Marketing Chapter 6, Marketing Chapter 7, Marketing Chapter 8, Marketing Chapter 9, Marketing Chapter 10
78) 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 ________. A) subculture B) social class C) social network D) life-cycle stage E) lifestyle
Answer: A Diff: 1 Type: MC Page Ref: 199 Skill: Application Objective: 6-1
3) Product is a key element in a company's ________, which may, at one extreme, consist of pure tangible goods or, at the other extreme, pure services. A) market offering B) brand equity C) brand extension D) co-branding E) core customer value
Answer: A Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
10) ________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products. A) Shopping products B) Convenience products C) Unsought products D) Industrial products E) Line extensions
Answer: A Diff: 1 Type: MC Page Ref: 280 Skill: Concept Objective: 8-1
19) New product development starts with ________. A) idea generation B) idea screening C) concept development D) concept testing E) test marketing
Answer: A Diff: 1 Type: MC Page Ref: 286 Skill: Concept Objective: 8-2
85) A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) convenience product E) product bandwidth
Answer: A Diff: 1 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
90) A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) brand line C) consumer mix D) packaging mix E) line extension
Answer: A Diff: 1 Type: MC Page Ref: 301 Skill: Concept Objective: 8-4
2) Price is the only element in the marketing mix that produces ________. A) revenue B) variable costs C) expenses D) fixed costs E) stability
Answer: A Diff: 1 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
35) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The break-even chart D) Target costing E) Supply
Answer: A Diff: 1 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
40) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences
Answer: A Diff: 1 Type: MC Page Ref: 367 Skill: Concept Objective: 10-2
57) By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented pricing B) variable pricing C) flexible pricing D) cost-plus pricing E) reference pricing
Answer: A Diff: 1 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
6) The third level of a product that product planners consider is a(n) ________ around the core benefit and actual product that offers additional consumer services and benefits. A) augmented product B) brand equity C) brand extension D) industrial product E) image
Answer: A Diff: 2 Type: MC Page Ref: 279-280 Skill: Concept Objective: 8-1
46) Under what circumstances might it be wise for a company to invest in a test market? A) when a new product requires a major investment B) when the product is not working well C) when management is sure of the marketing program D) when the product risk is very low E) when the cost of new-product development is very low
Answer: A Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
47) According to the authors, when does a company typically invest in test marketing? A) before the full product introduction B) at idea generation time C) before the product concept D) after meeting with a stockholder E) after a logistics discussion with suppliers
Answer: A Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
62) Some products that have entered the decline stage have been cycled back to the growth stage through ________. A) repositioning B) concept testing C) business analysis D) innovation management E) customer-centered product development
Answer: A Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
67) A company wants to sustain this stage as long as possible. A) growth B) decline C) maturity D) introduction E) commercialization
Answer: A Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
72) Which of the following best represents the options a company has when a product is declining? A) maintain, reposition, harvest or drop the product B) harvest or drop the product C) maintain, harvest, or drop the product D) maintain or pioneer the product E) pioneer, harvest, or maintain the product
Answer: A Diff: 2 Type: MC Page Ref: 294-295 Skill: Concept Objective: 8-3
33) A ________ is a name, term, sign, symbol or design that identifies the maker or seller of a product or service. A) brand B) line extension C) touchpoint D) label E) package
Answer: A Diff: 2 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
36) Branding helps sellers. The following is definitely an example of this help. A) Brand names provide legal protection for unique product features. B) Brand names provide guarantees that consumers will spend their money. C) Brand names are easy to sell. D) Brand names work for everyone. E) Brand names provide advertising.
Answer: A Diff: 2 Type: MC Page Ref: 323 Skill: Concept Objective: 9-1
45) Besides a logo, name and icon brands also have ________. A) personality, status and value. B) legal implications, and trust accounts C) profit D) public relations E) exclusive power over customers
Answer: A Diff: 2 Type: MC Page Ref: 326 Skill: Concept Objective: 9-2
47) Brands occupy a level of social regard with respect to one another. We consider a Rolls-Royce or Bentley car differently than a Chevrolet or Hyundai. This is an example of brand ________. A) status B) price C) touchpoints D) value E) equity
Answer: A Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
88) Sophia is the newly hired brand manager for a new company in southern Ontario. She knows that before consumers respond to a brand they must first ________. A) know about and understand the benefits. B) be given coupons C) hire a successful olympian to help carry the message D) buy full page advertisements in the National Post and Globe and Mail. E) talk to salespeople
Answer: A Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
59) Store brands account for ________ of Canadian grocery store and drugstore revenues. A) 25% B) 75% C) 5% D) 10% E) 60%
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
64) A number of top selling retail toys are products that are based on television shows and movies. These are examples of ________. A) licensing B) product extensions C) word of mouth sales D) exploitations E) top down production
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
92) One disadvantage of store brands is that they are ________. A) harder to establish B) well known throughout the country C) more expensive than national brands D) easy to promote E) cheaper to stock than national brands
Answer: A Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
25) ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavours, forms, colours, ingredients, or package sizes. A) A line extension B) A product mix C) Interactive marketing D) Service variability E) Service intangibility
Answer: A Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
69) One risk of having too many line extensions is that ________. A) sales might come at the expense of other items in the line. B) the competition can use your good ideas C) customers buy more than they really need D) intermediaries increase the throughput costs E) Internet sales may decrease
Answer: A Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
74) Recently General Motors was on the brink of bankruptcy. One of the solutions was to deal with their problem of multibranding. What did GM do to reduce costs and increase profitability? A) They cut many modest or failing brands to focus on their stronger brands. B) They offered employee discounts to everyone. C) They lobbied along with Chrysler for huge government bailout payments. D) They sold stock to generate revenue. E) They sold more cars and trucks.
Answer: A Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-4
79) Brands must be maintained by ________.as well as by advertising. A) the overall brand experience B) managers C) sales staff D) executive E) intermediaries
Answer: A Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
5) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Variable costs D) Price elasticity E) Product image
Answer: A Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
10) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived value B) value-based C) variable D) demand curve E) price-floor
Answer: A Diff: 2 Type: MC Page Ref: 356 Skill: Concept Objective: 10-1
17) Rent, electricity, and executive salaries are examples of ________ costs. A) fixed B) variable C) total D) accumulated E) marketing
Answer: A Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
80) In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores. This is an example of what type of market? A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialist
Answer: A Diff: 2 Type: MC Page Ref: 365 Skill: Application Objective: 10-2
31) Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) anti-trust agreements
Answer: A Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
44) A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) price skimming B) trial pricing C) value pricing D) market-penetration pricing E) prestige pricing
Answer: A Diff: 2 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
86) When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________. A) product line pricing B) market-skimming pricing C) market-penetration pricing D) break-even pricing E) target return pricing
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Application Objective: 10-4
46) Which of the following conditions would most likely to support market-penetration pricing? A) The market must be highly price sensitive. B) Production and distribution costs rise as sales volume increases. C) The product's quality and image must support the price. D) The low price does not affect the competition. E) A low price does not affect market growth.
