Marketing Module II

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37) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?" A) performance B) bonding C) advantage D) relevance E) presence

39) ________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications. A) Mass customization B) Reverse engineering C) Interoperability D) Backward compatibility E) Benchmarking

42) According to the VALS segmentation system, ________ are considered to be trendy and fun-loving people who are resource-constrained. They favor stylish products that emulate the purchases of those with greater material wealth. A) Strivers B) Survivors C) Experiencers D) Makers E) Believers

55) Points-of-parity are important while designing brand mantras for brands facing ________. A) rapid growth B) market saturation C) slow and steady growth D) rapid decline E) stability in sales volume

66) If Starbucks considers quick-serve restaurants and convenience shops in its competitive frame of reference, then intended ________ might be quality, image, experience and variety, while intended ________ might be convenience and value. A) PODs; POPs B) POPs; PODs C) substantiators; image variables D) design variables; personality variables E) image variables; personality variables

70) The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and programs

1) All marketing strategy is built on STP: segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance

108) Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing? A) mixed bundling B) pure bundling C) cross-promotion D) captive pricing E) two-part pricing

11) Services high in ________ qualities have characteristics that the buyers can evaluate before purchase. A) search B) experience C) credence D) privacy E) storing

123) The hallmark of an optimal brand portfolio is ________. A) the ability of each brand to maximize equity in combination with all the other brands in it B) the ability of each brand to maximize its individual equity in isolation C) maximum brand overlap D) the eventual reduction of brand differentiation to create a unified brand appearance E) maximum internal competition within the firm

124) According to the dynamic process model, two different types of expectations have opposite effects on perceptions of service quality. One of these is that ________ overall service quality. A) increasing customer expectations of what the firm will deliver improve the perceptions of B) increasing customer expectations of what the firm will deliver decrease the perceptions of C) decreasing customer expectations of what the firm should deliver decrease the perceptions of D) decreasing customer expectations of what the firm will deliver improve the perceptions of E) increasing customer expectations of what the firm should deliver improve the perceptions of

124) ________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation

13) The challenge for marketers in building a strong brand is ________. A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge B) pricing the product at a point that maximizes sales volume C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience D) minimizing the impact of customer brand equity E) avoiding the usage of an established brand to introduce a new product in the market

136) In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________. A) company's objectives and resources B) effectiveness of the suppliers C) flexibility of legal rules governing the business D) socioeconomic infrastructure E) global nature of the product

136) The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind. Consumer expectations about the level of involvement and commitment are likely to be high, so unsatisfactory performance could be very negative for the brands involved. A) co-branding B) cannibalization C) vertical integration D) disintermediation E) brand stretching

142) Marketers usually identify niches by ________. A) dividing a segment into subsegments B) conducting VALS tests C) allowing consumers to gravitate toward product brands D) examining the demographics section of the handbook of marketing E) producing products that can be used in a variety of ways

142) Which of the following statements about the branding guidelines for a small business is true? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations.

144) Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

15) When a marketer expresses his or her vision of what a brand must be and do for consumers, he or she is expressing what is called a brand ________. A) promise B) personality C) identity D) position E) revitalization

17) Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage

31) In which of the following cases is a service provider trying to increase nonpeak demand? A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and dinner options. B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready. C) AXA Bank set up automated teller machines so that its customers could avoid standing in line. D) Chesterton College hired part-time teachers as enrollment increased significantly. E) Big department stores usually hire extra staff to handle the rush during the holiday season.

33) ________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization

34) A brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority of an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness

34) According to the VALS segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services. A) Innovators B) Thinkers C) Achievers D) Experiencers E) Believers

35) Walmart has decided to hire extra clerks during the holiday season. It is said to be ________. A) matching its supply with the existing demand B) generating nonpeak demand C) increasing its customer participation D) sharing its services E) facilitating for its future expansion

38) Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure. A) form B) prototype C) architecture D) model E) blueprint

39) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message "Nothing else beats this brand"? A) bonding B) relevance C) advantage D) performance E) presence

42) With respect to the "six brand building blocks," brand ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs. A) imagery B) judgment C) resonance D) salience E) performance

45) The key to attracting potential users of a product or service, or even possibly nonusers, is ________. A) understanding the reasons they are not using it B) offering financial incentives for first-time use C) increasing the usage rate of existing users D) developing a new product that better meets their needs E) increasing advertising expenditures

48) When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as a(n) ________. A) switcher B) split loyal C) shifting loyal D) hard-core loyal E) anti-loyal

5) The way the user performs the tasks of getting and using products and related services is the user's total ________. A) consumption system B) consumable system C) consistent use system D) augmented system E) potential system

50) Brand ________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and ensure that the company's own employees understand what the brand represents. A) mantras B) symbols C) logos D) alliances E) extensions

52) BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of brand ________. A) slogan B) personality C) mission D) architecture E) vision

6) A flight with complementary drinks is an example of a ________. A) major service with accompanying minor goods and services B) pure service C) pure tangible good D) tangible good with accompanying services E) hybrid

65) Realizing that although household products is a huge category — taking up an entire supermarket aisle or more — it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________. A) design B) durability C) conformance D) reliability E) performance quality

68) Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the competitive frame of reference is quick-serve restaurants like McDonald's, what is the POD? A) health B) taste C) convenience D) price E) brand

78) ________ branding consists of activities and processes that help inform and inspire employees about brands. A) Internal B) Personal C) Individual D) External E) Co-

89) The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) consistency B) depth C) width D) length E) composition

8) How does the American Marketing Association (AMA) define the term brand?

A brand, according to the AMA, is "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

114) A flexible market offering consists of two parts. Identify and describe these two parts.

A flexible market offering consists of two parts: a naked solution containing the product and service elements that all segment members value, and discretionary options that some segment members value.

157) Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

A label identifies the product; a label might also grade the product; a label might describe the product; and the label might promote the product. A label may contain information required by law.

102) Define leverageable advantage with an example.

A leverageable advantage is one that a company can use as a springboard to new advantages, much as Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to endure must be in the business of continuously inventing new advantages.

95) As a brand manager you would like to have your brand (brand name) be protectable. Explain what you mean by "protectable" and give an illustration.

As a brand manager you would need to consider questions like, "How legally protectable is the brand element?" "How competitively protectable is the brand element?" and "Can it be easily copied?" It is important that names that become synonymous with product categories — such as Kleenex, Kitty Litter, Jell-O, Scotch Tape, Xerox, and Fiberglass — retain their trademark rights and not become generic.

115) Which of the following statements is true about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied. B) A segment is unattractive if buyers possess strong or growing bargaining power. C) A segment is attractive when there are actual or potential substitutes for the product. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

131) Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding

134) Betty Crocker cake mixes using Hershey syrup in its mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding? A) family branding B) ingredient co-branding C) co-branding D) generic branding E) individual branding

145) ________ are formal statements of expected product performance by the manufacturer. A) Insurance B) Warranties C) Bonds D) Invoices E) Balance sheets

66) In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements. A) Conformance B) Design C) Performance D) Reliability E) Style

1) Which of the following is a characteristic of a service? A) The service is essentially tangible. B) The service does not result in the ownership of anything. C) The service's production is majorly tied to a physical product. D) Services are typically produced and consumed at different times. E) A client's presence is not required for rendering a service.

108) A ________ offering consists of two parts: a naked solution and discretionary options. A) differentiated market B) flexible market C) rigid market D) vertical market E) horizontal market

111) In which of the following examples is a company communicating category membership using a product descriptor? A) Use Zipex for quick and thorough cleaning. B) Barry's Oats, when you want nutrition and flavor. C) Clarity offers you the best prices for the best quality. D) Choose Grissom's for an unparalleled shopping experience. E) Chloe: All you need for a beautiful you.

115) SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes

118) The customer service representatives at G.K.'s customer service center must know as much about the products as possible, so that they can help customers solve their difficulties without sounding hesitant or unsure of themselves. Which of the following determinants of service quality are they being asked to demonstrate? A) responsiveness B) assurance C) empathy D) reliability E) tangibility

119) Josh gets his bike serviced at Dean's Garage even though there's another garage much closer to home. He prefers Dean's because the work is usually done quickly and the staff try to solve the issues with the bike as soon as possible. Dean's Garage excels at which of the following five determinants of service quality? A) reliability B) responsiveness C) assurance D) empathy E) tangibles

137) In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. A) niche B) mass C) guerrilla D) segmented E) differentiated

144) Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool? A) consumption aid B) consumer affluence C) consumer influence D) conformance qualities E) brand identification

147) Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy? A) It makes the company almost bulletproof to competitors' actions. B) It diversifies the firm's risk. C) It creates synergy between markets. D) It is a low-cost strategy. E) It treats all buyers the same and, therefore, lowers promotion costs.

155) Which of the following is NOT a weakness of a customer equity perspective (relative to a brand equity perspective)? A) It offers limited guidance for go-to-market strategies. B) It has quantifiable measures of financial performance. C) It ignores the advantages of creating a strong brand. D) It overlooks the option value of brands. E) It does not fully account for social network effects or word-of-mouth.

21) Starbucks uses social-media engagement to respond, listen to and connect with fans, which is important to them because it builds loyalty, which is one aspect of the ________ pillar of the BrandAsset® Valuator. A) energized differentiation B) esteem C) relevance D) knowledge E) strength

26) The ________ segment of the US premium wine market skews male, has an average age of 35, and uses wine as a badge to say who they are, so they are willing to pay more to make sure they're getting the right bottle. A) Savvy Shoppers B) Image Seekers C) Satisfied Sippers D) Enthusiast E) Overwhelmed

27) According to the BrandAsset® Valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge — evidence of past performance — a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem

32) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini-vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do? A) It is implementing premium pricing. B) It is trying to cultivate nonpeak demand. C) It is promoting complementary services. D) It is putting reservation systems in place. E) It is implementing differential pricing.

33) Which of the following levels of the BrandDynamics Pyramid pertains to consumer's needs? A) advantage B) relevance C) bonding D) performance E) presence

35) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address the question "Do I know about this brand?" A) relevance B) presence C) performance D) advantage E) bonding

39) Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system. A) Innovators B) Thinkers C) Achievers D) Experiencers E) Strivers

4) A computer falls into the ________ category of service mix. A) pure tangible good B) tangible good with accompanying services C) hybrid D) major service with accompanying minor goods E) pure service

47) Straddle positions ________. A) help firms to analyze who their competitors are B) allow brands to expand their market coverage and potential customer base C) are a necessity while creating a firm's vision and mission statement D) assist firms in collecting information on competitors that will directly influence their strategy E) are ambiguous moral principles behind the operation and regulation of marketing

65) Which of the following is an example of image differentiation? A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard. B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.

68) Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures? A) giving customers exclusive primary service packages B) redesigning processes to simplify service encounters C) using differential pricing and shared services D) minimizing service intangibility E) working with more customers at the same time

75) Which of the following is NOT one of the guidelines for managing luxury brands? A) Besides brand names, other brand elements — logos, symbols, packaging, signage — can be important drivers of brand equity for luxury products. B) Secondary associations from linked personalities, events, countries, and other entities should be avoided. C) Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns. D) All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences. E) Luxury brands must carefully control distribution via a selective channel strategy.

94) Product-line analysis provides information for two key decision areas: product-line length and ________. A) product-class composition B) product-mix pricing C) product pricing D) popular pricing E) product-need family

99) If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? A) personal characteristics B) demographic variables C) situational factors D) operating variables E) purchasing approaches

141) Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. Briefly describe their framework for a brand story.

Based on literary convention and brand experience, Randall Ringer and Michael Thibodeau offer the following framework for a brand story: • Setting. The time, place, and context • Cast. The brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its history or creation myth • Narrative arc. The way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany • Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs

63) Explain the concept of brand knowledge.

Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand. In particular, brands must create strong, favorable, unique brand associations with customers.

64) How does consumer knowledge play a role in the success of new products associated with existing brands?

Brand knowledge created by marketing investments dictates appropriate future directions for the brand. Consumers will decide, based on what they think and feel about the brand, where they believe the brand should go and grant permission to any marketing action or program. Many new products can fail because consumers find them inappropriate extensions for the brand.

65) In developing a service blueprint, The Flower Shop has outlined each step in the delivery process of the service it provides. Which characteristic of services is The Flower Shop attempting to minimize?

By developing a service blueprint, Beth's Inc. is making an attempt to reduce the variability of the service. Because the quality of services depends on who provides them, when and where, and to whom, services are highly variable. A service blueprint will standardize the entire service process.

38) When BMW first made its strong competitive push into the US market in the early 1980s, it positioned the brand as the only automobile that offered both luxury (competing with Cadillac) and performance (competing with the Corvette), which is known as ________ because it uses points-of-difference and points-of-parity across categories. A) a competitive frame of reference B) zone of tolerance positioning C) straddle positioning D) red-ocean thinking E) perceptual mapping

4) When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product. A) consumption B) expected C) potential D) augmented E) basic

44) A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following? A) The soap is one-quarter cleansing cream. B) Dove products include bar soaps and shampoos. C) Dove soap helps users have softer skin. D) The soap brand has global presence. E) The brand has recently launched soap for men.

11) Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________. A) occupation B) family size C) benefits D) nationality E) user status

113) The customer service representatives at a call center have been asked to handle each call within five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

122) A brand ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) architecture B) position C) portfolio D) extension E) image

125) In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. A) need-based segmentation B) segment identification C) segment attractiveness D) segment profitability E) segment "acid test"

16) Identify the four pillars of brand equity, according to BrandAsset® Valuator model. A) relevance, performance, bonding, and advantage B) presence, performance, advantage, and bonding C) energized differentiation, relevance, esteem, and knowledge D) brand salience, brand feelings, brand imagery, and brand performance E) energized differentiation, esteem, brand feelings, and brand salience

17) According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urban couples in America's fast-growing cities. Concentrated in a handful of metropolitan areas such as Las Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates. A) Beltway Boomers B) Old Milltowns C) Cosmopolitans D) Young Digerati E) Winner's Circle

17) ________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field

18) A brand that is action-oriented and causes consumers to engage in physical actions appeals to the ________ dimension of brand experience. A) sensory B) affective C) behavioral D) intellectual E) social

18) According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars — from juice to coffee to microbrew. A) Beltway Boomers B) Old Milltowns C) Young Digerati D) Cosmopolitans E) Winner's Circle

18) Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the BrandAsset® Valuator model, which of the following components of brand equity has Louboutin fulfilled in this scenario? A) knowledge B) energized differentiation C) esteem D) advantage E) presence

21) ________ refer(s) to logos, symbols, characters, and slogans that service providers use in order to make the service and its key benefits more tangible. A) Brand engagement B) Brand orientation C) Brand elements D) Brand loyalty E) Brand equity

24) Service quality depends on who provides them, when and where they are provided, and to whom they are provided. Thus, services are highly ________. A) inseparable B) tangible C) variable D) perishable E) intangible

32) If a consumer who is trying to decide between alternatives believes that a particular brand delivers acceptable product performance and can be shortlisted, she is in the ________ level of the BrandDynamics Pyramid. A) presence B) relevance C) performance D) advantage E) bonding

33) Cocktail lounges in restaurants are examples of ________. A) differential pricing B) cultivating nonpeak demand C) complementary services D) reservation systems E) shared services

36) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer something better than the others?" A) performance B) presence C) advantage D) bonding E) relevance

38) Kim is a young professional who enjoys snowboarding and going to rock concerts with her friends. According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________. A) thinker B) achiever C) experiencer D) striver E) survivor

40) Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications. A) durability B) compatibility C) conformance quality D) form E) performance quality

45) Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) equity B) awareness C) benefits D) architecture E) extensions

47) Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as a(n) ________. A) split loyal B) antiloyal C) shifting loyal D) hard-core loyal E) switcher

81) Names that become synonymous with product categories like Kleenex, Kitty Litter, Jell-O, and Xerox, need to ensure they retain their brand names remain ________ so they can retain their trademark rights and avoid becoming generic. A) meaningful B) likable C) protectable D) transferable E) adaptable

61) Distinguish between controllable returns and uncontrollable returns.

Controllable returns result from problems or errors by the seller or customer and can mostly be eliminated with improved handling or storage, better packaging, and improved transportation and forward logistics by the seller or its supply chain partners. Uncontrollable returns result from the need for customers to actually see, try, or experience products in person to determine suitability and can't be eliminated by the company in the short run through any of these means.

