold 9000 units @ $4.29/unit in August. This illustrates ________ demand. derived contrived fluctuating joint inelastic Difficulty: 3 QuestionID: 07-2-09 Page-Reference: 220 Skill: Applied

inelastic

41. Proposals related to the consumer's right to ________ include controlling the ingredients that go into certain products and packaging as well as reducing the level of advertising "noise." not buy a product that is offered for sale expect the product to perform as claimed be well informed about important aspects of the product be protected against questionable marketing practices influence products and marketing practices in ways that will improve the "quality of life" Difficulty: 2 QuestionID: 04-2-41 Page-Reference: 120 Skill: Recall

influence products and marketing practices in ways that will improve the "quality of life"

32. One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time. In terms of the buying centre, the dental assistant had the role of ________. initiator buyer gatekeeper influencer liaison Difficulty: 2 QuestionID: 07-2-32 Page-Reference: 225 Skill: Applied

influencer

69. When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using ________. experiments informal surveys observation marketing intelligence direct marketing Difficulty: 2 QuestionID: 05-2-69 Page-Reference: 171 Skill: Applied

informal surveys

25. In the second step of the marketing research process, research objectives should be translated into specific ________. marketing goals information needs dollar amounts research methods information sources Difficulty: 1 QuestionID: 05-2-25 Page-Reference: 151 Skill: Recall

information needs

73. If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it immediately. If not, the consumer may store the need in memory or undertake a(n) ________. brand personality alternative evaluation postpurchase behaviour information search product adoption Difficulty: 3 QuestionID: 06-2-73 Page-Reference: 203 Skill: Recall

information search

57. After Sony and Microsoft soundly beat and outsold Nintendo's GameCube in the Video Game War of 2001, the smallest of the three game platform makers needed a new plan. The resulting Wii system, with its intuitive motion-sensitive controller and interactive games, appealed not only to teen boys but also to their sisters, moms, dads, and even grandparents. The system immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of ________ marketing. consumer-oriented innovative customer-value societal sense-of-mission Difficulty: 3 QuestionID: 04-2-57 Page-Reference: 127 Skill: Applied

innovative

34. A firm that uses the selling concept takes a(n) ________ approach. outside-in myopic inside-out societal customer service Difficulty: 3 QuestionID: 01-2-34 Page-Reference: 11 Skill: Recall

inside-out

75. Sage Inc. provides food services to schools, hospitals, and nursing homes in the Midwest. Management at Sage is involved in the ________ market. government not-for-profit local institutional global Difficulty: 1 QuestionID: 07-2-75 Page-Reference: 233 Skill: Applied

institutional

92. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." Even in his wildest dreams, Herb didn't see his company going global. However, he could form segments of consumers who have similar needs and buying behaviours even though they are located in different countries. This is called _______. international segmentation cultural segmentation global segmentation intermarket segmentation geographic segmentation Difficulty: 2 QuestionID: 08-2-92 Page-Reference: 256 Skill: Applied

intermarket segmentation

8. Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases. online internal external public search service Difficulty: 1 QuestionID: 05-2-08 Page-Reference: 147 Skill: Applied

internal

40. The ______________ factors influencing a buying centre are often the most difficult factors for marketers to assess. economic interpersonal technological organizational political Difficulty: 3 QuestionID: 07-2-40 Page-Reference: 227 Skill: Recall

interpersonal

42. Status, empathy, and persuasiveness are all examples of ________ influences on business buyer behaviour. environmental individual interpersonal organizational cultural Difficulty: 2 QuestionID: 07-2-42 Page-Reference: 227 and 229 Skill: Recall

interpersonal

48. A marketing research company asked members of a focus group to describe several motorcycle brands as animals. This is an example of ________. hierarchical needs analysis interpretive consumer research status influence buzz marketing information search Difficulty: 3 QuestionID: 06-2-48 Page-Reference: 198 Skill: Applied

interpretive consumer research

40. Old, long-established companies can lose the marketing creativity and passion that they once had. If they want to refresh their marketing strategies and try new approaches, they should initiate ________. network marketing intrepreneurial marketing entrepreneurial marketing formulated marketing marketing myopia Difficulty: 1 QuestionID: 18-2-40 Page-Reference: 607 Skill: Recall

intrepreneurial marketing

74. You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. its value proposition target marketing capturing the consumers' attention value profiling differentiated marketing Difficulty: 2 QuestionID: 08-2-74 Page-Reference: 270 Skill: Recall

its value proposition

24. The presence of ________ in low-income neighbourhoods makes a big difference in keeping prices down. malls small stores redlining companies large national chain stores factory outlets Difficulty: 2 QuestionID: 04-2-24 Page-Reference: 115 Skill: Recall

large national chain stores

48. Using concentrated marketing, the marketer goes after a ________ share of ________. small; a small market small; a large market large; one or a few niches large; the mass market moderate; local Difficulty: 2 QuestionID: 08-2-48 Page-Reference: 259 Skill: Recall

large; one or a few niches

15. Robin's company uses secondary data, personal experience, benchmarking, and word of mouth to ________. estimate competitors' reactions identify competitors' target locations select competitors to attack or avoid learn about its competitors' strengths and weaknesses identify competitors' target customers Difficulty: 3 QuestionID: 18-2-15 Page-Reference: 602 Skill: Applied

learn about its competitors' strengths and weaknesses

62. By applying ________ concepts, marketers can affect demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. subliminal advertising social classes learning theory need recognition cognitive dissonance Difficulty: 2 QuestionID: 06-2-62 Page-Reference: 200 Skill: Recall

learning theory

80. Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a ________ strategy. more-for-the-same more-for-less same-for-less less-for-much-less all-or-nothing Difficulty: 2 QuestionID: 08-2-80 Page-Reference: 271 Skill: Recall

less-for-much-less

76. Many institutional markets are characterized by ________ and ________. low budgets; vague criteria special needs; vague criteria low budgets; captive patrons captive patrons; limited access mismanagement; disgruntled workers Difficulty: 3 QuestionID: 07-2-76 Page-Reference: 233 Skill: Recall

low budgets; captive patrons

11. Chin has decided to pursue ________ leadership. As such, the company will react much more strongly to a competitor's ________ manufacturing breakthrough than to the same competitor's increase in promotions. high-cost; cost reducing low-cost; cost structure high-cost; cost inflation low-cost; cost reducing mid-cost; cost inflation Difficulty: 3 QuestionID: 18-2-11 Page-Reference: 601 Skill: Applied

low-cost; cost reducing

62. Marketing information is only valuable when it is used to ________. simplify management's job identify a target market please shareholders increase efficiencies in the supply chain make better marketing decisions Difficulty: 2 QuestionID: 05-2-62 Page-Reference: 169 Skill: Recall

make better marketing decisions

37. Acme Inc. has slightly modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy. market penetration market development diversification harvesting product development Difficulty: 2 QuestionID: 02-2-37 Page-Reference: 50 Skill: Applied

market development

38. Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for ________. market penetration market development diversification harvesting product development Difficulty: 1 QuestionID: 02-2-38 Page-Reference: 50 Skill: Applied

market development

58. A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________. market follower direct marketer market challenger market nicher market leader Difficulty: 1 QuestionID: 18-2-58 Page-Reference: 610 Skill: Recall

market follower

23. According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness. relative market share market development market penetration market segmentation market growth rate Difficulty: 2 QuestionID: 02-2-23 Page-Reference: 47 Skill: Recall

market growth rate

59. Expanding the total market, protecting market share, and expanding market share are all strategies for ________. market leaders market challengers market followers market nichers market providers Difficulty: 3 QuestionID: 18-2-59 Page-Reference: 610 Skill: Recall

market leaders

76. The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments. market management geographic product management vertical functional Difficulty: 2 QuestionID: 02-2-76 Page-Reference: 62 Skill: Recall

market management

95. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Instead of pursuing the whole coffee shop market, or even large segments, Bridgehead targets subsegments. This means that Bridgehead's competitive position is that of a _______. market nicher market leader market challenger market follower market innovator Difficulty: 2 QuestionID: 18-2-95 Page-Reference: 610 Skill: Applied

market nicher 3.0 - Part III Short Answer Questions 3.0.1. Discuss the steps in analyzing competitors. Difficulty: 2 QuestionID: 18-3-01 Page-Reference: 599 Skill: Applied Answer: Creating competitive advantage begins with competitor analysis. First, the company's competitors must be identified. The next step is assessing competitors' objectives, strategies, strengths, weaknesses, and reaction patterns. Based on this information, the company can select which competitors to attack or avoid.

56. Firms that serve small segments not being pursued by other firms are called ________. market followers direct marketers market challengers market nichers market leaders Difficulty: 1 QuestionID: 18-2-56 Page-Reference: 610 Skill: Conceptual

market nichers

75. Almost every industry includes firms that specialize in serving target subsegments called ________. market niches benchmarkers customer databases hotbox markets local markets Difficulty: 1 QuestionID: 18-2-75 Page-Reference: 615 Skill: Recall

market niches

22. When evaluating strategic business units (SBUs), most portfolio analysis methods evaluate on two dimensions, namely ________ and ________. market share; strength of the SBU's position market or industry attractiveness; strength of the SBU's position market diversification; relative market share market growth rates; profits market penetration; market development Difficulty: 2 QuestionID: 02-2-22 Page-Reference: 47 Skill: Recall

market or industry attractiveness; strength of the SBU's position

10. A company's mission statement should be ________ and defined in terms of satisfying basic customer needs. profit oriented product oriented customer oriented market oriented employee oriented Difficulty: 2 QuestionID: 02-2-10 Page-Reference: 43 Skill: Recall

market oriented

8. A(n) ________ mission statement defines the business in terms of satisfying ________. market oriented; customers' needs strategic; company needs long-range; company needs annual; product needs objectives-based; competitors' threats Difficulty: 2 QuestionID: 02-2-08 Page-Reference: 43 Skill: Recall

market oriented; customers' needs

33. Making more sales to current customers without changing a firm's products is ________. market attractiveness market penetration market development product development diversification Difficulty: 1 QuestionID: 02-2-33 Page-Reference: 49 Skill: Recall

market penetration

34. Armour offers an ever-increasing range of styles and colours in its original apparel lines. It also added direct-to-consumer distribution channels. This effort by Armour management is an example of ________. market development product development diversification market penetration product adaptation Difficulty: 3 QuestionID: 02-2-34 Page-Reference: 49 Skill: Applied

market penetration

58. Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's ________. product portfolio target markets market positioning strategy niche Difficulty: 2 QuestionID: 02-2-58 Page-Reference: 55 Skill: Applied

market positioning

51. Your new employer has asked you, as a new marketing graduate, to develop a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to develop a(n) ________. target market market segment market market strategy undefined niche Difficulty: 2 QuestionID: 02-2-51 Page-Reference: 54 Skill: Applied

market segment

55. For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________. market position value network market segment customer extension value chain Difficulty: 2 QuestionID: 02-2-55 Page-Reference: 54 Skill: Applied

market segment

48. To divide up the total market and determine the best segments it can serve, your company should complete its__________,____________, and ____________ (in that order). target marketing; market positioning; market segmentation market segmentation; target marketing; market positioning market positioning, market segmentation; target marketing market segmentation; market positioning; target marketing mass marketing; demographic segmentation; psychographic segmentation Difficulty: 3 QuestionID: 02-2-48 Page-Reference: 54 Skill: Recall

market segmentation; target marketing; market positioning

94. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Gail and Ron's amusement park serves families, seniors, corporations, and students. Fun-Spot has been very successful in meeting the distinct needs of individual _______. cash cows partners market segments businesses market niches Difficulty: 2 QuestionID: 02-2-94 Page-Reference: 54 Skill: Applied

market segments

1. When practising ________, a company identifies the parts of the market it can serve best and most profitably. concentrated marketing market targeting mass marketing segmenting differentiation Difficulty: 1 QuestionID: 08-2-01 Page-Reference: 245 Skill: Recall

market targeting

85. When companies watch both their customers and their competitors, they are called ________. promotion-centred companies market-centred companies competitor-centred companies customer-centred companies analytically centred companies Difficulty: 1 QuestionID: 18-2-85 Page-Reference: 617 Skill: Conceptual

market-centred companies

14. Google's mission statement could be "to be the world's best search engine" yet Google's actual statement is "to organize the world's information and make it universally accessible and useful." This reflects the guideline that mission statements should be ________. realistic motivating narrow market-oriented specific Difficulty: 3 QuestionID: 02-2-14 Page-Reference: 44 Skill: Applied

market-oriented

88. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Fun-Spot's mission is ________. product-oriented technology-oriented market-oriented too specific too focused on profits Difficulty: 2 QuestionID: 02-2-88 Page-Reference: 43 Skill: Applied

market-oriented

78. Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________. marketing control strategic control operating control developmental control efficiency Difficulty: 1 QuestionID: 02-2-78 Page-Reference: 62 Skill: Conceptual

marketing control

87. As Starbucks continues to grow, it is faced with myriad challenges and surprises during the implementation of marketing plans. Hence, the marketing department must practise constant ________. customer management corrective action performance analysis marketing control environmental scanning Difficulty: 2 QuestionID: 02-2-87 Page-Reference: 62-63 Skill: Applied

marketing control

2. The _____________ are the factors and forces outside the marketing department that affect marketing management's ability to build and maintain successful relationships with target customers. marketing mix cultural environment strategic plans target markets marketing environment Difficulty: 1 QuestionID: 03-2-02 Page-Reference: 72 Skill: Recall

marketing environment

2. Fresh understandings of customers and the marketplace are derived from that become(s) the basis for creating customer value and relationships. business decisions marketing strategies marketing information government policies market demand Difficulty: 3 QuestionID: 05-2-02 Page-Reference: 145 Skill: Conceptual

marketing information

43. The set of marketing tools a firm uses to implement its marketing strategy is called the ________. promotion mix product mix marketing mix TQM marketing effort Difficulty: 2 QuestionID: 01-2-43 Page-Reference: 13 Skill: Recall

marketing mix

82. When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. more-for-the-same more-for-less more-for-more same-for-less same-for-more Difficulty: 2 QuestionID: 08-2-82 Page-Reference: 271 Skill: Applied

more-for-less

45. Consumers' hidden, subconscious motivations can be explored by ________. perception analysis opinion leader need recognition investigation motivation research depth research technique Difficulty: 2 QuestionID: 06-2-45 Page-Reference: 198 Skill: Recall

motivation research

41. A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction. stimulus perception culture motive tradition Difficulty: 1 QuestionID: 06-2-41 Page-Reference: 197 Skill: Recall

motive

72. Watching the cultural trends of how people view society, observers have noted that more and more Canadians have a sense of _______. ethnic awareness national pride global savvy foreign intolerance disenchantment Difficulty: 2 QuestionID: 03-2-72 Page-Reference: 96 Skill: Recall

national pride

53. The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the ________. raw material market natural environment endangered environment green movement factors of production Difficulty: 1 QuestionID: 03-2-53 Page-Reference: 87 Skill: Conceptual

natural environment

72. The buying process starts with ________, in which the buyer recognizes a problem. need recognition information search product awareness product interest alternative evaluation Difficulty: 1 QuestionID: 06-2-72 Page-Reference: 203 Skill: Recall

need recognition

14. The _________ buying situation is both the marketer's greatest opportunity and also its greatest challenge. modified rebuy straight rebuy system rebuy multiple rebuys new task Difficulty: 2 QuestionID: 07-2-14 Page-Reference: 224 Skill: Recall

new task

25. The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oil-based to water-based inks. This will require entirely new printing presses and a new printing plate technology. After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying centre will be ready to make this ________ purchase. modified rebuy new task straight rebuy straight task situational analysis Difficulty: 2 QuestionID: 07-2-25 Page-Reference: 224 Skill: Applied

new task

64. Marketers can expand markets by discovering and promoting ________. subliminal points of interest the deficiencies of competitors subtle advantages of the product new uses of the product new employees Difficulty: 2 QuestionID: 18-2-64 Page-Reference: 611 Skill: Recall

new uses of the product

48. Walmart, Dell, and WestJet serve customers who want reliable, good-quality products or services, but who want them cheaply and easily. They are all known for pursuing a value discipline known as ________. operational excellence customer intimacy middle-of-the-road product leadership marketing insight Difficulty: 2 QuestionID: 18-2-48 Page-Reference: 609 Skill: Applied

operational excellence

46. Companies can pursue any of the following three strategies, called value disciplines, for delivering superior customer value: operational excellence, overall cost leadership, and differentiation customer intimacy, operational excellence, and focus employee relations, product leadership, and overall cost leadership product leadership, customer intimacy, and focus operational excellence, customer intimacy, and product leadership Difficulty: 2 QuestionID: 18-2-46 Page-Reference: 609 Skill: Recall

operational excellence, customer intimacy, and product leadership

30. Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and her advice is often followed. Rashmi is an example of a(n)________. innovator membership group opinion leader buzz marketer experiential source Difficulty: 2 QuestionID: 06-2-30 Page-Reference: 190 Skill: Applied

opinion leader

25. The influentials are also referred to as ________. networkers the upper uppers the middle class buzz marketers opinion leaders Difficulty: 3 QuestionID: 06-2-25 Page-Reference: 190 Skill: Recall

opinion leaders

41. Policies, procedures, and systems are all examples of ________ influences on business buyer behaviour. environmental authoritative interpersonal organizational cultural Difficulty: 2 QuestionID: 07-2-41 Page-Reference: 227 Skill: Recall

organizational

1. According to the text, the majority of large companies sell to ________ as a part of their normal operations. consumers not-for-profit companies employees other organizations the service sector Difficulty: 2 QuestionID: 07-2-01 Page-Reference: 218 Skill: Recall

other organizations

43. WalMart, Texas Instruments, and Dell all achieve the lowest production and distribution costs to win a large market share. They utilize a(n) ________ strategy very effectively. overall cost leadership differentiation focus operational customer intimacy Difficulty: 2 QuestionID: 18-2-43 Page-Reference: 608 Skill: Applied

overall cost leadership

28. Critics of the North American economic marketing system have charged that marketers have created a culture in which people are judged by what they ________. are own do eat avoid Difficulty: 1 QuestionID: 04-2-28 Page-Reference: 116 Skill: Recall

own

68. A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. prices non-price factors people customer service location Difficulty: 2 QuestionID: 08-2-68 Page-Reference: 267 Skill: Recall

people

81. The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. perceived performance brand personality recognition consumer market service quality Difficulty: 2 QuestionID: 06-2-81 Page-Reference: 205 Skill: Recall

perceived performance

66. Marketers should understand that a society's core beliefs and values have a high degree of ________. persistence flexibility similarity ethnocentrism conformity Difficulty: 2 QuestionID: 03-2-66 Page-Reference: 95 Skill: Recall

persistence

77. The most effective sources from which consumers obtain information are ________ because they legitimize or evaluate products for the buyer. commercial public experimental personal experiential Difficulty: 3 QuestionID: 06-2-77 Page-Reference: 204 Skill: Recall

personal

64. A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes ________ products. deficient pleasing salutary desirable threatening Difficulty: 1 QuestionID: 04-2-64 Page-Reference: 129 Skill: Recall

pleasing

75. Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made during the ________ stage of the purchase decision. information search situational analysis alternative evaluation purchase decision postpurchase behaviour Difficulty: 1 QuestionID: 06-2-75 Page-Reference: 203 Skill: Applied

postpurchase behaviour

80. After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in ________. need recognition alternative evaluation postpurchase behaviour product expectations information searches Difficulty: 1 QuestionID: 06-2-80 Page-Reference: 205 Skill: Recall

postpurchase behaviour

68. Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to notice certain disadvantages of his new car as he learned more about other cars available. Pat is experiencing ________. postpurchase culture selective perception postpurchase dissonance purchase decision information evaluation Difficulty: 2 QuestionID: 06-2-68 Page-Reference: 202 Skill: Applied

postpurchase dissonance

42. The Canadian population is becoming better educated. As of 2011, 64 percent of the population had _____________________. graduate education postsecondary education a high school diploma post-graduate education an MBA Difficulty: 3 QuestionID: 03-2-42 Page-Reference: 83 Skill: Recall

postsecondary education

79. There are many factors considered in government buying, but ________ is, above all, the most important. price product differentiation advertising personal selling packaging Difficulty: 2 QuestionID: 07-2-79 Page-Reference: 235 Skill: Recall