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-3
47) A challenge for management in product line pricing is to decide on the price steps between the ________. A) various products in a line B) product mixes C) product groupings D) product lines E) various target markets
Answer: A Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-4
70) Which of the following is a reason for a company to raise its prices? A) to balance out cost increases B) to win a larger share of the market C) to use excess capacity D) to boost sales volume E) to balance out decreasing costs
Answer: A Diff: 2 Type: MC Page Ref: 376 Skill: Concept Objective: 10-6
73) The Competition Act is the federal law that was enacted to curb the formation of ________. A) unfair competition B) oligopolies C) competitive markets D) international markets E) limited partnerships
Answer: A Diff: 2 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
87) Segmenting voters as either Liberals, Conservatives, Green Party or NDP is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) geographic segmentation
Answer: A Diff: 3 Type: MC Page Ref: 244-245 Skill: Application Objective: 7-2
105) Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and colour-treated hair. This is an example of ________. A) line filling B) social marketing C) a shopping product D) an unsought product E) people marketing
Answer: A Diff: 3 Type: MC Page Ref: 300 Skill: Application Objective: 8-4
106) Which of the following is/are examples of product mix depth? A) hamburger and cheeseburger B) hamburger and ice cream C) Coke and hamburger D) hamburger and desert E) hamburger and french fries
Answer: A Diff: 3 Type: MC Page Ref: 301 Skill: Application Objective: 8-4
22) In 2013, pop band One Direction allowed photos and band-related images to be placed on various footwear and apparel created by the Leomil Group in exchange for a royalty. This is an example of ________. A) licensing B) ingredient branding C) brand extension D) megabranding E) a brand touchpoint
Answer: A Diff: 3 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
95) Cheerios launching Walnut Cheerios cereal is an example of ________. A) line extension B) brand extension C) cobranding D) licensing E) the product lifecycle
Answer: A Diff: 3 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
90) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) user status B) usage rate C) benefits sought D) occasions E) psychographic
Answer: B Diff: 1 Type: MC Page Ref: 248 Skill: Application Objective: 7-2
93) The markets you have chosen to serve in four western provinces can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) measurable B) accessible C) substantial D) actionable E) profitable
Answer: B Diff: 1 Type: MC Page Ref: 252 Skill: Application Objective: 7-3
2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Line extensions B) Services C) Brands D) Consumer products E) Supplements
Answer: B Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
17) Product improvements and product modifications and new brands can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products
Answer: B Diff: 1 Type: MC Page Ref: 283 Skill: Concept Objective: 8-2
65) In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness? A) product development B) introduction C) growth D) maturity E) adoption
Answer: B Diff: 1 Type: MC Page Ref: 291-292 Skill: Concept Objective: 8-3
16) An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) unsought products B) private brands C) specialty products D) service variability E) shopping products
Answer: B Diff: 1 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
23) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the return it is seeking. A) competition-based pricing B) target return pricing C) fixed cost D) value-based pricing E) customer-based pricing
Answer: B Diff: 1 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
45) ________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. A) Market-skimming B) Market-penetration C) Below-market D) Value-based E) Leader
Answer: B Diff: 1 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
53) With product bundle pricing, sellers can combine several products and offer the bundle ________. A) as a working unit B) at a reduced price C) as a complete self-service package D) as a reward to loyal customers E) as segmented pricing
Answer: B Diff: 1 Type: MC Page Ref: 371 Skill: Concept Objective: 10-4
55) Which of the following is not a price adjustment strategy? A) segmented pricing B) customer value-based pricing C) promotional pricing D) discount and allowance pricing E) dynamic pricing
Answer: B Diff: 1 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
62) ________ prices are the prices that buyers carry in their mind and refers to when looking at a given product. A) Psychological B) Reference C) Promotional D) Geographical E) Dynamic
Answer: B Diff: 1 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
92) Pabst beer had a revival in Canada when it began targeting hipsters, a group of people who embrace edginess in their lives with independent thought, progressive thought, creativity, and witty banter. This targeting likely follows which segmentation approach? A) social class B) lifestyle C) occupation D) attitude towards the product E) personality
Answer: B Diff: 2 Type: MC Page Ref: 242 Skill: Application Objective: 7-2
4) To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customer ________. A) feedback B) experiences C) brands D) product lines E) events
Answer: B Diff: 2 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
101) You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) ________ product. A) unsought B) convenience C) augmented D) shopping E) specialty
Answer: B Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
25) During the ________ stage of the new-product development process, helps spot good ideas and eliminate poor ones. A) idea generation B) idea screening C) concept testing D) product development E) commercialization
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
26) GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt. A) idea generation B) idea screening C) concept testing D) concept development E) business analysis
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
56) ________ refers to a detailed version of the new-product idea stated in meaningful consumer terms. A) Product generation B) The product concept C) Product testing D) Product commercialization E) Product crowdsourcing
Answer: B Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
58) According to the product life cycle theory, the sales of a typical product follow a(n) ________ curve. A) U-shaped B) S-shaped C) L-shaped D) I-shaped E) O-shaped
Answer: B Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
71) When a product enters the maturity stage, the company should consider ________. A) harvesting the product B) modifying the product, market, or marketing mix C) divesting the product D) maintaining the product E) dropping the product
Answer: B Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
73) A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry. A) harvest the product B) maintain the product without change C) drop the product D) search for replacements E) delay planning
Answer: B Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
87) Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways? A) internal marketing B) line filling C) product mixing D) social marketing E) line mixing
Answer: B Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
89) When a company lengthens its product line beyond its current range, it is ________. A) product line filling B) product line stretching C) product mixing D) increasing product depth E) building brand equity
Answer: B Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
92) Product mix ________ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations. A) length B) depth C) height D) width E) perimeter
Answer: B Diff: 2 Type: MC Page Ref: 301 Skill: Concept Objective: 8-4
34) Consumers view a brand as an important part of a product and branding can add ________. A) costs B) value C) layers D) depth E) elements
Answer: B Diff: 2 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
80) According to the text, consumer preference isn't based on taste alone. Consumers attach ________ to brands and develop ________ that go beyond a product's physical attributes. A) value; choices B) meaning; relationships C) benefits; alliances D) labels; lists E) names; icons
Answer: B Diff: 2 Type: MC Page Ref: 324 Skill: Concept Objective: 9-1
85) In order for customers to choose his brand, Spencer must get his public to see that his brand is ________. A) simple B) distinctive C) illusive D) engaging E) expansive
Answer: B Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
53) Once chosen the brand name should be ________. A) sold B) protected C) shared D) exploited E) saved
Answer: B Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
17) For a fee, some companies ________ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name. A) service B) license C) market D) package E) brand
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
58) A(n) ________ is created for and owned by a reseller of a product or service. A) advertising strategy B) private brand C) sales force D) national brand E) customer appreciation campaign