74) Define customer failures and list four methods to tackle them.

Customer failures refer to situations where service problems arise from a customer's lack of understanding or ineptitude. Some of the methods to solve such situations include the following: • Redesigning processes and redefining customer roles to simplify service encounters • Incorporating the right technology to aid employees and customers • Creating high-performance customers by enhancing their role clarity, motivation, and ability • Encouraging "customer citizenship" so that customers help customers

4) A ________ consists of a group of customers who share a similar set of needs and wants. A) vertical marketing system B) market basket C) market share D) market segment E) market level

9) When banks try to make their positioning strategies tangible through the ________ dimension, they make sure the exterior and interior have clean lines, the layout of the desks and the traffic flow are planned carefully, and waiting lines are not overly long. A) people B) symbols C) equipment D) place E) communication material

116) A parent brand that is associated with multiple products through brand extensions is also called a(n)________. A) category brand B) subbrand C) extension brand D) family brand E) line brand

120) Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its coffee shops. This is an example of ________. A) brand dilution B) co-branding C) brand variants D) category extension E) brand harmonization

122) Gloria goes to the same bagel shop every morning because the workers there remember her name and remember her order. They always make her feel welcome. The employees of this bagel shop excel at which of the following determinants of service quality? A) reliability B) responsiveness C) assurance D) empathy E) tangibles

13) It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________ good. A) impulse B) specialty C) homogeneous shopping D) emergency E) heterogeneous shopping

132) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the time, place, and context of the brand story? A) cast B) pitch C) narrative arc D) setting E) language

14) Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases

48) Which of the following statements about brand mantras is true? A) They guide only major decisions, they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors.

61) Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an example of ________ differentiation. A) image B) services C) product D) employee E) channel

70) What is the significance of design for a company's products and services? What are the advantages of a good design?

Design offers a potent way to differentiate and position a company's products and services. Design is the totality of features that affect how a product looks, feels, and functions to a consumer. Design offers functional and aesthetic benefits and appeals to both our rational and emotional sides. The designer must figure out how much to invest in form, feature development, performance, conformance, durability, reliability, reparability, and style. To the company, a well-designed product is easy to manufacture and distribute. To the customer, a well-designed product is pleasant to look at and easy to open, install, use, repair, and dispose of. The designer must take all these factors into account. Design can shift consumer perceptions to make brand experiences more rewarding. Design should penetrate all aspects of the marketing program so that all design aspects work together.

73) If consumers can easily recall and recognize a brand element, the brand element is said to be ________. A) meaningful B) protectable C) adaptable D) transferable E) memorable

121) A ________ is a set of all brand lines that a particular seller makes. A) brand platform B) brand image C) co-brand D) brand extension E) brand mix

3) To which of the following categories of services does a cell phone belong? A) major service with accompanying minor services B) major service with accompanying minor goods C) pure service D) pure tangible good E) tangible good with accompanying services

32) Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability

40) A hardware store is interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient, who like to work with their hands, or the ________ category. A) Believers B) Strivers C) Survivors D) Experiencers E) Makers

6) When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? A) differentiated marketing B) affiliate marketing C) guerrilla marketing D) affinity marketing E) grassroots marketing

63) Dayton, Ohio-based Iams found success selling premium pet food through regional veterinarians, breeders, and pet stores. This is an example of ________ differentiation. A) service B) employee C) image D) product E) channel

72) A winning formula for many ________ brands is craftsmanship, heritage, authenticity, and history, often critical to justifying a sometimes extravagant price. A) design B) nondurable C) durable D) ingredient E) luxury

77) Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing brand ________. A) alliance B) essence C) harmonization D) parity E) bonding

82) ________ marketing describes the employees' skill in serving the client. A) External B) Internal C) Promotional D) Direct E) Interactive

87) Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging. A) product class B) product-type C) need-family D) product-family E) product-line

30) In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Each layer adds more customer value. The five levels are: 1. the core benefit — the service or benefit the customer is really buying 2. the basic product — the actual product that provides the core benefit 3. expected product — a set of attributes and conditions buyers normally expect when they purchase the product 4. the augmented product — the marketer exceeds customer expectations 5. the potential product — which encompasses all the possible augmentations and transformations the product or offering might undergo in the future These five elements constitute the buyers' consumption system.

136) Intrabrand shifts in a company's sales are always undesirable.

FALSE

153) A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value is known as the product's activity cost.

FALSE

153) Companies following a market specialization strategy offer one product to as many markets as possible.

FALSE

117) A segment is attractive when there are actual or potential substitutes for the product.

FALSE

122) A pricing system in which there is a "fixed" fee and then a variable "usage" fee is called bundling.

FALSE

133) The role of a relatively high-priced brand in a portfolio is often to attract customers to the brand franchise or to "build traffic."

FALSE

134) The payment equity for a service is a range from the minimum level of service consumers are willing to accept to the level they believe can and should be delivered.

FALSE

152) If the length of downtime increases, the cost incurred decreases.

FALSE

153) The Robinson-Patman Act, passed by Congress in 1967, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries.

FALSE

25) Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

FALSE

42) Salt is an example of a hybrid.

FALSE

73) A person who has a bad customer experience is more likely to talk about it, but someone who has a good experience will talk to more people.

FALSE

93) An important part of reinforcing brands is providing uniform and unchanging marketing support.

FALSE

94) In the hotel industry, primary service features include merchandise for sale, free breakfast buffets, and loyalty programs.

FALSE

142) As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

First, the consumer must perceive that the ingredient matters to the performance and success of the product. Secondly, consumers must be convinced that not all ingredient brands are the same and that the ingredient is superior. Third, a distinctive symbol or logo must clearly signal to consumers that the host product contains the ingredient. Fourth, a coordinated "pull" and "push" program must help consumers understand the importance and advantages of the branded ingredient.

96) Explain three variables a firm should consider when analyzing potential threats posed by competitors.

In general, the firm should monitor three variables when analyzing potential threats posed by competitors: 1. Share of market — competitors' share of the target market. 2. Share of mind — percentage of customers who named the competitor in responding to the statement, "Name the first company that comes to mind in this industry." 3. Share of heart — percentage of customers who named the competitor in responding to the statement, "Name the company from which you would prefer to buy the product."

88) Local marketing reflects a growing trend called grassroots marketing. What are the characteristics of grassroots marketing?

In grassroots marketing, marketing activities concentrate on getting as close and personally relevant to individual customers as possible.

139) Clearwater Spa operates on the premise that service quality is the main reason that customers come to the spa, and the attendants are trained to provide excellent service. Despite this, the spa rarely has repeat customers. Clearwater began collecting feedback from customers to find out the reason for this. The management realized that although the customers were happy about the services, they did not like the ambience. What kind of a gap is causing the unsuccessful service delivery in this situation?

In this situation, there is a gap between the consumers' expectations and the managements' perception. Management does not always correctly perceive what customers want. The spa management believes that customers want service quality, when the ambience is the real customer demand.

36) Industrial-goods classifications based on terms of how the products enter the production process and their relative costs include such segments as materials and parts and capital items. Window cleaning services, consumable office supplies, personal computers, desks, paint, nails, and buckets are included in the classifications of industrial goods. List the other "classifications" including subclassifications for industrial goods.

Industrial-goods classifications include material and parts, farm products, natural products, manufactured materials and parts, and component parts. Capital goods include installations and equipment. Supplies and business services include maintenance and repair items, operating supplies, and business advisory services.

151) Kellogg's uses its corporate brand name with its individual product brands as with Kellogg's rice krispies, Kellogg's raisin bran, and Kellogg's corn flakes. Which branding strategy is being used by the company?

Kellogg's employs a subbrand or hybrid branding strategy by combining the corporate brand with individual product brands as with Kellogg's Rice Krispies, Kellogg's Raisin Bran, and Kellogg's Corn Flakes.

145) As a branding manager, you have recommended to your board of directors a corporate policy of umbrella branding. What are the advantages that your company might gain from this?

Many firms, such as Heinz and GE, use their corporate brand as an umbrella brand across their entire range of products. A corporate umbrella brand name has a number of advantages. Development cost is less because there is no need for "name" research or heavy advertising expenditures to create brand-name recognition. Furthermore, sales of the new product are likely to be strong if the manufacturer's name is good. Corporate-image associations of innovativeness, expertise, and trustworthiness have been shown to directly influence consumer evaluations. Finally, a corporate branding strategy can lead to greater intangible value for the firm.

93) Although we can make distinctions between them, different generational cohorts also influence each other. Give an example of this.

Many members of Generation Y are living with their boomer parents, because of which parents are being influenced by what demographers are calling a "boom-boom" effect.

98) How can marketers reinforce brand equity?

Marketers can reinforce brand equity by consistently conveying the brand's meaning in terms of what products it represents, what core benefits it supplies, and what needs it satisfies; and how the brand makes products superior, and which strong, favorable, and unique brand associations should exist in consumers' minds.

87) Identify the four market segment groups based on brand loyalty status and list what a company can learn from analyzing the degrees of brand loyalty.

Marketers usually envision four groups based on brand loyalty status: 1. hard-core loyals 2. split loyals 3. shifting loyals 4. switchers Hard-core loyals can help identify the products' strengths. Split loyals can show the firm which brands are most competitive with its own. By looking at customers who are shifting away from its brand, the company can learn about its marketing weaknesses and attempt to correct them.

149) Nichepro Technologies, who were mainly into producing personal computers and laptops, have now decided to produce Nichepro health care products. Explain the branding strategy advocated by the company.

Nichepro Technologies are advocating brand extension strategy. Brand extensions fall into two categories: line extension and category extension. Marketers use the parent brand to enter a different product category, in category extension. Nichepro is adopting the same strategy by using their parent brand to enter the healthcare products category.

83) PRIZM was developed by Claritas Inc. What was the purpose of PRIZM?

PRIZM stands for Potential Rating Index by Zip Markets. It is a method for geoclustering that classifies over half a million US residential neighborhoods into 14 distinct groups and 66 distinct lifestyle segments called PRIZM Clusters. The groupings take into consideration 39 factors in five broad categories: education and affluence, family life cycle, urbanization, race and ethnicity, and mobility. The neighborhoods are broken down by zip code, zip+4, or census tract and block group. The clusters have descriptive titles such as Blue Blood Estates, Winner's Circle, Hometown Retired, Shotguns and Pickups, and Back Country Folks. The inhabitants in a cluster tend to lead similar lives, drive similar cars, have similar jobs, and read similar magazines.

16) What are the requirements for deciding on a positioning strategy?

Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors. Specifically, deciding on a positioning requires: • determining a frame of reference by identifying the target market and relevant competition • identifying the optimal points-of-parity and points-of-difference brand associations given that frame of reference • creating a brand mantra to summarize the positioning and essence of the brand

131) During a meeting, you were asked by the VP of Marketing to comment on the company's pricing strategy for its products. Recalling your marketing management course in college, your comments define the six situations involving product-mix pricing. List these six product-mix pricing strategies.

Product-mix pricing includes product-line pricing, optional-feature pricing, captive-product pricing, two-part pricing, by-product pricing, and product-bundling pricing.

62) To be branded, products must be differentiated. List the possible ways that physical products can be differentiated.

Products can be differentiated according to form, features, customization, performance quality, conformance quality, durability, reliability, reparability, and style.

97) There are three key consumer criteria that determine whether a brand association can truly function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it was the world's tallest hotel, it attempted to create a point-of-difference (POD). Explain why the hotel may not have been successful in its attempt to create its POD.

Student answers will vary. Consumers must see the brand association as personally relevant to them. Staying in the tallest hotel might not be a necessary need for most tourists; there might be other factors that are more important. The hotel was not successful in its attempt to create its POD because of the desirability criteria associated with PODs.

146) How does a loyal brand community support the positioning and branding of a small business? Provide an example to support your explanation.

Student answers will vary. Creating a vibrant brand community among current and prospective customers can be a cost-effective way to reinforce loyalty and help spread the word to new prospects. Web browser Mozilla Firefox is able to compete with Microsoft's Internet Explorer in part because of its dedicated volunteer group of 10,000 programmers who work on its open source coding. Twelve fans of the brand felt so strongly about it they used two-by-fours and rope to hollow out a 30,000-square-foot impression of the brand's logo in an oat field outside Salem, Oregon!

66) Fingerpainted organizes art camps and craft activities for children. The company has noticed that demand is highest during summer vacations and drops during the year. What can Fingerpainted do to attract customers at other times of year?

Student answers will vary. Fingerpainted can use differential pricing to shift some demand from peak to nonpeak periods, pricing courses outside vacations lower than vacation courses. It can try to generate nonpeak demand by introducing specialized courses for weekends or a few evenings a week.

99) Belling is a chain of coffee shops. Give an example of a point-of-parity and a point-of-difference for the company.

Student answers will vary. Points-of-parity for Belling could be its freshly brewed coffee or friendly atmosphere. Points-of-difference could be its unusual interior design or laid-back attitude.

106) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create channel differentiation to stand apart from its competitors?

Student answers will vary. Sally's can more effectively and efficiently design its distribution channels' coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding. It can set up an online store or undertake home deliveries.

126) A(n) ________ interface refers to any place at which a company seeks to manage a relationship with a customer, whether through people, technology, or some combination of the two. A) customer-service B) product-customer C) tangible user D) attentive user E) crossing-based

138) If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern. A) homogeneous B) heterogeneous C) diffused D) clustered E) scattered

84) A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. A) stock-keeping unit B) inventory turn C) individual brand D) product type E) brand line

99) A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market. A) down-market stretch B) up-market stretch C) two-way stretch D) marketing research E) disintermediation

118) A ________ consists of all products — original as well as line and category extensions — sold under a particular brand. A) brand line B) co-brand C) generic brand D) licensed product E) subbrand

28) Points-of-________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) parity B) difference C) inflection D) presence E) divergence

37) According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by ________. A) knowledge B) social activity C) products that demonstrate success to their peers D) variety E) risk

39) Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection

44) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator B) influencer C) decider D) buyer E) gatekeeper

48) Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference? A) performance and imagery B) judgment and feelings C) resonance and salience D) imagery and judgment E) salience and feelings

49) American Express' "World-Class Service, Personal Recognition," Mary Kay's "Enriching women's lives," Hallmark's "Caring Shared," and Starbucks' "Rewarding Everyday Moments" are examples of brand ________. A) mantras B) parity C) identity D) architecture E) extension

80) A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand. A) community B) channel C) association D) personality E) cluster

157) List the three premises on which Anderson's long tail theory is based and the two aspects of Internet shopping that support these premises.

Anderson's long tail theory is based on three premises: 1. Lower costs of distribution make it economically easier to sell products without precise predictions of demand. 2. The more products available for sale, the greater the likelihood of tapping into latent demand for niche tastes unreachable through traditional retail channels. 3. If enough niche tastes are aggregated, a big new market can result. Anderson identifies two aspects of Internet shopping that support these premises. First, the increased inventory and variety afforded online permit greater choice. Second, the search costs for relevant new products are lowered due to the wealth of information online, the filtering of product recommendations based on user preferences that vendors can provide, and the word-of-mouth network of Internet users.

130) What are the three main ways to convey a brand's category members? Provide an example of each.

Announcing category benefits (e.g., a brownie mix might attain membership in the baked desserts category by claiming the benefit of great taste and support this claim by including high-quality ingredients [performance] or by showing users delighting in its consumption [imagery]); comparing to exemplars (e.g., when Tommy Hilfiger was an unknown, advertising announced his status as a great US designer by associating him with recognized members of the category); relying on the product descriptor (e.g., Ford's X-Trainer/Freestyle was designated a sports wagon).

34) A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?

At the heart of a great brand is a great product, the product is a key element in the market offering. Customers will judge the product (offering) on three basic elements: product features and quality; services mix and quality, and price. Not having a competitive product cannot be overcome by marketing.

103) A marketer is interested in segmenting a business market based on urgency of delivery and the size of the order. Which of the following major segmentation variables would the marketer most likely use to assist with the task? A) purchasing approaches B) situational factors C) operating variables D) personal characteristics E) demographic variables

106) A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables

137) ________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products. A) Cross B) Ingredient C) Equity D) Family E) Generic

7) How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider. A) value proposition B) consumption system C) value system D) quality perception E) value chain

6) What valuable functions can brands perform for a firm?