price

26. "Build a better mousetrap, the world will beat a path to your door" reflects the ________ concept. production marketing selling product target marketing Difficulty: 2 QuestionID: 01-2-26 Page-Reference: 10 Skill: Recall

product

27. Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ________ concept. product production selling marketing societal marketing Difficulty: 3 QuestionID: 01-2-27 Page-Reference: 10 Skill: Applied

product

60. In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________. product price promotion place position Difficulty: 2 QuestionID: 02-2-60 Page-Reference: 57 Skill: Recall

product

85. Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of ________. alternative evaluations dissonance-reducing buying behaviours product characteristics that influence rate of adoption individual differences in innovation postpurchase behaviours Difficulty: 2 QuestionID: 06-2-85 Page-Reference: 209 Skill: Recall

product characteristics that influence rate of adoption

51. If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________. captive-product innovation promotional innovation new product innovation product leadership market leadership Difficulty: 1 QuestionID: 18-2-51 Page-Reference: 609 Skill: Conceptual

product leadership

54. John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. This approach to cost reduction likely took place in the ________ stage of the business buying process. problem recognition general need description product specification supplier search proposal solicitation Difficulty: 3 QuestionID: 07-2-54 Page-Reference: 230-231 Skill: Applied

product specification

50. The buying centre uses _____________ when deciding on the best product characteristics. product specifications general need descriptions marketing myopias purchase orders value analysis Difficulty: 1 QuestionID: 07-2-50 Page-Reference: 230 Skill: Recall

product specifications

48. Minimizing pollution from production and all environmental impacts throughout the full product life cycle is called ________. green marketing design for environment (DFE) product stewardship environmental sustainability pollution prevention Difficulty: 3 QuestionID: 04-2-48 Page-Reference: 121-122 Skill: Recall

product stewardship

49. ABC Inc. is currently designing a new product line with the goal of making each product easy to recover, reuse, or recycle. ABC Inc. hopes to recover many of these products when they reach the end of their lifecycle and reuse components in new products. ABC Inc. is in the ________ stage of environmental sustainability. pollution prevention new clean technology product stewardship beyond greening sustainability vision Difficulty: 2 QuestionID: 04-2-49 Page-Reference: 122 Skill: Applied

product stewardship

28. Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept. product production selling marketing societal marketing Difficulty: 2 QuestionID: 01-2-28 Page-Reference: 10 Skill: Applied

production

3. Business buying behaviour refers to the buying behaviour of organizations that buy ________. products for use in production of other products services for use in homes products purchased for homes service products for sale products purchased for personal consumption Difficulty: 1 QuestionID: 07-2-03 Page-Reference: 218 Skill: Recall

products for use in production of other products

60. Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________. protect the interests of society regulate prices increase world trade regulate monopolies promote social responsibility Difficulty: 2 QuestionID: 03-2-60 Page-Reference: 90 Skill: Recall

protect the interests of society

15. When Johnson & Johnson focuses on cosmetics and toiletries markets, it is most likely using ____________ segmentation. age and life cycle psychographic behaviour gender geographic Difficulty: 2 QuestionID: 08-2-15 Page-Reference: 249 Skill: Recall

psychographic

17. At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. user status usage rate benefit behavioural psychographic Difficulty: 2 QuestionID: 08-2-17 Page-Reference: 249 Skill: Applied

psychographic

16. Segmenting voters as either conservatives or liberals is an example of ________. psychographic segmentation demographic segmentation occasion segmentation intermarket segmentation benefit segmentation Difficulty: 3 QuestionID: 08-2-16 Page-Reference: 249 Skill: Applied

psychographic segmentation

18. Rolex Watches uses ____________. It targets wealthy consumers with similar needs and buying behaviours, even though the consumers are located in different countries. psychographic segmentation loyalty segmentation life-cycle segmentation targeting segmentation intermarket segmentation Difficulty: 1 QuestionID: 08-2-18 Page-Reference: 249 Skill: Applied

psychographic segmentation

7. Critics sometimes charge that promotion for the branded product adds only ________ to the product rather than functional value, which is a true benefit. consistency strength psychological value quality informational value Difficulty: 2 QuestionID: 04-2-07 Page-Reference: 110 Skill: Applied

psychological value

10. A (An)________ is any group that has an actual or potential interest in, or impact on, an organization's ability to achieve its objectives. public competitor market relationship team intermediary Difficulty: 1 QuestionID: 03-2-10 Page-Reference: 75 Skill: Conceptual

public

13. All marketers stretch the truth a little. This innocent exaggeration for effect is called ________. puffery promotion an emotional appeal a lie spin Difficulty: 2 QuestionID: 04-2-13 Page-Reference: 112 Skill: Recall

puffery

9. A company's mission statement serves as a statement of ________. fact values purpose financial goals employee commitment Difficulty: 2 QuestionID: 02-2-09 Page-Reference: 43 Skill: Recall

purpose

58. The most common research instrument used is the ________. mechanical device live interviewer questionnaire focus group people meter Difficulty: 2 QuestionID: 05-2-58 Page-Reference: 165 Skill: Recall

questionnaire

35. When suppliers' offers are very similar, business buyers have little basis for strictly ________. emotional choice rational choice personal choice intuitive choice independent choice Difficulty: 3 QuestionID: 07-2-35 Page-Reference: 227 Skill: Recall

rational choice

70. A marketing plan begins with an executive summary, which quickly overviews goals and ________. budgets controls promotions recommendations obstacles Difficulty: 3 QuestionID: 02-2-70 Page-Reference: 61 Skill: Recall

recommendations

25. When major chain retailers avoid placing stores in disadvantaged neighbourhoods, they are likely to be accused of the discriminatory practice of ________. embargo licensing redlining puffery scrambling merchandise Difficulty: 2 QuestionID: 04-2-25 Page-Reference: 115 Skill: Recall

redlining

80. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. Jason wanted to better understand how his customers assess service quality. This is an example of a ________. marketing research problem research objective research method research plan research approach Difficulty: 2 QuestionID: 05-2-80 Page-Reference: 150 Skill: Applied

research objective

73. Cultural differences, especially those involving language, can add to research costs in foreign markets and can increase the ________. risk of error foreign trade response rate likelihood of using a smaller sample reliance on primary data Difficulty: 2 QuestionID: 05-2-73 Page-Reference: 172 Skill: Recall

risk of error

33. A ________ consists of the activities people are expected to perform according to the persons around them. motive role lifestyle life cycle tradition Difficulty: 2 QuestionID: 06-2-33 Page-Reference: 194-195 Skill: Conceptual

role

49. A(n) ________ economy consumes most of its own agricultural and industrial outputs and offers few market opportunities for world trade. subsistence service technological industrial rural Difficulty: 2 QuestionID: 03-2-49 Page-Reference: 85 Skill: Recall

subsistence

32. When a business market segment is large or profitable enough to serve, it is termed ________. measurable accessible substantial actionable differentiable Difficulty: 2 QuestionID: 08-2-32 Page-Reference: 256 Skill: Recall

substantial

55. The executive for Just In Time Party Services have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of party products. This is an example of ________ management. supplier development network relationship channel captain core channel value chain Difficulty: 1 QuestionID: 07-2-55 Page-Reference: 221 Skill: Recall

supplier development

58. The Gro-Fast company uses ___________ to find the best suppliers. value analysis performances review supplier control supplier search supplier selection Difficulty: 1 QuestionID: 07-2-58 Page-Reference: 231 Skill: Applied

supplier search

60. In the generally accepted stages of the business buying process, the step following product specification is ________. proposal solicitation supplier search problem recognition general need description order-routine specification Difficulty: 2 QuestionID: 07-2-60 Page-Reference: 231 Skill: Recall

supplier search

17. Another name for solutions selling is ________ selling. periodic purchase blanket contract vendor-managed inventory negotiated contract systems Difficulty: 1 QuestionID: 07-2-17 Page-Reference: 224 Skill: Recall

systems

17. Causal research is used by many companies to better understand customers by __________. describing marketing problems or situations gathering preliminary information that will help define problems uncovering information at the outset in an unstructured way testing hypotheses about cause-and-effect relationships quantifying observations that produce insights unobtainable through other forms of research Difficulty: 1 QuestionID: 05-2-17 Page-Reference: 151 Skill: Conceptual

testing hypotheses about cause-and-effect relationships

55. Behavioural targeting, the practice of ________, is being used by more and more companies. tracking customers' activities and rewarding customer loyalty managing customer relationships mining and analyzing data from data warehouses tracking consumers' online movements and using this information to target ads to them observing and interacting with consumers in their natural environments Difficulty: 3 QuestionID: 05-2-55 Page-Reference: 163 Skill: Recall

tracking consumers' online movements and using this information to target ads to them

44. Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. business portfolio low-cost operator product mix value delivery network value chain Difficulty: 2 QuestionID: 02-2-44 Page-Reference: 51 Skill: Recall

value delivery network

76. Consumers are most likely to provide research information when researchers provide ________. coupons value for the exchange prizes rebates social network membership Difficulty: 2 QuestionID: 05-2-76 Page-Reference: 174 Skill: Recall

value for the exchange

6. Some critics argue that intermediaries mark up prices beyond the ________. resale value delivery charges going market price promotion cost value of their services Difficulty: 1 QuestionID: 04-2-06 Page-Reference: 110 Skill: Recall

value of their services

76. The answer to the customer's question "Why should I buy your brand?" is found in the ________. quality image customer services value proposition differentiation pricing and promotion structure Difficulty: 2 QuestionID: 08-2-76 Page-Reference: 270 Skill: Recall

value proposition

69. Which of the following would allow a company to create direct procurement accounts with suppliers such as Dell or Office Depot through which company buyers can purchase equipment, materials, and supplies directly? An intranet An extranet Buying centres A reverse auction A trading exchange Difficulty: 2 QuestionID: 07-2-69 Page-Reference: 232 Skill: Recall

An extranet

79. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors? Postpurchase behaviour Attitude of others Cognitive dissonance Alternative evaluation New product adoption Difficulty: 3 QuestionID: 06-2-79 Page-Reference: 205 Skill: Recall

Attitude of others

40. Researchers found that a number of well-known brands tended to be strongly associated with one particular trait, such as Jeep with "ruggedness." Which of the following terms would a marketer use to describe a specific mix of human traits that may be attributed to a particular brand? Brand perception Product image Brand personality Brand concept Brand equity Difficulty: 1 QuestionID: 06-2-40 Page-Reference: 197 Skill: Recall

Brand personality

50. ________ involves thinking ahead in the design stage to create products that are easier to reuse, recycle, or recover. Pollution control Design for environment (DFE) Consumerism Societal marketing Strategic planning Difficulty: 2 QuestionID: 04-2-50 Page-Reference: 122 Skill: Recall

Design for environment (DFE)

38. Gary Hirshberg of Stonyfield Farm yogurt company stated that "companies can do better with less advertising, less marketing research, more guerrilla marketing, and more acting from the gut." At this point, Hirshberg was following which marketing strategy? Formulated marketing Dntrepreneurial marketing Innovative marketing Exponential marketing Intrepreneurial marketing Difficulty: 3 QuestionID: 18-2-38 Page-Reference: 607 Skill: Applied

Dntrepreneurial marketing

40. Which of the following entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy? Market segmentation The BCG approach Product-line extension Downsizing Market redesign Difficulty: 1 QuestionID: 02-2-40 Page-Reference: 50 Skill: Recall

Downsizing

8. ________________ influence the company's ability to obtain funding. Wholesalers Physical distribution firms Marketing services agencies Resellers Financial intermediaries Difficulty: 1 QuestionID: 03-2-08 Page-Reference: 74 Skill: Recall

Financial intermediaries

52. In a tiered market, companies target which of the following? Affluent consumers only Consumers of modest means only The middle class only From the affluent to the less affluent Professionals only Difficulty: 2 QuestionID: 03-2-52 Page-Reference: 86 Skill: Recall

From the affluent to the less affluent

73. Which of the following was most likely being used when Boeing received orders for $100 million in spare parts in the first year its website was in operation? E-procurement An intranet Single sourcing Blanket contracting A reverse auction site Difficulty: 1 QuestionID: 07-2-73 Page-Reference: 232 Skill: Applied

E-procurement

29. Mega Mining and Smelting Co. segments its foreign markets by their overall level of economic development. This firm segments on what basis? Political factors Economic factors Geographic factors Legal factors Cultural factors Difficulty: 1 QuestionID: 08-2-29 Page-Reference: 255 Skill: Applied

Economic factors

11. Which of the following is considered a social factor that influences consumer behaviour? Subculture Reference groups Lifestyle Economic situation Social class Difficulty: 2 QuestionID: 06-2-11 Page-Reference: 185 Skill: Recall

Reference groups

13. Marketers must be most careful to guard against which of the following when using age and life cycle segmentation? Underestimating Stereotyping Traditional marketing Cultural bias Gender bias Difficulty: 2 QuestionID: 08-2-13 Page-Reference: 247 Skill: Recall

Stereotyping

83. Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities? Operating control Marketing control Strategic control ROMI Portfolio analysis Difficulty: 2 QuestionID: 02-2-83 Page-Reference: 63 Skill: Recall

Strategic control

72. IBM has its sales and marketing people assigned to markets in specific countries, regions, and districts. This is an example of which type of marketing organization? Geographic Product Functional Divisional Psychographic Difficulty: 2 QuestionID: 02-2-72 Page-Reference: 62 Skill: Applied

Geographic

7. When Pacific Fisheries groups its customers by countries and regions, such as Asia, Australia, or New Zealand, it is using which segmenting base? Economic factors Political and legal factors Geographic location Benefits sought Demographics Difficulty: 1 QuestionID: 08-2-07 Page-Reference: 245 Skill: Applied

Geographic location

84. Today almost every company, small and large, is affected in some way by which of the following? The societal marketing concept Not-for-profit marketing Global competition Customer-generated marketing Caring capitalism Difficulty: 2 QuestionID: 01-2-84 Page-Reference: 29 Skill: Recall

Global competition

16. ________ persuades people to buy goods they had no thought of buying. Sustainable marketing A sales star Strategic marketing Redlining High-pressure selling Difficulty: 1 QuestionID: 04-2-16 Page-Reference: 112 Skill: Recall

High-pressure selling

5. Which of the following questions represents the marketer's perspective on the pre-purchase issues stage of the consumption process? How does a consumer decide that he or she needs a product? Is acquiring a product a stressful or a pleasant experience? What does the consumer's purchase say about the consumer? How are consumer attitudes toward products formed and changed? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-05 Page-Reference: 185 Skill: Recall

How are consumer attitudes toward products formed and changed?

7. Which of the following questions represents the market's perspective on the purchase issues stage of the consumption process? What are the best sources of information to learn more about alternative choices? Is acquiring a product a stressful or a pleasant experience? How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision? How are consumer attitudes toward products formed and changed? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-07 Page-Reference: 185 Skill: Recall

How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision?

14. Marketers of expensive automobiles, cottage properties, and travel are most likely to use which of the following types of segmentation? Gender Income Occasion Usage rate Benefits sought Difficulty: 2 QuestionID: 08-2-14 Page-Reference: 248 Skill: Recall

Income

44. Procter & Gamble sells four brands of laundry detergent in Canada, each designed for one of six laundry segments Procter & Gamble has identified. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? Lost sales that would have been made with an undifferentiated marketing strategy across all segments Lost customer loyalty due to lack of brand loyalty Increased costs for separate marketing plans for each brand Other suppliers controlling pricing Lack of resources to succeed in an attractive segment Difficulty: 2 QuestionID: 08-2-44 Page-Reference: 259 Skill: Applied

Increased costs for separate marketing plans for each brand

78. Information about bidding opportunities in the federal government is widely available online through the electronic tendering system _______. NAFTA MERX AIT PWSCG StatsCan Difficulty: 1 QuestionID: 07-2-78 Page-Reference: 235 Skill: Recall

MERX

41. Which of the following contact methods has the poorest response rate? Mail Telephone Personal Online Individual Difficulty: 2 QuestionID: 05-2-41 Page-Reference: 158 Skill: Recall

Mail

49. The process of customer-driven marketing involves which of the following? Product; price; promotion; adaptation Market segmentation; target marketing; differentiation; positioning Marketing analysis; planning; implementation; feedback Analysis; targeting; implementation; control Problem identification; information search; decision; implementation Difficulty: 2 QuestionID: 02-2-49 Page-Reference: 54 Skill: Recall

Market segmentation; target marketing; differentiation; positioning

52. Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter? Market segmentation Differentiation Market targeting The market mix Positioning Difficulty: 1 QuestionID: 02-2-52 Page-Reference: 54 Skill: Recall

Market targeting

9. Your marketing department is attempting to improve strategic decision making, track competitors' actions, and provide early warning of opportunities and threats. To achieve this goal, which of the following would be the best for your department to use? Internal databases External databases only Company reports only Marketing intelligence The Internet Difficulty: 2 QuestionID: 05-2-09 Page-Reference: 148 Skill: Applied

Marketing intelligence

45. Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships? Price A consistent product mix The value delivery network Marketing strategy Differentiation Difficulty: 1 QuestionID: 02-2-45 Page-Reference: 53 Skill: Recall

Marketing strategy

69. Which of the following is an example of a core belief? Marriage is important. Americans should display their patriotism. The comforts of home are more important than entertainment outside of the home. Extended warranties are never worth the money consumers pay for them. Professionals should wear business clothes to work. Difficulty: 2 QuestionID: 03-2-69 Page-Reference: 95 Skill: Applied

Marriage is important.