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
62) Retailers often price their store brands ________ comparable national brands. A) higher than B) lower than C) the same as D) unrelated to the price of E) much higher
Answer: B Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
21) Hershey's Kisses and Breyers Ice Cream each lending their names to create a new 2L ice cream product is an example of ________. A) brand advocacy B) co-branding C) megabranding D) brand equity E) a brand touchpoint
Answer: B Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
67) Co-branding has many limitations. Which of the following is definitely one of them? A) customer complaints B) brands must be complementary C) competition envy D) partner distraction E) ease of use limitations
Answer: B Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
96) Virgin entering the theme park market by creating Virgin Rollercoaster World is an example of a ________. A) line extension B) brand extension C) cobranding D) licensing E) product life cycle
Answer: B Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
39) Thanks to the rise in popularity of social media customers are beginning to tell stories about their favourite brands. This is an example of ________. A) selling out B) brand advocacy C) solicitation D) mixed messaging E) computerization
Answer: B Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
6) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) target return pricing B) value-based pricing C) variable costs D) price elasticity E) cost-based pricing
Answer: B Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
25) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company's overall marketing strategy
Answer: B Diff: 2 Type: MC Page Ref: 360 Skill: Concept Objective: 10-2
32) Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism
Answer: B Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
81) With an understanding of price elasticity, sellers should know that the less elastic the demand for their product is, the more advantageous it is for them to ________. A) drop the price B) raise the price C) leave the price where it is D) discontinue the item E) bundle the product with another product
Answer: B Diff: 2 Type: MC Page Ref: 366 Skill: Application Objective: 10-2
36) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating
Answer: B Diff: 2 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
38) Which of the following economic factors does not have a strong impact on a firm's pricing strategy? A) an economic boom B) the reseller's reaction to price changes C) an economic recession D) inflation E) interest rates
Answer: B Diff: 2 Type: MC Page Ref: 367 Skill: Concept Objective: 10-2
83) When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was using ________. A) marketing-skimming pricing B) market-penetration pricing C) new-product pricing D) discount pricing E) promotional allowances
Answer: B Diff: 2 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
84) Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy. A) market-skimming B) market-penetration C) zone D) discount E) captive-product
Answer: B Diff: 2 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
48) When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. A) non-price competition B) value differences C) quantity levels D) images E) strategies
Answer: B Diff: 2 Type: MC Page Ref: 369 Skill: Concept Objective: 10-4
87) The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________. A) allowance pricing B) captive-product pricing C) penetration pricing D) segmented pricing E) promotional pricing
Answer: B Diff: 2 Type: MC Page Ref: 370 Skill: Application Objective: 10-4
51) Hotline Long Distance Service uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a per-call ________. A) fixed rate usage B) variable usage rate C) standard usage rate D) market usage rate E) fixed fee
Answer: B Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
60) Consumers usually perceive higher-priced products as ________. A) not within reach of most people B) having a higher quality C) having high profit margins D) popular brands E) being in the introductory stage of the product life cycle
Answer: B Diff: 2 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
67) The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A) captive pricing B) dynamic pricing C) basing-point pricing D) price bundling E) cost-plus pricing
Answer: B Diff: 2 Type: MC Page Ref: 375 Skill: Concept Objective: 10-5
69) Which of the following is a poor reason for a company to initiate a price cut? A) to boost sales B) to obtain prestige C) to dominate the market D) to relieve excess capacity E) to influence falling demand
Answer: B Diff: 2 Type: MC Page Ref: 376 Skill: Concept Objective: 10-6
74) Federal legislation on price-fixing requires that sellers set their prices ________. A) based on their fixed and variable costs B) without communication with competitors C) to achieve a specified profit margin D) with the intention of putting competitors out of business E) consistently throughout a region
Answer: B Diff: 2 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
12) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added pricing strategies C) fixed costs D) price elasticity E) image pricing
Answer: B Diff: 2 Type: MC Page Ref: 8 Skill: Concept Objective: 10-1
97) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Different people want different mixes of benefits from the products they buy. C) Procter & Gamble has little competition. D) Retailers request it. E) It creates healthy competition.
Answer: B Diff: 3 Type: MC Page Ref: 253 Skill: Application Objective: 7-3
70) Which of the following would lead to continued sales in the maturity stage of the PLC? A) overcapacity of products in the market B) modifying the marketing mix C) strong management D) more promotion E) more spending
Answer: B Diff: 3 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
87) The Chevrolet Prism and Toyota Corolla are the same car, made on the same assembly line by the same people, using the same parts, and have the same warranty. Yet, the baseline model of the Toyota Corolla sells for $250 more than its counterpart. We can conclude that Toyota Corolla has ________. A) lower brand equity B) higher brand equity C) better distribution networks D) a better advertising agency E) better strategic alliances
Answer: B Diff: 3 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
6) The fundamental asset underlying brand equity is ________-the value of the customer relationships that the brand creates. A) the customer mix B) customer equity C) line equity D) service variability E) the service encounter
Answer: B Diff: 3 Type: MC Page Ref: 329 Skill: Concept Objective: 9-2
24) A company has four choices when it comes to developing brands. Which is definitely one of those choices? A) line inversion B) brand extension C) multibrands D) width and depth perception E) international brands
Answer: B Diff: 3 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
94) Before a company blindly decides to incorporate a brand extension, they need to seriously consider which of the following? A) new customers likes and dislikes B) how well the brand's association fits the new product C) past customers preferences D) nostalgia E) word-of-mouth promotions on YouTube and Twitter
Answer: B Diff: 3 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
82) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do? A) They will go out of business. B) They will want to compete by undercutting Canon's price. C) They will advertise less. D) They will unbundle their products. E) They will use market-skimming pricing.
Answer: B Diff: 3 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
85) Market-skimming pricing would likely be most effective in selling ________. A) any convenience item B) an electronic device for which research and development must be recouped C) shampoo and bath soap D) anything easily copied by competitors E) most items at EDLP retailers such as Walmart
Answer: B Diff: 3 Type: MC Page Ref: 368 Skill: Application Objective: 10-3
30) ________ calls for testing new-product concepts with groups of target consumers. A) Concept development B) Concept testing C) Idea generation D) Idea screening E) Test marketing
Answer: B (Market Testing in slides) Diff: 1 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
9) Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations. A) alternative evaluations B) cognitive dissonances C) subcultures D) social classes E) occupations
Answer: C Diff: 1 Type: MC Page Ref: 199 Skill: Concept
62) After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in ________. A) need recognition B) alternative evaluation C) postpurchase behaviour D) product expectations E) information searches
Answer: C Diff: 1 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
91) Which of the following is a part of the consumer market? A) Scott Sign Systems sells interior signs to an Alabama resort. B) A municipal government buys chemicals for its city swimming pools. C) Sue buys a gift for her mother. D) A Canadian software company buys airplane tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan. E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.