Brands perform a number of valuable functions for firms. First, they simplify product handling or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. The brand name can be protected through registered trademarks; manufacturing processes can be protected through patents; and packaging can be protected through copyrights and proprietary designs. These intellectual property rights ensure that the firm can safely invest in the brand and reap the benefits of a valuable asset. A credible brand signals a certain level of quality so that satisfied buyers can easily choose the product again. Brand loyalty provides predictability and security of demand for the firm, and it creates barriers to entry that make it difficult for other firms to enter the market. Loyalty also can translate into customer willingness to pay a higher price.

105) A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables

119) A major advantage of a ________ strategy is that the company does not tie its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization

92) The ________ of a product mix refers to how many variants are offered of each product in the line. A) width B) length C) depth D) consistency E) height

88) The ________ rates the various elements of the service bundle and identifies required actions. A) company performance analysis B) voice of customer measurement C) customer factor measurement D) importance-performance analysis E) customer importance analysis

9) If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________. A) loyalty status B) behavioral occasions C) user status D) psychographic lifestyle E) readiness stage

23) Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

FALSE

80) Straddle positioning refers to a brand using different positioning with different categories of competitors.

FALSE

24) Because they are intangible, durable goods normally require more quality control, supplier credibility, and adaptability than either services or nondurable goods.

FALSE

94) Characterize psychographic segmentation.

In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values.

101) Define a brand mantra and provide an example of a brand mantra.

Student answers will vary. A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding concepts like "brand essence" and "core brand promise." Brand mantras are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning. American Express's "World Class Service, Personal Recognition," is an example of a brand mantra.

98) Belling is a chain of coffee shops. Give an example of a category point-of-parity and a competitive point-of-parity for the company.

Student answers will vary. A category point-of-parity for Belling could be its freshly brewed coffee and friendly atmosphere. A competitive point-of-parity could be its fast customer service times.

147) Sally's is a boutique bakery that specializes in cupcakes. Give one method by which Sally's can conduct low-cost marketing research.

Student answers will vary. There are a variety of low-cost marketing research methods that help small businesses connect with customers and study competitors. One way is to set up course projects at local colleges and universities to access the expertise of both students and professors.

126) Belling begins most advertising messages by announcing category benefits and then moving on to its specific positioning. Offer one reason why Belling may adopt this strategy.

Student answers will vary. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers such as Belling frequently use benefits to announce category membership.

112) With respect to market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

TRUE

113) The four product-mix dimensions (length, width, depth, consistency) permit the company to expand its business.

TRUE

119) If Barry compares his organization's products to those of leaders in the field, then he is conveying category membership by "comparing to exemplars."

TRUE

154) Out-of-pocket costs are what the customer spends on regular maintenance and repair costs.

TRUE

54) Inseparability in the context of a service means that there is a provider-client interaction involved as the provider is part of the service.

TRUE

74) Points-of-parity may be shared among two or more brands.

TRUE

76) Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends.

TRUE

84) Brand mantras must communicate both what a brand is and what it is not.

TRUE

96) Identify the three important principles for internal branding.

Three important principles for internal branding are: 1. choosing the right moment 2. linking internal and external marketing 3. bringing the brand alive for employees

78) What are the key guidelines for managing luxury brands?

• Maintaining a premium image for luxury brands is crucial; controlling that image is thus a priority. • Luxury branding typically includes the creation of many intangible brand associations and an aspirational image. • All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences. • Besides brand names, other brand elements — logos, symbols, packaging, signage — can be important drivers of brand equity for luxury products. • Secondary associations from linked personalities, events, countries, and other entities can boost luxury-brand equity as well. • Luxury brands must carefully control distribution via a selective channel strategy. • Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns. • Brand architecture for luxury brands must be managed carefully. • Competition for luxury brands must be defined broadly because it often comes from other categories. • Luxury brands must legally protect all trademarks and aggressively combat counterfeits.

33) Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors? A) desirability B) differentiability C) believability D) deliverability E) deviance

85) A ________ is the set of all products and items a particular seller offers for sale. A) product line B) product mix C) product extension D) product system E) product class

10) Some services require that the client be present to conduct the service. Which of the following is an example of such a service? A) pest control B) furniture polishing C) surgery D) car repairing E) tax services

109) Which of the following represents an aspect of the Empathy dimension of SERVQUAL? A) providing service as promised B) readiness to respond to customers' requests C) giving customers individual attention D) making customers feel safe in their transactions E) visually appealing facilities

115) When a firm uses an established brand to introduce a new product, it is called a brand ________. A) harmonization B) valuation C) extension D) positioning E) parity

134) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs? A) narrative arc B) context C) language D) setting E) cast

135) The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved. A) branding synergy B) increased advertising dollars C) multiple brands D) bundled package E) pure bundling

46) ________ are visual representations of consumer perceptions and preferences. A) Brand narratives B) Share of mind variables C) Perceptual maps D) Exemplars E) Points-of-parity

75) Category points-of-parity are unique to a brand.

FALSE

129) Explain the concept of line stretching and the three uses for it.

Line stretching occurs when a company lengthens its product line beyond its current range. It includes down-market stretch (introduce a lower-priced line), up-market stretch (introduce an upscale line), or two-way stretch (introduce both an upscale line and a down-scale line).

63) Give an example of a pure service provided by a company.

Student answers will vary. Examples of a pure service include babysitting, psychotherapy, career counselling, or a massage.

149) Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive.

TRUE

144) Small businesses must focus on building one or two strong brands based on one or two key associations.

TRUE

93) Interactive marketing describes the employees' skill in serving the client.

TRUE

96) Importance-performance analysis rates the various elements of the service bundle and identifies required actions.

TRUE

97) The answer to the question "was the surgery successful?" represents the technical quality aspect of interactive marketing, one of the three broad areas of service excellence.

TRUE

98) Customers who view a service as fairly homogeneous care less about the provider than about the price.

TRUE

94) List the six criteria used in creating brand elements.

The six criteria are: 1. memorable 2. meaningful 3. likable 4. transferable 5. adaptable 6. protectable

121) List the threats posed by the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment.

The threats posed by the five forces are: 1. Threat of intense segment rivalry 2. Threat of new entrants 3. Threat of substitute products 4. Threat of buyers' growing bargaining power 5. Threat of suppliers' growing bargaining power

84) Identify and describe the three main types of New Luxury products.

The three main types of New Luxury products are: 1. Accessible superpremium products — They carry a significant premium over middle-market brands, yet consumers can readily trade up to them because they are relatively low-ticket items in affordable categories. 2. Old Luxury brand extensions — They extend historically high-priced brands down-market while retaining their cachet. 3. Masstige goods — They are priced between average middle-market brands and superpremium Old Luxury brands. They are "always based on emotions, and consumers have a much stronger emotional engagement with them than with other goods."

56) Brand salience describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.

FALSE

66) Members of Generation Y are generally open to overt branding practices and a "hard sell," making product placements in computer and video games a popular way to reach this cohort.

FALSE

67) Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and individualistic.

FALSE

68) Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

FALSE

71) People in the same demographic group generally exhibit similar psychographic profiles.

FALSE

15) The competitive frame of reference defines which other brands that a brand competes with.

TRUE

150) An undifferentiated marketing approach to full market coverage designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers.

TRUE

150) Warranties are formal statements of expected product performance by the manufacturer.

TRUE

57) Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

TRUE

144) The most effective advertising strategy for an extension emphasizes the parent brand.

FALSE

93) Which of the following is a benefit of product mapping? A) studying market matrices B) integrating target markets C) identifying market segments D) educating consumers E) integrating target matrices

erentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices. A) delivery B) ordering ease C) ease of installation D) customer consulting E) reparability

89) What is customer cloning and how is it used?

Customer cloning is a way of identifying new prospects by assuming that the best prospects live where most of a company's existing customers come from.

117) The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately. A) empathy B) assurance C) responsiveness D) reliability E) tangibles

51) A brand ________ is a translation of the brand mantra that attempts to creatively engage consumers and others external to the company. A) vision B) extension C) architecture D) slogan E) alliance

69) Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most likely to be differentiated based on ________. A) resilience B) innovativeness C) insensitivity D) reliability E) expertise

112) The customer service representatives at a call center have been asked to handle each call within five minutes. A recent customer survey by the company revealed that customers appreciate it when employees take the time to answer their questions fully and listen to their grievances. What kind of service gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

123) During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) Step 2 — segment identification B) Step 3 — segment attractiveness C) Step 6 — segment "acid test" D) Step 1 — needs-based segmentation E) Step 7 — marketing-mix strategy

124) If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. A) needs-based segmentation B) segment identification C) segment profitability D) segment "acid test" E) marketing-mix strategy

129) If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test"

14) Which one of the following would be considered high in credence qualities? A) an interior of a house B) a restaurant C) a haircut D) psychotherapy E) a computer

36) ________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference

45) When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair. A) technology intensity B) responsiveness C) ease of use D) customer training E) adaptability

97) Moving ________ carries risks. The new brand can cannibalize core brand sales and lower the core brand's quality image. A) up-market B) two ways C) one way D) down-market E) out-market

114) Apple's iPod shuffle is an example of ________. A) a subbrand B) a parent brand C) family brand D) a brand mix E) an umbrella brand

71) Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand. A) elements B) value propositions C) perceptions D) images E) extensions

59) A ________ advantage is one that a company can use as a springboard to new advantages. A) sustainable B) leverageable C) realistic D) rational E) distinct

11) Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements. One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________. A) the imported brand will not survive the competition from Maytag B) Maytag has a positive customer brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Maytag washing machine has better features than the imported brand

110) The typical approach to positioning is to inform consumers of a brand's category membership before stating its point-of-________. A) parity B) difference C) conflict D) weakness E) presence

9) ________ are defined as companies that satisfy the same customer need. A) Communities B) Competitors C) Trendsetters D) Industries E) Task groups

96) A company positioned in the "middle" market introduces a lower-priced product line. What type of line-stretching is this? A) home stretch B) up-market stretch C) down-market stretch D) maintenance stretch E) two-way stretch

105) Brand ________ is the job of estimating the total financial worth of the brand. A) tracking B) auditing C) equity D) valuation E) harmonization

30) According to Young and Rubicam's BrandAsset® Valuator, a brand's ________ measures how well the brand is regarded and respected. A) differentiation B) energy C) relevance D) esteem E) knowledge

51) Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content. Pete's loyalty status is best described as ________. A) split loyal B) shifting loyal C) consistent loyal D) hard-core loyal E) switcher

54) Brand mantras typically are designed to capture the brand's points-of-________, that is, what is unique about the brand. A) conflict B) parity C) inflection D) difference E) presence

156) Customer equity is synonymous with brand equity.

FALSE

116) Companies in the "middle market" should never attempt to stretch their line in both directions.

FALSE

116) The most attractive segment is one in which entry barriers are low and exit barriers are high.

FALSE

138) Cultural branding is essential for small firms, but ineffective for large companies.

FALSE

84) Brands are built only by advertising.

FALSE

158) What is the importance of guarantees?

Guarantees reduce the buyer's perceived risk. They suggest that the service/product is of high quality and that the company and its service performance are dependable.

28) Capital items are long-lasting goods that facilitate developing or managing the finished products.

TRUE

37) The private nonprofit sector is a provider of services.

TRUE

120) List the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment.

The five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment are industry competitors, potential entrants, substitutes, buyers, and suppliers.

56) For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on points-of-________. A) difference B) presence C) inflection D) parity E) conflict

57) One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________. A) negatively correlated B) always correlated C) directly proportional D) never correlated E) positively correlated

6) Perdue's cogent reason why a target market should buy its chicken is "More tender golden chicken at a moderate premium price," also known as its ________. A) customer-focused value proposition B) competitive frame of reference C) points-of-parity D) straddle positioning E) perceptual map

71) A supplier creates better information systems, and introduces barcoding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________. A) innovativeness B) reliability C) insensitivity D) resilience E) accuracy

9) Brand ________ is the added value endowed to products and services. A) loyalty B) equity C) preference D) identity E) licensing

88) A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has high ________. A) consistency B) depth C) intensity D) range E) width

85) Briefly describe the characteristics of the Millennials.

Born between 1977 and 1994, Millennials, also called Gen Y, number 78 million with annual spending power estimated at $200 billion. Also known as the Echo Boomers, these consumers have been "wired" almost from birth — playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones. They have a sense of entitlement and abundance from growing up during the economic boom and being pampered by their boomer parents. Yet they are highly socially conscious and concerned about environmental issues. They are selective, confident, and impatient.

67) Distinguish between brand equity and brand valuation.

Brand equity is the added value endowed to products and services. Brand valuation is the job of estimating the total financial value of the brand.

102) If line filling is overdone, it could result in ________ and customer confusion. A) sales paralysis B) manufacturing inefficiencies C) cannibalization D) disintermediation E) ineffective management

148) A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the ________ cost. A) service warranty B) out-of-pocket C) life-cycle D) facilitating services E) value-augmentation

150) When Johnson Controls reached beyond its climate control equipment and components business to manage integrated facilities by offering products and services that optimize energy use, it was said to be providing ________. A) facilitating services B) a primary service package C) value-augmenting services D) service contracts E) service warranties

28) Jake had an appointment at the doctor's office, but couldn't make it on time due to traffic. By the time he arrived, the doctor had already begun with the next patient. This illustrates the ________ of services. A) variability B) heterogeneity C) perishability D) intangibility E) homogeneity

3) Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands

3) The five product levels constitute a ________. At each level more customer value is added. A) product line B) business model C) customer value-hierarchy D) value grid E) demand chain

36) According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers. A) Thinkers B) Innovators C) Achievers D) Believers E) Experiencers

37) Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good? A) points-of-difference B) points-of-presence C) points-of-parity D) points-of-conflict E) points-of-inflection

130) To meet the ________ criterion of useful market segments, it must be possible to formulate effective programs for attracting and serving the segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

151) When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________. A) a complementary service B) payment equity C) a service blueprint D) differential pricing E) an extended warranty

50) While goods meet personal needs, services meet business needs.

FALSE

54) According to the BrandZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.

FALSE

54) Firms should design the highest performance level possible for their products.

FALSE

55) As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.

FALSE

56) The quality of services is independent of who provides them.

FALSE

62) Life stage defines a person's age.

FALSE

96) Professor Albert advises his students to purchase the book Microbiology by Pelczar, to acquaint themselves with the fundamentals of microbiology. What role does he play in the buying decision of his students?

Professor Albert plays the role of an influencer in the buying decision of his students. An influencer is a person who explicitly or implicitly has some influence on the final buying decision of others.

104) Some WesternSlope Cleaning customers have long-term contracts for full-service cleaning, while others call the company as and when they require a particular service. The long-term customers have their queries handled by the company's customer service representative. The rest of its customers are directed towards voice messages when they want their inquiries to be processed. What strategy is the company adopting to achieve marketing excellence?

The company is trying to differentiate its high-profit tier customers from its low-profit tier customers.

95) The VALS segmentation system has evolved into an eight-part typology. List the categories of the eight-part typology.

The eight parts of the VALS segmentation system include the following: 1. Innovators 2. Thinkers 3. Achievers 4. Experiencers 5. Believers 6. Strivers 7. Makers 8. Survivors

111) Describe the meaning and function of a brand audit.

To better understand the sources of brand equity and how they affect outcomes of interest, marketers often need to conduct brand audits. A brand audit is a consumer-focused exercise that involves a series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. The brand audit can be used to set strategic direction for the brand. As the result of this strategic analysis, the marketer can develop a marketing program to maximize long-term brand equity. Marketers should conduct a brand audit whenever they consider important shifts in strategic direction.

10) When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. A) psychographic lifestyle B) personality C) behavioral occasions D) social class E) demographic

100) Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. A) situational factors B) demographic C) purchasing approaches D) personal characteristics E) operating variables

114) Which of the following ways to convey a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership? A) comparing to exemplars B) communicating deliverability variables C) identifying counter examples D) announcing category benefits E) relying on the product descriptor

62) What is positive customer-based brand equity?

A brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified, than when it is not identified.

12) Services high in ________ qualities have characteristics that the buyer can evaluate after purchase. A) privacy B) experience C) credence D) search E) stock

6) Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy? A) pure tangible good B) basic product C) augmented product D) potential product E) generic product

62) Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding? A) services differentiation B) channel differentiation C) image differentiation D) product differentiation E) employee differentiation

90) The ________ of the product mix refers to the total number of items in the mix. A) width B) length C) depth D) breadth E) range

91) When the recent recession hit, Zappos decided to stop offering complimentary overnight shipping to first-time buyers and offer it to repeat buyers only, which is an example of the ________ best practice of top service companies. A) strategic concept B) profit tiers C) top-management commitment D) high standards E) monitoring systems

61) Define brand equity.