58. BMW allows customers to design their own vehicle from a set of options at BMW's website. What is this called? Differentiation Undifferentiation Concentration Mass customization Localization Difficulty: 2 QuestionID: 08-2-58 Page-Reference: 261 Skill: Conceptual

Mass customization

20. ________ are becoming a very attractive market: they are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services. Aboriginal Canadians Tweens Mature consumers Chinese Canadians Teenagers Difficulty: 2 QuestionID: 06-2-20 Page-Reference: 188 Skill: Recall

Mature consumers

91. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning? Market penetration Market development Product development Customer development Diversification Difficulty: 2 QuestionID: 02-2-91 Page-Reference: 49 Skill: Applied

Market penetration

50. Which of the following is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviours? Market targeting Market segmentation Positioning Marketing strategy Differentiation Difficulty: 1 QuestionID: 02-2-50 Page-Reference: 54 Skill: Recall

Market segmentation

65. In which stage of the business buying process is a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction? Problem recognition Performance review Supplier search Supplier selection Order-routine specification Difficulty: 2 QuestionID: 07-2-65 Page-Reference: 232 Skill: Recall

Performance review

66. Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation? Order-routine specifications Supplier selection Performance review Value analysis Vendor analysis Difficulty: 2 QuestionID: 07-2-66 Page-Reference: 232 Skill: Recall

Performance review

45. Which of the following contact methods is generally the most flexible? Mail Telephone Internet surveys Online panels Personal Difficulty: 3 QuestionID: 05-2-45 Page-Reference: 158 Skill: Recall

Personal

53. Which of the following is the place a product occupies in the consumer's mind relative to competition? Position Placement Market segmentation Market targeting Product promotion Difficulty: 2 QuestionID: 02-2-53 Page-Reference: 55 Skill: Recall

Position

83. Which type of statement first states the product's membership in a category and then shows its point-of-difference from other members of the category? Mission statement Vision statement Differentiation statement Positioning statement Statement of intent Difficulty: 2 QuestionID: 08-2-83 Page-Reference: 272 Skill: Recall

Positioning statement

18. Innovations is a producer of electronic circuits that power a variety of technological devices produced by other companies. Innovations sell its products to ________ markets. business government consumer internal financial Difficulty: 2 QuestionID: 03-2-18 Page-Reference: 76 Skill: Applied

business

19. In a ________ market, goods and services are purchased for further processing or for use in the production process. business reseller wholesale consumer retail Difficulty: 2 QuestionID: 03-2-19 Page-Reference: 76 Skill: Recall

business

18. Guided by the mission statement and objectives, management must plan the collection of businesses and products that make up a company. This collection is called its ________. strategic business unit business portfolio strategic plan mission objective operational factor Difficulty: 2 QuestionID: 02-2-18 Page-Reference: 47 Skill: Recall

business portfolio

77. Many major companies have created the position of ________ to address concerns about the privacy of customers. chief customer loyalty manager chief behavioural analyst chief privacy officer ethics manager data warehouse manager Difficulty: 2 QuestionID: 05-2-77 Page-Reference: 174 Skill: Recall

chief privacy officer

66. Examples of pleasing products include ________. cigarettes and junk food dental services and medications seat belts and air bags fruits and vegetables bicycle helmets and elbow pads Difficulty: 1 QuestionID: 04-2-66 Page-Reference: 129 Skill: Recall

cigarettes and junk food

14. A _____________ may be offended by your company's decision to suddenly market itself as "eco friendly" to better appeal to the market. local public general public government public media public citizen-action public Difficulty: 3 QuestionID: 03-2-14 Page-Reference: 75 Skill: Applied

citizen-action public

10. The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment is known as _______________. marketing data competitive intelligence sales management customer intelligence competitive marketing intelligence Difficulty: 1 QuestionID: 05-2-10 Page-Reference: 148 Skill: Conceptual

competitive marketing intelligence

50. Value marketing is the strategy of offering consumers ________. high quality at a high price luxury quality at a high price lesser quality at a low price reasonable quality at a fair price little quality at a low price Difficulty: 2 QuestionID: 03-2-50 Page-Reference: 86 Skill: Recall

reasonable quality at a fair price

66. When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________. complex buying behaviour dissonance-reducing buying behaviour habitual buying behaviour variety-seeking buying behaviour brand conviction buying behaviour Difficulty: 2 QuestionID: 06-2-66 Page-Reference: 202 Skill: Recall

variety-seeking buying behaviour

87. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." If Herb were to create and offer pencils designed in colours and shapes to appeal specifically to women, which demographic segmentation variable would he be using? Gender Income Age and life-cycle Family size Education Difficulty: 2 QuestionID: 08-2-87 Page-Reference: 248 Skill: Applied

Gender

37. Canadian women account for more than ________ percent of this country's workforce. 30 40 45 50 55 Difficulty: 3 QuestionID: 03-2-37 Page-Reference: 81 Skill: Recall

50

20. Many marketers believe that which of the following variables are the best starting point for building marketing segments? Behavioural Family size Gender Age Beneficial Difficulty: 2 QuestionID: 08-2-20 Page-Reference: 251 Skill: Recall

Behavioural

46. Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting. ________ should appear in the centre of her diagram depicting marketing strategies and the marketing mix. Sales goals Customer value and relationships Company objectives Customer retention rates Competitors Difficulty: 1 QuestionID: 02-2-46 Page-Reference: 53 Skill: Applied

Customer value and relationships

25. The product concept says that a company should do which of the following? Improve marketing of its best products Market only those products with high customer appeal Focus on the target market and make products that meet those customers' demands Focus on making continuous product improvements Make promoting products the top priority Difficulty: 2 QuestionID: 01-2-25 Page-Reference: 10 Skill: Recall

Focus on making continuous product improvements

75. Malaya Ramirez is organizing marketing research in Central American countries for a large American corporation that is interested in expanding its market. The survey Malaya is using was written in English and then translated into Spanish for use by Spanish-speaking respondents. Which of the following should Malaya do before administering this questionnaire to a sample of the market? Make sure that the survey includes both open-ended and closed-ended questions Decide whether to focus on primary or secondary data Determine which type of research instrument to use Have the questionnaire translated back into English to check for accuracy Determine whether to focus on descriptive or causal objectives Difficulty: 2 QuestionID: 05-2-75 Page-Reference: 172 Skill: Applied

Have the questionnaire translated back into English to check for accuracy

67. Which of the following is the best example of a desirable product? Healthy and delicious breakfast food Cigarettes Effective but bad-tasting medicine Junk food Dental insurance Difficulty: 2 QuestionID: 04-2-67 Page-Reference: 129 Skill: Applied

Healthy and delicious breakfast food

46. Which form of marketing research is flexible, allows for explanation of difficult questions, and lends itself to showing products and advertisements? Individual interviewing Internet surveys Telephone surveys Ethnographic research Observational research Difficulty: 2 QuestionID: 05-2-46 Page-Reference: 158 Skill: Recall

Individual interviewing

65. In SWOT analysis, which of the following would be considered a strength? Internal limitations Trends in the market Favourable factors in the environment Factors that challenge the company's performance Internal resources Difficulty: 2 QuestionID: 02-2-65 Page-Reference: 59 Skill: Recall

Internal resources

43. Which of the following has the highest rating for speed of data collection and compilation? Open-ended questionnaires Personal interviews Mail surveys Internet surveys Ethnographic research Difficulty: 3 QuestionID: 05-2-43 Page-Reference: 158 Skill: Recall

Internet surveys

54. Which of the following is the narrowest marketing strategy? Segmented strategy Local marketing Differentiated marketing Mass marketing Undifferentiated marketing Difficulty: 3 QuestionID: 08-2-54 Page-Reference: 260 Skill: Recall

Local marketing

43. Which of the following accurately describes a cultural difference international marketers should be aware of? Outside of English-speaking countries, most business leaders do not speak English. British businesspeople are accustomed to making more business deals over the telephone than in person. German people tend to be impressed by overstatement and showiness. Japanese people tend to put a high value on rank. French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity. Difficulty: 3 QuestionID: 07-2-43 Page-Reference: 229 Skill: Recall

Japanese people tend to put a high value on rank.

36. ________ includes information on one's activities, interests, and opinions and is expressed in one's pattern of living or psychographics. Lifestyle Culture Personality Motive Social class Difficulty: 1 QuestionID: 06-2-36 Page-Reference: 196 Skill: Recall

Lifestyle

53. ________ tailors brands and promotions to the needs and wants of specific cities, neighbourhoods, and even stores. Undifferentiated marketing Differentiated marketing Niche marketing Local marketing Individual marketing Difficulty: 1 QuestionID: 08-2-53 Page-Reference: 260 Skill: Recall

Local marketing

35. Maryann Rose is conducting research to determine consumers' personal grooming habits. Because of the personal nature of the survey questions about this topic, Maryann wants to select the contact method that is most likely to encourage respondents to answer honestly. Which contact method should Maryann select? Mail questionnaires Telephone interviews Individual interviews Focus group interviews Online panels Difficulty: 3 QuestionID: 05-2-35 Page-Reference: 158 Skill: Applied

Mail questionnaires

83. Which of the following is currently the fastest-growing form of marketing? Consumer-generated marketing Online marketing Mass media marketing Social marketing Word-of-mouth marketing Difficulty: 3 QuestionID: 01-2-83 Page-Reference: 29 Skill: Recall

Online marketing

59. Which of the four Ps describes the goods-and-services combination the company offers to the target market? Price Promotion Product Place Package Difficulty: 1 QuestionID: 02-2-59 Page-Reference: 57 Skill: Recall

Product

38. Which concept holds that firms must strive to deliver value to customers in a way that maintains or improves both consumers' and society's well-being? Marketing Selling Product Societal marketing Equity Difficulty: 1 QuestionID: 01-2-38 Page-Reference: 12 Skill: Conceptual

Societal marketing

16. ____________ is when a company provides a complete system to meet the customer's needs and solve the customer's problems. Customer relationship management Team selling Cross-functional skill Solutions selling Promotions Difficulty: 2 QuestionID: 07-2-16 Page-Reference: 224 Skill: Applied

Solutions selling

13. As Canadians, we see ourselves as unique and distinctly different from Americans. What is the one commonality between our two cultures? That we treasure freedom That we encourage achievement of the individual That we provide a social safety net That we are a consumer culture That we protect the beauty of our natural landscape Difficulty: 2 QuestionID: 06-2-13 Page-Reference: 186 Skill: Recall

That we are a consumer culture

90. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." Herb could consider using multiple segmentation bases. What is the advantage of this approach? The ability to mass market Savings based on economies of scale The potential to globalize The ability to focus on micromarkets The ability to identify smaller, better-defined target groups Difficulty: 2 QuestionID: 08-2-90 Page-Reference: 253 Skill: Applied

The ability to identify smaller, better-defined target groups

21. Which of the following is true of mature consumers? The best strategy is to appeal to their active, multidimensional lives. They are a poor market for "do-it-for-me" services. High-tech home entertainment products do not appeal to them. They place more importance on brand names and are more brand loyal than members of other age groups. They are a shrinking market for cosmetics and personal care products. Difficulty: 2 QuestionID: 06-2-21 Page-Reference: 189 Skill: Recall

The best strategy is to appeal to their active, multidimensional lives.

4. What is the first step of the five-step marketing process? Design a customer-driven marketing strategy. Set a profitable price. Build profitable relationships. Understand the marketplace and customer needs and wants. Construct a marketing program that delivers superior value. Difficulty: 2 QuestionID: 01-2-04 Page-Reference: 6 Skill: Recall

Understand the marketplace and customer needs and wants.

26. For secondary data to be useful to marketers, it must be relevant, current, impartial, and ________. complete accurate inexpensive collected before secondary data experimental Difficulty: 2 QuestionID: 05-2-26 Page-Reference: 152 Skill: Recall

accurate

19. When marketers divide buyers into groups based on their knowledge, attitudes, uses, or responses to a product, this is called ________ segmentation. geographic psychographic age and life cycle demographic behavioural Difficulty: 1 QuestionID: 08-2-19 Page-Reference: 251 Skill: Conceptual

behavioural

94. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." For Seagull Terrace to be successful, Carol must form the right relationships with the right customers. Some of her customers are quite profitable, spending money on many of the resort's services beyond accommodation, but not very loyal as they prefer to try out a new resort for each new holiday. These customers are considered to be _____________. butterflies barnacles true friends strangers switchers Difficulty: 3 QuestionID: 01-2-94 Page-Reference: 24 Skill: Applied

butterflies

67. George is buying his first house. He has found two houses that he thinks he likes. He is highly involved in the purchase and perceives significant differences between these two houses. George will likely undertake ________. variety-seeking buying behaviour complex buying behaviour opinion leadership dissonance-reducing buying behaviour marketing myopia Difficulty: 1 QuestionID: 06-2-67 Page-Reference: 201 Skill: Applied

complex buying behaviour

41. Sally has a problem. Her two marketing managers are at odds because each approaches the same problem from two radically different points of view. She knows this is normal because there will be a constant tension between the formulated side of marketing and the ________. product value competitor side customer side overall cost leadership creative side Difficulty: 2 QuestionID: 18-2-41 Page-Reference: 608 Skill: Recall

creative side

51. Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end-of-life office equipment into new products and parts. This not only helps sustain the environment, but it is also highly profitable for the company. Such a practice is known as ________. pollution prevention green marketing a sustainability vision design for environment (DFE) new environmental technology Difficulty: 3 QuestionID: 04-2-51 Page-Reference: 122 Skill: Applied

design for environment (DFE)

69. Maytag's front-loading Neptune washer provides superior cleaning and energy efficiency. The Neptune washer is an example of a ________ product. deficient pleasing salutary desirable satisfying Difficulty: 3 QuestionID: 04-2-69 Page-Reference: 129 Skill: Applied

desirable

68. In societal marketing, the ideal goal for companies is to turn all of their products into ________ ones. salutary ones desirable ones pleasing ones durable ones serviceable ones Difficulty: 2 QuestionID: 04-2-68 Page-Reference: 129 Skill: Recall

desirable ones

69. For the past 10 years Bill and Margaret Kennedy have saved money to go to the Super Bowl should their team, the Chicago Bears, ever win the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. They want to be certain to choose the best one. Bill and Margaret are most likely to exhibit ________. complex buying behaviour dissonance-reducing buying behaviour habitual buying behaviour variety-seeking buying behaviour brand familiarity buying behaviour Difficulty: 3 QuestionID: 06-2-69 Page-Reference: 202 Skill: Applied

dissonance-reducing buying behaviour

33. Walmart sends a trained observer to watch and interact with customers as they shop in a Walmart store. This is an example of ________. secondary research survey research ethnographic research experimental research descriptive research Difficulty: 2 QuestionID: 05-2-33 Page-Reference: 156 Skill: Applied

ethnographic research

12. During a(n) ________ a desired object is obtained from someone while giving something else of value in return. value proposition donation bribery value creation exchange Difficulty: 1 QuestionID: 01-2-12 Page-Reference: 8 Skill: Recall

exchange

47. Successful niche marketing relies on a firm's ________ and its ________. marketing strategy; services individual relationships with customers; positioning superior products; value network partners greater knowledge of customers' needs; special reputation competitive advantage in comparison to mass-market companies; affordable pricing Difficulty: 2 QuestionID: 08-2-47 Page-Reference: 259 Skill: Recall

greater knowledge of customers' needs; special reputation

18. Some critics are concerned that the fast-food industry has used ________ and contributed to rising obesity rates. high-pressure selling deceptive promotions deceptive pricing deceptive packaging harmful products Difficulty: 2 QuestionID: 04-2-18 Page-Reference: 113-114 Skill: Applied

harmful products

71. According to the textbook, your boss is most likely referring to ________ when she mentions "doing things right." strategy planning objectives implementation efficiency Difficulty: 3 QuestionID: 02-2-71 Page-Reference: 60 Skill: Recall

implementation

30. MTV targets the world's teenagers, who have similar needs and buying behaviour even though they are located in different countries. This is called ________ segmentation. political and legal cross-cultural cultural intermarket individual Difficulty: 2 QuestionID: 08-2-30 Page-Reference: 256 Skill: Applied

intermarket

15. Workers, managers, and members of the board are all part of a company's ________ public. general local intermediary market internal Difficulty: 1 QuestionID: 03-2-15 Page-Reference: 75 Skill: Recall

internal

7. A(n) ________database can usually provide marketing information more quickly and cheaply than other information sources. external LexisNexis intermediate internal Hoover's Difficulty: 1 QuestionID: 05-2-07 Page-Reference: 147 Skill: Recall

internal

30. Ethnographic research can be very helpful because it _____________________. is conducted within traditional focus groups. is a research option when observation is not possible. provides researchers with secondary data. is most popular in the service sector. provides greater insight into customer behaviour than interviews do. Difficulty: 3 QuestionID: 05-2-30 Page-Reference: 156 Skill: Recall

is a research option when observation is not possible.

32. Ethnographic research ________. comes from traditional focus groups is gathered where people live and work provides secondary data is most popular in the service sector provides data to marketers when observation is impossible Difficulty: 2 QuestionID: 05-2-32 Page-Reference: 156 Skill: Recall

is gathered where people live and work

35. A common practice among marketers is to identify and develop new markets for their existing products. This practice is called ________. market development product development market penetration market skimming dual adaptation Difficulty: 1 QuestionID: 02-2-35 Page-Reference: 50 Skill: Conceptual

market development

27. Critics have charged that the marketing system urges too much interest in ________. material possessions the push strategy meeting a quota new product invention entering the global market arena Difficulty: 1 QuestionID: 04-2-27 Page-Reference: 116 Skill: Recall

material possessions

31. For a market segment to be ___________, it must mean that the size, purchasing power, and profiles of a market segment can be determined. observable accessible substantial actionable measurable Difficulty: 2 QuestionID: 08-2-31 Page-Reference: 256 Skill: Recall

measurable

13. An Internet site that shows news features and editorial opinions would be classified as a ________ public. financial global citizen-action media government Difficulty: 1 QuestionID: 03-2-13 Page-Reference: 75 Skill: Recall

media

38. In general, a company should enter only segments in which it can ________ and ________. offer lower prices; ship faster offer superior value; gain advantages over competitors offer superior value; ship faster gain advantages over competitors; differentiate its products identify behaviours; understand spending power Difficulty: 3 QuestionID: 08-2-38 Page-Reference: 257 Skill: Recall

offer superior value; gain advantages over competitors

39. The major influences on the buying process at General Aeronautics include company policies and systems, technological change, and economic developments. The influences on the buying process in this scenario are most accurately categorized as ________ and ________. individual; environmental organizational; interpersonal individual; organizational environmental; interpersonal organizational; environmental Difficulty: 3 QuestionID: 07-2-39 Page-Reference: 227 Skill: Recall

organizational; environmental

5. Many critics charge that the marketing system causes ________ to be higher than they would be under more "sensible" systems. imports exports prices product safety measures employee morals Difficulty: 1 QuestionID: 04-2-05 Page-Reference: 110 Skill: Recall

prices

11. Deceptive practices by companies can include the following categories:________________. product; pricing; promotion pricing; promotion; placement packaging; product; promotion pricing; promotion; packaging product; packaging; placement Difficulty: 2 QuestionID: 04-2-11 Page-Reference: 111 Skill: Recall

pricing; promotion; packaging

63. Cause-related marketing is a(n) ________. response to customer needs primary form of environmental awareness primary form of corporate giving response to corporate legislative problems attempt to influence consumers' core beliefs Difficulty: 2 QuestionID: 03-2-63 Page-Reference: 92 Skill: Recall

primary form of corporate giving

75. Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting your firm's industry to its advantage. Your firm takes a(n) ________ approach to the marketing environment. reactive proactive adversarial passive team work Difficulty: 2 QuestionID: 03-2-75 Page-Reference: 98 Skill: Applied

proactive

74. Marketers can take a(n) ________ by taking aggressive action to affect the publics and forces in their marketing environments. environmental stance proactive stance natural perspective natural-management perspective relationship-building perspective Difficulty: 2 QuestionID: 03-2-74 Page-Reference: 98 Skill: Recall

proactive stance

46. The first step of the business buying process is ________. general need description alternative evaluations problem recognition order-routine specification performance review Difficulty: 2 QuestionID: 07-2-46 Page-Reference: 230 Skill: Recall

problem recognition

47. Business marketers that alert customers to potential problems and then show how their products provide solutions are trying to influence the ________ stage of the business buying process. general need description alternative evaluations performance review order-routine specification problem recognition Difficulty: 2 QuestionID: 07-2-47 Page-Reference: 230 Skill: Recall

problem recognition

24. The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose products that offer the most in quality, performance, and innovative features. product production customer marketing promotion Difficulty: 1 QuestionID: 01-2-24 Page-Reference: 10 Skill: Conceptual

product

15. Beyond simply attracting new customers and creating transactions, companies want to ________ and grow their businesses. retain customers attract more new customers satisfy customers communicate with customers empower consumers Difficulty: 3 QuestionID: 01-2-15 Page-Reference: 8 Skill: Applied

retain customers

48. Beyond their advantage, web-based surveys also tend to be more interactive and engaging, easier to complete, and less intrusive than traditional phone or mail surveys. speed cost speed and cost control over respondents instantaneous results Difficulty: 2 QuestionID: 05-2-48 Page-Reference: 160 Skill: Recall

speed and cost

24. Four types of SBUs are defined by the BCG growth-share matrix. They are ________, ________, ________, and ________. product; price; promotion; placement bombs; aces; gold diggers; posers market penetration; market development; product development; diversification planning; implementing; leading; controlling stars; cash cows; question marks; dogs Difficulty: 1 QuestionID: 02-2-24 Page-Reference: 47 Skill: Recall

stars; cash cows; question marks; dogs

15. A supplier will most likely focus on maintaining product and service quality in the __________ type of buying situation. systems task modified rebuy new task straight rebuy solutions task Difficulty: 3 QuestionID: 07-2-15 Page-Reference: 224 Skill: Recall

straight rebuy

23. You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering relatively consistent amounts of the same products with each purchase. This is an example of a ________ situation. modified rebuy new task straight rebuy solution selling value analysis Difficulty: 1 QuestionID: 07-2-23 Page-Reference: 223 Skill: Applied

straight rebuy

3. The ___________ involves adapting the firm to take advantage of opportunities in its constantly changing environment. strategic plan values plan mission plan business-portfolio plan operations plan Difficulty: 1 QuestionID: 02-2-03 Page-Reference: 42 Skill: Recall

strategic plan

54. The philosophy of ________ holds that a company's marketing should support the best long-run performance of the marketing system. corporate social responsibility environmentalism the sustainable marketing concept the free enterprise system consumer-oriented marketing Difficulty: 1 QuestionID: 04-2-54 Page-Reference: 126 Skill: Recall

the sustainable marketing concept

68. Instead of focusing on managing individual purchases, a seller should focus on managing ________. building a good reputation in the marketplace the organizational environment the use of blanket contracts order-routine specifications the total customer relationship Difficulty: 2 QuestionID: 07-2-68 Page-Reference: 232 Skill: Recall

the total customer relationship

25. A company's close competitors are ________. considered "bad" competitors those that least resemble the company's operation those that most resemble the company's operations not a threat the sole focus of all successful companies Difficulty: 2 QuestionID: 18-2-25 Page-Reference: 603 Skill: Recall

those that most resemble the company's operations

63. In a basic SWOT analysis the T stands for ________. timing trust threats trade tangible Difficulty: 1 QuestionID: 02-2-63 Page-Reference: 59 Skill: Recall

threats

70. Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead, she does a lot of brand switching. Carrie exhibits ________. dissonance-reducing buying behaviour complex buying behaviour habitual buying behaviour variety-seeking buying behaviour brand familiarity buying behaviour Difficulty: 1 QuestionID: 06-2-70 Page-Reference: 202-203 Skill: Applied

variety-seeking buying behaviour

60. Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. elderly; expensive young; appealing vulnerable; marketing vulnerable or disadvantaged; controversial or potentially harmful unexpected; deceptive Difficulty: 2 QuestionID: 08-2-60 Page-Reference: 262 Skill: Recall

vulnerable or disadvantaged; controversial or potentially harmful

67. Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed? A SWOT analysis A business portfolio analysis An executive summary A marketing plan A marketing mix Difficulty: 1 QuestionID: 02-2-67 Page-Reference: 59 Skill: Applied

A SWOT analysis

7. Which of the following provides an answer to this question: What is our purpose and what do we want to achieve? Objectives and goals A business portfolio A mission statement Marketing and functional strategies Operational strategies Difficulty: 2 QuestionID: 02-2-07 Page-Reference: 43 Skill: Recall

A mission statement

18. This group has profoundly influenced the rest of Canada through art, love of nature, and concern for the environment. Aboriginal Canadians African Canadians Asian Canadians mature Canadians gay and lesbian Canadians Difficulty: 3 QuestionID: 06-2-18 Page-Reference: 187 Skill: Recall

Aboriginal Canadians

86. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." If Herb were to produce shorter, fatter pencils to appeal to children and their parents, which demographic segmentation variable would he be using? Gender Income Age and life-cycle Family size Education Difficulty: 1 QuestionID: 08-2-86 Page-Reference: 247 Skill: Applied

Age and life-cycle

30. Which of the following statements supports the criticism that marketers benefit from creating false wants? People have strong defenses against advertising and other marketing tools. Advertisers use the mass media to create materialistic models of the good life. People seek information when making important purchases and often do not rely on a single source. The high failure rate of new products shows that companies are not able to control demand. Even minor purchases that may be affected by advertising messages lead to repeat purchases only if the product delivers the promised customer value. Difficulty: 2 QuestionID: 04-2-30 Page-Reference: 117 Skill: Recall

Advertisers use the mass media to create materialistic models of the good life.