Answer: C Diff: 1 Type: MC Page Ref: 218 Skill: Application Objective: 6-4
68) As compared to consumer markets, business markets are ________. A) approximately the same B) smaller C) huge D) somewhat larger E) less complex
Answer: C Diff: 1 Type: MC Page Ref: 218 Skill: Concept Objective: 6-4
85) When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic B) political and legal C) geographic D) demographic
Answer: C Diff: 1 Type: MC Page Ref: 240 Skill: Application Objective: 7-2
11) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions
Answer: C Diff: 1 Type: MC Page Ref: 280 Skill: Concept Objective: 8-1
12) ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. A) Specialty products B) Line extensions C) Unsought products D) Shopping products E) Convenience products
Answer: C Diff: 1 Type: MC Page Ref: 281 Skill: Concept Objective: 8-1
60) Increasing profits will most likely occur at which stage of the PLC? A) product development B) introduction C) growth D) maturity E) decline
Answer: C Diff: 1 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
2) A key element in a company's relationship with consumers, a ________ has personality, so it involves our emotions as consumers. A) product line B) product experience C) brand D) service E) product attribute
Answer: C Diff: 1 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
18) ________ occurs when two established brand names of different companies are used on the same product. A) A brand extension B) Brand equity C) Co-branding D) Internal marketing E) Cannibalization
Answer: C Diff: 1 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
26) A ________ involves the use of a successful brand name to launch new or modified products in a new category. A) line extension B) product line C) brand extension D) private brand E) brand symbol
Answer: C Diff: 1 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
1) ________ is the amount of money charged for a product or service. A) Experience curve B) Demand curve C) Price D) Wage E) Salary
Answer: C Diff: 1 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
13) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming
Answer: C Diff: 1 Type: MC Page Ref: 358-359 Skill: Concept Objective: 10-1
42) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. A) market-level pricing B) market-competitive pricing C) market-skimming pricing D) market-price lining E) market-price filling
Answer: C Diff: 1 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
88) Bud Lite originally launched with the slogan "Tastes great and less filling!" This slogan suggests Bud Lite used which type of segmentation? A) user status B) usage rate C) benefit D) behavioural E) psychographic
Answer: C Diff: 2 Type: MC Page Ref: 247 Skill: Application Objective: 7-2
5) Product planners consider products and services on three levels. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange
Answer: C Diff: 2 Type: MC Page Ref: 279 Skill: Concept Objective: 8-1
100) A hickory rocking chair, handmade by an French woodcarver in northern Quebec from locally grown wood, is an example of a(n) ________. A) convenience product B) shopping product C) specialty product D) service E) augmented product
Answer: C Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
16) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and merger C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development
Answer: C Diff: 2 Type: MC Page Ref: 283 Skill: Concept Objective: 8-2
18) The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. A) competitors, distributors, and employees; new styles B) customers, brands, products; product images C) customers, competitors, and markets; superior value D) product, marketing mix, and marketing strategy; functional features E) product life cycle, legal responsibilities, and social responsibilities; innovations
Answer: C Diff: 2 Type: MC Page Ref: 285-286 Skill: Concept Objective: 8-2
48) The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. A) how to develop a market strategy B) which market to compete in C) whether to launch the new product D) how to compete in the market E) how long to compete in the market
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-2
52) What are the two main focuses of the product life cycle theory? A) distributors and suppliers B) competitors and costs C) sales and profits D) profits and target markets E) target markets and competitors
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
53) What are the stages, in correct order, of the product life cycle? A) Introduction, Maturity, Growth, and Decline B) Introduction, Growth, Decline, and Maturity C) Introduction, Growth, Maturity, and Decline D) Growth, Introduction, Maturity, and Decline E) Decline, Introduction, Growth, and Maturity
Answer: C Diff: 2 Type: MC Page Ref: 291 Skill: Concept Objective: 8-3
61) In which stage of the typical consumer product life cycle do sales growth level off? A) product development B) introduction C) maturity D) growth E) decline
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
66) In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition? A) product development B) introduction C) growth D) maturity E) decline
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
68) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers? A) introduction B) growth C) maturity D) decline E) phase-in
Answer: C Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
88) An alternative to product line stretching is ________, adding more items within the present range of the line. A) product mixing B) interactive marketing C) product line filling D) co-branding E) service marketing
Answer: C Diff: 2 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
46) Brand managers often describe their brands using the same kinds of adjectives typically used for people. Words like: traditional, youthful, sophisticated, reliable. These managers are trying to build brand ________. A) profit B) extensions C) personality D) evaluations E) word-of-mouth
Answer: C Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
13) Which of the following is the least desirable quality for a brand name? A) It should suggest something about the product's benefits and qualities. B) It should be easy to pronounce, recognize, and remember. C) The name should be a long word to get attention. D) The name should translate easily into foreign languages. E) It should be distinctive.
Answer: C Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
52) A great ________ absolutely requires a strong, memorable name. A) company B) product C) brand D) promotion E) service
Answer: C Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
15) In the competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in print promotions. A) national; manufacturer's B) store; private C) national; private D) store; licensed E) private; distributor
Answer: C Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
19) In most ________ situations, one company licenses another company's well-known brand to use in combination with its own. A) brand extension B) brand equity C) co-branding D) internal marketing E) line extension
Answer: C Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
20) Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names. B) Retailers have exclusive products that cannot be purchased from competitors. C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. D) Advertising, sales, promotion, and marketing must be carefully coordinated. E) Brand equity is stabilized.
Answer: C Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
75) A company might introduce a new brand because ________. A) their sales force recommends it B) their old brand is waning in popularity C) they developed a new product D) the competition is increasing E) they believe more brands is better
Answer: C Diff: 2 Type: MC Page Ref: 333—334 Skill: Concept Objective: 9-3
70) Recently Campbell's soup has developed a wide range of ethnic and religiously focussed soup varieties. This type of modification is known as ________. A) product mixing B) line extensions C) brand extensions D) promotional dilemmas E) customer stratification
Answer: C Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
32) In order to be recognizable brand images and logos need to be ________. A) brightly coloured B) large C) consistent and exact D) detailed E) simple
Answer: C Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
83) A couple designed their wedding around the Black & Decker's DeWalt brand. This is an extreme example of ________. A) brand servicing B) line extensions C) brand advocacy D) people trying to get a wedding sponsor E) the reality that DeWalt makes darned good power tools.
Answer: C Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
3) Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image
Answer: C Diff: 2 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
4) Product costs set a(n) ________ to a product's price. A) demand curve B) experience curve C) floor D) ceiling E) break-even cost
Answer: C Diff: 2 Type: MC Page Ref: 354 Skill: Concept Objective: 10-1
7) Value-based pricing is the reverse process of ________ pricing. A) variable cost B) cost-plus C) cost-based D) good-value E) value-added
Answer: C Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
9) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) perceived value D) break-even pricing E) variable costs
Answer: C Diff: 2 Type: MC Page Ref: 356 Skill: Concept Objective: 10-1
19) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) value-based B) fixed cost C) cost-plus D) variable E) skimming
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
20) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target return pricing
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
22) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) break-even pricing D) good-value pricing E) EDLP
Answer: C Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
26) ________ that influence pricing decisions include the nature of the market and demand. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors
Answer: C Diff: 2 Type: MC Page Ref: 361 Skill: Concept Objective: 10-2
33) Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) capitalism
Answer: C Diff: 2 Type: MC Page Ref: 365 Skill: Concept Objective: 10-2
37) If demand changes greatly with a small change in price, we say the demand is ________. A) inelastic B) variable C) elastic D) value-based E) fixed
Answer: C Diff: 2 Type: MC Page Ref: 366 Skill: Concept Objective: 10-2
88) Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used? A) product line pricing B) optional-product pricing C) captive-product pricing D) by-product pricing E) allowance pricing
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Application Objective: 10-4
50) It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product. A) low; low markups B) high; low markups C) low; high markups D) high; high markups E) moderately; moderate markups
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
52) When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. A) by-product B) optional-product C) captive-product D) skimming E) penetration
Answer: C Diff: 2 Type: MC Page Ref: 370 Skill: Concept Objective: 10-4