Brand equity is the added value endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm.

31) Which of the following criteria relates to consumers seeing the brand association as personally relevant to them? A) deliverability B) authenticity C) desirability D) differentiability E) feasibility

46) With respect to the "six brand building blocks," brand ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) imagery B) judgment C) resonance D) salience E) performance

5) Which of the following is an example of a hybrid service? A) teaching B) car C) restaurant meal D) soap E) air travel

75) With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright

104) Companies can achieve competitive advantage through the way they design their distribution channel. What three areas are considered in this design process?

Considerations to achieve competitive advantage in the distribution channel are in the areas of coverage, expertise, and performance.

147) In what ways can brand extensions improve the odds of new-product success?

Consumers make inferences and form expectations about the composition and performance of a new product based on what they already know about the parent brand and the extent to which they feel this information is relevant to the new product. By setting up positive expectations, extensions reduce risk and may make it easier to convince retailers to stock and promote a brand extension because of increased customer demand. From a marketing communications perspective, an introductory campaign for an extension doesn't need to create awareness of both the brand and the new product, but instead can concentrate on the new product itself.

8) The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis

80) ________ found a highly creative way to address the problem of proliferating plastic bottles with its "Waste<Less" line and helped farmers grow cotton with less water for its "Water<Less" line. A) Calvin Klein B) Ralph Lauren C) Ferragamo D) Levi-Strauss E) Roberto Cavalli

1) Which of the following statements about market segmentation is true? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

149) Josh separated people who wanted a high quality lawn mower from people who wanted a low priced lawn mower, then saw if different characteristics were associated with each consumer-response segment. Josh was defining segments using ________ considerations. A) descriptive B) demographic C) psychographic D) behavioral E) geographic

23) High levels of brand ________, or the extent to which consumers feel they are "in sync" with the Fox News brand and engagement in Fox News programs, often leads to greater recall of the ads Fox News runs. A) salience B) feelings C) judgments D) resonance E) imagery

49) With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"? A) resonance B) imagery C) performance D) salience E) judgment

49) ________ describes the service program for helping customers keep purchased products in good working order. A) Returns B) Ordering ease C) Installation D) Maintenance and repair E) Delivery

5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. A) demographic B) behavioral C) psychographic D) geographic E) cultural

81) ________ marketing refers to training and motivating employees to serve customers well. A) External B) Promotional C) Direct D) Internal E) Interactive

76) Debbie's is a specialty bakery that sees a huge volume of orders during the holiday season. The owner knows that orders triple during the three-month period and the current staff cannot handle the volume. What supply strategy can Debbie's use to handle the demand?

Debbie's can employ people on contract just for the holiday season to help the company cope with the spike in demand.

132) Outline three guidelines for correctly implementing a bundling strategy.

Do not promote individual products in a package as frequently and cheaply as the bundle. Second, limit promotions to a single item in the mix if you still want to promote individual products. Third, if you decide to offer large rebates on individual products, it must be the absolute exception and done with discretion.

27) In order to map out the service process, the points of customer contact, and the evidence of service from the customer's point of view, service firms should develop a ________. A) marketing plan B) service floor plan C) Gantt chart D) business plan E) service blueprint

35) The horizontal dimension in the VALS framework is ________. A) resources B) innovation C) maturity D) impulsiveness E) consumer motivation

43) As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity? A) to point out competitors' points-of-difference B) to emphasize competitors' points-of-difference C) to rationalize competitors' perceived points-of-difference D) to globalize competitors' perceived points-of-difference E) to negate competitors' perceived points-of-difference

43) Ideal ________ would exist if users could fix the product themselves with little cost in money or time. A) durability B) reliability C) style D) design E) reparability

45) With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions? A) resonance B) salience C) imagery D) performance E) feelings

46) The sale of turkeys in the United States is highest in mid- to late November, as people buy turkeys to serve at Thanksgiving. Grocery stores that specifically advertise turkeys at this time of year are segmenting on the basis of ________. A) benefits B) user status C) buyer-readiness stage D) demographics E) occasion

53) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can help identify the products' strengths. A) switchers B) split loyals C) antiloyals D) shifting loyals E) hard-core loyals

91) In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements. A) convenience item B) flagship product C) staple item D) potential product E) basic platform

95) What occurs when any company lengthens its product line beyond its current range? A) market overreach B) brand dilution C) product adaptations D) cannibalization E) line stretching

99) A brand ________ can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer's product or service. A) value B) personality C) trait D) character E) contact

65) Brand equity has four components — energized differentiation, relevance, esteem, and knowledge. How are these components combined to produce brand strength and brand stature?

Energized differentiation and relevance combine to produce brand strength. Esteem and knowledge together create brand stature.

114) The product-line length can be obtained by averaging the number of variants within the brand groups.

FALSE

121) Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

FALSE

122) In the context of Starbucks, 24-hour training program for baristas, stock options/health benefits, triple filtrated water, and a totally integrated system are examples of brand mantras within the brand positioning bull's-eye.

FALSE

132) The zone of tolerance for a service is the perceived economic benefit in relationship to the economic cost.

FALSE

119) All attempts to target marketing to children, minorities, or other special segments are discriminatory and unethical.

FALSE

120) A good illustration of negatively correlated attributes or benefits is good taste versus bad taste.

FALSE

133) Aida decided to switch doctors after she had to wait two and a half hours at her scheduled appointment to see her doctor. She experienced the ethical problem factor that leads to customer switching behavior.

FALSE

135) Brand differentiation occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.

FALSE

14) Positioning requires that marketers define and communicate only the differences between their brand and its competitors.

FALSE

56) If the physical product cannot be easily differentiated, the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.

FALSE

75) The New Luxury goods category, which includes Kiehl's skin care and Kendall Jackson wine, and is based on emotions and priced between average middle-market brands and superpremium Old Luxury brands, is called accessible superpremium brands.

FALSE

76) Competition for luxury brands must be defined narrowly.

FALSE

77) Believers favor stylish products that emulate the purchases of those with greater material wealth.

FALSE

77) Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.

FALSE

85) Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand.

FALSE

88) Modifying a brand to suit group-level or individual needs is called staking.

FALSE

90) The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

FALSE

91) Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.

FALSE

92) A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components.

FALSE

92) External marketing describes the training and motivation required by employees in order to properly serve the customers.

FALSE

82) There are several major segmentation variables that might be used by a marketer to address a consumer market. If the marketer were to use the social class, psychographic lifestyle, and readiness stage to segment its market, identify possible segmentation subcategories under each of the three.

First, social class would yield the subcategories of lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, and upper uppers. Second, psychographic lifestyles would yield culture-oriented, sports-oriented, and outdoor-oriented. Lastly, readiness stage would yield unaware, aware, informed, interested, desirous, and intending to buy. Other subcategories might be possible.

159) What are the situations in which guarantees are most effective?

Guarantees are most effective when either the company or the product is not well known, so a "money-back" guarantee in that case would reduce the buyer's perceived risk and provide them with confidence in purchasing the product. The second area is when the product/service is superior to competition in quality and performance.

159) Explain the concept of differentiated marketing.

In differentiated marketing, the firm sells different products to all the different segments of the market.

140) The manager of a computer service center knows that quick service is the top priority for customers. Accordingly, the employees are encouraged to solve customer difficulties fast, but there is no set time period for service delivery. Which gap could cause unsuccessful service delivery in this situation?

In this situation, there exists a gap between the management perception and the service-quality specification. Although, the management has correctly perceived the customers' want, it has not set a specific performance standard for employees.

92) Increasingly, companies are finding that their markets are "hourglass shaped." What does this mean for consumers and for marketers?

Middle-market US consumers are migrating toward both discount and premium products. Companies that miss out on this new market risk being "trapped in the middle" and seeing their market share steadily decline.

112) According to Millward Brown, how is brand predisposition measured?

Millward Brown asserts that this brand predisposition is measured by three brand equity metrics: power, premium and potential. People are predisposed to choose the brand over others. This will drive brand volume, so power predicts volume share based entirely on perceptions, absent of activation factors. People are predisposed to pay more for the brand. This will allow the brand to charge more, so premium predicts the price index your brand can command. Potential indicates the likelihood of value share growth for the brand in the next 12 months, based on people's predisposition to stick to the brand or try it in the future.

79) How has the explosion of videos online affected service firms?

Not only customers but also employees can damage the firm's reputation, and the Internet greatly magnifies the impact. Many fast-food chains have had to deal with unflattering or inappropriate behavior their employees capture on video as a prank. Online clips have shown a Wendy's worker with his mouth wide open under a Frosty machine, a Domino's employee putting cheese up his nose and mucus on food meant for delivery, and a Taco Bell employee licking a stack of empty taco shells. Airlines and FedEx have also been affected by viral videos describing or showing poor service.

93) With respect to positioning, explain points-of-parity and points-of-difference.

Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Points-of-parity (POPs), on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands.

128) You have been asked to prepare a product-line analysis for your company's stable of products. Why is it important for product-line mangers to do a product-line analysis?

Product-line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. They also need to understand each product line's market profile.

105) Retail chain REB wants to find out how its customers perceive its services and what it can do to improve these. What methods can the company use to discover this?

REB can audit service performance, both their own and competitors', on a regular basis. It can collect voice of the customer (VOC) measurements to probe customer satisfiers and dissatisfiers. It can use comparison shopping, mystery or ghost shopping, customer surveys, suggestion and complaint forms, and service-audit teams to find out customer reactions to the company.

140) What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau?

Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. They identify five elements of narrative branding: 1. the brand story in terms of words and metaphors 2. the consumer journey in terms of how consumers engage with the brand over time and touch points where they come into contact with it 3. the visual language or expression for the brand 4. the manner in which the narrative is expressed experientially in terms of how the brand engages the senses 5. the role/relationship the brand plays in the lives of consumers

103) What are the expert recommendations for e-mail responses to customers?

Send an automated reply to tell customers when a more complete answer will arrive, ensure the subject line always contains the company name, make the message easy to scan for relevant information, give customers an easy way to respond with follow-up questions.

146) Package delivery company UPS uses distinctive brown trucks that have become almost an icon. Explain why such physical facilities are important for UPS while it provides package delivery services.

Services are intangible. But when they are given a tangibility by using physical facilities, equipment, personnel, or communication material, customers find it easier to determine the service quality and distinguish the services of one firm from that of its competitor. Thus, UPS's trucks help the company differentiate its services from its competitors'.

148) Sally's is a boutique bakery that specializes in cupcakes. Give some methods by which Sally's can position itself without spending a lot on promotions.

Student answers will vary. Because small businesses often must rely on word of mouth to establish their positioning, public relations, social networking, and low-cost promotions and sponsorship can be inexpensive alternatives for Sally's. Creating a vibrant brand community among current and prospective customers can also be a cost-effective way to reinforce loyalty and help spread the word to new prospects.

25) With the help of an example, explain why a company's competition may not be from companies in the same category.

Student answers will vary. Category membership includes the products or sets of products with which a brand competes and which function as close substitutes. After having spent billions of dollars building their networks, cell phone carriers AT&T, Verizon Wireless, and Sprint face the threat of new competition emerging as a result of a number of changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks built by cities, and dual mode phones that can easily switch networks.

107) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create image differentiation to stand apart from its competitors?

Student answers will vary. Sally's can use innovative and distinctive packaging for its products, or use interior design to give the store a distinctive look.

113) Provide an example of brand revitalization. Evaluate its success and note any factors that contributed to or possibly hurt its success.

Student responses will vary. Examples from the text include Burberry, GM/Cadillac, Harley Davidson, PBR, Mountain Dew. Brand revitalization of almost any kind starts with the product.

129) A firm's branding strategy is also called the brand architecture.

TRUE

136) Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.

TRUE

138) Co-branding is when two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

TRUE

138) Marketers must judge each potential brand extension by how effectively the brand leverages existing brand equity from the parent brand, as well as how effectively, in turn, it contributes to the parent brand's equity.

TRUE

139) Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

TRUE

90) The means of differentiation that are often most compelling to consumers relate to aspects of the product and service.

TRUE

91) Spending on product research, development, and design constitutes investment in the brand value development process.

TRUE

122) Give an example of how a company might target products to children in an ethical way.

The public is concerned when marketers take unfair advantage of vulnerable groups, such as children. However, not all attempts to target children draw criticism. Socially responsible marketing calls for targeting that serves not only the company's interests, but also the interests of those targeted. For example, Colgate Junior toothpaste has special features designed to get children to brush longer and more often.

124) Describe three methods by which a brand can communicate category membership.

There are three main ways to convey a brand's category membership: 1. Announcing category benefits. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership. 2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand specify its category membership. 3. Relying on the product descriptor. The product descriptor that follows the brand name is often a concise means of conveying category origin.

153) Tide laundry detergent maintains the same market share it had 50 years ago because of the sales contributions from its various line extensions. It can be said that Tide employs a preemptive cannibalization strategy in generating line extensions. What does this mean?

When there is a threat of losing consumers to a competing brand, companies sometimes opt for preemptive cannibalization. This causes consumers to switch between the same brand's products, preventing loss of customers. Even though Tide's various line extensions may cannibalize sales of its other products, if the extensions had not been introduced, then customers would have defected to another brand offering the same type of extension. In this way, Tide has maintained its market share through preemptive cannibalization.

155) Briefly describe single-segment concentration with an example.

With single-segment concentration, the firm markets to only one particular segment. Porsche concentrates on the sports car market and Volkswagen on the small-car market — its foray into the large-car market with the Phaeton was a failure in the United States. Through concentrated marketing, the firm gains deep knowledge of the segment's needs and achieves a strong market presence. It also enjoys operating economies by specializing its production, distribution, and promotion. If it captures segment leadership, the firm can earn a high return on its investment.

144) A cosmetics store sees to it that customers who walk in are assisted by store personnel. Personnel are trained to ask customers questions, find out what they want, and make suggestions accordingly. Which of the five determinants of service quality is reflected here?

The determinant of service quality that is reflected here is empathy. The outlet not only cares about its customers, but also gives them individualized attention.

155) Your research shows that over 53 percent of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks. List the sales tasks that packaging must now incorporate due to the increase in self-service sales.

These tasks are: attract attention, describe the product's features, create consumer confidence, and make a favorable overall impression.

77) What are the four factors that customers who thrive in customer contact positions have an internal drive to do?

They have an internal drive to pamper customers, accurately read customer needs, develop a personal relationship with customers, and to deliver quality service to solve customers' problems.

145) Josh travels often on business trips. He usually uses the services of the Sunshine Cab Company to take him to the airport and pick him up from the airport. Though the fares are usually higher than those of other private taxi companies, he prefers to use Sunshine cabs because they're always on time and have well-maintained cabs. Which determinant of service quality does this demonstrate?

This demonstrates the determinant of reliability, which is the ability to perform the promised service dependably and accurately.

142) The advertisement for a pool reads "a vinyl pool from Parker's for just $5,000." When David contacted the firm for the pool, the customer service representative tells David that the total cost will be $8,000. When David enquires about the extra $3,000, the customer service representative says that is for installation. Which service-quality gap does this situation demonstrate?

This is an example of a gap between service delivery and external communications. Consumer expectations are affected by statements made by company representatives and ads. Here, the ad promised a pool for one price, but the actual price is much higher than the consumer is led to expect.

141) In the customer support center where Carl works, employees are taught to make conversation to put customers at ease. As customers don't like being kept waiting, they must also try to minimize the time that customers spend waiting for service. Thus, when there are a number of customers lined up, Carl usually has to decide whether to answer a customer's questions in detail or move on quickly to the next customer. The firm's standards are not clear on how they want him to perform. When asked, his boss answers, "You make the decision." This is an example of which service-quality gap?

This is an example of a gap between the service-quality specifications and service delivery. Employees are held to conflicting standards, having to decide between taking time to listen to customers and serving them fast.

130) As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies. The first pair will retail for $ 40 and has as its target market the "bargain" shopper. The second pair will retail for $200 and is targeted at the "sophisticated shopper." In relation to product-line strategy, what is the company trying to accomplish with these two new items?