67. What source of marketing information provides those within the company ready access to research information, stored reports, shared work documents, contact information for employees and other stakeholders, and more? An intranet An extranet The Internet Marketing research Marketing intelligence Difficulty: 2 QuestionID: 05-2-67 Page-Reference: 169 Skill: Recall

An intranet

31. Shane Sudendorf is an active member of her sorority, two intramural teams, and a service organization at her college. She also actively participates on two online social networks, posting information about her day along with her thoughts on music, food, fashion, and culture. From this description, which of the following is the best way to describe Shane? An opinion leader A status symbol A member of the RBC Builder segment A member of the RBC Youth segment A brand ambassador Difficulty: 2 QuestionID: 06-2-31 Page-Reference: 190 Skill: Applied

An opinion leader

22. You are about to test hypotheses about decreasing sales in certain markets and their causes. You are involved in what type of research? Exploratory Descriptive Causal Focus group Ethnographic Difficulty: 1 QuestionID: 05-2-22 Page-Reference: 151 Skill: Applied

Causal

5. Which of the following is the first step in strategic planning? Set objectives and goals. Develop the business portfolio. Define the company mission. Plan marketing strategies. Identify threats and weaknesses. Difficulty: 1 QuestionID: 02-2-05 Page-Reference: 43 Skill: Recall

Define the company mission.

45. Which growing consumer group in Canada tends to be cosmopolitan and professional with high incomes? Gen Xers Gays and lesbians Millennials Echo boomers Environmentalists Difficulty: 3 QuestionID: 03-2-45 Page-Reference: 84 Skill: Recall

Gays and lesbians

49. In which stage of the business buying process is a supplier most likely to provide a buyer with information about the values of different product characteristics? Problem recognition General need description Supplier search Supplier selection Order-routine specification Difficulty: 3 QuestionID: 07-2-49 Page-Reference: 230 Skill: Recall

General need description

23. _______________ segmentation focuses on how consumers show their allegiance to brands, stores, or companies. User status Brand preference Store type Loyalty status Usage rate Difficulty: 1 QuestionID: 08-2-23 Page-Reference: 253 Skill: Recall

Loyalty status

71. The challenge for makers of which type of product is to add some pleasing qualities so that it will become more desirable in the consumers' minds? Salutary Desirable Pleasing Durable Aesthetic Difficulty: 2 QuestionID: 04-2-71 Page-Reference: 129 Skill: Recall

Salutary

9. Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation? Old women love to shop; young women love it more! Most 10-year-old boys are mischievous. Some 70-year-olds use wheelchairs; others play tennis. The majority of 20-year-olds have to work. Most couples start families when they are in their twenties. Difficulty: 2 QuestionID: 08-2-09 Page-Reference: 247 Skill: Applied

Some 70-year-olds use wheelchairs; others play tennis.

6. A statement of the organization's purpose—what it wants to accomplish in the larger environment—is called _______. objectives and goals a business portfolio a vision statement a mission statement a culture statement Difficulty: 1 QuestionID: 02-2-06 Page-Reference: 43 Skill: Conceptual

a mission statement

57. Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation. private maximum intermittent at least some no Difficulty: 2 QuestionID: 03-2-57 Page-Reference: 90 Skill: Recall

at least some

63. A(n) ________ is a descriptive thought that a person has about something. lifestyle motive belief attitude perception Difficulty: 1 QuestionID: 06-2-63 Page-Reference: 200 Skill: Recall

belief

64. In the case of maintenance, repair, and operating items, buyers may use a ________ rather than periodic purchase orders. blanket contract negotiable instrument binding purchase order locked-in sale solutions purchase Difficulty: 2 QuestionID: 07-2-64 Page-Reference: 231 Skill: Recall

blanket contract

26. Everyday consumers who are enthusiastic about their brands are sometimes enlisted to become ________, and share their passion for a company's products with large circles of friends and acquaintances in return for insider knowledge and other rewards. leading adopters direct sellers direct marketers brand evangelists influencers Difficulty: 2 QuestionID: 06-2-26 Page-Reference: 190 Skill: Recall

brand evangelists

64. A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of each of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________ marketing. cause-related generational sustainable tiered cultural Difficulty: 2 QuestionID: 03-2-64 Page-Reference: 92 Skill: Applied

cause-related

39. Canadian cities are often surrounded by large suburban areas. Statistics Canada calls these combinations of urban and suburban populations ________. suburbs rural/urban areas metropolises census metropolitan areas geographic combos Difficulty: 1 QuestionID: 03-2-39 Page-Reference: 82 Skill: Recall

census metropolitan areas

42. Fence Patrol has developed an entirely new mounting system for chain link fences. Although it is a local company, through the acquisition of a distributor it now has the ability to market its products nationwide. Fence Patrol is most likely to be following a ________ strategy. market penetration market development diversification divesting product development Difficulty: 3 QuestionID: 02-2-42 Page-Reference: 50 Skill: Applied

diversification

22. Social classes are society's relatively permanent and ordered _____________whose members share similar values, interests, and behaviours. lifestyles cultures reference groups attitudes divisions Difficulty: 1 QuestionID: 06-2-22 Page-Reference: 189 Skill: Recall

divisions

77. Government organizations tend to favour ________ suppliers over ________ suppliers. local; domestic unionized; nonunionized foreign; domestic domestic; foreign nonunionized; unionized Difficulty: 2 QuestionID: 07-2-77 Page-Reference: 235 Skill: Recall

domestic; foreign

70. Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. secure extranets product value analysis vendor-managed inventory systems blanket contracts e-procurement Difficulty: 1 QuestionID: 07-2-70 Page-Reference: 232 Skill: Recall

e-procurement

3. By carefully studying the _____________, marketers can adapt their strategies to meet new marketplace challenges and opportunities. policy environment strategic plans target markets structure Difficulty: 1 QuestionID: 03-2-03 Page-Reference: 72 Skill: Recall

environment

74. Donna wants to buy a new coat. During the ________ stage of her purchase process she will ask her friends to recommend a store and/or a style of coat. She will search the newspaper for coat sales, and she will visit nearby stores to see what is available in her price range. product evaluation alternative evaluation need recognition information search purchase decision Difficulty: 2 QuestionID: 06-2-74 Page-Reference: 203 Skill: Applied

information search

10. When sellers become obsessed with their own products and lose sight of the underlying customer needs we say this is ______________. marketing myopia marketing management value proposition selling myopia the product concept Difficulty: 1 QuestionID: 01-2-10 Page-Reference: 7 Skill: Recall

marketing myopia

69. In today's more connected world, marketing should be done by ________ employees in an organization. marketing all sales and technology management and marketing marketing, sales, and customer-support Difficulty: 1 QuestionID: 01-2-69 Page-Reference: 20 Skill: Recall

marketing, sales, and customer-support

56. When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________. one-to-one marketing mass marketing mass customization differentiated marketing localization Difficulty: 2 QuestionID: 08-2-56 Page-Reference: 261 Skill: Recall

mass customization

80. The market niche may dry up, or it might grow to the point that it attracts larger competitors. That is why many companies practise ________. multiple niching single niching specific niching service niching market niching Difficulty: 2 QuestionID: 18-2-80 Page-Reference: 616 Skill: Recall

multiple niching

57. Most newspapers rely on ________ so they do not need to rely on only one supplier to provide the tons of paper that they use annually. single sourcing multiple sourcing cross-docking vendor-managed inventory blanket contracting Difficulty: 2 QuestionID: 07-2-57 Page-Reference: 231 Skill: Applied

multiple sourcing

34. A buyer's decisions are influenced by ________, such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. personal characteristics reference groups perceptions attitudes psychographics Difficulty: 2 QuestionID: 06-2-34 Page-Reference: 195 Skill: Recall

personal characteristics

26. An industry often contains "good" and "bad" competitors. Good competitors ________. break all of the rules are nice people play by the rules dominate the market share their marketing strategies Difficulty: 2 QuestionID: 18-2-26 Page-Reference: 603 Skill: Recall

play by the rules

29. A shoe company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and want to wear the same shoes. The shoe company is hoping that fans of the band view the band as a ________. membership group reference group status symbol subculture lifestyle Difficulty: 3 QuestionID: 06-2-29 Page-Reference: 189-190 Skill: Applied

reference group

61. If a consumer's experience is rewarding, that consumer will probably use the product more and more. The consumer's response to the product will be ________. an attitude a belief reinforced a dissonant experience motivated Difficulty: 2 QuestionID: 06-2-61 Page-Reference: 200 Skill: Recall

reinforced

56. Juana looked at her September issue of O magazine and did not see anything of interest. After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The issue became quite interesting to Juana due to ________. subliminal messaging social factors selective attention the hierarchy of needs unconscious motivations Difficulty: 2 QuestionID: 06-2-56 Page-Reference: 199 Skill: Applied

selective attention

23. Number of children in the family is not one way that _________ is measured. occupation education income social class wealth Difficulty: 2 QuestionID: 06-2-23 Page-Reference: 189 Skill: Recall

social class

3. The ________ is specifically focused on the future welfare of consumers only. strategic planning concept sustainable marketing concept societal marketing concept consumer business concept marketing concept Difficulty: 1 QuestionID: 04-2-03 Page-Reference: 108 Skill: Recall

societal marketing concept

79. The key to successful niching is ________. having only a few specific customers buzz marketing follow-up specialization mass appeal of one idea Difficulty: 1 QuestionID: 18-2-79 Page-Reference: 616 Skill: Recall

specialization

49. Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. unimportant to; unwanted by unimportant to; overlooked by too small; undesirable to unknown by; unwanted by disappointed by; geographically far from Difficulty: 2 QuestionID: 08-2-49 Page-Reference: 259 Skill: Recall

unimportant to; overlooked by

22. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. user status usage rates benefit behaviour loyalty status Difficulty: 1 QuestionID: 08-2-22 Page-Reference: 252 Skill: Conceptual

user status

34. A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the buying centre, the truck drivers who must make sure that the trucks do not run out of fuel are the ________. initiators deciders buyers influencers users Difficulty: 2 QuestionID: 07-2-34 Page-Reference: 225 Skill: Applied

users

66. Consumers position products and services ________. after marketers put marketing mixes in place generally after consulting friends who use them with or without the help of marketers only reluctantly based on nearby competitors' positions Difficulty: 1 QuestionID: 08-2-66 Page-Reference: 264 Skill: Recall

with or without the help of marketers

14. Understanding ________ are important to help researchers discover new products that might be wanted. lifestyles dissonance groups cultural shifts attitudes Difficulty: 3 QuestionID: 06-2-14 Page-Reference: 186 Skill: Recall

cultural shifts

97. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot? A rival amusement park announces plans to open three new rides next season. A new luxury hotel is being constructed in the area, with the aim of luring more high-spending families on vacation. Gail and Ron have paid off the mortgage on Fun-Spot, significantly reducing their monthly expenses. Fun-Spot employees tend to be enthusiastic and young, projecting an image of fun and vitality at Fun-Spot. Fun-Spot plans to further diversify its offerings by beginning a two-week summer camp for elementary school students. Difficulty: 2 QuestionID: 02-2-97 Page-Reference: 59 Skill: Applied

A new luxury hotel is being constructed in the area, with the aim of luring more high-spending families on vacation.

88. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. It is most likely that each consumer segment attracted to The Attic Trunk would have which of the following in common with the other consumer segments? Subculture Personality AIO dimensions Reference groups Membership groups Difficulty: 3 QuestionID: 06-2-88 Page-Reference: 196 Skill: Applied

AIO dimensions

37. AIO measures a customer's lifestyle. What does AIO stand for? Adoptions, interests, occupations Achievement, involvement, organizations Accommodation, investment, orientation Acknowledgements, interests, observations Activities, interests, opinions Difficulty: 2 QuestionID: 06-2-37 Page-Reference: 196 Skill: Recall

Activities, interests, opinions

95. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Pamela shopped for fashions two or three times last fall at The Attic Trunk and was delighted with her purchases. Now she shops every Saturday to add a new item to her wardrobe. Which stage of the adoption process is Pamela in with regard to The Attic Trunk? Awareness Trial Interest Evaluation Adoption Difficulty: 3 QuestionID: 06-2-95 Page-Reference: 208 Skill: Applied

Adoption

85. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. Richard Koehl is the purchasing agent at A-1 Stampings Inc. What role will he play in the purchase decision process? Influencer Gatekeeper Decider Buyer User Difficulty: 2 QuestionID: 07-2-85 Page-Reference: 225 Skill: Applied

Buyer

8. UPS serves both consumer and business markets, but most of its revenues come from its business customers. UPS has become a strategic logistics ally for many of its business customers, going far beyond offering delivery services to offering inventory management, international trade management, and even financing to its commercial customers. This is an example of which of the following differences between the consumer and business markets? Business purchases involve more buyers. Buyers and sellers in the business market build close, long-term relationships. Business markets contain more and larger buyers. Business buyer demand is derived. Demand in business markets is inelastic. Difficulty: 2 QuestionID: 07-2-08 Page-Reference: 219 Skill: Applied

Buyers and sellers in the business market build close, long-term relationships.

79. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. In this scenario, which of the following are examples of marketing intelligence? Responses to the surveys Jason sent Competitors' pamphlets Data mining Focus group conclusions Online social network comments Difficulty: 3 QuestionID: 05-2-79 Page-Reference: 148 Skill: Applied

Competitors' pamphlets

46. Sanguine Services practises a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practises which one of these strategies? Undifferentiated Differentiated Mass Concentrated Geographically dispersed Difficulty: 2 QuestionID: 08-2-46 Page-Reference: 259 Skill: Applied

Concentrated

51. Which of the segmenting strategies carries higher-than-average risks in consumer markets? Concentrated Mass Differentiated Undifferentiated Multiple-segment Difficulty: 3 QuestionID: 08-2-51 Page-Reference: 259 Skill: Recall

Concentrated

2. ____________ research helps companies to understand buying decisions, such as what they buy, where they buy, how and how much they buy, when they buy, and why they buy. Market Permanent Consumer Social Group Difficulty: 1 QuestionID: 06-2-02 Page-Reference: 184 Skill: Recall

Consumer

1. ________ is never simple, yet understanding it is the essential task of marketing management. Brand personality Consumption pioneering Early adoption Consumer buying behaviour Understanding the difference between primary and secondary data Difficulty: 1 QuestionID: 06-2-01 Page-Reference: 184 Skill: Recall

Consumer buying behaviour

64. ____________ refers to the brand exchanges create by consumers themselves—both invited and uninvited—through which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. Consumer-generated marketing Customer-managed relationship Partner relationship Online social network Consumer interaction Difficulty: 2 QuestionID: 01-2-64 Page-Reference: 19 Skill: Conceptual

Consumer-generated marketing

55. Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined group of buyers. What does Jacob Engineering Group practise? Consumer-oriented marketing Societal marketing Sense-of-mission marketing Customer-value marketing Innovative marketing Difficulty: 2 QuestionID: 04-2-55 Page-Reference: 127 Skill: Applied

Consumer-oriented marketing

40. ________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. Environmentalism The Bill of Rights Grassroots politics Consumerism The Human Relations Movement Difficulty: 1 QuestionID: 04-2-40 Page-Reference: 119 Skill: Recall

Consumerism

87. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. Jason could capture information at every possible customer touchpoint. What strategy could Jason use to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty? Mechanical research Online databases Ethnographics Customer relationship management Marketing intelligence networks Difficulty: 3 QuestionID: 05-2-87 Page-Reference: 167 Skill: Applied

Customer relationship management

48. ________ is defined as the customer's evaluation of the differences between all the benefits and all the costs of a marketing offer relative to those of competing offers. Customer equity Customer satisfaction Customer evangelism Customer-perceived value Marketing myopia Difficulty: 1 QuestionID: 01-2-48 Page-Reference: 14 Skill: Conceptual

Customer-perceived value

91. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. By keeping the latest styles in stock, management at The Attic Trunk is able to satisfy which of Maslow's needs best? Social Self-actualization Physiological Esteem Safety Difficulty: 3 QuestionID: 06-2-91 Page-Reference: 198-199 Skill: Applied

Esteem

8. _________________ is a term that is used to describe a case where a retailer charges customers an amount that far exceeds the cost of goods sold. Deceptive promotion Deceptive packaging False advertising Excessive markup Redlining Difficulty: 2 QuestionID: 04-2-08 Page-Reference: 110-111 Skill: Applied

Excessive markup

93. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Bridgehead focuses its efforts on serving a few market segments well rather than going after the whole coffee market. Which of the four basic competitive positioning strategies is Bridgehead employing? Differentiation Overall cost leadership Operational excellence Focus Customer intimacy Difficulty: 2 QuestionID: 18-2-93 Page-Reference: 608-609 Skill: Applied

Focus

89. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." Some of the specialty shops Herb sells to only buy pencils from him, but some of his other customers buy pencils from a few different suppliers. What can Herb learn by studying his less-loyal customers? Herb can detect which brands are most competitive with his own. Herb can learn how best to reward loyalty. Herb can determine which geographic areas offer the most potential. Herb can learn about the occasions where his pencils are used. Herb can gather information to guide his pencil design. Difficulty: 1 QuestionID: 08-2-89 Page-Reference: 253 Skill: Applied

Herb can detect which brands are most competitive with his own.

15. ______________ is a term used to support the claims that insurance, real estate, and used cars are sold, not bought. Deceptive promotion Excessive markup Shoddy product High-pressure selling Excessive materialism Difficulty: 2 QuestionID: 04-2-15 Page-Reference: 112 Skill: Recall

High-pressure selling

4. Which of the following questions represents the consumer's perspective on the pre-purchase issues stage of the consumption process? How does a consumer decide that he or she needs a product? Is acquiring a product a stressful or a pleasant experience? What does the consumer's purchase say about the consumer? How are consumer attitudes toward products formed and changed? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-04 Page-Reference: 185 Skill: Recall

How does a consumer decide that he or she needs a product?