58) The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________. A) time-based pricing B) location pricing C) customer-segment pricing D) revenue management pricing E) generational pricing
Answer: C Diff: 2 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
95) Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________. A) promotional pricing B) cost-plus pricing C) dynamic pricing D) value pricing E) penetration pricing
Answer: C Diff: 2 Type: MC Page Ref: 375 Skill: Application Objective: 10-5
96) Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________. A) market skimming B) price-fixing C) predatory pricing D) deceptive pricing E) price confusion
Answer: C Diff: 2 Type: MC Page Ref: 379 Skill: Application Objective: 10-7
71) In a monopolistic competitive market, a company might decide to ________ if only one competitor raises its prices. A) reduce its production costs B) reduce its marketing costs C) maintain its current price and profit margin D) increase its marketing budget to raise the perceived value of its product E) increase its production costs to improve the quality of the product
Answer: C Diff: 3 Type: MC Page Ref: 377 Skill: Concept Objective: 10-6
75) Price discrimination is legal under which of the following conditions? A) when a manufacturer and reseller have agreed upon a specified retail price for a product B) when a manufacturer sells to retailers in different markets C) if a seller can prove its costs per unit are different when selling to different retailers D) if a seller advertises prices that are not actually available to consumers E) if a seller has not communicated with competitors before announcing prices
Answer: C Diff: 3 Type: MC Page Ref: 379 Skill: Concept Objective: 10-7
1) A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter
Answer: D Diff: 1 Type: MC Page Ref: 278 Skill: Concept Objective: 8-1
59) ________ is the product life cycle period when sales fall off and profits drop. A) Introduction B) Growth C) Maturity D) Decline E) Development
Answer: D Diff: 1 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
23) A consumer just bought a new smartphone game called "Hippy Monster" from his favourite app retailer. Which of the following is unrelated to his direct experience with the brand? A) a friend telling him about Hippy Monster B) downloading the game C) buying the game from the app store D) the creation of the programming team to create Hippy Monster E) playing the game
Answer: D Diff: 1 Type: MC Page Ref: 336 Skill: Concept Objective: 9-4
63) What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) referent pricing D) promotional pricing E) dynamic pricing
Answer: D Diff: 1 Type: MC Page Ref: 373 Skill: Concept Objective: 10-5
3) According to the definition of a brand presented in your text, all of the following would be an example of a brand except ________. A) the name Coca-Cola B) the golden arches of McDonald's restaurants C) Tony the Tiger of Frosted Flakes cereal D) the sparkles in Moet et Chandon champagne E) the name and font of IBM
Answer: D Diff: 2 Type: MC Page Ref: -323 Skill: Concept Objective: 9-1
42) Maslow's theory is that ________ can be arranged in a hierarchy. A) stimuli B) beliefs and attitudes C) perceptions D) human needs E) decisions
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
43) Which of the following is the highest part of Maslow's Hierarchy of Needs? A) physiological needs B) safety needs C) stimulus needs D) self-actualization needs E) social needs
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
65) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers
Answer: D Diff: 2 Type: MC Page Ref: 259 Skill: Concept Objective: 7-4
66) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers
Answer: D Diff: 2 Type: MC Page Ref: 259 Skill: Concept Objective: 7-4
102) Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) augmented B) specialty C) convenience D) shopping E) unsought
Answer: D Diff: 2 Type: MC Page Ref: 280 Skill: Application Objective: 8-1
24) The purpose of idea generation is to create a ________ of ideas. The purpose of succeeding stages is to ________ that number. A) small number; reduce B) small number; increase C) large number; increase D) large number; reduce E) limited number; sustain
Answer: D Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
55) ________ refers to the identification of good ideas (and the dropping of poor ones) as soon as possible. A) Crowdsourcing B) Idea generation C) Concept testing D) Idea screening E) Concept development
Answer: D Diff: 2 Type: MC Page Ref: 289 Skill: Concept Objective: 8-2
69) Most products in the marketplace are in the ________ stage of the product life cycle. A) development B) introduction C) growth D) maturity E) decline
Answer: D Diff: 2 Type: MC Page Ref: 292 Skill: Concept Objective: 8-3
35) Branding helps consumers in many ways. Which of the following is definitely one way? A) Brand names help customers to see which products cost more. B) Brand names help customers look cooler than their friends. C) Brand names help customers to be trendy. D) Brand names help customers identify products that might benefit them. E) Brand names help customers find better sales.
Answer: D Diff: 2 Type: MC Page Ref: 323 Skill: Concept Objective: 9-1
51) The brand must stand out in ways that ________. A) are quirky B) are imaginary C) are international D) have real meaning E) make good jingles
Answer: D Diff: 2 Type: MC Page Ref: 329 Skill: Concept Objective: 9-3
12) The strongest brands go beyond attributes or benefit positioning; they are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) customer image
Answer: D Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
14) Which of the following is an option for a manufacturer's brand sponsorship for a product? A) subliminal brand B) multibrand C) public brand D) licensed brand E) solo-branding
Answer: D Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
61) Due to worsening economic times customers are becoming more cost conscious and increasingly are abandoning ________ in favour of ________. A) private brands, national brands B) national brands, no names C) private brands, exclusive names D) national brands, private brands E) no names, national brands
Answer: D Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
72) Procter & Gamble recently used the Mr. Clean character on its new line of auto cleaning kits. P&G did this to increase recognition and speed consumer acceptance. This success story is a good example of ________. A) promotion B) customer service C) research and development D) brand extension E) sales savvy
Answer: D Diff: 2 Type: MC Page Ref: 334 Skill: Concept Objective: 9-3
40) Brand advocacy begins with ________. A) payment B) an idea C) a touchpoint D) trust E) a computer
Answer: D Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-1
8) With ________ pricing, price is set to match consumers' perceptions of product value. A) variable cost B) cost-plus C) cost-based D) value-based E) everyday low
Answer: D Diff: 2 Type: MC Page Ref: 355 Skill: Concept Objective: 10-1
11) ________ involves charging a constant low price with few or no temporary price discounts. A) High-low pricing B) Target return pricing C) Cost-plus pricing D) Everyday low pricing (EDLP) E) Penetration pricing
Answer: D Diff: 2 Type: MC Page Ref: 356-357 Skill: Concept Objective: 10-1
76) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________. A) good-value pricing B) add-on pricing C) product-support pricing D) value-added pricing E) cost-based pricing
Answer: D Diff: 2 Type: MC Page Ref: 358 Skill: Application Objective: 10-1
18) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs; variable; total costs B) Fixed costs; total; variable costs C) Variable costs; fixed; total costs D) Total costs; fixed; variable costs E) Break-even costs; fixed; total costs
Answer: D Diff: 2 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
27) Of the following, which is a poor reason for a company to set prices low? A) to prevent competition from entering the market B) to stabilize the market C) to create excitement for a product D) to prepare for an easy exit from a market E) to match a competitor
Answer: D Diff: 2 Type: MC Page Ref: 362 Skill: Concept Objective: 10-2
43) Which of the following would likely be ineffective in supporting a market-skimming policy for a new product? A) The product's quality and image must support its higher price. B) Enough buyers must want the products at that price. C) Competitors are not able to undercut the high price. D) Competitors can enter the market easily. E) The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.
Answer: D Diff: 2 Type: MC Page Ref: 368 Skill: Concept Objective: 10-3
56) When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. A) trade discount B) functional discount C) allowance D) promotional allowance E) trade credit
Answer: D Diff: 2 Type: MC Page Ref: 372 Skill: Concept Objective: 10-5
72) Which of the following is likely to be the least effective action that a company can take to combat a competitor's price cut on a product? A) reduce price B) raise perceived value C) improve quality and increase price D) bundle products together E) launch a low-price "fighting brand"
Answer: D Diff: 2 Type: MC Page Ref: 378 Skill: Concept Objective: 10-6
83) 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 ________. A) selective distortion B) selective attitude C) selective interpretation D) selective attention E) perceptual defense
Answer: D Diff: 3 Type: MC Page Ref: 210 Skill: Application Objective: 6-1
56) The buyer decision process consists of five stages. Which of the following is one of these stages? A) need search B) risk assessment C) variety-seeking buying behaviour D) evaluation of alternatives E) postpurchase enjoyment
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
58) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________. A) brand personality B) alternative evaluation C) postpurchase behaviour D) information search E) product adoption
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
104) Which of the following is at the core for product designers to consider as they develop a product? A) which product features can be added to create higher-level models B) how the product appears C) what the product's technical specifications are D) how customers will use and benefit from the product E) how the product is packaged to attract spontaneous purchases
Answer: D Diff: 3 Type: MC Page Ref: 279 Skill: Application Objective: 8-1
86) The major product line decision involves ________. A) line stretching B) moving the line upward or downward C) product line filling D) product line length E) product packaging
Answer: D Diff: 3 Type: MC Page Ref: 300 Skill: Concept Objective: 8-4
27) Which of the following is a potential drawback of multibranding? A) Consumers may become confused about the image of the main brand. B) An overextended brand name might lose its specific meaning for consumers. C) Different product features can appeal to consumers with different buying motives. D) The company's resources may be spread over too many brands. E) The company can occupy more retail shelf space.