This is an example of the company trying a "two-way stretch" — introducing products at both ends of the consumer market simultaneously.

102) When Hayley had some problems with the applications on her cell phone, she gave her cell phone to the service center for a software update. The service center returned the phone to Hayley the next day, with the software update complete. Two days later, the service center called Hayley to enquire if the phone was functioning well. Which area of services marketing does this incident illustrate? Why is this important?

This situation illustrates interactive marketing, which deals with the employees' skill in serving the client. This is important because clients judge a service not only by its technical quality (how successful it was) but also by its functional quality (the attitude of the employees performing the service).

90) Not everyone is in favor of local marketing. Identify two arguments made against local marketing.

Those against local marketing argue that it drives up manufacturing and marketing costs by reducing economies of scale and magnifying logistical problems. A brand's overall image might be diluted if the product and message are different in different localities.

139) Name and briefly explain three less-structured alternatives to competitive brand positioning.

Three alternatives to competitive branding are as follows: 1. Brand narratives and storytelling: Rather than outlining specific attributes or benefits, some marketing experts describe positioning a brand as telling a narrative or story. 2. Brand journalism: Just as editors and writers for newspapers and magazines tell many facets of a story to capture the interests of diverse groups of people, marketers should communicate different messages to different market segments, as long as they at least broadly fit within the basic broad image of the brand. 3. Cultural branding: For companies to build iconic, leadership brands, they must assemble cultural knowledge, strategize according to cultural branding principles, and hire and train cultural experts.

105) Belling wants to analyze the threats posed by its competitors. Which three variables must it monitor to achieve this?

To analyze the threats posed by its competitors, Belling must monitor the competitors' share of the market, share of mind and share of heart.

135) To be useful, market segments must rate favorably on five key criteria. What are those criteria?

To be useful, market segments must be: 1. measurable 2. substantial 3. accessible 4. differentiable 5. actionable

110) Describe the function of brand-tracking studies.

To understand how the sources and outcomes of brand equity change, if at all, over time, marketers conduct brand tracking studies. These studies collect quantitative data from consumers over time to provide consistent, baseline information about how brands and marketing programs are performing. Tracking studies help us understand where, how much, and in what ways brand value is being created, to facilitate day-to-day decision making.

113) What are some examples of situational factors that can be used to segment business markets?

Urgency, specific application, and size of order are examples of situational factors used for business market segmentation.

154) Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these factors.

• Self-service — an increasing number of products are being sold without any personal interaction, on a self-service basis. • Consumer affluence — rising consumer affluence means consumers are willing to pay a little more for convenience, appearance, dependability, and prestige of better packages. • Company and brand image — packages contribute to instant recognition of the company or brand. • Innovation opportunity — innovative packaging can bring large benefits to consumers and profits to producers.

117) The introduction of Diet Coke by the Coca-Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding

12) When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity

145) All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage

19) According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants. A) Old Milltowns B) Young Digerati C) Winner's Circle D) Beltway Boomers E) Cosmopolitans

19) BENGAY aspirin, Cracker Jack cereal, Frito-Lay lemonade, and Fruit of the Loom laundry detergent are examples where consumers' ________ dictated that the extensions were inappropriate for the brand. A) brand knowledge B) brand equity C) brand stature D) power grid E) brand salience

22) Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika? A) life stage B) benefits C) age segment D) personality type E) social class

28) According to BrandAsset® Valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge — evidence of past performance — a lower level of esteem, and even lower relevance, energy, and differentiation

31) Aromas Inc. introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the BrandDynamics Pyramid? A) presence B) bonding C) relevance D) performance E) advantage

101) A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________. A) the brand value chain B) the brand portfolio C) the brand life cycle D) brand partitioning E) brand positioning

101) In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation B) microsegmentation C) geographic segmentation D) global segmentation E) short-term segmentation

102) A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables B) situational factors C) operating variables D) purchasing approaches E) personal characteristics

103) Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ multiplier of the brand value chain. A) program B) brand C) market D) customer E) profit

106) Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day. Which of the following factors led to Brenda's customer switching behavior? A) inconvenience B) pricing C) response to service failure D) ethical problems E) involuntary switching

109) Anderson and Mervin have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which part contains the product and service elements that all segment members value? A) naked solution B) discretionary solution C) maximum solution D) pseudo solution E) virtual solution

11) Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. A) nondurable goods B) durable goods C) services D) unsought goods E) specialty goods

113) A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes

116) When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor is hiding a grave problem from him. What kind of a gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

12) If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters. A) PRIZM B) behavioral C) psychographic D) demographic E) VALS

17) Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself? A) using brand symbols B) sharing services C) working with larger groups D) cultivating nonpeak demand E) creating a service blueprint

19) BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles. BRZ ads appeal to the ________ dimension of brand experience. A) sensory B) affective C) behavioral D) intellectual E) social

2) ________ is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market. A) Positioning B) Valuation C) Pricing D) Commercialization E) Launching

21) Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage B) age C) behavior D) user status E) income

26) According to BrandAsset® Valuator model, esteem and knowledge, the two pillars of brand equity together create brand ________, a "report card" on past performance and a current indicator of current value. A) stature B) parity C) strength D) personality E) architecture

26) Which of the following steps will help service firms to increase their quality control? A) standardizing the service-performance process B) providing complementary services to customers C) giving personnel authority in handling situations D) adopting differential pricing E) cultivating nonpeak demand

27) Which of the following statements about Gen Yers is true? A) They are selective, confident, and impatient. B) They are more likely to associate retirement with "the beginning of the end." C) They are more pragmatic and individualistic. D) They were born between 1964 and 1978. E) They were the first generation to find surpassing their parents' standard of living a serious challenge.

3) The goal of positioning is to ________. A) locate the brand in the minds of consumers to maximize the potential benefit to the firm B) discover the different needs and groups existing in the marketplace C) target those customers marketers can satisfy in a superior way D) collect information about competitors that will directly influence the firms' strategy E) help the firm anticipate what the actions of its competitors will be

3) The process of selecting one or more market segments to enter is called market ________. A) targeting B) dominance C) positioning D) segmentation E) research

71) The common denominators of luxury brands are quality and ________. A) uniqueness B) practicality C) global appeal D) contemporary E) goodwill

74) Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance

74) ________ has overtaken the United States as the world's largest luxury market; it's forecast that one-third of all high-end goods will be sold there in the coming years. A) China B) India C) South Africa D) Brazil E) South Korea

79) Which company launched Eco-Fina packaging for its water? A) PepsiCo B) Coca-Cola C) SodaStream D) PURE E) Sigg Switzerland

84) In which of the following does a customer respond to the technical quality of a service? A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks. B) Kathy tries out a new restaurant every week because she likes to experience the variety. C) Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill. D) Ray avoids going to the bank as far as possible because the manager is rude and unhelpful. E) Alex has no interest in theater, but goes often because her best friend loves plays.

98) Companies may wish to implement a(n) ________ to achieve more growth, to realize higher margins, or simply to position themselves as full-line manufacturers. A) up-market stretch B) rebranding plan C) outsourcing strategy D) disintermediation policy E) vertical integration strategy

62) There are five categories of service offerings depending upon whether or not the service component is minor or major. In which of the five categories would you place a haircut?

A hair salon would be considered a pure service because the service provided by a hair salon is primarily intangible in nature.

95) Provide an example of a leverageable advantage.

A leverageable advantage is one that a company can use as a springboard to new advantages. Examples may vary, but the text notes that Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to endure must be in the business of continuously inventing new advantages that can serve as the basis of points-of-difference.

152) What is a licensed product? Why have corporations seized on licensing?

A licensed product is one whose brand name has been licensed to other manufacturers that actually make the product. Corporations have seized on licensing to push their company names and images across a wide range of products — from bedding to shoes — making licensing a multibillion dollar business.

127) You have been asked to create a product system for your company's personal digital assistant. Before starting, you must define the term product system to the engineers to enable them to start design and production of the aligned items. Define the concept of a product system.

A product system is a group of diverse but related items that function in a compatible manner.

160) Assume that you have decided to use a niche strategy to advance your marketing goals. Characterize an attractive niche.

An attractive niche is distinguished as follows: • the customers in the niche have a distinct set of needs • they will pay a premium to the firm that best satisfies their needs • the niche is not likely to attract other competitors • the niche gains certain economies through specialization • the niche is fairly small but has size, profit, and growth potential

114) Which of the following is an example of a gap between service delivery and external communications? A) The employees at GBL have been asked to take time to listen to customers, but they must serve them fast as well. B) Amanda chose to shop at Alison's Fashions because the store's Web site offered on-the-spot alterations. However, when she did buy a dress, she had to wait a week to get it altered. C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like the store design. D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but customers rarely return because they don't like the attendants' impersonal service. E) When sales dropped, Styx modernized its stores in order to retain customers, but didn't realize that the product quality was the main problem.

120) The ________ determinant of service quality refers to the knowledge and courtesy of employees and their ability to convey trust and confidence in the service they provide. A) conscientious B) assurance C) empathy D) reliability E) responsiveness

123) The zone of ________ is a range where a service dimension is deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered. A) immunity B) tolerance C) reliability D) assurance E) flexibility

125) Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions

14) What goods are similar in quality but different enough in price to justify shopping comparisons? A) emergency goods B) homogeneous shopping goods C) heterogeneous shopping goods D) specialty goods E) convenience goods

148) Which of the following is NOT an example of a descriptive characteristic used to define segments? A) consumer demographics B) consumer responses to benefits C) consumer geography D) consumer psychographics E) family life cycle

16) According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles. A) Cosmopolitans B) Beltway Boomers C) Young Digerati D) Winner's Circle E) Old Milltowns

16) Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This is known as the ________ aspect of services. A) inseparability B) intangibility C) variability D) perishability E) heterogeneity

27) Which of the following terms is most closely associated with the statement: "attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand"? A) points-of-inflection B) points-of-difference C) points-of-parity D) points-of-value E) points-of-presence

4) The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition

40) Brand salience ________. A) is customers' emotional responses and reactions with respect to the brand B) is how often and how easily customers think of the brand under various purchase or consumption situations C) is how well the product or service meets customers' functional needs D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it

52) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. A) hard-core loyals B) split loyals C) shifting loyals D) switchers E) antiloyals

7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________. A) the level of disposable income earned by the target group B) customer differences C) the cost-benefit relationship of narrowing the target market D) customer complaints E) saturated markets

73) The brand promise for ________ is "the product you buy is of highest esteem, based on its timeliness, elegant design and the high quality, which is derived from the excellence of our craftsmen." A) Hermés B) Montblanc C) Patrón D) Sub-zero Refrigerators E) Armani

86) Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________. A) retailer convenience B) profit tiers C) psychographic characteristics D) social influence E) customer preference

1) A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. A) function B) product C) benefit D) process E) structure

1) The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value

10) Which of the following are tangible goods that normally survive many uses? A) generic goods B) durable goods C) core benefits D) convenience goods E) unsought goods

10) ________ brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand. A) Mission-driven B) Customer-based C) Product-driven D) Service-driven E) Function-based

100) Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a(n) ________ to reach more consumers and ventures that are more profitable. A) upstream integration B) two-way stretch C) up-market stretch D) down-market stretch E) downstream integration

102) Competitive superiority and channel support are factors that influence the ________ multiplier of the brand value chain. A) program B) customer C) brand D) profit E) market

105) When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low, average, and high, based upon performance and features. This is an example of what type of product-mix pricing? A) two-part pricing B) product-line pricing C) captive product pricing D) market pricing skimming E) price discrimination

107) A company can be said to have used ________ if the company distinguished among customers buying on the basis of price, service, and quality. A) global segmentation B) microsegmentation C) short-term segmentation D) macrosegmentation E) geographic segmentation

107) Angela switched to a new hair stylist after getting a bad haircut from her previous stylist. This is an example of which of the following factors leading to customer switching behavior? A) service encounter failure B) core service failure C) response to service failure D) involuntary switching E) competition

127) According to the ________ criterion for useful market segments, a segment should be the largest possible homogenous group worth going after with a tailored marketing program. A) measurable B) substantial C) accessible D) differentiable E) actionable

127) Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offerings — in effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping

140) General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro

146) Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk. A) actual B) perceived C) real D) implied E) stated

147) Regular maintenance and repair costs are known as ________ costs. A) service contract B) out-of-pocket C) fixed D) facilitating services E) value-augmentation

15) Products such as insurance, cemetery plots, and smoke detectors are examples of ________ goods that are products that the consumer does not know about or does not normally think of buying. A) specialty B) unsought C) heterogeneous shopping D) homogeneous shopping E) convenience

19) When Coca-Cola focused on developing its soft drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms. A) factor elimination B) marketing myopia C) factor reduction D) category points-of-parity E) reliance on product description

2) Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. A) market research B) market positioning C) marketing effectiveness D) market segmentation E) market dominance

2) Which of the following is an example of a pure tangible good? A) massage B) shampoo C) e-mail D) restaurant meal E) air travel

20) BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication try to give consumers a feeling of excitement and bravery. These ads appeal to the ________ dimension of brand experience. A) sensory B) affective C) behavioral D) intellectual E) social

24) According to the BrandAsset® Valuator model, which of the components of brand equity measures the breadth of a brand's appeal? A) differentiation B) relevance C) esteem D) knowledge E) value

25) Which of the following will help a service provider overcome the limits imposed by the inseparability of services? A) using differential pricing B) working with larger customer groups C) providing complementary services D) concentrating on physical evidence and presentation E) standardizing the service process

30) A travel agency offers weekend discounts for car rentals. What can be deduced from this? A) It is increasing peak-time efficiency. B) It is using differential pricing. C) It is using linear pricing. D) It is cultivating peak demand. E) It is providing complementary services.

30) As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The American Legacy Foundation is using ________ to reach Generation Y. A) computer games B) street teams C) unconventional sports D) online buzz E) videos

41) If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________. A) reliability B) conformance quality C) durability D) compatibility E) interoperability

42) ________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy. A) Design B) Style C) Durability D) Conformance E) Reliability

7) Which of the following is an example of a pure service? A) air travel B) psychotherapy C) baby oil D) a laptop E) a restaurant meal

8) Which of the following is true for services? A) All services are people-based, while goods are equipment-based. B) Service providers can be both for-profit or nonprofit. C) All service companies follow the same process to deliver their services. D) The client's presence is a hindrance during the service delivery process. E) Service providers develop similar marketing programs for personal services and business services.

83) Susanna wanted to check out a new salon in her locality, so she decided to go for a hair styling session. She was very happy with the way her stylist connected and related with her concerns. She is judging the service based on its ________. A) promotional marketing B) functional quality C) technical quality D) search qualities E) external marketing

150) Define brand variants.

Brand variants are specific brand lines supplied to specific retailers or distribution channels. They result from the pressure retailers put on manufacturers to provide distinctive offerings.