54. You generally need to ask three questions when developing a sampling plan. Which of the following questions is part of that process? Who should be left out of the sample (sampling exclusion)? How should we contact the sample (sampling approach)? Why should respondents be selected (sampling justification)? How should participants be chosen (sampling procedure)? How much should we pay the participants (sampling costing)? Difficulty: 3 QuestionID: 05-2-54 Page-Reference: 162-164 Skill: Recall

How should participants be chosen (sampling procedure)?

56. What is a major drawback of probability sampling? It can be money and time consuming. The sampling error cannot be measured. The most difficult population from which to obtain information is chosen. Everyone has an equal chance of selection. Marketers must rely on the judgment of the researcher in respondent selection. Difficulty: 3 QuestionID: 05-2-56 Page-Reference: 164 Skill: Recall

It can be money and time consuming.

76. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Customers can sometimes pay twice as much for a bag of carrots at The Good Earth Table than they would at a supermarket. Some feel the cost would be less if the store dealt directly with the local farm. How could management best support the use of intermediaries? Intermediaries do work that would otherwise have to be done by manufacturers or consumers. The chain makes more profit when more intermediaries are involved. The involvement of more distribution partners helps pay for advertising. Local producers must reduce the price of their products to be attractive to intermediaries. If you want quality produce you must be willing to pay for it. Difficulty: 3 QuestionID: 04-2-76 Page-Reference: 110 Skill: Applied

Intermediaries do work that would otherwise have to be done by manufacturers or consumers.

49. Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct; however, the sample size for her research is quite large. Which of the following methods of contact would provide Tasoula with the most cost-effective way to reach a large sample of potential customers? Telephone surveys Personal interviews Internet surveys Mail surveys Focus group interviews Difficulty: 2 QuestionID: 05-2-49 Page-Reference: 160 Skill: Applied

Internet surveys

44. Which of the following is an advantage of telephone interviews? They are more expensive to conduct than mail questionnaires. Interviewer bias is introduced. Under time pressures, some interviewers might cheat. Interviewers can explain some questions and probe more deeply on others. Potential respondents may refuse to participate. Difficulty: 3 QuestionID: 05-2-44 Page-Reference: 160 Skill: Recall

Interviewers can explain some questions and probe more deeply on others.

6. Which of the following questions represents the consumer's perspective on the purchase issues stage of the consumption process? What are the best sources of information to learn more about alternative choices? Is acquiring a product a stressful or a pleasant experience? How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision? How are consumer attitudes toward products formed and changed? Does this person tell others about his or her experiences with the product? Difficulty: 2 QuestionID: 06-2-06 Page-Reference: 185 Skill: Recall

Is acquiring a product a stressful or a pleasant experience?

59. ________ describes changes in an individual's behaviour arising from experience. Lifestyle Learning Perception Cognitive dissonance Aggressiveness Difficulty: 1 QuestionID: 06-2-59 Page-Reference: 200 Skill: Recall

Learning

85. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. Jason had to consider the many contact methods available with which to administer his survey. Which contact method would offer the best control over interviewer effects? Mail Phone Online In person Focus group Difficulty: 3 QuestionID: 05-2-85 Page-Reference: 158 Skill: Applied

Mail

7. A/an ________ point of view tends to be wider in scope than those that sell the same product to the same basic target. From this perspective, Binney & Smith, maker of Crayola crayons, would include competition from all firms making recreational and educational products for children rather than just other makers of crayons and children's drawing supplies. Industry Niche Segment Market Expanded Difficulty: 2 QuestionID: 18-2-07 Page-Reference: 600 Skill: Applied

Market

57. ________ are those runner-up firms that are working to increase its market share in an industry. Market leaders Market challengers Market followers Market analyzers Market nichers Difficulty: 1 QuestionID: 18-2-57 Page-Reference: 610 Skill: Conceptual

Market challengers

86. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Which of the following is the strongest reason that the owners of The Attic Trunk might not want to completely discount mature consumers as a still-viable target market? Mature consumers wield considerable influence over purchases made by their children and grandchildren. Mature consumers are the largest and wealthiest demographic segment in Canada. Mature consumers are spending an increasing percentage of their income on specialty items such as those originally sold by The Attic Trunk. Mature consumers are interested in shopping where younger families shop in an effort to look as young as they feel. Mature consumers are less willing to shop around and change brands than younger consumers are, so they will likely remain loyal to The Attic Trunk. Difficulty: 2 QuestionID: 06-2-86 Page-Reference: 188 Skill: Applied

Mature consumers are the largest and wealthiest demographic segment in Canada.

30. Which demographic group is also referred to as the echo boomers? Generation X Generation Z Millennials Baby boomers Baby busters Difficulty: 2 QuestionID: 03-2-30 Page-Reference: 79 Skill: Recall

Millennials

31. Large tween and teen markets belong to which demographic group? Millennials Generation X Lost generation Baby boomers Generation Z Difficulty: 1 QuestionID: 03-2-31 Page-Reference: 79 Skill: Recall

Millennials

33. Which demographic group is characterized by a total fluency and comfort with computer, digital, and Internet technology? Generation X Seniors Baby boomers Generation Z Millennials Difficulty: 1 QuestionID: 03-2-33 Page-Reference: 79 Skill: Recall

Millennials

86. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. If Jason wants to be sure that respondents can answer questions in their own words, his questionnaire should feature which type of questions? Open-ended Personal Factual Quantitative Closed-ended Difficulty: 3 QuestionID: 05-2-86 Page-Reference: 165 Skill: Applied

Open-ended

24. ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. Buzz marketers Habitual buyers Social networkers Stealth marketers Opinion leaders Difficulty: 1 QuestionID: 06-2-24 Page-Reference: 190 Skill: Conceptual

Opinion leaders

66. In SWOT analysis, which of the following refers to factors in the external environment? Strengths Strategies Weaknesses Opportunities Trends Difficulty: 2 QuestionID: 02-2-66 Page-Reference: 59 Skill: Recall

Opportunities

87. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. The management directive to reduce the number of steel suppliers is most accurately classified as which type of influence affecting business buying behaviour? Environmental Organizational Interpersonal Individual Commercial Difficulty: 2 QuestionID: 07-2-87 Page-Reference: 227 Skill: Applied

Organizational

44. Which of the following is an accurate statement about the diversity of the Canadian population? Members of visible minority groups could account for roughly half of the population by 2017. Over 5 million Canadians identified themselves as visible minorities in the 2006 census. The Asian-Canadian percentage of the population is expected to remain steady in the next 50 years. Fewer than eight ethnic groups in Canada are growing significantly and have well-developed media. Canadian ethnic populations are expected to slowly increase in the next few decades. Difficulty: 3 QuestionID: 03-2-44 Page-Reference: 83 Skill: Recall

Over 5 million Canadians identified themselves as visible minorities in the 2006 census.

42. Michael Porter suggests four basic competitive positioning strategies that companies can follow—three winning strategies and one losing one. Which of the following are considered winning strategies? Middle-of-the-roader, focus, and overall cost leadership Focus, differentiation, and middle-of-the-roader Overall cost leadership, differentiation, and middle-of-the-roader Overall cost leadership, differentiation, and focus Differentiation, operational excellence, and focus Difficulty: 1 QuestionID: 18-2-42 Page-Reference: 608-609 Skill: Recall

Overall cost leadership, differentiation, and focus

69. The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation? Image People Services Product Channel Difficulty: 2 QuestionID: 08-2-69 Page-Reference: 268 Skill: Applied

People

46. Which group has considerable spending power, as well as great need for tailored products and services, and represents 14.3 percent of the Canadian population (4.4 million people)? People with disabilities Gays and lesbians Visible minorities Environmentalists Millennials Difficulty: 2 QuestionID: 03-2-46 Page-Reference: 85 Skill: Recall

People with disabilities

94. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Pamela Gupta learned about the brands available at The Attic Trunk after asking her supervisor where she shopped for her lovely sweaters. This represents which type of source for an information search? Personal Commercial Public Experiential Experimental Difficulty: 3 QuestionID: 06-2-94 Page-Reference: 203 Skill: Applied

Personal

38. ________ refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. It is usually described in traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Alternative evaluation Belief Culture Personality Self-awareness Difficulty: 1 QuestionID: 06-2-38 Page-Reference: 196-197 Skill: Recall

Personality

7. ____________ help the company stock and move goods from their points of origin to their destinations. Financial intermediaries Physical distribution firms Marketing services agencies Resellers Suppliers Difficulty: 1 QuestionID: 03-2-07 Page-Reference: 74 Skill: Recall

Physical distribution firms

46. Which of the following is the most pressing need at the bottom in Maslow's Hierarchy of Needs? Physiological needs Safety needs Stimulus needs Self-actualization needs Social needs Difficulty: 2 QuestionID: 06-2-46 Page-Reference: 198-199 Skill: Recall

Physiological needs

19. Critics have charged that some companies intentionally manufacture their products with materials or components that cause the product to need to be replaced before it actually should need replacement. What is this called? Product failure Short-term planning Planned obsolescence Nonfunctional warranty Expressed dissatisfaction Difficulty: 2 QuestionID: 04-2-19 Page-Reference: 114-115 Skill: Recall

Planned obsolescence

21. Trendy Teens manufactures fashionable clothing and accessories for the tween and teen female markets. New merchandise with a very different look is rolled out each season and heavily promoted as the "must-have" style in a variety of media. Trendy Teens could most easily be criticized for which of the following? Deceptive promotions Shoddy products High-pressure selling Poor service to disadvantaged consumers Planned obsolescence Difficulty: 2 QuestionID: 04-2-21 Page-Reference: 114-115 Skill: Applied

Planned obsolescence

70. The challenge for makers of which type of product is to add long-run benefits without reducing the product's pleasing qualities? Salutary Desirable Pleasing Durable Deficient Difficulty: 2 QuestionID: 04-2-70 Page-Reference: 129 Skill: Recall

Pleasing

2. Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? Long-range planning Short-range planning Media planning Strategic planning Annual planning Difficulty: 2 QuestionID: 02-2-02 Page-Reference: 42 Skill: Recall

Strategic planning

92. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Gail and Ron strive to provide new offerings and entertainment options for their visitors. What type of strategy is this? Market penetration Market development Product development Customer development Diversification Difficulty: 2 QuestionID: 02-2-92 Page-Reference: 50 Skill: Applied

Product development

52. Nokia and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. These companies are offering what value discipline? Operational excellence Customer intimacy Product leadership Promotional innovation Differentiation Difficulty: 2 QuestionID: 18-2-52 Page-Reference: 609 Skill: Applied

Product leadership

51. During which stage of the business buying process is a buyer most likely to conduct a value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensively? Proposal solicitation General need description Order-routine specification Performance review Product specification Difficulty: 3 QuestionID: 07-2-51 Page-Reference: 230-231 Skill: Recall

Product specification

21. Which of the following marketing management orientations focuses primarily on improving production and distribution efficiency? Production concept Product concept Selling concept Marketing concept Social marketing concept Difficulty: 2 QuestionID: 01-2-21 Page-Reference: 10 Skill: Recall

Production concept

22. Which of the following marketing management orientations is most likely to lead to marketing myopia? Customer-driven marketing Production concept Social marketing Selling concept Customer-driven marketing Difficulty: 3 QuestionID: 01-2-22 Page-Reference: 10 Skill: Recall

Production concept

62. What are deficient products? Products that have neither immediate appeal nor long-run benefits Products that give high immediate satisfaction but only hurt consumers in the long run Products that have low appeal but may benefit consumers in the long run Products that are either unsafe or inferior Any product in the decline stage of the product life cycle Difficulty: 1 QuestionID: 04-2-62 Page-Reference: 129 Skill: Recall

Products that have neither immediate appeal nor long-run benefits

74. Which of the following statements about e-procurement security issues is true? There are no security risks for companies doing business on the Internet. Firewalls provide adequate security for all Internet exchanges. Hackers are not interested in many business-to-business transactions. Extranet users and Internet users face the same security risks and use the same security tools. Providing e-procurement security can involve a substantial financial investment from a company. Difficulty: 2 QuestionID: 07-2-74 Page-Reference: 232 Skill: Recall

Providing e-procurement security can involve a substantial financial investment from a company.

57. What are the two main types of research instruments used to collect primary data? Surveys and samples Questionnaires and mechanical devices Focus groups and online databases Online panels and experiments Personal interviews and online marketing research Difficulty: 1 QuestionID: 05-2-57 Page-Reference: 164-165 Skill: Recall

Questionnaires and mechanical devices

28. Which form of data below can usually be obtained more quickly and at a lower cost than the others? Primary Survey research Experimental research Secondary Observational research Difficulty: 2 QuestionID: 05-2-28 Page-Reference: 152 Skill: Recall

Secondary

70. The availability of which of the following is most problematic in international marketing research? Primary data Research specialists Secondary data Intelligence limitations Consumers willing to answer survey questions Difficulty: 2 QuestionID: 05-2-70 Page-Reference: 171 Skill: Recall

Secondary data

51. ______________ occurs when people tend to interpret new information in a way that will support what they already believe. Selective retention Selective perception Selective attitude Selective attention Selective distortion Difficulty: 2 QuestionID: 06-2-51 Page-Reference: 199 Skill: Recall

Selective distortion

29. Which concept calls for aggressive selling and focuses on creating sales transactions rather than on building long-term customer relationships? Product Production Selling Societal marketing Marketing Difficulty: 2 QuestionID: 01-2-29 Page-Reference: 11 Skill: Recall

Selling

37. Which environmental factor is the reason that many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply? The level of primary demand The economic outlook The cost of money Culture and customs Shortages in key materials Difficulty: 3 QuestionID: 07-2-37 Page-Reference: 227 Skill: Recall

Shortages in key materials

15. ________ are groups of people with shared value systems based on common life experiences and situations and are contained in each culture. Subcultures Cognitive dissonances Alternative evaluations Motives Attitudes Difficulty: 1 QuestionID: 06-2-15 Page-Reference: 186 Skill: Recall

Subcultures

59. A buyer would be most likely to review trade directories in which stage of the business buying process? Problem recognition General need description Product specification Supplier search Supplier selection Difficulty: 2 QuestionID: 07-2-59 Page-Reference: 231 Skill: Recall

Supplier search

61. Members of the buying centre at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance. Next, they intend to compare several suppliers to these attributes. In which step of the business buying process is the buying centre at ABC Kid's World engaged? Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review Difficulty: 2 QuestionID: 07-2-61 Page-Reference: 231 Skill: Applied

Supplier selection

91. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." Herb could seek additional business buyers for his pencils. If he targeted new vendors that had recently opened for business, he would be using which business segmentation variable? Situational factors Customer operating characteristics Personal characteristics Purchasing approaches Benefits sought Difficulty: 2 QuestionID: 08-2-91 Page-Reference: 254 Skill: Applied

Situational factors

89. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Consumers are likely to choose brands with personalities that match their own. If the Attic Trunk wanted its brand to be associated with traits such as upper class and charming, they would seek to project which brand personality attribute? Sophistication Sincerity Ruggedness Excitement Competence Difficulty: 3 QuestionID: 06-2-89 Page-Reference: 197 Skill: Applied

Sophistication

89. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Into which quadrant of the BCG matrix does Fun-Spot fall? Star Question mark Profit centre Diversification Dog Difficulty: 2 QuestionID: 02-2-89 Page-Reference: 47 Skill: Applied

Star

25. ________ are high-share, high-growth businesses or products according to the Boston Consulting Group approach. Gold diggers Question marks Champions Aces Stars Difficulty: 2 QuestionID: 02-2-25 Page-Reference: 47 Skill: Recall

Stars

56. In what type of buying situation would a seller most likely send only a catalogue to the buyer during the proposal solicitation stage of the business buying process? New task Modified rebuy Straight rebuy Solution selling Independent task Difficulty: 3 QuestionID: 07-2-56 Page-Reference: 231 Skill: Applied

Straight rebuy

88. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. At what stage in the buying process was Richard when he sought input from others in the firm? Supplier selection General need description Supplier search Proposal solicitation Order-routine specification Difficulty: 3 QuestionID: 07-2-88 Page-Reference: 231 Skill: Applied

Supplier selection

71. Toyota works closely with carefully selected suppliers to improve quality and operations efficiency and with franchise dealers to provide top-grade sales and service support that will bring more customers and keep them coming back. What type of management is Toyota practising? Outside partnering Inside partnering Marketing Supply chain Customer development Difficulty: 3 QuestionID: 01-2-71 Page-Reference: 21 Skill: Applied

Supply chain

1. ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. The sustainable marketing concept The strategic planning concept Consumerism Environmentalism Sustainable marketing Difficulty: 2 QuestionID: 04-2-01 Page-Reference: 108 Skill: Recall

Sustainable marketing

4. McDonald's "Balanced, Active Lifestyle" initiative has added healthy food options to its menu, phased out traditional artery-clogging trans fats, launched a major multifaceted education campaign, and addressed environmental issues. "Balanced, Active Lifestyle" best exemplifies which concept? Sustainable marketing concept Marketing concept Societal marketing concept Strategic planning concept Consumer business concept Difficulty: 1 QuestionID: 04-2-04 Page-Reference: 108-109 Skill: Applied

Sustainable marketing concept

75. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Management at The Good Earth's Table clearly considers the future welfare of consumers and future company needs. Which of the four marketing concepts guides this retail operation? Marketing concept Strategic planning concept Competitive marketing concept Sustainable marketing concept Societal marketing concept Difficulty: 2 QuestionID: 04-2-75 Page-Reference: 108 Skill: Applied

Sustainable marketing concept

13. Which of the following is an example of a free online database that a company could access in order to develop marketing intelligence? LexisNexis ProQuest Dialog System for Electronic Document Analysis and Retrieval (SEDAR) Hoover's Difficulty: 2 QuestionID: 05-2-13 Page-Reference: 149 Skill: Recall

System for Electronic Document Analysis and Retrieval (SEDAR)

83. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. In this scenario, which of the following had the greatest influence on the business buying behaviour at A-1 Stampings? Regulatory developments Organizational structure Shifting authority Technological changes Individuals' risk attitudes Difficulty: 3 QuestionID: 07-2-83 Page-Reference: 227 Skill: Applied

Technological changes

82. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Which of the following facts could convince Casey Brickly to pursue the LGBT market for The Landing? The 2006 census enumerated 45 300 same-sex couples, up from 34 200 in 2001. 14.3 percent of the Canadian population (4.4 million people) have some form of disability. Between 2001 and 2006, the visible minority population increased five times faster than the population as a whole, mainly due to immigration. As of 2004, 59.1 percent of the population had university degrees or postsecondary certificates. In 2007, more than 370 800 Canadian residents changed province. Difficulty: 1 QuestionID: 03-2-82 Page-Reference: 84 Skill: Applied

The 2006 census enumerated 45 300 same-sex couples, up from 34 200 in 2001.

54. What legislation did the Canadian government pass in order to establish stringent pollution-control measures as well as the means for their enforcement? The Environmental Protection Act The Competition Act The Food and Drug Act The Consumer Packaging and Labelling Act The Personal Information Protection Act Difficulty: 2 QuestionID: 03-2-54 Page-Reference: 87 Skill: Recall

The Environmental Protection Act

73. Toyota's Prius was the first mass-produced hybrid vehicle, known for its fuel efficiency and environmental friendliness. The Prius was initially most likely marketed to which of the following groups? The SOHO market The LOHAS market The LGBT market The Asian American market The Millennials market Difficulty: 2 QuestionID: 03-2-73 Page-Reference: 97 Skill: Applied

The LOHAS market

80. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Whole Foods has been eyeing The Good Earth's Table for possible acquisition. Which of the following is a way that acquisitions can be good for society? The highly competitive food industry may become less competitive after the acquisition. The acquisition may allow Whole Foods to gain economies of scale that lead to lower costs and lower prices. The Good Earth's Table may become more poorly managed and less efficient. Whole Foods may be more inclined to practise redlining than The Good Earth's Table has been. The cost of acquisition may force Whole Foods to raise prices and reduce quality. Difficulty: 3 QuestionID: 04-2-80 Page-Reference: 116 Skill: Applied

The acquisition may allow Whole Foods to gain economies of scale that lead to lower costs and lower prices.