Answer: D Diff: 3 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
21) Which of the following presents the strongest reason that markup pricing is generally illogical? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged.
Answer: D Diff: 3 Type: MC Page Ref: 359 Skill: Concept Objective: 10-1
72) Marketers call the decision-making unit of a buying organization the ________. A) business buyer B) business-to-business market C) supplier-development centre D) buying system E) buying centre
Answer: E Diff: 2 Type: MC Page Ref: 222 Skill: Concept Objective: 6-4
45) The stage of new-product development where the product and marketing program are tested in realistic market settings is called ________. A) idea generation B) concept testing C) product concept D) commercialization E) test marketing
Answer: E Diff: 2 Type: MC Page Ref: 290 Skill: Concept Objective: 8-2
89) The ________ is the sum total of all the attributes of a brand, and the emotions it inspires in the minds of consumers. A) brand equity B) brand valuation C) brand touchpoints D) brand image E) brand personality
Answer: E Diff: 2 Type: MC Page Ref: 327 Skill: Concept Objective: 9-2
56) Some companies like Godiva, Starbucks, Apple, and Victoria's Secret rely less on a product's tangible attributes and more on creating ________. A) advertisements B) promotions C) public relations campaigns D) touch points E) surprise, passion, and excitement.
Answer: E Diff: 2 Type: MC Page Ref: 330 Skill: Concept Objective: 9-3
66) Costco recently teamed up with mattress maker Stearns & Foster to market a line of Kirkland Signature mattress sets by Stearns & Foster. This is a good example of ________. A) branding B) trademarking C) advertising D) product mixing E) co-branding
Answer: E Diff: 2 Type: MC Page Ref: 3313 Skill: Concept Objective: 9-3
63) A modest manufacturing company in Regina has recently paid the Tommy Hilfiger and Quicksilver companies for the right to use their brand names in everything from belts to blouses, and shirts to socks. These are examples of ________. A) branding B) trademarking C) copying D) knock offs E) licensing
Answer: E Diff: 2 Type: MC Page Ref: 332 Skill: Concept Objective: 9-3
93) A company has four main choices when it comes to brand development. Which of the following best describes these choices? A) brand names, brand extensions, multibrands, or new brands B) line extensions, brand names, multibrands, or new brands C) line extensions, brand extensions, brand names, or new brands D) line extensions, brand extensions, multibrands, or brand names E) line extensions, brand extensions, multibrands, or new brands
Answer: E Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-3
68) One advantage of co-branding is ________. A) more defined target market B) decreased competition C) longer product life D) more memorable E) greater brand equity
Answer: E Diff: 2 Type: MC Page Ref: 333 Skill: Concept Objective: 9-4
71) At Jeep you can now buy 7 different models; the Commander, Grand Cherokee, Compass, Patriot, Liberty, Wrangler, and Wrangler Unlimited. A risk of this over extension is that a brand ________. A) loses market share B) increases variable costs per unit C) complicates consumer touchpoints D) dominates an industry E) confuse the image of the brand
Answer: E Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
73) One of the many benefits to multibranding is that ________. A) each brand has a small market share B) it focuses market penetration C) it increases per unit profitability D) it simplifies promotion E) consumers choose one of your many brands
Answer: E Diff: 2 Type: MC Page Ref: 335 Skill: Concept Objective: 9-3
31) Brand managers are responsible for, and manage, a brand. An example of a questions brand managers continually ask is ________. A) Is our brand profitable? B) Should we sign up celebrities like Neil Young or Nelly Furtado as our spokespeople? C) What is our competitive advantage? D) How can we increase sales? E) Does our brand excel at delivering benefits that customers truly value?
Answer: E Diff: 2 Type: MC Page Ref: 336 Skill: Concept Objective: 9-3
42) ________ is universally one of the most effective ways to create brand advocates. A) Having contests B) Writing blogs C) Creating advertisements D) Paying people E) Understanding and solving problems
Answer: E Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
84) To create brand advocates some brand managers try to make ________ part of the brand story. A) people B) profit C) advertisements D) product development E) customers and employees
Answer: E Diff: 2 Type: MC Page Ref: 341 Skill: Concept Objective: 9-5
77) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________. A) value-based pricing B) going-rate pricing C) cost-plus pricing D) low-price image E) target return pricing
Answer: E Diff: 2 Type: MC Page Ref: 359 Skill: Application Objective: 10-1
28) With target costing, marketers will first ________ and then ________. A) build the marketing mix; identify the target market B) identify the target market; build the marketing mix C) design the product; determine its cost D) use skimming pricing; use penetrating pricing E) determine a selling price; target costs to ensure that the price is met
Answer: E Diff: 2 Type: MC Page Ref: 362 Skill: Concept Objective: 10-2
99) When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable service—which even allows customers to hand-select their own cuts of meat— ________ is/are evident. A) only an actual product B) only an augmented product C) only a core benefit D) both a core benefit and an actual product E) a core benefit, an actual product, and an augmented product
Answer: E Diff: 3 Type: MC Page Ref: 279-280 Skill: Application Objective: 8-1
1) Which of the following best describes what a brand is? A) a physical product B) a specialty product C) an SBU D) a corporate identity E) a concept
Answer: E Diff: 3 Type: MC Page Ref: 322 Skill: Concept Objective: 9-1
24) Which of the following statements about a break-even chart is true? A) It is used to determine how the customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It shows the level of earnings a company has during an accounting period. D) It is a tool marketers use to examine the relationship between supply and demand. E) It uses variable costs, the unit price, and fixed costs.