108) Dean recently had a BRZ broadband connection installed. However, the connection was poor and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior? A) involuntary switching B) competition C) response to service failure D) service encounter failures E) inconvenience

109) When Mercedes successfully introduced its C-Class cars at $30,000 without injuring its ability to sell other Mercedes cars for $100,000, it was an example of a successful ________. A) two-way stretch B) line pruning C) down-market stretch D) up-market stretch E) choice reduction

117) Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position — and to avoid association with its Explorer and Country Squire models — the vehicle, eventually called Freestyle, was designated a "sports wagon." According to the given scenario, Ford Motor Co. conveyed their brand's category membership by ________. A) announcing category benefits B) identifying counter examples C) relying on the product descriptor D) focusing on reliability E) comparing to exemplars

13) ________ are the most fashion-conscious of all racial and ethnic groups and are more likely to be influenced by their children when selecting a product for purchase, and less likely to be influenced by unfamiliar brands. A) Hispanic Americans B) Asian Americans C) African Americans D) LGBT customers E) American Indians

25) When consumers use Tide TOTALCARE laundry detergent, which is used by consumers who want to obtain dry-cleaning type results at home, it is an example of ________, or switching spending from one category to another while preserving a desired experience. A) trading up B) trading down C) trading over D) being trapped in the middle E) treasure hunting

41) Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence

10) A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand

101) A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them? A) responding to senior management wishes B) responding to consumer wishes C) reaching for incremental profits D) reaching for incremental capacity E) responding to sales-force demands

103) Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix. A) is ineffective on total B) has no effect on total C) maximizes D) minimizes E) capitalizes upon

104) Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it. A) product mix B) captive products C) product lines D) optional products E) average products

109) Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability

112) Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's category membership by ________. A) relying on the product descriptor B) comparing to exemplars C) announcing category benefits D) communicating deliverability variables E) identifying counter examples

115) Ellen came across an ad for a new restaurant that promised authentic French cuisine. When she ate there, however, she was disappointed to find that the food was mediocre and not very authentic. Which of the following gaps of service performance does this demonstrate? A) gap between service-quality specifications and service delivery B) gap between perceived service and expected service C) gap between service delivery and external communications D) gap between consumer expectation and management perception E) gap between management perception and service-quality specification

116) When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great US designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________. A) relying on the product descriptor B) focusing on reliability C) comparing to exemplars D) announcing category benefits E) identifying counter examples

121) Leo's manager has asked him and his teammates to demonstrate caring towards customers. They are instructed to learn customers' names, and use names while interacting with them. Repeat customers should get special attention, and the team members should remember their preferences and habits. The manager is asking the team to be ________. A) assuring B) candid C) empathetic D) reliable E) responsive

125) When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________ equity. A) private B) brand C) payment D) customer-service E) product-service

133) McDonald's restaurants inside Walmart stores and Starbucks inside Super Targets are examples of ________, whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands. A) cooperative marketing B) cross-promotion C) retail co-branding D) ingredient branding E) feature promotion

139) In ________ marketing, the firm operates in several market segments and designs different products for each segment. A) individual B) undifferentiated C) differentiated D) concentrated E) niche

14) Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. A) life stage B) gender C) age D) income E) social class

143) We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package. A) retailer B) design C) shipping D) consumer E) supplier

146) When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting ________. A) market mavens B) strategic segments C) supersegments D) occasion segments E) psychodemographic segments

24) ________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet. A) Hourglass products B) Mass market products C) Old Luxury brand extensions D) Masstige goods E) Accessible superpremium products

29) If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market. A) Generation Z B) Generation X C) Generation Y D) Silent generation E) Baby boomers

36) Kaya, a chain of skin clinics, requests each new visitor to fill in their own details on a printed form. This is a step in ________. A) increasing its peak-time efficiency B) creating nonpeak demand C) increasing consumer participation D) sharing its services E) facilitating its future expansions

38) According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer me something?" A) advantage B) presence C) relevance D) bonding E) performance

42) ________ are associations designed to overcome perceived weaknesses of the brand. A) Conceptual points-of-parity B) Category points-of-difference C) Competitive points-of-parity D) Competitive points-of-difference E) Category points-of-parity

43) According to the VALS segmentation system, ________ are conservative, conventional, and traditional people with concrete beliefs. They prefer familiar, US-made products and are loyal to established brands. A) Survivors B) Strivers C) Believers D) Makers E) Innovators

5) Which of the following best describes a car company's value proposition? A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets.

50) If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________. A) switchers B) shifting loyals C) split loyals D) hard-core loyals E) antiloyals

53) A brand mantra should be ________. A) original, ambiguous, and straightforward B) unique, complex, and inspirational C) communicative, simple, and inspirational D) competitive, sensitive, and simple E) unique, sensitive, and explanatory

58) ________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence

60) Which of the following types of differentiation relates to companies having better-trained personnel who provide superior customer service? A) channel differentiation B) services differentiation C) employee differentiation D) image differentiation E) product differentiation

68) From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development

69) Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place

70) Suppliers who are better at handling emergencies, product recalls, and inquiries are most likely to be differentiated based on their ________. A) innovativeness B) thoroughness C) resilience D) insensitivity E) reliability

8) If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation. A) demographic B) psychographic C) geographic D) cultural E) behavioral

80) ________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers. A) Interactive B) Internal C) External D) Promotional E) Direct

85) In which of the following does a customer respond to the functional quality of a service? A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit her looks. B) Kathy tries out a new restaurant every week because she likes to experience the variety. C) Bill has gone to the same chiropractor for the past fifteen years because he is friendly and takes the time to listen to Bill. D) Ray's mechanic charges high prices for service, but his work is good and worth the price. E) Alex has no interest in theater, but goes often because her best friend loves plays.

87) Charles Schwab's best customers are instantly directed to customer service representatives, while other customers have to wait longer. Charles Schwab is trying to ________. A) monitor its service systems B) empower the customers C) retain the patronage of profitable customers D) increase consumer participation E) standardize the service-performance process

89) Customers who view a service as homogeneous ________. A) only patronize a preferred service provider B) judge services on the basis of the providers C) care less about the provider than about the price D) pick a service provider based on functional attributes E) opt for the service with the highest price, irrespective of quality

159) Identify and describe three things that affect customer lifetime value.

Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling. Acquisition depends on the number of prospects, the acquisition probability of a prospect, and acquisition spending per prospect. Retention is influenced by the retention rate and retention spending level. Add-on spending is a function of the efficiency of add-on selling, the number of add-on selling offers given to existing customers, and the response rate to new offers.

161) A new trend in marketing is toward customerization. Describe what customerization is and how marketers are using it.

Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product or service offering of their choice. A company is customerized when it is able to respond to individual customers by customizing its products, services, and messages on a one-to-one basis.

100) The ________ determines the marketing program's ability to affect the customer mindset and is a function of the quality of the program investment. A) customer multiplier B) market multiplier C) shareholder value D) program multiplier E) price elasticity

111) Which of the following is an example of a gap between management perception and the service-quality specifications? A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting. B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong. C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters. D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed. E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

128) The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. A) measurable B) substantial C) differentiable D) accessible E) actionable

131) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. A) measurable B) substantial C) accessible D) differentiable E) actionable

149) Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________. A) payment equity B) value-augmenting services C) differential pricing D) facilitating services E) a primary service package

18) When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products with which a brand competes and which function as close substitutes, it is determining Dasani's ________. A) customer-focused value proposition B) points-of-parity C) points-of-difference D) category membership E) brand mantra

23) The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services. A) perishability B) intangibility C) heterogeneity D) inseparability E) variability

31) Which of the following statements about Gen Xers is true? A) Gen Xers are more optimistic and team-oriented. B) Gen Xers are selective, confident, and impatient. C) Gen Xers are highly socially conscious and concerned about environmental issues. D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key. E) Technology is a barrier for Gen Xers.

34) Which of the following is an example of a complementary service? A) Big department stores usually hire extra staff to handle the rush during the holiday season. B) The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini-vacation weekends for non-business customers as well. C) More paramedics are on hand to assist physicians during times when emergency admissions are highest. D) AXA Bank set up automated teller machines so that its customers could avoid standing in line. E) Chesterton College hires part-time teachers when enrollment goes up.

43) With respect to the "six brand building blocks," brand ________ focuses on customers' own personal opinions and evaluations. A) salience B) performance C) imagery D) judgment E) resonance

49) Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits

79) AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work

108) Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________ positioning allows the brand to create a point-of-parity (POP) on taste and a point-of-difference (POD) on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. A) Category-based B) Need-based C) Noncomparitive D) Straddle E) Price-quality

154) In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension

16) Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________. A) natural products B) component materials C) operating supplies D) equipment E) processed materials

2) A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________. A) performance B) utility C) tangibility D) price E) availability

2) The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." A) copyright B) trademark C) slogan D) brand E) logo

20) According to the BrandAsset® Valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand? A) esteem B) energized differentiation C) relevance D) knowledge E) presence

20) Those who favor localized marketing see national advertising as wasteful because it ________. A) gets too up close and personal with consumers B) drives up manufacturing and marketing costs by reducing economies of scale C) magnifies logistical problems D) fails to address local needs E) sends conflicting marketing messages

29) The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability

29) When a theater sells matinee movie tickets at low prices, it aims to shift some demand from the peak to the off-peak period. What is the strategy that the theater is said to be adopting? A) It is providing complementary services. B) It is increasing peak-time efficiency. C) It is using linear pricing. D) It is using differential pricing. E) It is sharing services.

30) The three criteria that determine whether a brand association can truly function as a point-of-difference include desirability, ________, and differentiability. A) discrimination B) customerization C) implementation D) deliverability E) demand

32) Which of the following statements accurately describes what demographers are calling the "boom-boom effect"? A) Consumers are demanding more "bang for their buck." B) Baby boomers still rule the marketplace. C) Generation Y and their concern about environmental issues will dominate the market in the future. D) Products that appeal to 21-year-olds also appeal to baby boomers. E) Companies must gain success quickly.

37) Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, he or she expects the bike to perform to specifications and to have a high ________, meeting the promised specifications. A) features B) conformance quality C) durability D) performance quality E) reliability

40) Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________. A) competitive points-of-difference B) competitive points-of-parity C) category points-of-difference D) category points-of-parity E) conceptual points-of-parity

41) According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands. A) Believers B) Strivers C) Makers D) Survivors E) Experiencers

41) With respect to the "six brand building blocks," brand ________ signifies how well the product or service meets customers' functional needs. A) judgment B) imagery C) salience D) performance E) resonance

44) For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence. A) conformance quality B) performance quality C) reparability D) durability E) style

47) With respect to the "six brand building blocks," brand ________ are customers' emotional responses and reactions with respect to the brand. A) imagery statements B) judgments C) performances D) feelings E) resonances

64) Which of the following is an example of channel differentiation? A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.

67) Customers today want separate prices for each service element, and they also want the right to select the elements they want. Customers are said to be pressing for ________ services. A) complementary B) perishable C) variable D) unbundled E) shared

67) If a brand is developing an offering with multiple frames of reference, which of the following is NOT advisable? A) create a combined positioning that addresses all competitors B) prioritize competitors C) choose the most important set of competitors to serve as the competitive frame D) adopt lowest common denominator positioning E) develop the best possible positioning for each type or class of competitors

7) Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10 percent premium on our chicken.

72) If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________. A) memorable B) meaningful C) likeable D) transferable E) adaptable

8) The sellers of ________ goods carry a wide assortment to satisfy individual tastes. They must have well-trained salespeople to inform and advise customers. A) unsought B) specialty C) convenience D) heterogeneous shopping E) generic

9) Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use. A) availability B) affordability C) aesthetics D) durability E) necessity

141) Coca-Cola's original marketing strategy that offered a single drink Coca-Cola Classic in a single sized bottle with the advertising theme "Coke is it," is an example of ________ marketing. A) concentrated B) niche C) differentiated D) micro E) undifferentiated

143) Which of the following is NOT one of the specific branding guidelines for small businesses? A) Creatively conduct low-cost marketing research. B) Leverage as many secondary associations as possible. C) Focus on building one or two strong brands based on one or two key associations. D) Create buzz and a loyal brand community. E) Use a trial-and-error approach.

17) ________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods. A) Raw materials B) Materials and parts C) Processed materials D) Capital goods E) Installations

22) ________, which combines the BrandAsset® Valuator dimensions of energized differentiation and relevance, is a leading indicator that predicts future growth and value. A) Brand stature B) A brand's power grid C) Brand presence D) Brand bonding E) Brand strength

25) According to BrandAsset® Valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________. A) position B) image C) depth D) knowledge E) strength

28) Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y. A) student ambassadors B) unconventional sports C) cool events D) computer games E) online buzz

34) A consumer who expresses rational and emotional attachments to a brand to the exclusion of most other brands has reached the ________ level in the BrandDynamics Pyramid. A) advantage B) relevance C) presence D) performance E) bonding

35) The two basic forms of points-of-parity are ________ points-of-parity and ________ points-of-parity. A) conceptual; competitive B) strategic; conceptual C) category; deliverable D) competitive; peculiar E) category; competitive

46) Delivery refers to how well a product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process. A) expedience B) intensity C) tangibility D) performance E) accuracy

76) The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) Personalized marketing B) Mass customization C) Globalized marketing D) Relationship marketing E) Integrated marketing

104) A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would the marketer most likely use to assist with the task? A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables

104) ________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies

106) Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee. A) pure bundling B) pure pricing C) mixed pricing D) captive pricing E) two-part pricing

107) In ________, the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products. A) pirating pricing B) captive pricing C) two-part pricing D) pure bundling E) mixed bundling

110) Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles. A) optional feature B) two-part C) by-product D) product line E) captive-product

110) MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the best possible menu thinking that food would be a priority, but the staff were disappointed because the activities were very poorly planned. What kind of a gap is apparent here? A) gap between perceived service and expected service B) gap between service delivery and external communications C) gap between service-quality specifications and service delivery D) gap between management perception and service-quality specification E) gap between consumer expectation and management perception

12) What types of goods are purchased frequently, immediately, and with minimum effort by the consumers? A) specialty goods B) shopping goods C) unsought goods D) durable goods E) convenience goods

126) According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies. A) liquidity trap B) cognitive dissonance C) branding fallout D) cannibalization E) line-extension trap

126) In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. A) segment "acid test" B) segment attractiveness C) segment profitability D) need-based segmentation E) segment identification

13) Services high in ________ qualities are those services that have characteristics the buyer normally finds hard to evaluate even after consumption. A) trial B) search C) experience D) privacy E) credence

133) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany? A) language B) pitch C) cast D) setting E) narrative arc

143) ________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice. A) Consumptionism B) Viral marketing C) Virtual marketing D) Regionalization E) Customerization

147) Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition. A) not known B) different C) inferior D) equivalent E) superior

15) The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 is an illustration of the fact that baby boomers may be ________. A) male-oriented B) female-oriented C) Young Digerati D) Cosmopolitans E) psychologically young

15) Which one of the following is highest in search qualities? A) a play at a theater B) a meal at a restaurant C) a haircut D) psychotherapy E) a computer

22) Which of the following is true regarding services? A) Services are typically produced, stored, and then consumed. B) Services are generally low in experience and credence qualities. C) Service providers develop similar marketing programs for personal services and business services. D) There is less risk associated with the purchase of services than with the purchase of goods. E) Provider-client interaction is a special feature of services marketing.

23) ________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium Old Luxury brands and are also based on emotions. A) Old Luxury brand extensions B) Accessible superpremium products C) Luxury items D) Hourglass products E) Masstige goods

29) According to BrandAsset® Valuator model, declining brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) high relevance — appropriateness of brand's appeal — a lower level of energy and differentiation, and even lower knowledge C) high levels on energy, differentiation, relevance, knowledge, and esteem D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still E) high knowledge — evidence of past performance — a lower level of esteem, and even lower relevance, energy, and differentiation

44) With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty? A) salience B) imagery C) feelings D) judgments E) resonance

47) ________ refers to data, information systems, and advice services that the seller offers to their buyers. A) Sales force relationships B) Customer relationships C) Open source technology D) Customer training E) Customer consulting

50) Which of the following actions would result in the elimination of uncontrollable returns of products in the short run? A) improved handling B) better packaging C) improved transportation D) proper storage E) cannot be eliminated

51) Smith & Adams Poultry has recently upgraded its transactional model such that its customers (restaurants and hotels) can communicate with its central supply system to indicate purchase volumes, dates, and receive confirmation, through their computer terminals. This is an example of a company differentiating itself versus competition in terms of ________. A) customer relationships B) customer training C) installation D) delivery ease E) ordering ease

83) A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________. A) product type B) product class C) need family D) product variant E) product line

86) Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines. A) type B) length C) class D) mix E) width

90) Belling Hotels provides a complimentary breakfast buffet to all guests. This is an example of a ________. A) primary service package B) service interface C) service support D) service frequency E) secondary service feature

5) Physical goods, services, and stores can be branded, but ideas and people cannot.

FALSE

51) Brand equity arises from unanimity in consumer response.

FALSE

57) Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

FALSE

73) Points-of-parity are attributes or benefits consumers strongly associate with a brand and believe that they could not find to the same extent with a competitive brand.

FALSE

76) Brands like Victoria's Secret underwear and Kettle gourmet potato chips, which carry a significant premium over middle-market brands, but are easy to trade-up to because they are relatively low-ticket items in affordable categories, are called Masstige brands.

FALSE

83) If a brand element has the characteristic of being memorable, the brand is credible and suggestive of the type of person who might use the brand.

FALSE

87) There are situations in which consumers know a brand's category membership but may not be convinced the brand is a valid member of the category.

FALSE

100) Secondary service features are the features that the customer himself or herself adds to the service.

FALSE

107) Brand equity is essentially the same as brand valuation.

FALSE

108) When Interbrand uses competitive benchmarking and a structured evaluation of the brand's clarity, commitment, protection, responsiveness, relevance, differentiation, consistency, presence, and understanding to determine the likelihood the brand will realize forecasted Brand Earnings, it is calculating Brand Value.