19. Which of the following statements about buying centres is true? The buying centre is like a standing committee. The buying centre roles are specified on the organizational chart. The typical buying centre has five employees, one to assume each of the buying centre's roles. An individual's role in the buying centre does not change. The buying centre may involve informal participants who are not obvious to sellers. Difficulty: 3 QuestionID: 07-2-19 Page-Reference: 226 Skill: Recall

The buying centre may involve informal participants who are not obvious to sellers.

81. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. The Good Earth's Table is a seller of high-end food products. Under consumerism, which of the following is a traditional seller's right? The right not to buy a product that is offered for sale The right to influence products and marketing practices in ways that will improve the "quality of life" The right to spend any amount to promote the product, provided it is not defined as unfair competition The right to consume now in a way that will preserve the world for future generations of consumers The right to be protected against questionable products and marketing practices Difficulty: 2 QuestionID: 04-2-81 Page-Reference: 119 Skill: Applied

The right to spend any amount to promote the product, provided it is not defined as unfair competition

38. Which of the following is a trend that depicts the increasingly nontraditional nature of today's Canadian family? Working women are making up a smaller percentage of the workforce. There are more families without children than with children. Dual-income families are declining in number. Stay-at-home dads are declining in number. There is a declining reliance on convenience foods and services. Difficulty: 2 QuestionID: 03-2-38 Page-Reference: 81 Skill: Recall

There are more families without children than with children.

32. Which of the following descriptions most accurately characterizes Millennials? They are children of baby boomers. They are less ethnically diverse than Gen Xers. They have reached their peak earning and spending years. They were once labelled "the MTV generation." They have graduated from college and are taking over positions of power in the business world. Difficulty: 2 QuestionID: 03-2-32 Page-Reference: 79 Skill: Recall

They are children of baby boomers.

28. Which of the following descriptions most accurately characterizes the baby boomers? They are increasingly likely to retire early. They are a shrinking market for new housing and home remodelling. They are past their peak earning and spending years. They control over 50 percent of the country's wealth. They are uninterested in adapting new technologies. Difficulty: 2 QuestionID: 03-2-28 Page-Reference: 78 Skill: Recall

They control over 50 percent of the country's wealth.

6. Which of the following is true about consumer marketers in comparison to business marketers? They deal with far fewer but far larger buyers. They deal with far more but far smaller buyers. They deal with a more elastic market. They deal with fewer demands in fluctuation. They deal with the same decision buying process. Difficulty: 2 QuestionID: 07-2-06 Page-Reference: 219 Skill: Recall

They deal with far more but far smaller buyers.

29. Which of the following descriptions most accurately characterizes Gen Xers? There are more Gen Xers than Millennials. They were the first generation to follow the Baby Boomers. They grew up during times of great economic growth. They are more interested in acquiring goods than having experiences. They rarely research a product before purchasing it. Difficulty: 2 QuestionID: 03-2-29 Page-Reference: 79 Skill: Recall

They were the first generation to follow the Baby Boomers.

65. What is the purpose of a data warehouse? To organize internal and external data by relevance To gather and integrate information a company already has To interpret data To analyze data To identify and discard outdated data Difficulty: 2 QuestionID: 05-2-65 Page-Reference: 167-168 Skill: Recall

To gather and integrate information a company already has

60. Which of the following has not contributed to the deeper, more interactive nature of today's customer relationships? Email Websites Online social networks Traditional advertising Video sharing Difficulty: 2 QuestionID: 01-2-60 Page-Reference: 18 Skill: Recall

Traditional advertising

80. Customers can be classified into four relationship groups according to their profitability and projected loyalty. Which type of customer has the highest profit potential and strong loyalty? Barnacles Strangers Butterflies True friends Big fish Difficulty: 2 QuestionID: 01-2-80 Page-Reference: 23-24 Skill: Recall

True friends

92. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. When Starbucks first came on the scene, no other company was offering the European-style coffee bistro experience. When Bridgehead came on the scene, no coffee shop was offering exclusively fair-trade coffee. Both competitors have embraced a(n) ________ strategy. underdog market challenger socially responsible reactive blue ocean Difficulty: 2 QuestionID: 18-2-92 Page-Reference: 604 Skill: Applied

blue ocean

77. An increasingly large number of firms are changing their organizational focus from ________ to ________. product management; functional management product management; geographic management brand management; customer management geographic management; functional management global management; regional management Difficulty: 2 QuestionID: 02-2-77 Page-Reference: 62 Skill: Recall

brand management; customer management

44. According to one analyst, a Harley-Davidson motorcycle can make you feel like "the toughest, baddest guy on the block." Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________. lifestyle life-cycle stage brand motivation brand personality brand self-image Difficulty: 1 QuestionID: 06-2-44 Page-Reference: 197 Skill: Applied

brand personality

16. When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________. narrowly realistically specifically broadly futuristically Difficulty: 1 QuestionID: 02-2-16 Page-Reference: 44 Skill: Applied

broadly

17. Using high-pressure selling does not work if a company wants to ________. build long-term relationships with customers move last year's models obey local and federal law achieve short-term gains maintain a database Difficulty: 2 QuestionID: 04-2-17 Page-Reference: 112 Skill: Applied

build long-term relationships with customers

29. The four possible strategies that can be pursued for each strategic business units (SBUs) are ________, ________, harvesting, and divesting. building; holding promoting; selling downsizing; expanding diversifying; penetrating developing; growing Difficulty: 3 QuestionID: 02-2-29 Page-Reference: 48 Skill: Recall

building; holding

2. The act of buying goods and services for use in the production of products that are sold and supplied to others is called ________. consumer buying behaviour business buyer behaviour retail buyer behaviour postpurchase dissonance interpretive business research Difficulty: 1 QuestionID: 07-2-02 Page-Reference: 218 Skill: Recall

business buyer behaviour

90. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." Fun-Spot has grown into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. These products and services make up Fun-Spot's _______ business portfolio. value chain. delivery network. marketing plan. cash cows. Difficulty: 2 QuestionID: 02-2-90 Page-Reference: 47 Skill: Applied

business portfolio.

89. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Bridgehead has chosen to compete with Starbucks and uses its selection of fair-trade coffee products as its competitive advantage. Some percentage of Starbucks' coffee products are fair-trade and the rest of its product portfolio and its coffee shop environment are very similar to Bridgehead. Starbucks would be considered a ________ competitor. distant weak reactive close bad Difficulty: 2 QuestionID: 18-2-89 Page-Reference: 603 Skill: Applied

close

24. Most companies will compete with ________ rather than ________. distant competitors; close competitors close competitors; distant competitors benchmarkers; distant competitors market challengers; market followers market challengers; market nichers Difficulty: 3 QuestionID: 18-2-24 Page-Reference: 603 Skill: Recall

close competitors; distant competitors

78. To address concerns about the misuse of research study findings, several highly regarded marketing associations have developed ________. customer relationship management guidelines behavioural targeting "Do Not Track" lists chief privacy officer job descriptions codes of research ethics bans against using "cookies" Difficulty: 2 QuestionID: 05-2-78 Page-Reference: 175 Skill: Recall

codes of research ethics

82. Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. need recognition cognitive dissonance purchase decisions legitimization dissatisfaction Difficulty: 1 QuestionID: 06-2-82 Page-Reference: 205 Skill: Recall

cognitive dissonance

34. Cultural pollution is often referred to as ________. commercial advertising air pollution language barriers a marketer's inability to identify a target market commercial interruptions Difficulty: 2 QuestionID: 04-2-34 Page-Reference: 118 Skill: Recall

commercial interruptions

12. Sal's Bakery just opened its doors for business, bringing the number of bakeries in Colbert, Alberta, to two. The more that Sal's strategy resembles the other firm's strategy, the more the two firms _______. succeed join grow fail compete Difficulty: 2 QuestionID: 18-2-12 Page-Reference: 601 Skill: Applied

compete

67. A company or store gains a(n) ________ by differentiating its products and delivering more value. competitive advantage positioning advantage cost advantage efficiency advantage synergy Difficulty: 1 QuestionID: 08-2-67 Page-Reference: 265 Skill: Recall

competitive advantage

87. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Baked goods, soups, and sandwiches made fresh daily in the Bridgehead central kitchen give the chain an advantage over Starbucks and other coffee chains because they offer consumers greater value. This is the basis of Bridgehead's _______. competitor analysis value discipline competitive advantage market position competitive marketing strategy Difficulty: 2 QuestionID: 18-2-87 Page-Reference: 599 Skill: Applied

competitive advantage

56. In positioning its products, the company first identifies possible customer value differences that provide on which to build the position. competitive advantages promotion expansion opportunities places marketplace Difficulty: 2 QuestionID: 02-2-56 Page-Reference: 55 Skill: Recall

competitive advantages

32. There are specific kinds of information that companies need to know about their competitors. The ________ system first identifies the vital types of competitive information and the best sources of this information. marketing information global network competitive intelligence marketing research collaborative Difficulty: 1 QuestionID: 18-2-32 Page-Reference: 606 Skill: Recall

competitive intelligence

2. After reading the latest text in marketing, Bill now realizes that strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage are ________. competitor analyses customer relationship strategies competitive relationship strategies competitive marketing strategies universal strategy analyses Difficulty: 3 QuestionID: 18-2-02 Page-Reference: 599 Skill: Recall

competitive marketing strategies

26. A company can detect which brands are most ________ its own by studying its less loyal buyers. complementary to used with overlooked with similar to competitive with Difficulty: 2 QuestionID: 08-2-26 Page-Reference: 253 Skill: Recall

competitive with

86. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. To plan effective marketing strategies, Bridgehead Coffee must find out all it can about its competitors. This means that it must undertake a _______. competitor analysis value discipline competitive advantage market position competitive marketing strategy Difficulty: 2 QuestionID: 18-2-86 Page-Reference: 599 Skill: Applied

competitor analysis

5. Bob's boss criticized him for having ________. His boss believes this because Bob forgets about latent competitors and only focuses on current competitors. competitor myopia misdirected segmentation competitor synergy competitor phobia marketing myopia Difficulty: 2 QuestionID: 18-2-05 Page-Reference: 599 Skill: Recall

competitor myopia

6. Many companies, some even quite large, suffer from ________. An example could include Kodak's film business, which didn't suffer at the hands of direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers along with a host of digital image developers and online image sharing services. a blue ocean strategy competitor myopia competitor phobia benchmarking marketing myopia Difficulty: 2 QuestionID: 18-2-06 Page-Reference: 599 Skill: Applied

competitor myopia

82. A negative side of the ________ is that the company becomes too reactive. Rather than carry out its own customer relationship strategy, it bases its own moves on competitors' moves. competitor-centred company customer-centred company market-centred company dual marketing strategy image-centred company Difficulty: 2 QuestionID: 18-2-82 Page-Reference: 617 Skill: Recall

competitor-centred company

83. A positive aspect of a ________ is that the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses. market-centred company customer-centred company competitor-centred company branding-centred company image-centred company Difficulty: 2 QuestionID: 18-2-83 Page-Reference: 617 Skill: Recall

competitor-centred company

81. A company can become so ________ centred that it loses its even more important focus on maintaining profitable ________ relationships. customer; competitor competitor; customer market; customer market; competitor competitor; product Difficulty: 3 QuestionID: 18-2-81 Page-Reference: 617 Skill: Applied

competitor; customer

77. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Which microenvironment actors have affected The Landing the most? competitors suppliers intermediaries natural environment economic environment Difficulty: 2 QuestionID: 03-2-77 Page-Reference: 73 Skill: Applied

competitors

65. When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will undertake ________. habitual buying behaviour complex buying behaviour reflective buying behaviour inconsistent buying behaviour variety-seeking buying behaviour Difficulty: 2 QuestionID: 06-2-65 Page-Reference: 201 Skill: Recall

complex buying behaviour

22. Critics claim that companies in the ________ industries introduce planned streams of new products that make older models obsolete, a form of planned obsolescence that harms consumers. car and truck housing and construction food and beverage consumer electronics and computer financial and entertainment Difficulty: 2 QuestionID: 04-2-22 Page-Reference: 114-115 Skill: Recall

consumer electronics and computer

36. In response to charges of ________, marketers point out that advertising makes much of television and radio free to users and also keeps down the cost of magazines and newspapers. too few social goods creating false wants creating too much materialism high promotion costs cultural pollution Difficulty: 2 QuestionID: 04-2-36 Page-Reference: 118 Skill: Recall

cultural pollution

83. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. The Good Earth's Table demonstrates an all-consuming passion for delivering superior value to carefully chosen customers, believing that only by seeing the world through its customers' eyes can the company build lasting and profitable customer relationships. This reflects the company's _______. consumer-oriented marketing sense-of-mission marketing customer-value marketing innovative marketing societal marketing Difficulty: 3 QuestionID: 04-2-83 Page-Reference: 127 Skill: Applied

consumer-oriented marketing

39. The two major movements to keep business in line are environmentalism and ________. consumerism protectionism antimonopoly legislation regulating interstate commerce innovation Difficulty: 1 QuestionID: 04-2-39 Page-Reference: 119-120 Skill: Recall

consumerism

66. The best response to competitive threats is ________. continuous innovation a frontal attack an indirect attack to find partners to ignore them Difficulty: 2 QuestionID: 18-2-66 Page-Reference: 612 Skill: Recall

continuous innovation

3. A company uses market segmentation to divide large, heterogeneous markets into smaller segments. These segments can be reached more ________ with products and services that match their unique needs. efficiently indirectly intensely convincingly sporadically Difficulty: 2 QuestionID: 08-2-03 Page-Reference: 245 Skill: Recall

convincingly

73. Monica Carey is a conscientious marketing manager. Sometimes it is unclear what decisions to make when she and her staff are faced with moral dilemmas. Monica and other managers could create broad guidelines that everyone in the organization must follow in the form of ________. a company value statement a company mission statement a company vision statement corporate marketing ethics policies a financial statement Difficulty: 3 QuestionID: 04-2-73 Page-Reference: 131-132 Skill: Applied

corporate marketing ethics policies

5. Marketers must weigh carefully the _____ of additional information against the benefits resulting from it. organization ethical issues creativity costs validity Difficulty: 1 QuestionID: 05-2-05 Page-Reference: 146 Skill: Recall

costs

79. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. While many see The Good Earth's Table as a marketer that allows consumers to make socially responsible choices, others may charge that promoting the consumption of designer vegetables and exclusive choices is just another example of ________________. deceptive packaging greenwashing commercial noise creating false wants cultural pollution Difficulty: 3 QuestionID: 04-2-79 Page-Reference: 116 Skill: Applied

creating false wants

10. Consumer purchases are influenced strongly by _______, social, personal, and psychological factors. financial cultural competitive political legal Difficulty: 2 QuestionID: 06-2-10 Page-Reference: 185 Skill: Recall

cultural

65. A society's basic values, perceptions, preferences, and behaviours are all part of its ________ environment. social cultural political cultural-economic natural Difficulty: 1 QuestionID: 03-2-65 Page-Reference: 95 Skill: Conceptual

cultural

82. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. The demand for A-1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand. inelastic static increasing derived independent Difficulty: 2 QuestionID: 07-2-82 Page-Reference: 219 Skill: Applied

derived

7. Dell buys microprocessor chips because consumers buy computers. This demonstrates an economic principle called ________. elastic demand fluctuating demand market demand joint demand derived demand Difficulty: 2 QuestionID: 07-2-07 Page-Reference: 219 Skill: Applied

derived demand

37. Survey research, though used to obtain many kinds of information in a variety of situations, is best suited for gathering ________ information. interpersonal causal exploratory descriptive creative Difficulty: 2 QuestionID: 05-2-37 Page-Reference: 157 Skill: Recall

descriptive

4. A good MIS balances the information users' ______ against ______ and finally what is ______. needs; their likes; feasible likes; what they can afford; needed needs; what they can afford; useful desire; their actual needs; feasible to offer use; what they have to use; available Difficulty: 3 QuestionID: 05-2-04 Page-Reference: 146 Skill: Recall

desire; their actual needs; feasible to offer

65. Market leaders can expand the market by ________, new uses, and more usage of the product. developing competitors initiating monopolistic practices developing new users developing higher standards initiating new rules Difficulty: 2 QuestionID: 18-2-65 Page-Reference: 611 Skill: Recall

developing new users

16. The four-step marketing research process includes defining the problems and research objectives; ________________; implementing the research plan; and interpreting and reporting the findings. developing the research budget choosing the research agency choosing the research method developing the research plan comparing and contrasting primary and secondary data Difficulty: 2 QuestionID: 05-2-16 Page-Reference: 150-151 Skill: Recall

developing the research plan

34. You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. accessible measurable reachable differentiable observable Difficulty: 2 QuestionID: 08-2-34 Page-Reference: 256 Skill: Recall

differentiable

93. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." Herb Marks has an opportunity to sell his pencils to both the local university and college bookstores, and is considering separate marketing strategies for each, although these audiences are quite alike. Herb could be forgetting that to be truly useful, marketing segments must be _______. differentiable substantial measurable accessible actionable Difficulty: 2 QuestionID: 08-2-93 Page-Reference: 256 Skill: Applied

differentiable

41. When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. undifferentiated differentiated target individual niche Difficulty: 2 QuestionID: 08-2-41 Page-Reference: 258 Skill: Conceptual

differentiated

54. Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value. pricing aligning differentiating promoting placing Difficulty: 2 QuestionID: 02-2-54 Page-Reference: 55 Skill: Recall

differentiating

90. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Bridgehead also competes with Tim Hortons for coffee and pastry sales but the two coffee shop environments are worlds apart. Tim Hortons would be considered a ________ competitor. distant weak reactive close bad Difficulty: 2 QuestionID: 18-2-90 Page-Reference: 603 Skill: Applied

distant

72. Most data collection in Mexico is done _______. by telephone via mail online through focus groups door-to-door Difficulty: 2 QuestionID: 05-2-72 Page-Reference: 172 Skill: Recall

door-to-door

78. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Once The Good Earth's Table grew from operating one or two neighbourhood stores to a regional chain, it was open to criticism of redlining, which means to _______. draw a red line around disadvantaged neighbourhoods and avoiding placing stores there operate at a loss in order to avoid paying corporate taxes discontinue relationships with local intermediaries offer store credit only to homes within a clearly defined border draw a red line around advantaged neighbourhoods and avoiding placing stores there Difficulty: 2 QuestionID: 04-2-78 Page-Reference: 115 Skill: Applied

draw a red line around disadvantaged neighbourhoods and avoiding placing stores there

86. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. Due to ________ factors, Richard Koehl is now more willing to buy and hold larger inventories of scarce materials to ensure adequate supply. environmental technological organizational political competitive Difficulty: 2 QuestionID: 07-2-86 Page-Reference: 227 Skill: Applied

environmental

62. The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ________ and ________. ethics; promotion responsibility ethics; social responsibility finances; employee discrimination management ethics; insider trading promotion; pricing Difficulty: 3 QuestionID: 03-2-62 Page-Reference: 91-92 Skill: Recall

ethics; social responsibility

34. When ZIBA designers, looking for ideas on how to craft a shower-cleaning tool, spent 10 days in people's homes, watching consumers wash shower stalls, they were conducting ________ research. survey experimental secondary ethnographic personal Difficulty: 2 QuestionID: 05-2-34 Page-Reference: 156 Skill: Applied

ethnographic

82. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. Jason may be able to learn more about why A-1 Cleaning has seen a decline in demand for office cleaning by sending trained observers to watch and interact with his potential customers in their "natural habitat." This type of research is called ____________. secondary focus group ethnographic mechanical experimental Difficulty: 3 QuestionID: 05-2-82 Page-Reference: 156 Skill: Applied

ethnographic

36. Harvey's came out with a new hamburger and released it in two different cities with two different price points. Marketers at Harvey's then analyzed the sales results at the two different price points. This information was used to help them set a nationwide price for the new offering. This is an example of ________. observational research behavioural research qualitative research experimental research survey research Difficulty: 2 QuestionID: 05-2-36 Page-Reference: 157 Skill: Applied

experimental research

42. Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she utilizes low-cost or no-cost methods to gather research data. One method that works very well for her is to change the themes in her local newspaper and radio advertising and watch the result. Juanita is using ________ to gather data for marketing decisions. informal surveys experiments guess work logic-directed research secondary sources Difficulty: 2 QuestionID: 05-2-42 Page-Reference: 157 Skill: Applied

experiments

18. Companies will often ask their managers to start with ________ research. exploratory descriptive cursory precursory causal Difficulty: 3 QuestionID: 05-2-18 Page-Reference: 151 Skill: Recall

exploratory

20. To help define the problem and suggest hypotheses, researchers will often use ________ research to gather preliminary information. secondary descriptive causal primary exploratory Difficulty: 1 QuestionID: 05-2-20 Page-Reference: 150 Skill: Recall

exploratory

91. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Bridgehead has an opportunity to open its next location on a city block where a Starbucks is already located. This is a ________ idea because ________. good; Bridgehead can catch the latte-drinking spillover bad; Starbucks customers are particularly brand loyal ridiculous; city bylaws would never permit two coffee shops on the same block bad; Bridgehead cannot compete with Starbucks' delicious baked goods bad; urban hipsters always choose Starbucks Difficulty: 2 QuestionID: 18-2-91 Page-Reference: 603 Skill: Applied

good; Bridgehead can catch the latte-drinking spillover

20. In a ________ market, goods and services are purchased to produce public services or to transfer to others who need them. government reseller wholesale consumer retail Difficulty: 2 QuestionID: 03-2-20 Page-Reference: 76 Skill: Recall

government

77. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Recently, The Good Earth's Table discovered that one of its cracker manufacturers was making false claims about its factory's eco-practices and so stopped carrying its products. The Good Earth's Table and its customers were victims of _______. deceptive pricing environmental responsibility shoddy manufacturing high-pressure selling greenwashing Difficulty: 2 QuestionID: 04-2-77 Page-Reference: 111-112 Skill: Applied

greenwashing

40. ABC Company has decided to use mail questionnaires to collect data. Management recognizes this method has a disadvantage of . low cost per respondent. encouraging more honest answers. having an average response rate no interviewer to bias respondents' answers collecting large amounts of information Difficulty: 3 QuestionID: 05-2-40 Page-Reference: 158 Skill: Recall

having an average response rate

3. A marketing information system (MIS) consists of people and procedures to assess information needs, develop the needed information, and_______________________. experiment to develop information test-market the information help decision makers analyze and use the information critique the needed information question the needed information Difficulty: 1 QuestionID: 05-2-03 Page-Reference: 145 Skill: Conceptual

help decision makers analyze and use the information

77. Whereas the mass marketer achieves ________, the nicher achieves ________. low margins; low volume low volume; high margins high volume; high margins high volume; low margins high margins; high volume Difficulty: 3 QuestionID: 18-2-77 Page-Reference: 615 Skill: Applied

high volume; high margins

63. In target marketing, the issue is not really who is targeted but, rather, ________ and ________. why; for what how; for what why; for how long where; for how long how; where Difficulty: 2 QuestionID: 08-2-63 Page-Reference: 263 Skill: Recall

how; for what

54. Maslow's theory is that ________ can be arranged in a hierarchy. stimuli beliefs and attitudes perceptions human needs decisions Difficulty: 1 QuestionID: 06-2-54 Page-Reference: 198-199 Skill: Recall

human needs

70. Ford Motor Company emphasizes "Quality First—Ford Tough" in its truck products. In doing so, the company has developed a differentiation strategy based on ________. people image products services positioning Difficulty: 2 QuestionID: 08-2-70 Page-Reference: 268 Skill: Applied

image

33. Jennifer just hired Tony away from his job with her major competition. She did this, in part, so he might follow that competitor closely to see what it does in the marketplace. Tony is an example of a(n)________ expert. market leader in-house strategy market follower technical Difficulty: 2 QuestionID: 18-2-33 Page-Reference: 606 Skill: Recall

in-house

95. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order, he would be practising ________. concentrated marketing local marketing undifferentiated marketing mass customization micromarketing Difficulty: 2 QuestionID: 08-2-95 Page-Reference: 261 Skill: Applied

mass customization

79. The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________. evaluating goals; measuring performance achieving goals; measuring performance taking corrective action; measuring performance measuring performance; taking corrective action taking corrective action; following up Difficulty: 2 QuestionID: 02-2-79 Page-Reference: 62-63 Skill: Recall

measuring performance; taking corrective action

52. As You Like It Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. niche mass differentiated undifferentiated micro Difficulty: 2 QuestionID: 08-2-52 Page-Reference: 260 Skill: Applied

micro

4. The _____________includes suppliers, marketing intermediaries, customer markets, competitors, and publics. macro environment demographic environment marketing environment microenvironment global environment Difficulty: 1 QuestionID: 03-2-04 Page-Reference: 72 Skill: Conceptual

microenvironment

24. The youngest of the baby boomers are now in their ________. late twenties mid twenties mid forties early fifties early sixties Difficulty: 2 QuestionID: 03-2-24 Page-Reference: 78 Skill: Recall

mid forties

45. Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________. nichers challenger risk-takers middle-of-the roaders differentiated formulated Difficulty: 2 QuestionID: 18-2-45 Page-Reference: 609 Skill: Applied

middle-of-the roaders

44. Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________. challenger risk-takers middle-of-the-roaders nichers analyzers overall cost leaders Difficulty: 2 QuestionID: 18-2-44 Page-Reference: 609 Skill: Conceptual

middle-of-the-roaders

65. According to one expert, cited in the text, products are created in the factory, but brands happen in the ________. retail outlet supermarket R&D lab mind boardroom Difficulty: 2 QuestionID: 08-2-65 Page-Reference: 264 Skill: Recall

mind

12. Canadian Tire sells tools and home-improvement products. The retailer defines its ________ as such: "to offer products and services to meet the everyday needs of Canadian families—today and tomorrow." strategy marketing development business portfolio value-delivery network mission Difficulty: 2 QuestionID: 02-2-12 Page-Reference: 43 Skill: Applied

mission

15. A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the 21st century, Ford is committed to building profitable customer relationships by creating more environmentally friendly cars and getting them to market faster at lower costs." The marketing manager is referring to Ford's ________. marketing strategy marketing mix business portfolio mission statement business objectives Difficulty: 2 QuestionID: 02-2-15 Page-Reference: 44 Skill: Applied

mission statement

21. You call in a department manager to assist in a purchase of industrial equipment. You are considering a change in product specifications, terms, and possibly suppliers. This is most likely a ________ situation. modified rebuy new task straight rebuy solution selling value analysis Difficulty: 1 QuestionID: 07-2-21 Page-Reference: 224 Skill: Applied

modified rebuy

24. Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. This purchase of coops is an example of a ________. modified rebuy new task straight rebuy solution selling situation value analysis Difficulty: 1 QuestionID: 07-2-24 Page-Reference: 224 Skill: Applied

modified rebuy

94. Refer to the scenario below to answer the following question. Herb Marks began making wooden writing utensils as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Herb Marks had never thought of marketing as his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provided products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project!" Herb added. "I couldn't grow out of control. I was already working to capacity." Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing. mass undifferentiated niche mass customization individual Difficulty: 2 QuestionID: 08-2-94 Page-Reference: 259 Skill: Applied

niche

29. Secondary data are ________. collected mostly via surveys expensive to obtain never purchased from outside suppliers always necessary to support primary data not always very usable Difficulty: 2 QuestionID: 05-2-29 Page-Reference: 152 Skill: Recall

not always very usable

50. Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. in malls in major cities in mail-order catalogues on the Internet near major competitors far from competitors Difficulty: 1 QuestionID: 08-2-50 Page-Reference: 259 Skill: Recall

on the Internet

83. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. A-1 Cleaning could use the Web as a survey medium by including a questionnaire on its website and offering incentives for completing it. This is ________ research. online secondary ethnographic experimental observational Difficulty: 3 QuestionID: 05-2-83 Page-Reference: 159-160 Skill: Applied

online

52. Del Monte has created an ________ called "I Love My Dog"; this online community allows company-selected dog enthusiasts to complete product-related polls, chat with product developers, and provide feedback about specific products. online experiment online social network Internet survey immersion group expert panel Difficulty: 2 QuestionID: 05-2-52 Page-Reference: 161 Skill: Applied

online social network

28. Twitter and Craigslist are both examples of ________. buzz marketing opinion leaders online social networks early adopters word-of-mouth marketing Difficulty: 2 QuestionID: 06-2-28 Page-Reference: 190-191 Skill: Recall

online social networks

28. The implication suggested by strategic actions of "good competitor companies" is that they would like to shape an industry that consists of ________. all would-be competitors groups that support a democratic model of behaviour "good" and "bad" competitors only well-behaved competitors monopolists Difficulty: 2 QuestionID: 18-2-28 Page-Reference: 603-604 Skill: Recall

only well-behaved competitors

82. Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________. marketing control operating control strategic control ROMI a marketing audit Difficulty: 2 QuestionID: 02-2-82 Page-Reference: 63 Skill: Recall

operating control

47. When a company provides superior value by leading its industry in price and convenience, it has obtained what is called ________. product leadership employee excellence operational excellence employee intimacy cost leadership Difficulty: 1 QuestionID: 18-2-47 Page-Reference: 609 Skill: Conceptual

operational excellence

84. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. Although The Good Earth's Table's product portfolio is largely made up of nutritious food items, they do also carry high-caloric bakery treats. These would be classified as ________ products. deficient pleasing desirable salutary decadent Difficulty: 3 QuestionID: 04-2-84 Page-Reference: 129 Skill: Applied

pleasing

56. Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is most accurately described as the ________ environment. socio-legal cultural political legal-technological economic Difficulty: 1 QuestionID: 03-2-56 Page-Reference: 90 Skill: Conceptual

political

46. Companies emphasizing ________ are developing "green marketing" programs that develop ecologically safer products, recyclable and biodegradable packaging, more energy-efficient operations, and better pollution controls. pollution prevention product stewardship "beyond greening" new clean technology sustainability vision Difficulty: 2 QuestionID: 04-2-46 Page-Reference: 121 Skill: Recall

pollution prevention

47. Nike produces PVC-free shoes, recycles old sneakers, and educates young people about conservation, reuse, and recycling. Nike is using the most basic level of environmental sustainability known as ________. pollution prevention product stewardship new clean technology "beyond greening" redlining Difficulty: 2 QuestionID: 04-2-47 Page-Reference: 121 Skill: Applied

pollution prevention

82. Refer to the scenario below to answer the following question. The Good Earth's Table began as a single store in an urban Toronto neighbourhood almost 40 years ago. It has grown to a regional chain of 20 stores across Southern Ontario, offering its customers fresh produce, cheese and dairy products, bread and bakery items, and select packaged grocery items. The Good Earth's Table owes its success to its ability to serve customers who are willing to pay a bit more for quality ingredients and the diverse selection of sought-after products kept in stock. If an ingredient is showing up in trendy restaurants and cafés, you can bet that The Table, as it is often called, will have it on its shelves. In recent years, management has noticed an increased demand among its loyal clientele for organic, locally produced products and an interest in supporting food producers with more sustainable practices, and so they have complied. Some customers will travel further and pay more for products that meet their social responsibility criteria. The Good Earth's Table produces little advertising beyond the occasional in-store flyer. Instead, it sponsors community events and participates in its partners' promotional programs, relying primarily on word-of-mouth to attract new shoppers. When it comes to environmental sustainability, The Good Earth's Table currently Practises at the most basic level by eliminating or minimizing waste before it is created. This level of compliance is known as _______________. product stewardship cradle-to-cradle design for environment clean technology pollution prevention Difficulty: 3 QuestionID: 04-2-82 Page-Reference: 121 Skill: Applied

pollution prevention

96. Refer to the scenario below to answer the following question. Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice-cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theatre. "My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market." Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbour. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!" "Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time." Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly." "Fun-Spot is the nearby get-away that offers consistently fun but ever-changing theatre, dining, and midway experience." This is an example of a ________ strategy. value positioning vision market proposition Difficulty: 2 QuestionID: 02-2-96 Page-Reference: 55 Skill: Applied

positioning

84. Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________. mission statement vision statement competitive statement positioning statement company statement Difficulty: 2 QuestionID: 08-2-84 Page-Reference: 272 Skill: Applied

positioning statement

93. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. The Attic Trunk could be considered a challenger shop compared to the market leader shop in Forest Ridge. A good strategy, then, to attract the variety-seeking shopper would be to ______. keep shelves fully stocked run advertising that presents reasons for trying something new run reminder advertising stress only a few key points in advertising copy offer higher prices Difficulty: 3 QuestionID: 06-2-93 Page-Reference: 203 Skill: Applied

run advertising that presents reasons for trying something new

53. Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population. group target group population sample audience Difficulty: 1 QuestionID: 05-2-53 Page-Reference: 162 Skill: Recall

sample

71. Because of the scarcity of good secondary data, international researchers often must collect their own primary data. An initial problem with this collection is developing good ________. samples research firms customer relationships with nationals relations with channel members analytical models Difficulty: 2 QuestionID: 05-2-71 Page-Reference: 172 Skill: Recall

samples

11. A market-oriented mission statement should seek to ____________ because ___________. satisfy basic customer needs; basic market needs may last forever satisfy basic supplier needs; basic market needs may last forever satisfy basic partnership needs; relationships change satisfy basic supplier needs; technology changes satisfy basic customer needs; technology changes Difficulty: 2 QuestionID: 02-2-11 Page-Reference: 43 Skill: Recall

satisfy basic customer needs; basic market needs may last forever

24. Information that already exists but was collected for a different purpose is called ________. primary tertiary secondary redundant old Difficulty: 1 QuestionID: 05-2-24 Page-Reference: 152 Skill: Conceptual

secondary

27. Information collected from online databases is an example of ________ data. primary secondary observational experimental ethnographic Difficulty: 2 QuestionID: 05-2-27 Page-Reference: 152 Skill: Recall

secondary

67. Your company is making negotiations to enter a market in Lower Albania. You would most likely discover that ________ beliefs and values are open to change in this country. inherited secondary primary core traditional Difficulty: 2 QuestionID: 03-2-67 Page-Reference: 95 Skill: Applied

secondary

50. People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information to which he or she is exposed is called ________. selective retention selective distortion selective attitude selective attention selective perception Difficulty: 2 QuestionID: 06-2-50 Page-Reference: 199 Skill: Recall

selective attention

57. Bob's job description had been changed. The rationale for the changes made no sense to Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in ________. selective distortion selective attitude selective interpretation selective attention perceptual defense Difficulty: 2 QuestionID: 06-2-57 Page-Reference: 199 Skill: Applied

selective attention

61. When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is practising ________ marketing. value societal sense-of-mission consumer-oriented customer-value Difficulty: 1 QuestionID: 04-2-61 Page-Reference: 129 Skill: Recall

societal

53. Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. alternative evaluation subliminal perceptual innovative comparative Difficulty: 2 QuestionID: 06-2-53 Page-Reference: 199 Skill: Recall

subliminal

92. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. At one time, prospective customers of The Attic Trunk perceived the shop to be old-fashioned and snobby. Although new advertising could be designed to change this perception, the owners would still have to deal with ________, which could cause their audience to screen out most of the information to which they are exposed. selective retention selective selection selective attention selective distortion selective reception Difficulty: 3 QuestionID: 06-2-92 Page-Reference: 199 Skill: Applied

selective attention

55. Mark has long supported the actions and decisions of his city's mayor. However, many recent news stories have raised questions about the ethics of the mayor's programs and initiatives. Mark doubts that the mayor, in whom he has such faith, could behave unethically, and Mark tends to distrust the information in the media. Mark continues to support the mayor. Mark has engaged in ________. selective distortion selective attitude selective retention selective attention perceptual defense Difficulty: 2 QuestionID: 06-2-55 Page-Reference: 199 Skill: Applied

selective distortion

58. Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions about what was important to implement in their jobs. Both used the information in different ways, according to what each already believed was important. They have engaged in ________. selective distortion selective attitude selective retention selective attention perceptual defense Difficulty: 2 QuestionID: 06-2-58 Page-Reference: 199 Skill: Applied

selective distortion

59. Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50 000 of insulated wire per year. Dekko is using ________. selective relationship management a frequency marketing program a club marketing program basic relationships full partnerships Difficulty: 3 QuestionID: 01-2-59 Page-Reference: 17 Skill: Applied

selective relationship management

52. People forget much of what they learn. They tend to retain information that supports their attitudes and beliefs. This is called ________. selective attention selective retention selective attitude selective distortion perceptual vigilance Difficulty: 2 QuestionID: 06-2-52 Page-Reference: 199 Skill: Recall

selective retention

90. Refer to the scenario below to answer the following question. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behaviour of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewellery. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor café, and a day spa to the main avenue in Forest Ridge. Anne Lagodski regularly shops at The Attic Trunk to purchase the latest styles with designer labels. Anne sees herself as sophisticated and fashion-forward. Her ________ guides her purchase choices. self-concept life stage budget brand preferences reference group Difficulty: 3 QuestionID: 06-2-90 Page-Reference: 197 Skill: Applied

self-concept

64. In a basic SWOT analysis, the S stands for ________. situation solutions satisfaction strengths strategy Difficulty: 1 QuestionID: 02-2-64 Page-Reference: 59 Skill: Recall

strengths

20. Just like in high school sports where players compete at the level of the competition, a firm should compete with ________ competitors in order to sharpen its abilities and make greater returns. smaller mediocre weak distant strong Difficulty: 2 QuestionID: 18-2-20 Page-Reference: 602 Skill: Recall

strong

17. Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a ________. subculture social class social network life-cycle stage lifestyle Difficulty: 1 QuestionID: 06-2-17 Page-Reference: 186 Skill: Applied

subculture

58. Some firms define their purpose in narrow product terms. Others that define their purpose in broad social terms follow ________. societal marketing sense-of-mission marketing consumer-oriented marketing customer-value marketing consumerism Difficulty: 2 QuestionID: 04-2-58 Page-Reference: 127-128 Skill: Recall

sense-of-mission marketing

59. Timberland employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that hosts projects in 25 countries, and it supports a nonprofit organization that brings young people into public service for a year. CEO Jeffrey Swartz sees such service as a powerful differentiator for Timberland with its current and potential customers. Timberland could be most accurately described as practising ________. consumerism environmental sustainability sustainability vision innovative marketing sense-of-mission marketing Difficulty: 2 QuestionID: 04-2-59 Page-Reference: 127-128 Skill: Applied

sense-of-mission marketing

37. Large marketing companies can use patents and heavy promotion spending to ________. acquire smaller companies bear the social costs of their operations set up barriers for others wanting to enter the industry achieve economies of scale offset cultural pollution Difficulty: 3 QuestionID: 04-2-37 Page-Reference: 118-119 Skill: Recall

set up barriers for others wanting to enter the industry

32. If __________ costs were paid by producers, the balance between private and public goods could be restored. promotional social environmental cultural safety Difficulty: 3 QuestionID: 04-2-32 Page-Reference: 118 Skill: Recall

social

33. TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which are contributions to projects that combat global warming by reducing carbon emissions. TerraPass offers contribution packages for driving, flying, and home energy use. Through TerraPass, consumers can pay some of the ________ costs of their private goods and services. promotional safety health distribution social Difficulty: 2 QuestionID: 04-2-33 Page-Reference: 118 Skill: Applied

social

31. The overselling of private goods such as cell phones, computers, and other goods producing e-waste results in ________. cultural pollution misdirected funding materialism social costs opportunity costs Difficulty: 2 QuestionID: 04-2-31 Page-Reference: 118 Skill: Recall

social costs

90. Refer to the scenario below to answer the following question. A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. If A-1 Stampings Inc. were to order as always from its existing supplier, this would be a ________ situation. modified rebuy redesign new task complex buying straight rebuy Difficulty: 3 QuestionID: 07-2-90 Page-Reference: 232 Skill: Applied

straight rebuy

13. Phillips and Sharp each produce a full line of medium-price televisions supported by good service. In contrast, Samsung and LG produce a narrower line of higher quality televisions, offer a higher level of service, and charge a premium price. Phillips and Sharp are in the same ________ group. leading target branding strategic industry Difficulty: 3 QuestionID: 18-2-13 Page-Reference: 601 Skill: Applied

strategic

14. Companies need to know each competitor's product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. These are all the dimensions that identify ________ groups within the industry. target leading geographic strategic competing Difficulty: 2 QuestionID: 18-2-14 Page-Reference: 601 Skill: Applied

strategic

19. The key businesses that make up a company are called _________. These can be a company division, a product line within a division, or sometimes a single product or brand. a market Boston Consulting Group approach (BCG) strategic business units (SBUs) a profit centre a value delivery network Difficulty: 2 QuestionID: 02-2-19 Page-Reference: 47 Skill: Recall

strategic business units (SBUs)

88. Refer to the scenario below to answer the following question. Bridgehead Coffee is an Ottawa-based chain of urban coffee shops. Bridgehead provides its customers with a European bistro-style coffee shop experience complete with baristas and espresso shots. The first location opened in downtown Ottawa in the mid-1990s and was the first purveyor of fair-trade only coffee beans and beverages. Since then, the chain has grown to 10 locations in the city, with plans to open at least two more locations a year in the next five years. Bridgehead is most popular with an urban, active audience with a social conscience. It has become a favourite meeting spot for runners, skiers, young parents, and even the hip new urban knitters. Loyal customers feel that Bridgehead offers them the same quality coffee as Starbucks and a very similar environment in which to work on laptops or meet friends and family. They do say that the food is better—fresher, tastier baked goods, soups, and sandwiches are made fresh daily in Bridgehead's central kitchen. Bridgehead, Starbucks, and Second Cup all offer Ottawa coffee-seekers a trendy atmosphere, espresso-based beverages, and baked goods. One could say that these competitors belong in the same _______. target market strategic group orientation market share trade corridor Difficulty: 2 QuestionID: 18-2-88 Page-Reference: 601 Skill: Applied

strategic group

2. The ________ is specifically focused on future company needs only. societal marketing concept strategic planning concept sustainable marketing concept marketing concept consumer business concept Difficulty: 1 QuestionID: 04-2-02 Page-Reference: 108 Skill: Recall

strategic planning concept

59. You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________ to collect your data. simple random sample mechanical device stratified random sample cluster sample convenience sample Difficulty: 3 QuestionID: 05-2-59 Page-Reference: 162 Skill: Applied

stratified random sample

84. Refer to the scenario below to answer the following question. Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must be doing something to attract his customers. Building a competitive advantage seems to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage. Jason developed a research plan. First, he gathered competitor information—primarily through pamphlets and websites but also from a few phone calls—to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey. Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price. Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed. Of the 141 companies on the list, Jason chose to survey only 75 of them. Jason sent surveys to small companies and large companies. If Jason selected survey recipients randomly from the groups of small companies and large companies, he was using a ________. simple random sample judgment sample convenience sample stratified random sample quota sample Difficulty: 3 QuestionID: 05-2-84 Page-Reference: 162 Skill: Applied

stratified random sample

78. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Which of the following macroenvironmental forces has had the greatest effect on The Landing? the demographic environment the technological environment the sustainable environment the political environment the social responsibility environment Difficulty: 1 QuestionID: 03-2-78 Page-Reference: 76 Skill: Applied

the demographic environment

84. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." There is a group of property-owners on Witmer Lake who are petitioning against the use of motorboats. This is likely due to the increasing impact of Millennials. technology. immigration. the green movement. geographic shifts. Difficulty: 2 QuestionID: 03-2-84 Page-Reference: 87 Skill: Applied

the green movement.