Answer: E Diff: 3 Type: MC Page Ref: 359-360 Skill: Concept Objective: 10-1
67) Innovators are ________. A) the first 3.5% of buyers to adopt a new idea B) venturesome C) deliberative D) traditional E) trusting
Answer: B Diff: 2 Type: MC Page Ref: 216 Skill: Concept Objective: 6-3
16) ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviours. A) Social classes B) Cultures C) Reference groups D) Attitudes E) Lifestyles
Answer: A Diff: 1 Type: MC Page Ref: 201 Skill: Concept Objective: 6-1
21) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Habitual buyers C) Social networkers D) Stealth marketers E) Buzz marketers
Answer: A Diff: 1 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
57) The buying process starts with ________, in which the buyer recognizes a problem. A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) separation of needs and wants
Answer: A Diff: 1 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
60) Marketers describe the way the consumer processes information to arrive at brand choices as ________. A) alternative evaluation B) information search C) purchase decision D) situational factors E) post-purchase dissonance
Answer: A Diff: 1 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
63) The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. A) perceived performance B) brand personality C) recognition D) consumer market E) service quality
Answer: A Diff: 1 Type: MC Page Ref: 215 Skill: Concept Objective: 6-2
95) 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? A) problem recognition B) general need description C) product specification D) product value analysis E) performance review
Answer: A Diff: 1 Type: MC Page Ref: 224 Skill: Application Objective: 6-5
1) Which of the following best describes market segmentation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: A Diff: 1 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1
9) Your firm's research reveals that consumers have different tastes in different cities. As a result, management has decided to localize its products and services to meet local market demands. This is an example of ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image
Answer: A Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-2
19) 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 ________. A) user status B) usage rate C) benefit D) behaviour E) loyalty status
Answer: A Diff: 1 Type: MC Page Ref: 247 Skill: Concept Objective: 7-2
68) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy
Answer: A Diff: 1 Type: MC Page Ref: 262 Skill: Concept Objective: 7-4
2) The consumer market is made up of which of the following? A) individuals and households who buy goods or services for personal consumption B) suppliers who provide offerings to retailers C) businesses that purchase goods and services D) retailers who resell offerings to customers E) marketers who focus on satisfying consumer needs
Answer: A Diff: 2 Type: MC Page Ref: 197 Skill: Concept Objective: 6-1
5) Which of the following is an example of a major force affecting consumer behaviour? A) cultural B) geographical C) philosophical D) channels E) physiological
Answer: A Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
7) ________ is(are) the most basic cause(s) of a person's wants and behaviour. A) Culture B) Brand personality C) Cognitive dissonance D) Social factors E) Selective perception
Answer: A Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
22) Opinion leaders are sometimes referred to as ________. A) the influentials B) the upper class C) the middle class D) buzz marketers E) networkers
Answer: A Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
28) ________ is the most important consumer buying organization in society; the roles and influences of different members have been researched extensively. A) Family B) Social class C) Membership group D) Subculture E) Reference group
Answer: A Diff: 2 Type: MC Page Ref: 204 Skill: Concept Objective: 6-1
30) 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. A) personal characteristics B) reference groups C) perceptions D) attitudes E) psychographics
Answer: A Diff: 2 Type: MC Page Ref: 206 Skill: Concept Objective: 6-1
44) What is the most pressing in Maslow's Hierarchy of Needs at any given time? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs
Answer: A Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
90) 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? A) innovator B) early adopter C) early majority D) late majority E) laggards
Answer: A Diff: 2 Type: MC Page Ref: 216 Skill: Application Objective: 6-3
69) Which of the following is a way that business and consumer markets are the same? A) satisfaction of needs through purchase decisions B) market structure and demand C) nature of the buying unit D) types of decisions E) decision process
Answer: A Diff: 2 Type: MC Page Ref: 218 Skill: Concept Objective: 6-4
70) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is. A) formalized B) creative C) relationship-oriented D) independent E) concentrated
Answer: A Diff: 2 Type: MC Page Ref: 219 Skill: Concept Objective: 6-4
11) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) lifestyle C) psychographic D) behavioural E) geographic
Answer: A Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
17) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioural B) psychographic C) age and life cycle D) demographic E) geographic
Answer: A Diff: 2 Type: MC Page Ref: 245 Skill: Concept Objective: 7-2
21) By studying its less loyal buyers, a company can detect which brands are most ________ with its own. A) competitive B) used C) often overlooked D) similar E) complementary
Answer: A Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
30) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
35) Barney Hopkins has compiled a list of things that make segments more attractive. Which of the following items should be on the list? A) profitability B) powerful suppliers to control prices C) many substitute products D) competition with superior resources E) financial resources
Answer: A Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-3
49) Which of the segmenting strategies makes the most sense when a company introduces a new product? A) concentrated B) mass C) differentiated D) individual marketing E) multiple-segment
Answer: A Diff: 2 Type: MC Page Ref: 257 Skill: Concept Objective: 7-3
67) Which of the listed choices is a very important positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent uses of the product C) selecting a specific positioning statement D) effectively selling the cheapest position to the market E) selecting the right competition
Answer: A Diff: 2 Type: MC Page Ref: 261 Skill: Concept Objective: 7-4
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 ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing
Answer: A Diff: 2 Type: MC Page Ref: 263-264 Skill: Concept Objective: 7-4
82) 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." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) responsible target marketing
Answer: A Diff: 2 Type: MC Page Ref: 266 Skill: Concept Objective: 7-4
49) Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. A) alternative evaluation B) subliminal C) perceptual D) innovative E) comparative
Answer: B Diff: 1 Type: MC Page Ref: 211 Skill: Concept Objective: 6-1
26) Wealth TV is a channel that segments its market based on the household income levels of television viewers. This firm segments on what basis? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors
Answer: B Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
20) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
Answer: B Diff: 1 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
39) The 55-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) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market
Answer: B Diff: 1 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
4) Most companies research consumer buying decisions in great detail to understand ________. A) consumer needs B) what, where, how, when, why consumers buy, as well as how much they typically pay C) consumer wants D) consumer characteristics E) consumer attitudes
Answer: B Diff: 2 Type: MC Page Ref: 198 Skill: Concept Objective: 6-1
8) It is most accurate to say that marketers are always trying to spot ________ in order to discover new products that might be wanted. A) lifestyles B) cultural shifts C) groups D) dissonance E) attitudes
Answer: B Diff: 2 Type: MC Page Ref: 199 Skill: Concept Objective: 6-1
19) Family is one of the ________ factors that influence consumer behaviour. A) cultural B) social C) personal D) psychological E) business
Answer: B Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
20) ________ are groups to which an individual wishes to belong, as when a teenage hockey player hopes to play someday for the Canadian Olympic Hockey team. A) Membership groups B) Aspirational groups C) Leading adopter groups D) Leisure groups E) Social class groups
Answer: B Diff: 2 Type: MC Page Ref: 202 Skill: Concept Objective: 6-1
87) 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 ________. A) postpurchase behaviour B) evaluation of alternatives C) opinion leadership D) cognitive dissonance E) purchase decision
Answer: B Diff: 2 Type: MC Page Ref: 214 Skill: Application Objective: 6-2
64) Many major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) purchase decisions D) legitimization E) dissatisfaction
Answer: B Diff: 2 Type: MC Page Ref: 215 Skill: Concept Objective: 6-2
65) Consumers learn about new products for the first time and make the decision to buy them during the ________. A) new product recognition B) adoption process C) evaluation process D) information search E) quality assessment
Answer: B Diff: 2 Type: MC Page Ref: 215 Skill: Concept Objective: 6-3
75) During which stage of the business buying process is a buyer most likely to conduct value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensive? A) general need recognition B) product specification C) proposal solicitation D) order-routine specification E) performance review
Answer: B Diff: 2 Type: MC Page Ref: 224 Skill: Concept Objective: 6-5
15) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely primarily using which type of segmentation? A) age and life cycle B) gender C) behaviour D) psychographic E) geographic
Answer: B Diff: 2 Type: MC Page Ref: 242-243 Skill: Concept Objective: 7-2
38) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; offer new products E) identify behaviours; understand spending power
Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
41) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) individual D) mass E) niche
Answer: B Diff: 2 Type: MC Page Ref: 253 Skill: Concept Objective: 7-3
47) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; desired by B) unimportant to; overlooked by C) too large; undesirable to D) unknown by; desired by E) disappointed by; geographically far from
Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
50) 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. A) niche B) micro C) variable D) mass E) undifferentiated
Answer: B Diff: 2 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
80) 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 ________. A) membership group B) reference group C) brand personality D) subculture E) lifestyle
Answer: B Diff: 3 Type: MC Page Ref: 202 Skill: Application Objective: 6-1
61) 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? A) postpurchase behaviour B) attitude of others C) cognitive dissonance D) alternative evaluation E) new product adoption
Answer: B Diff: 3 Type: MC Page Ref: 214 Skill: Concept Objective: 6-2
52) Which of the following is an extreme form of market segmentation? A) segmented strategy B) micromarketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
Answer: B Diff: 3 Type: MC Page Ref: 255 Skill: Concept Objective: 7-3
2) Which of the following best describes market target? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: C Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
10) Since Canada is regional, which of the following do marketers consider as a major Canadian subculture? A) Hispanic Canadians B) Carib-African Canadians C) geographically grouped consumers D) Irish Canadians E) Inuit
Answer: C Diff: 2 Type: MC Page Ref: 200 Skill: Concept Objective: 6-1
17) What is one factor used to measure social class? A) job satisfaction B) accent C) income D) number of children in the family E) postal code
Answer: C Diff: 2 Type: MC Page Ref: 201 Skill: Concept Objective: 6-1
79) 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) ________. A) membership group B) innovator C) opinion leader D) buzz marketer E) experiential source
Answer: C Diff: 2 Type: MC Page Ref: 202 Skill: Application Objective: 6-1
31) People change the goods and services they buy over time because of the two changing factors of ________. A) belief and attitude B) perception and personality C) age and life-cycle stage D) groups and learning E) family and tradition
Answer: C Diff: 2 Type: MC Page Ref: 206 Skill: Concept Objective: 6-1
81) 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 change in ________ is one of the reasons the number of farmers' markets in Canada has increased in recent years. A) life-cycle stage B) subculture C) lifestyle D) personality E) life-cycle
Answer: C Diff: 2 Type: MC Page Ref: 208 Skill: Application
85) Juana looked at her September issue of Macleans 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 September issue of the magazine became quite interesting to Juana due to ________. A) subliminal messaging B) social factors C) selective attention D) the hierarchy of needs E) unconscious motivations
Answer: C Diff: 2 Type: MC Page Ref: 210 Skill: Application Objective: 6-1
89) Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing ________. A) postpurchase culture B) selective perception C) cognitive dissonance D) purchase decision E) information evaluation
Answer: C Diff: 2 Type: MC Page Ref: 215 Skill: Application Objective: 6-2
6) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
Answer: C Diff: 2 Type: MC Page Ref: 239 Skill: Concept Objective: 7-1
5) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation
Answer: C Diff: 2 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
27) If Wealth TV decides to segment its market based on the social class of television viewers, what segmentation approach is Wealth TV using? A) geographic segmentation B) demographic segmentation C) psychographic segmentation D) behavioural segmentation E) situational factors
Answer: C Diff: 2 Type: MC Page Ref: 244 Skill: Concept Objective: 7-2
22) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing
Answer: C Diff: 2 Type: MC Page Ref: 248 Skill: Concept Objective: 7-2
31) When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
Answer: C Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
43) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
44) Procter & Gamble sells six brands of laundry detergent in North America, each designed for one of six laundry type segments Procter & Gamble has identified. Together, these six brands take four times the market share of Procter & Gamble's nearest competitor. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
45) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; the local market
Answer: C Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
75) The answer to the customer's question, "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure
Answer: C Diff: 2 Type: MC Page Ref: 264 Skill: Concept Objective: 7-4
66) Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of ________. A) alternative evaluation B) dissonance-reducing buying behavior C) product characteristics that influence rate of adoption D) individual differences in innovativeness E) postpurchase behaviour
Answer: C Diff: 3 Type: MC Page Ref: 217 Skill: Concept Objective: 6-3
96) 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. A) problem recognition B) general need description C) product specification D) supplier search E) proposal solicitation
Answer: C Diff: 3 Type: MC Page Ref: 224 Skill: Application Objective: 6-5
74) The first step of the business buying process is ________. A) general need description B) supplier search C) proposal solicitation D) problem recognition E) order-routine specification
Answer: D Diff: 1 Type: MC Page Ref: 224 Skill: Concept Objective: 6-5
84) 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? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning
Answer: D Diff: 1 Type: MC Page Ref: 240 Skill: Application Objective: 7-1
4) Which of the following best describes differentiation? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's brain that the brand or company should occupy
Answer: D Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
10) Pendergraff Pet Supplies divides the pet market according to the owners' ethnicity, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioural C) lifestyle D) demographic E) psychographic
Answer: D Diff: 1 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
46) 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 ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception
Answer: D Diff: 2 Type: MC Page Ref: 210 Skill: Concept Objective: 6-1
86) Donna wants to buy a new coat. During the ________ stage of her purchase process she asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision
Answer: D Diff: 2 Type: MC Page Ref: 213 Skill: Application Objective: 6-2
12) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments B) create more easily reached segments C) do not involve stereotypes D) tend to be easier to identify and measure E) involve fewer attributes to consider
Answer: D Diff: 2 Type: MC Page Ref: 242 Skill: Concept Objective: 7-2
32) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
33) The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. Therefore, these segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
Answer: D Diff: 2 Type: MC Page Ref: 252 Skill: Concept Objective: 7-2
37) Purrsonals.com calls itself "the cat lover's social network." Which targeting approach best describes the site's approach? A) undifferentiated marketing B) differentiated marketing C) mass marketing D) niche marketing E) substitute marketing
Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
46) It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
Answer: D Diff: 2 Type: MC Page Ref: 254 Skill: Concept Objective: 7-3
60) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) mass market; deceptive
Answer: D Diff: 2 Type: MC Page Ref: 258 Skill: Concept Objective: 7-3
59) The information sources that are most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer. A) commercial B) public C) experimental D) personal E) social
Answer: D Diff: 3 Type: MC Page Ref: 213 Skill: Concept Objective: 6-2
88) 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. A) information search B) situational analysis C) alternative evaluation D) purchase decision E) postpurchase behaviour
Answer: E Diff: 1 Type: MC Page Ref: 215 Skill: Application Objective: 6-2
3) Which of the following best describes positioning? A) dividing the market into smaller, meaningful groups of customers B) a promise to a group of customers C) evaluating and identifying a meaningful group of customers to serve D) creating a unique offering to provide customer value E) identifying a clear and distinct place in the customer's mind that the brand or company should occupy relative to the competition
Answer: E Diff: 1 Type: MC Page Ref: 240 Skill: Concept Objective: 7-1
76) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. A) secure extranets B) product value analysis C) vendor-managed inventory systems D) systems selling E) e-procurement
Answer: E Diff: 2 Type: MC Page Ref: 226 Skill: Concept Objective: 6-5
73) Which of the following statements about buying centres is true? A) The buying centre is like a standing committee. B) The buying centre roles are specified on the organizational chart. C) The typical buying centre has five employees, one to assume each of the buying centre's roles. D) An individual's role in the buying centre does not change. E) The buying centre may involve informal participants who are not obvious to sellers.
Answer: E Diff: 3 Type: MC Page Ref: 222 Skill: Concept Objective: 6-4