FALSE

110) Purchasing approaches segmentation variables in the business marketplace include technology, user and nonuser status, and general purchasing policies.

FALSE

112) A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.

FALSE

117) Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.

FALSE

123) Pure bundling occurs when a firm offers goods both individually and in bundles.

FALSE

124) A buyer of the 2013 Subaru Outback 2.5i could pay extra for four-way passenger seats, an All-Weather package, and a power moon roof because Subaru was using captive-product pricing.

FALSE

127) Pricing has no negative effect on customer loyalty.

FALSE

128) If expected service falls below perceived service, customers are disappointed.

FALSE

13) The result of positioning is the successful creation of an employee-focused value proposition.

FALSE

130) Reliability refers to the company's willingness to help customers and provide them with prompt service.

FALSE

130) When Honda expanded its brand into such areas as automobiles, snow blowers, and marine engines, it was pursuing a strategy called line extension.

FALSE

132) Flankers are brands that may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.

FALSE

137) ESPN Zone restaurants tap into competitive masculinity and American Girl dolls tap into mother-daughter relationship and the cross-generational transfer of femininity. These are examples of narrative arcs.

FALSE

137) In Hershey Kisses candy, Hershey would be considered a branded variant.

FALSE

140) Cash cows, or fighter brands, include products like Busch Bavarian and Intel Celeron, which are positioned with respect to the competitors' brands so that more important and profitable flagship brands can retain their desired positioning.

FALSE

140) If the variants within the Tide product under P&G's detergent line included Tide with Acti-Lift, Tide Plus Febreze Freshness Sport, Tide Plus Febreze, Tide Free, Tide Plus Downy, Tide Coldwater, Tide TOTALCARE, and Tide Free for Coldwater, and all were available in Pods, Liquids, Liquids for HE machines, and Powder formats, the width of the product mix would be 32 because there would be 32 distinct variants.

FALSE

141) A brand that is seen as prototypical of a product category is easy to extend outside the category.

FALSE

145) While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms.

FALSE

152) Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

FALSE

155) Value-augmenting services include installation, staff training, maintenance and repair services, and financing.

FALSE

20) In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value.

FALSE

21) A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

FALSE

21) The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.

FALSE

22) The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.

FALSE

23) Using the industry approach, competitors are defined as companies that satisfy the same customer need.

FALSE

26) A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.

FALSE

29) Supplies can be classified as two kinds: heterogeneous supplies and homogeneous supplies.

FALSE

39) A service results in ownership on the part of the client.

FALSE

40) The production of a service is never tied to a physical product.

FALSE

43) A hybrid consists of unequal parts of goods and services, with services being in the majority.

FALSE

44) A pure service requires a capital-intensive good, but the primary item is a service.

FALSE

45) All services require the client to be present.

FALSE

47) Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption.

FALSE

49) Furniture is high in credence qualities.

FALSE

51) Services have five distinctive characteristics, one of these being "pure service."

FALSE

52) Intangibility with regards to a service means that the service cannot be duplicated across providers.

FALSE

52) The quantity, rather than quality, of a marketer's investment in brand building is the critical factor in building brand equity.

FALSE

52) To be branded, physical products need not be differentiated.

FALSE

56) Customer cloning is the practice of identifying the key characteristics of a market segment and then identifying multiple geographic areas where the majority of the population possesses those characteristics.

FALSE

57) Brand imagery is a consumer's emotional response and reaction with respect to the brand.

FALSE

58) Local marketing reflects a growing trend called macromarketing.

FALSE

60) Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe.

FALSE

63) Income always predicts the best customers for a given product.

FALSE

65) Baby boomers are consumers who have been "wired" almost from birth — playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones.

FALSE

72) Associations that make up points-of-difference are based exclusively on product features.

FALSE

73) In the VALS segmentation system, Thinkers are characterized as being successful, sophisticated, active, "take-charge" people with high self-esteem.

FALSE

74) Everyone who buys a given product wants the same benefits from it.

FALSE

79) Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective.

FALSE

79) With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.

FALSE

80) Hard-core loyals can show the firm which brands are most competitive with its own.

FALSE

82) Colleges all over the country — from Western Washington University to Brown University, the University of Vermont, and the University of California at Berkeley — are encouraging the sale of plain bottled water.

FALSE

158) Explain the concept of mass marketing.

In mass marketing, the firm ignores segment differences and goes after the whole market with one offer. It designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers via mass distribution and mass communications.

156) Traditionally, customers have had three specific worries about product service. What are they?

Manufacturers of equipment — small appliances, office machines, tractors, mainframes, airplanes — all must provide product-support services. The three specific worries about product services that customers face are: 1. They worry about reliability and failure frequency. For example, a farmer may tolerate a combine that will break down once a year, but not two or three times a year. 2. They worry about downtime. The longer the downtime, the higher the cost. The customer counts on the seller's service dependability which refers to the seller's ability to fix the machine quickly or at least provide a loaner. 3. They worry about out-of-pocket costs, which refers to the amount they have to spend on regular maintenance and repair costs.

75) Provide four examples of companies that used solutions to service failures.

Student answers will vary. 1. Redesign processes and redefine customer roles to simplify service encounters. Staples transformed its business with its "Easy" program to take the hassle out of ordering office supplies. 2. Incorporate the right technology to aid employees and customers. Comcast, the largest US cable operator, introduced software to identify network glitches before they affected service and to better inform call-center operators about customer problems. Repeat service calls dropped 30 percent as a result. 3. Create high-performance customers by enhancing their role clarity, motivation, and ability. USAA reminds enlisted policyholders to suspend their car insurance when they are stationed overseas. 4. Encourage "customer citizenship" so customers help each other. At golf courses, players cannot only follow the rules by playing and behaving appropriately, they can encourage others to do so.

103) How does a company differentiate its market offerings using employee differentiation? Provide an example of a company using employee differentiation.

Student answers will vary. A company differentiating its market offerings using employee differentiation, does so by having better-trained personnel who provide superior customer service. Singapore Airlines is well regarded in large part because of its flight attendants.

64) Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel with excellent service at an affordable price. However, the intangible nature of services makes this difficult to demonstrate. How can Bryson's convey its message effectively to prospective guests using marketing tool of place?

Student answers will vary. Bryson's should try to demonstrate its service quality through physical evidence and presentation. Bryson's can use "place," i.e., the hotels themselves, by designing the hotels to reflect its desired attributes. The hotel design should not be too ornate or fancy, but not too basic either.

125) Give an example of how a brand can be affiliated with a category in which it does not hold membership.

Student answers will vary. DiGiorno's frozen pizza has adopted a positioning strategy that identifies with a different category from its own — instead of putting it in the frozen pizza category, the marketers have positioned it in the delivered pizza category with ads that claim, "It's Not Delivery, It's DiGiorno!"

26) Belling is a chain of coffee shops. List possible competitors first from an industry point of view and then from the market point of view.

Student answers will vary. From an industry point of view, Belling's competitors will be other coffee shops, coffee machines, and outlets that sell coffee in addition to other foods. From a market point of view, Belling's competitors could be anything from restaurants to supermarkets selling ready-to-drink coffee.

78) Bryson's is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel chain with excellent service at an affordable price. How can it achieve this using internal marketing?

Student answers will vary. Internal marketing describes training and motivating employees to serve customers well. Employees must be trained to provide the required service quality, as well as motivated to achieve that level. Bryson's can use incentives for the best performers in order to encourage this.

94) With the help of an example, explain straddle positioning.

Student answers will vary. Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. In these cases, the points-of-difference for one category become points-of-parity for the other and vice versa. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. Straddle positions allow brands to expand their market coverage and potential customer base.

135) Brand storytelling is a less-structured approach to brand positioning.

TRUE

143) United Technologies is a good example of a house of brands strategy because it uses individual or separate family brand names including Otis elevators, Carrier heaters and air conditioners, Hamilton Sundstrand aerospace and industrial, and Sikorsky helicopters.

TRUE

38) A service is essentially intangible.

TRUE

64) Members of the same generational cohort share the same major cultural, political, and economic experiences and have similar outlooks and values.

TRUE

70) Psychographics is the science of using psychology and demographics to better understand consumers.

TRUE

70) The highest-ranking companies in a 2013 Forrester study of services that meet customer needs and were easy and enjoyable to do business with included Marshalls, TJ Maxx, JCPenney, and Marriott Hotels & Resorts.

TRUE

77) In the aftermath of a crippling recession, luxury for many has become more about style and substance, combining personal pleasure and self-expression.

TRUE

95) Clients judge service not only by its technical quality but also by its functional quality.

TRUE

106) The brand audit can be used to set strategic direction for the brand.

TRUE

11) All marketing strategy is built on segmentation, targeting, and positioning.

TRUE

111) Situational factor segmentation variables in the business marketplace include urgency, specific application, and size of order.

TRUE

111) The product hierarchy stretches from basic needs to particular items that satisfy those needs.

TRUE

118) In the rapidly changing market of today's world, product lines must be continuously updated or modernized.

TRUE

118) The product descriptor that follows the brand name is often a concise means of conveying category origin.

TRUE

119) Price-setting logic must be modified when the product is part of a product mix.

TRUE

12) Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.

TRUE

120) Companies normally develop product lines rather than a single product and introduce price steps such as a low-, average-, and high-priced computer system.

TRUE

121) A leverageable advantage is one that a company can use as a springboard to new advantages.

TRUE

123) One of the ways to communicate category membership is to rely on the product descriptor, like when Ford positioned its Freestyle automobile, which combined the attributes of an SUV, a mini-van, and a station wagon, as a "sports wagon."

TRUE

128) When a parent brand covers a new product within a product category it currently serves, it is called a line extension.

TRUE

131) Increasing shelf presence and retailer dependence in the store is one of the reasons for introducing multiple brands in a category.

TRUE

131) The appearance of physical facilities, equipment, personnel, and communication materials are the tangibles that convey service quality to consumers.

TRUE

132) The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

TRUE

133) To be useful, market segments must be measurable.

TRUE

134) Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.

TRUE

135) A customer-service interface is defined as any place at which a company seeks to manage a relationship with a customer.

TRUE

141) Product line analysis provides information for two key decision areas — product line length and product mix pricing.

TRUE

142) A successful extension cannot only contribute to the parent brand image but also enable a brand to be extended even farther.

TRUE

148) Packaging includes the activities of designing and producing a container for a product.

TRUE

151) An attractive niche consists of customers having a distinct set of needs.

TRUE

152) The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

TRUE

154) A company is customerized when it is able to respond to individual customers by customizing its products, services, and messages on a one-to-one basis.

TRUE

157) Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.

TRUE

158) Both brand equity and customer equity emphasize the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible.

TRUE

18) Marketing planning begins with formulating an offering to meet target customers' needs or wants.

TRUE

19) A product is anything that can be offered to a market to satisfy a want or need.

TRUE

20) Category membership is seen as the products that function as close substitutes of a brand.

TRUE

22) Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

TRUE

24) To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.

TRUE

27) The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

TRUE

4) Consumers may evaluate identical products differently depending on how they are branded.

TRUE

41) Soap is an example of a pure tangible good.

TRUE

46) The search qualities of a service are the characteristics the buyer can evaluate before purchase.

TRUE

48) The experience qualities of a good or service can be evaluated after purchase.

TRUE

50) One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.

TRUE

53) According to BrandAsset® Valuator (BAV) model, knowledge is one of the key components of brand equity.

TRUE

53) To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

TRUE

55) A service provider can work with larger groups to get around the limitations of inseparability.

TRUE

59) A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

TRUE

59) The ability to design custom jeans through Levi's and create merchandise with your own images through Zazzle are examples of mass customization.

TRUE

61) Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

TRUE

67) Design can shift consumer perceptions to make brand experiences more rewarding.

TRUE

68) Baby boomers are less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships.

TRUE

69) Customers want unbundled services, with separate prices for each service element and the right to select the elements they want.

TRUE

69) Design thinking requires intensive ethnographic studies of consumers, creative brainstorming sessions, and collaborative teamwork to decide how to bring the design idea to reality.

TRUE

69) The norms, language nuances, buying habits, and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy, rather than added as an afterthought.

TRUE

71) When golf courses provide rules for playing and behaving appropriately, and customers encourage other customers to follow the same rules, they are encouraging customer citizenship via customer coproduction.

TRUE

72) Customers cause many service failures, and the number of customer-caused failures is increasing.

TRUE

72) The main dimensions of the VALS segmentation framework are consumer motivation and consumer resources.

TRUE

78) A competitive point-of-parity negates competitors' perceived points-of-difference.

TRUE

78) Heavy users of a particular product are often a small percentage of the market but account for a high percentage of total consumption.

TRUE

81) Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.

TRUE

81) Environmental concerns matter to consumers, and they expect companies to make changes to address their concerns.

TRUE

83) The purpose of brand mantras is to ensure that employees and external marketing partners understand what the brand is in order to represent it to the customers.

TRUE

85) To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise.

TRUE

86) Brand equity can be built by linking the brand to sources, such as channels of distribution as well as to other brands.

TRUE

87) A brand promise will not be delivered unless everyone in a company lives the brand.

TRUE

88) The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.

TRUE

89) A brand community can be a constant source of inspiration and feedback for product improvements or innovations.

TRUE

89) Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match.

TRUE

160) Compare and contrast brand equity and customer equity.

The brand equity and customer equity perspectives both emphasize the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible. In practice, however, the two perspectives emphasize different things. The customer equity perspective focuses on bottom-line financial value. Its clear benefit is its quantifiable measures of financial performance. But it offers limited guidance for go-to-market strategies. It largely ignores some of the important advantages of creating a strong brand, such as the ability to attract higher-quality employees, elicit stronger support from channel and supply chain partners, and create growth opportunities through line and category extensions and licensing. The customer equity approach can overlook the "option value" of brands and their potential to affect future revenues and costs. It does not always fully account for competitive moves and countermoves or for social network effects, word of mouth, and customer-to-customer recommendations. Brand equity, on the other hand, tends to emphasize strategic issues in managing brands and creating and leveraging brand awareness and image with customers. It provides much practical guidance for specific marketing activities. With a focus on brands, however, managers don't always develop detailed customer analyses in terms of the brand equity they achieve or the resulting long-term profitability they create. Brand equity approaches could benefit from sharper segmentation schemes afforded by customer-level analyses and more consideration of how to develop personalized, customized marketing programs — whether for individuals or for organizations such as retailers. There are generally fewer financial considerations put into play with brand equity than with customer equity.

109) Identify and describe the four value stages of the brand value chain.

The brand value creation process begins when the firm invests in a marketing program targeting actual or potential customers. Next, customers' mindsets are assumed to change as a result of the marketing program. This change affects the way the brand performs in the marketplace through the collective impact of individual customers deciding how much to purchase and when, how much they'll pay, and so on. Finally, the investment community considers market performance and other factors such as replacement cost and purchase price in acquisitions to arrive at an assessment of shareholder value in general and the value of a brand in particular.

136) List the eight different variables that influence service outcome and customer loyalty.

The eight major variables that influence service outcome and customer loyalty are: 1. Pricing: High price, price increases, unfair pricing, or deceptive pricing prompt customers to change their loyalty. 2. Inconvenience: If a customer is made to wait for his appointment or service, there is a chance that he will think of shifting his loyalty. 3. Core service failure: Service failures, billing errors, or service catastrophe influence service outcome and customer loyalty. 4. Service encounter failures: If the customer service representative is uncaring, impolite, unresponsive, or unknowledgeable, the service outcome and customer loyalty is influenced. 5. Response to service failure: If the customer service representative exhibits negative response or reluctant response or no response at all, the customer's loyalty is likely to shift. 6. Competition: A customer's loyalty changes if he finds a better service. 7. Ethical problems: If a customer thinks that the service provider is a cheat or his services are unsafe, then he starts looking for another service provider. 8. Involuntary switching: If the customer has to shift his base or the service provider has to close down, the customer's loyalty undergoes an involuntary shifting.

98) Consumer attitudes are an interesting way to segment a market. What are the five different consumer attitudes about a product that can be found in the market?

The five attitude groups are: 1. enthusiastic 2. positive 3. indifferent 4. negative 5. hostile

138) Based on the service-quality model, researchers have identified five determinants of service quality. List and briefly explain each.