83. Refer to the scenario below to answer the following question. Casey Brickly opened The Landing on the north shore of Witmer Lake in 1962. With a sandwich counter on one side and a bait shop and grocery on the other, The Landing was an immediate hit with weekend lake visitors and local residents alike. In the summer, boaters parked at the piers and bought all their lake needs—rods and reels, bait, fishing licenses, snacks, soft drinks—at The Landing. Even during the winter months, snowmobilers and ice fishermen were lured to The Landing for a snack and hot coffee or hot chocolate. As time passed, the business changed and grew tremendously. What was formerly a weekend tourist area gradually became a year-round residential area. Many of the houses, which were built as cottages in the 1950s and 1960s, were being remodelled into year-round homes. By the end of the 1970s, the days of small motor boats and 10-mile-per-hour speed limits were gone; skiing and fast speed boats became all the rage. And The Landing continued to attract flocks of patrons. In the 1980s, however, Casey started to realize that the grocery area in The Landing could not compete with larger local retailers. He eventually enlarged the sandwich counter, transforming the bait shop and grocery into a restaurant with a full menu typical of any diner. "Getting rid of the bait shop was hard to do," Casey admitted. "I still had a summer crowd that relied on us for their fishing needs, but we couldn't survive a whole year on four months of profit." As the 1990s approached, the atmosphere of Witmer Lake and the neighbouring lakes became upscale. "I could see that people were spending more on their speed boats than what they had originally paid for their cottages!" Casey exclaimed. Many of the cottages were being inherited by children and grandchildren of the original owners. Once again, the scene started to change as many of the lake houses were used only as weekend lake homes. Unlike the previous generation, a vast number of the current owners could afford to live closer to their jobs while maintaining lake homes. "At this point, business wasn't growing," Casey said. As local competition continued to increase, Casey converted the diner atmosphere of The Landing into a bar with a lounge area. "The change might have been too drastic," Casey said, "but it was the only way we could maintain a strong, year-round business in spite of the population shifts and competitive forces." Which macroenvironmental force is most responsible for The Landing's 43-year survival? the demographic environment the natural environment the economic environment the political environment the legal environment Difficulty: 2 QuestionID: 03-2-83 Page-Reference: 87 Skill: Applied

the natural environment

33. Which of the following reflects the marketing concept philosophy? "We don't have a marketing department; we have a customer department." "We're in the business of making and selling superior products." "We build them so you can buy them." "When it's profits versus customers' needs, profits will always win out." "You won't find a better deal anywhere." Difficulty: 3 QuestionID: 01-2-33 Page-Reference: 11 Skill: Recall

"We don't have a marketing department; we have a customer department."

37. Which of the following reflects the marketing concept? "The supplier is king." "Marketing should be viewed as hunting and not gardening." "This is what I make; won't you please buy it?" "We don't have a marketing department; we have a customer department." "Customers need to be told where they want to go." Difficulty: 3 QuestionID: 01-2-37 Page-Reference: 11 Skill: Applied

"We don't have a marketing department; we have a customer department."

20. A company's value proposition should answer this question: "What kind of experience will I have with products and services associated with this brand?" "How does your brand benefit me and society?" "What are the costs and benefits of your brand?" "Why should I buy your brand rather than a competitor's?" "What are the benefits of being a loyal consumer of your brand?" Difficulty: 3 QuestionID: 01-2-20 Page-Reference: 10 Skill: Recall

"Why should I buy your brand rather than a competitor's?"

82. Afia, a team leader in charge of customer relationship management, is planning strategies for improving the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong? Butterflies True friends Strangers Barnacles Short-term customers Difficulty: 2 QuestionID: 01-2-82 Page-Reference: 24 Skill: Applied

Barnacles

55. You are an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship would it be most profitable for you to develop with these customers? Full partnerships Basic relationships Basic partnerships Club programs Selective relationships Difficulty: 2 QuestionID: 01-2-55 Page-Reference: 16 Skill: Applied

Basic relationships

19. The _________ is the set of benefits or values a company promises to deliver to customer to satisfy their needs. value proposition lowest pricing service pledge money-back guarantee attribute Difficulty: 1 QuestionID: 01-2-19 Page-Reference: 9-10 Skill: Conceptual

value proposition

78. Which of the following defines the total combined customer lifetime values of all of a company's current and potential customers? Share of customer Customer lifetime value Customer equity Profitability Share of market Difficulty: 2 QuestionID: 01-2-78 Page-Reference: 23 Skill: Conceptual

Customer equity

46. You have just taken a new position in an organization and you're learning about the job functions of your new colleagues. You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships. Your marketing manager frequently speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned with which one of the following? Database management Website hits The societal marketing concept Partner relationship management Customer relationship management Difficulty: 2 QuestionID: 01-2-46 Page-Reference: 13 Skill: Applied

Customer relationship management

47. Customer-perceived value is determined by a customer's ________ of the difference between all benefits and all costs of a market offering relative to those of competing offers. calculation expectation assessment evaluation understanding Difficulty: 2 QuestionID: 01-2-47 Page-Reference: 14 Skill: Conceptual

evaluation

74. Beyond simply retaining good customers, marketers want to constantly increase their "share of customer." What does this mean in marketing terms? Marketers want to increase their market share. Marketers want to increase the portion they get of the customer's purchasing in their product categories. Marketers want to increase the profit margin with this target market. Marketers want to continuously increase their customers' levels of satisfaction. Marketers want to turn satisfied customers into delighted customers. Difficulty: 2 QuestionID: 01-2-74 Page-Reference: 22 Skill: Conceptual

Marketers want to increase the portion they get of the customer's purchasing in their product categories.

1. ________ is broadly defined as a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. The Internet Marketing Exchange theory Promotion A sales call Difficulty: 1 QuestionID: 01-2-01 Page-Reference: 5 Skill: Conceptual

Marketing

31. Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do? Product Production Selling Marketing Equity Difficulty: 1 QuestionID: 01-2-31 Page-Reference: 11 Skill: Conceptual

Marketing

35. Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization. Having a customer department rather than a marketing department, as suggested by Kelleher, is an example of a(n) ________ perspective. outside-in external inside-out modern traditional Difficulty: 3 QuestionID: 01-2-35 Page-Reference: 11 Skill: Recall

outside-in

68. To create customer value and build strong customer relationships, today's marketers know they cannot go it alone; therefore, they practise ________. consumer-generated marketing database marketing attractive website design customer equity partner relationship management Difficulty: 2 QuestionID: 01-2-68 Page-Reference: 20 Skill: Recall

partner relationship management

66. Which of the following is an example of consumer-generated marketing? Honda's "Everybody Knows Somebody Who Loves a Honda" Facebook page Dell's monitoring Twitter-based discussions PepsiCo's Doritos brand's "Crash the Super Bowl" contest P&G's assigning customer development teams to each of its major retailer accounts American Express's offering to some of its members $300 in exchange for closing their accounts Difficulty: 3 QuestionID: 01-2-66 Page-Reference: 19 Skill: Applied

PepsiCo's Doritos brand's "Crash the Super Bowl" contest

13. Marketing consists of actions taken to build and maintain desirable exchange relationships with ________ involving a product, service, idea, or other object. hosts target audiences suppliers target segments exchanges Difficulty: 2 QuestionID: 01-2-13 Page-Reference: 8 Skill: Recall

target audiences

88. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." Which of the following groups is specifically part of Seagull Terrace's target market? Seasonal business travellers Young families Retirees Summer campers Athletes Difficulty: 1 QuestionID: 01-2-88 Page-Reference: 9 Skill: Applied

Seasonal business travellers

61. Which of the following best explains why consumers have greater power and control in today's marketplace? The production concept and competition have lowered prices. Implementation of the product concept has resulted in continually improving products. Customer-driven marketing creates products and services that meet customers' future needs. More companies are implementing social marketing and weighing long-term costs and benefits. Through new communication technologies, customers have more information about brands and a wealth of platforms for airing and sharing their views with other consumers. Difficulty: 3 QuestionID: 01-2-61 Page-Reference: 18 Skill: Recall

Through new communication technologies, customers have more information about brands and a wealth of platforms for airing and sharing their views with other consumers.

6. A company needs to understand the marketplace and customer needs and wants and then ________ according to the five-step model of the marketing process described in the text. determine how to deliver superior value build profitable relationships with customers use customer relationship management to create full partnerships with key customers design a customer-driven marketing strategy construct key components of a marketing program Difficulty: 2 QuestionID: 01-2-06 Page-Reference: 6 Skill: Recall

design a customer-driven marketing strategy

36. Customer-driven marketing usually works well when ________ and when customers ________. a clear need exists; are difficult to identify customers know what they want; are loyal to the brand a firm can deliver the goods desired; are thoroughly researched a clear need exists; know what they want a need exists; don't know what they want Difficulty: 2 QuestionID: 01-2-36 Page-Reference: 11 Skill: Recall

a clear need exists; know what they want

63. Greater consumer control means that companies must rely more on marketing by ________ than by ________. intrusion; attraction attraction; intrusion socialization; information producing; selling inspiration; competition Difficulty: 3 QuestionID: 01-2-63 Page-Reference: 18 Skill: Recall

attraction; intrusion

23. According to the production concept, consumers will favour products that are ________ and ________. satisfying; quality focused advertised; affordable in high demand; hard to find segmented; convenient available; highly affordable Difficulty: 3 QuestionID: 01-2-23 Page-Reference: 10 Skill: Recall

available; highly affordable

41. UPS's three-pronged corporate sustainability mission stresses economic prosperity, social responsibility, and ________. human welfare customer satisfaction community hominy environmental stewardship continuous product improvement Difficulty: 2 QuestionID: 01-2-41 Page-Reference: 12 Skill: Recall

environmental stewardship

9. A company needs to construct a marketing program that delivers superior value and then ________ according to the five-step model of the marketing process described in the text. design a customer-driven marketing strategy build profitable relationships and create customer delight build strong customer relationships understand the marketplace and customer needs and wants create customer value Difficulty: 2 QuestionID: 01-2-09 Page-Reference: 6 Skill: Recall

build profitable relationships and create customer delight

81. A potentially highly profitable, short-term customer is a ________. true friend butterfly stranger barnacle true believer Difficulty: 2 QuestionID: 01-2-81 Page-Reference: 24 Skill: Recall

butterfly

72. The final step in the marketing process is ________. capturing value from customers creating customer loyalty creating customer lifetime value understanding the marketplace designing a customer-driven marketing strategy Difficulty: 1 QuestionID: 01-2-72 Page-Reference: 21 Skill: Recall

capturing value from customers

40. The three areas of consideration that should be balanced in the societal marketing concept are consumer wants, society's interests, and ________. human welfare want satisfaction company profits short-run wants long-term needs Difficulty: 2 QuestionID: 01-2-40 Page-Reference: 12 Skill: Recall

company profits

92. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." Sue Morgan is a regular guest at Seagull Terrace. She tells everyone she knows about her wonderful vacation, raving about every aspect of the experience, from the garnish on her dinner plate to the thread-count of the sheets. For Seagull Terrace, Sue is what marketing experts call a __________. barnacle target market customer evangelist frequency customer selective relationship Difficulty: 2 QuestionID: 01-2-92 Page-Reference: 14 Skill: Applied

customer evangelist

52. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match ________ with ________. company performance; competition company performance; competitive prices relationship building; performance tools company performance; unique products customer expectations; company performance Difficulty: 3 QuestionID: 01-2-52 Page-Reference: 14 Skill: Applied

customer expectations; company performance

32. Under the marketing concept, ________ are the paths to sales and profits. product and service quality and price customer focus and value sales and promotion advertisement and promotion Difficulty: 3 QuestionID: 01-2-32 Page-Reference: 11 Skill: Recall

customer focus and value

44. Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________. customer lifetime value customer perceived value customer relationship management database marketing societal marketing Difficulty: 1 QuestionID: 01-2-44 Page-Reference: 13 Skill: Conceptual

customer relationship management

4. NASCAR is the number-one televised motorsport in Canada. It is a premier marketing organization that knows how to create customer value that translates into deep and lasting ________. market segments value chains customer relationships profit analysis value delivery network Difficulty: 2 QuestionID: 02-2-04 Page-Reference: 42 Skill: Applied

customer relationships

53. Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________. customer-perceived value customer satisfaction customer equity demand customer lifetime value Difficulty: 3 QuestionID: 01-2-53 Page-Reference: 14 Skill: Applied

customer satisfaction

65. One of Seagull Terrace's regular guests has created a blog devoted to her summer stays at the resort. This has the potential to attract new guests to Seagull Terrace and is an example of ____________. partner relationship management perceived customer-value supply chain management customer-generated marketing not-for-profit marketing Difficulty: 2 QuestionID: 01-2-65 Page-Reference: 19 Skill: Applied

customer-generated marketing

62. A marketing relationship in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands is called ________. consumer-generated marketing customer-managed relationship partner relationship online social network consumer interaction Difficulty: 2 QuestionID: 01-2-62 Page-Reference: 18 Skill: Conceptual

customer-managed relationship

8. Our ________ are the products and services, backed by buying power, that we believe will provide us with benefits that add up to the most value and satisfaction. social needs demands physical needs self-esteem needs exchanges Difficulty: 3 QuestionID: 01-2-08 Page-Reference: 6 Skill: Recall

demands

57. A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a ________. frequency marketing program basic customer relationship club marketing program partner relationship management technique structural benefit provided for top customers Difficulty: 2 QuestionID: 01-2-57 Page-Reference: 16 Skill: Recall

frequency marketing program

56. Nike wants to create ________ through its sales representatives' working closely with Sport Chek, Source For Sports, Foot Locker, and other large retailers. business networks full partnerships a good reputation customer satisfaction basic relationships Difficulty: 3 QuestionID: 01-2-56 Page-Reference: 16 Skill: Applied

full partnerships

79. The ultimate aim of customer relationship management is to produce ________. high customer equity high market share high sales volume a reliable database higher profit margins Difficulty: 3 QuestionID: 01-2-79 Page-Reference: 23 Skill: Recall

high customer equity

39. The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________. short-run costs and profits short-run ethics long-run welfare immediate health value propositions Difficulty: 2 QuestionID: 01-2-39 Page-Reference: 12 Skill: Recall

long-run welfare

3. According to management guru Peter Drucker, "The aim of marketing is to ________." sell products instead of services identify customer needs make selling unnecessary set high customer expectations make advertising unnecessary Difficulty: 2 QuestionID: 01-2-03 Page-Reference: 5 Skill: Recall

make selling unnecessary

14. Core ________ activities include consumer research, product development, communication, distribution, pricing, and service. exchange production management marketing customer relationship management Difficulty: 1 QuestionID: 01-2-14 Page-Reference: 8 Skill: Recall

marketing

17. The art and science of choosing target markets and building profitable relationships with them is called ________. differentiation positioning segmentation selling marketing management Difficulty: 1 QuestionID: 01-2-17 Page-Reference: 9 Skill: Conceptual

marketing management

86. A church targeting different demographic groups to increase attendance is an example of ________. for-profit marketing not-for-profit marketing societal marketing customer evangelism caring capitalism Difficulty: 2 QuestionID: 01-2-86 Page-Reference: 30 Skill: Applied

not-for-profit marketing

90. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept. selling marketing product production societal marketing Difficulty: 2 QuestionID: 01-2-90 Page-Reference: 10 Skill: Applied

product

89. Refer to the scenario below to answer the following question. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travellers year-round. Carol's plan, then, involved a seasonal promotional gimmick—to be implemented from early winter to late spring—that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travellers—both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our restaurant offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout winter." Carol Veldt's use of "promotional gimmicks" is an example of the ________ concept. selling marketing product production societal marketing Difficulty: 2 QuestionID: 01-2-89 Page-Reference: 10 Skill: Applied

selling

75. When an airline goes after a "share of travel" from its customers, it is attempting to increase ________. customer lifetime value share of customer total customer spending customer satisfaction customer ownership Difficulty: 3 QuestionID: 01-2-75 Page-Reference: 22 Skill: Applied

share of customer

77. Amazon.com leverages relationships with its 88 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other products that might interest a customer. This most directly helps Amazon.com capture a greater ________. customer lifetime value share of customer profit margin share of market customer equity Difficulty: 3 QuestionID: 01-2-77 Page-Reference: 22 Skill: Applied

share of customer

85. The ________ responsibility and environmental movements will place even stricter demands on companies in the future. cultural economic political social financial Difficulty: 3 QuestionID: 01-2-85 Page-Reference: 30 Skill: Recall

social

87. Governmental agencies have also shown an increased interest in marketing. When a local government encourages energy conservation and concern for the environment or discourages smoking, it is involved in ________. green marketing social marketing campaigns social responsibility environmental marketing partnership marketing

social marketing campaigns

42. UPS seeks more than just sales and profits. Its three-pronged corporate sustainability mission stresses economic prosperity, social responsibility, and environmental stewardship. UPS applies the ________ philosophy. marketing concept product concept production concept societal marketing concept selling concept Difficulty: 2 QuestionID: 01-2-42 Page-Reference: 12 Skill: Applied

societal marketing concept

1. The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities is called ___________ . strategic planning marketing planning mission plan business planning operational planning Difficulty: 1 QuestionID: 02-2-01 Page-Reference: 42 Skill: Conceptual

strategic planning

70. Through ________, many companies today are strengthening their connections to all partners, from providers of raw materials to components to final products that are delivered to final buyers. supply chain management direct marketing partnership relationship marketing customized marketing equity marketing Difficulty: 2 QuestionID: 01-2-70 Page-Reference: 21 Skill: Recall

supply chain management