The five determinants of service quality are: 1. Reliability: It is the ability to perform the promised service dependably and accurately. 2. Responsiveness: It refers to the willingness to help customers and to provide prompt service. 3. Assurance: It is the knowledge and courtesy of employees and their ability to convey trust and confidence. 4. Empathy: It refers to the provision of caring, individualized attention to customers. 5. Tangibles: It is the appearance of physical facilities, equipment, personnel, and communication materials.

143) The last time Betty visited Zing's, the food was excellent. Tonight is her anniversary and she was looking forward to an enjoyable evening. After the meal, she starts feeling that the service was not up to par and the evening was not as successful as she had hoped. According to the service-quality model, which gap is obvious here?

The gap prevalent here is the gap between perceived service and expected service. This gap occurs when the customer misperceives the service quality.

60) Describe the six main service differentiators.

The main service differentiators are ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair. 1. Ordering ease refers to how easy it is for the customer to place an order with the company. 2. Delivery refers to how well the product or service is brought to the customer. It includes speed, accuracy, and care throughout the process. 3. Installation refers to the work done to make a product operational in its planned location. Ease of installation is a true selling point for buyers of complex products like heavy equipment and for technology novices. 4. Customer training helps the customer's employees use the vendor's equipment properly and efficiently. 5. Customer consulting includes data, information systems, and advice services the seller offers to buyers. 6. Maintenance and repair programs help customers keep purchased products in good working order.

157) An oil drilling company ordered a number of pumpjacks for its operations. The pumpjack is an essential part of its operations and the company needs the equipment to be operational at all times. How can the pumpjack manufacturer demonstrate its service dependability?

The manufacturer can demonstrate its dependability by being prompt to repair the equipment when it fails, and providing replacements when the repairs will take a long time.

158) An oil drilling company ordered a pumpjack for its operations. The pumpjack manufacturing company not only set up the machine but also provided training to the people who needed to use it. It also let the drilling company know that it would be undertaking the maintenance and repair services for the pumpjack. What kind of a service is the manufacturing company providing?

The manufacturing company is said to be providing facilitating services.

156) In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer oriented) that you wish to see implemented by the design team.

The objectives of packaging are to identify the brand; convey descriptive and persuasive information; facilitate product transportation and protection; assist at-home storage; and aid product consumption.

134) Briefly describe the steps in the segmentation process.

The seven steps in the segmentation process include: 1. Needs-Based Segmentation — Group customers into segments based on similar needs and benefits sought by customers in solving a particular consumption problem. 2. Segment Identification — For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable (actionable). 3. Segment Attractiveness — Using predetermined segment attractiveness criteria (such as market growth, competitive intensity, and market access), determine the overall attractiveness of each segment. 4. Segment Profitability — Determine segment profitability. 5. Segment Positioning — For each segment, create a "value proposition" and product-price positioning strategy based on that segment's unique customer needs and characteristics. 6. Segment "Acid Test" — Create "segment storyboard" to test the attractiveness of each segment's positioning strategy. 7. Marketing-Mix Strategy — Expand segment positioning strategy to include all aspects of the marketing mix: product, price, promotion, and place.

60) The creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid. What are the six components of the brand resonance pyramid?

The six components of the brand resonance pyramid include: 1. brand salience — relates to how often and easily the brand is evoked under various purchase or consumption situations 2. brand performance — relates to how the product or service meets customers' functional needs 3. brand imagery — deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet the customers' psychological or social needs 4. brand judgments — focus on consumers' own personal opinions and evaluations 5. brand feelings — customers' emotional responses and reactions with respect to the brand 6. brand resonance — refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are "in sync" with the brand.

64) When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.

The six main service differentiators are ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair.

66) According to the BrandZ model of brand strength, brand building involves a series of five sequential steps. What are those five sequential steps?

The steps are in ascending order: 1. presence 2. relevance 3. performance 4. advantage 5. bonding

101) Marketing excellence with services requires excellence in three broad areas. List and explain the three areas.

The three areas in which services require excellence are: 1. External marketing: This describes the normal work of preparing, pricing, distributing, and promoting the service to customers. 2. Internal marketing: This describes training and motivating employees to serve customers well. 3. Interactive marketing: This describes the employees' skill in serving the client. Clients judge service not only by its technical quality but also by its functional quality.

33) Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.

The three groups of industrial goods include: 1. Materials and parts are goods that enter the manufacturer's product completely. Raw materials (farm and natural products) and manufactured materials and parts (component materials and component parts) compose this group. 2. Capital items are long-lasting goods that facilitate developing or managing the finished product, such as machinery (installations and equipment). 3. Supplies and business services are short-term goods and services that facilitate developing or managing the finished product; maintenance and repair and operating supplies are included here. Business supplies include advisory services and other "services" necessary for the ongoing operation of the business.

58) Describe the three ingredients of customer-based brand equity.

The three key ingredients of customer-based brand equity are as follows: 1. Brand equity arises from differences in consumer response. If no differences occur, the brand-name product is essentially a commodity, and competition will probably be based on price. 2.

127) How can coffee shop chain Belling convey its category membership? List the methods it can use to achieve this.

The three main ways to convey a brand's category membership are: announcing category benefits; comparing to exemplars; and relying on the product descriptor.

97) Given that the power of a brand resides in the minds of consumers and how it changes their response to marketing, there are two basic approaches to measuring brand equity. Briefly, describe each of these approaches.

The two approaches are: 1. an indirect approach that assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures 2. a direct approach that assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing

128) As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first?

The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference. Presumably, consumers need to know what a product is and what function it serves before deciding whether it dominates the brands against which it competes.

125) Explain the concepts of product-mix width, length, depth, and consistency.

The width of a product mix refers to how many different product lines the company carries. The length of a product mix refers to the total number of items in the mix. The depth of a product mix refers to how many variants are offered of each product in the line and is determined by dividing the total number of items by the number of lines. The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

126) Product-mix pricing can involve a number of pricing strategies for the brand manager. List each of these strategies and briefly define each.

There are six situations involving product-mix pricing: 1. product-line pricing — low-, medium-, and high-priced products within the same line, such as different priced ties 2. optional-feature pricing — charging for "extra" features, such as leather seats in a car 3. captive-product pricing — when the "user" has no choice but to use the high-priced "disposable" products that make the entire product work (for example, ink cartridges for printers) 4. two-part pricing — consisting of a fixed fee and a variable usage fee (cell phone usage) 5. by-product pricing — the price of the by-products of goods being used for other purposes (oil refining for example) 6. product-bundling pricing — pure bundling when the firm offers its products only as a bundle, or mixed bundling when the firm offers its products as a "bundle" and/or individually

35) Studying how consumers shop, how they use a particular product or service, and how they dispose of the product when consumed is important for marketers. This information forms the basis of product strategy. Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

This is called the user's total consumption system, defined as the way the user performs the tasks of getting and using products and related services. This is important because it will contain information useful in the product-augmentation strategy and the potential product strategy.

60) List three steps that service firms can take to increase quality control over services and reduce variability.

Three steps that service firms can take to increase quality control and reduce variability in services are: 1. Invest in good hiring and training procedures: Recruiting the right employees and providing them with excellent training is crucial, regardless of whether employees are highly skilled professionals or low-skilled workers. Better-trained personnel exhibit six characteristics: competence, courtesy, credibility, reliability, responsiveness, and communication. 2. Standardize the service-performance process throughout the organization: A service blueprint maps out the service process, the points of customer contact, and the evidence of service from the customer's point of view. 3. Monitor customer satisfaction: Service firms can employ suggestion and complaint systems, customer surveys, and comparison shopping. Customer needs vary in different areas. This allows firms to develop region-specific customer satisfaction programs. Firms can also develop customer information databases and systems for more personalized service, especially online.

156) Briefly describe product specialization and market specialization.

With product specialization, the firm sells a certain product to several different market segments. A microscope manufacturer, for instance, sells to university, government, and commercial laboratories, making different instruments for each and building a strong reputation in the specific product area. The downside risk is that the product may be supplanted by an entirely new technology. With market specialization, the firm concentrates on serving many needs of a particular customer group, such as by selling an assortment of products only to university laboratories. The firm gains a strong reputation among this customer group and becomes a channel for additional products its members can use. The downside risk is that the customer group may suffer budget cuts or shrink in size.

91) Identify ways in which shopping behaviors differ between men and women.

Women tend to be more communal minded and men tend to be more self-expressive and goal directed. Women tend to take in more of the data in their immediate environment, whereas men focus on the part of the environment that helps them achieve a goal. When shopping, men often need to be invited to touch a product, whereas women are likely to pick it up without prompting. Men like to read product information, whereas women may relate to a product on a more personal level.

32) You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

• Nondurable goods — the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. • Durable goods — tangible goods that normally survive many uses. Durable products normally require more personal selling and service, command a higher margin, and require more seller guarantees. • Services — intangible, inseparable, variable, and perishable products. They require more quality control, supplier credibility, and adaptability.

61) Several strategies exist for managing the supply and demand of services. List the strategies for managing each and give an example of each strategy.

Student answers will vary. Several strategies can produce a better match between service demand and supply. On the demand side, these strategies include the following: • differential pricing: This will shift some demand from peak to off-peak periods. For example, low matinee movie prices and weekend discounts for car rentals. • Nonpeak demand: This can be cultivated. For instance, McDonald's pushes its breakfast service, and hotels promote mini-vacation weekends. • Complementary services: These can provide alternatives to waiting customers. For example, cocktail lounges in restaurants and automated teller machines in banks. • Reservation systems: These are one of the many ways to manage the demand level. For instance, airlines, hotels, and physicians employ them extensively. On the supply side, these strategies include the following: • Part-time employees: They can serve peak demand. For example, colleges add part-time teachers when enrollment goes up and stores hire extra clerks during holiday periods. • Peak-time efficiency: These routines can allow employees to perform only essential tasks during peak periods. For instance, paramedics assist physicians during busy periods. • Increased consumer participation: This frees service providers' time. For example consumers can fill out their own medical records or bag their own groceries. • Shared services: These can improve offerings. For instance, several hospitals can share medical-equipment purchases. • Facilities for future expansion: This can be a good investment. For example, an amusement park can buy surrounding land for later development.

129) Provide three examples of negatively correlated attributes and benefits.

Student answers will vary. Some examples of negatively correlated attributes and benefits are: low price versus high quality, taste versus low calories, strong versus refined, powerful versus safe, and ubiquitous versus exclusive.

100) Give an example of the use of straddle positioning.

Student answers will vary. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés.

53) Service companies try to demonstrate their service qualities through physical evidence and presentation.

TRUE

115) Every company's product line covers a certain part of the total possible range of products and consumer levels.

TRUE

118) A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

TRUE

129) Responsiveness is a company's willingness to help customers and provide prompt service.

TRUE

139) Research indicates that high-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.

TRUE

151) A guarantee's greatest contribution to a product's success is that it decreases the buyer's perceived risk in the purchase of the product.

TRUE

54) Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace.

TRUE

55) A market segment consists of a group of consumers who share a similar set of needs and wants.

TRUE

55) Under the BrandZ model of brand strength, customers who are bonded to the brand believe "nothing else beats it."

TRUE

57) A demand side strategy that can produce a better match between service demand and supply is differential pricing.

TRUE

58) The cost of processing a return can be significantly greater than that of an outbound shipment.

TRUE

81) Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity.

TRUE

82) One of the selection criteria for creating a successful brand element is that it should be protectable.

TRUE

82) Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.

TRUE

92) When change is necessary, marketers should vigorously preserve and defend sources of brand equity.

TRUE

99) What the customer expects from a service is called the primary service package.

TRUE

model? List and briefly characterize the four key components (pillars) of brand equity.

The BAV model is based on research of almost 800,000 consumers in 51 countries. BAV provides comparative measures of the brand equity of thousands of brands across hundreds of different categories. There are four key components — or pillars — of brand equity. These pillars are: 1. energized differentiation — measures the degree to which a brand is seen as different from others, and its perceived momentum and leadership 2. relevance — measures the appropriateness and breadth of a brand's appeal 3. esteem — measures perceptions of quality and loyalty, or how well the brand is regarded and respected 4. knowledge — measures how aware and familiar consumers are with the brand

86) Generation Y members are often turned off by overt branding practices and "hard sell." List and provide examples for the different approaches tried by the marketers to reach and persuade them.

The different approaches tried by the markets to reach and persuade Generation Y members include: • Online buzz — Rock band Foo Fighters created a digital street team that sends targeted e-mail blasts to members who "get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family." • Student ambassadors — Red Bull enlisted college students as Red Bull Student Brand Managers to distribute samples, research drinking trends, design on-campus marketing initiatives, and write stories for student newspapers. • Unconventional sports — Chick-fil-A sponsored the National Amateur Dodgeball Association, "a recreational pursuit for nontraditional sport enthusiasts." • Cool events — Hurley, which defined itself as an authentic "Microphone for Youth" brand rooted in surf, skate, art, music, and beach cultures, became the title sponsor of the US Open of Surfing. Other sponsors included Casio, Converse, Corona, Paul Mitchell, and Southwest Airlines. • Computer games — Product placement is not restricted to movies or TV: Mountain Dew, Oakley, and Harley-Davidson all made deals to put logos on Tony Hawk's Pro Skater 3 from Activision. • Videos — Burton ensures its snowboards and riders are clearly visible in any videos that are shot. • Street teams — As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events.

148) The decision as to how to brand new products is critical. When a firm introduces a new product, it has three main choices. What are those choices?

The firm can: develop new brand elements for the new product, apply some of its existing brand elements, or use a combination of new and existing brand elements.

58) List and briefly explain with examples the five categories of service offerings.

The five categories of service offerings are: 1. Pure tangible goods: These are tangible goods with no accompanying services. For example, soap or toothpaste. 2. Tangible good with accompanying services: The tangible good is accompanied by one or more services. Typically, the more technologically advanced the product, the greater the need for high-quality supporting services. For instance, car or computer. 3. Hybrid: It is an offering of equal parts goods and services. For example, a meal in a restaurant. 4. Major service with accompanying minor goods and services: This offering requires a capital-intensive good, but the primary item is a service. For instance, an air travel that is accompanied by snacks and drinks. 5. Pure service: This refers primarily to an intangible service. For example, psychotherapy or massage.

137) The service-quality model highlights the main requirements for delivering high service quality. Which are the five gaps that cause unsuccessful delivery?

The five gaps that cause unsuccessful customer service delivery are as follows: 1. The gap between consumer expectation and management perception: The management does not always correctly perceive what customers want. 2. The gap between management perception and service-quality specification: The management might correctly perceive customers' wants but not set a performance standard. 3. The gap between service-quality specifications and service delivery: The employees might be poorly trained, or incapable of or unwilling to meet the standard, or they may be held to conflicting standards, such as taking time to listen to customers and serving them fast. 4. The gap between service delivery and external communications: The consumers' expectations are affected by statements made by company representatives and ads. 5. The gap between perceived service and expected service: This gap occurs when the consumer misperceives the service quality.

59) List and briefly explain the four distinctive characteristics of services.

The four distinctive service characteristics that greatly affect the design of marketing programs are: 1. Intangibility: Services cannot be seen, tasted, felt, heard, or smelled before they are bought. To reduce uncertainty, buyers will look for evidence of quality by drawing inferences from the place, people, equipment, communication material, symbols, and price. 2. Inseparability: Services are typically produced and consumed simultaneously. Both the provider and the client are a part of the service. 3. Variability: Because services depend on who provides them and when and where, and to whom, services are highly variable. Service buyers are aware of this variability and often talk to others before selecting a service provider. 4. Perishability: Services cannot be stored, so their perishability can be a problem when demand fluctuates. That is why public transportation companies must own much more equipment because of rush-hour demand than if demand were even throughout the day.

97) List the four groups of consumers based on loyalty status.

The four groups of consumers based on loyalty status are: 1. hard-core loyals 2. split loyals 3. shifting loyals 4. switchers

31) The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within.

The four main areas are: 1. convenience goods are bought frequently, immediately, and with a minimum of effort 2. shopping goods are goods that the consumer characteristically compares on such bases as suitability, quality, price, and style 3. specialty goods have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort 4. unsought goods are those goods that the consumer does not know about or does not normally think of buying.

63) In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?

The nine ways that physical products can be differentiated are form, features, customization, performance quality, conformance quality, durability, reliability, reparability, and style.

7) Assume you are a marketing manager and want to adopt strategic brand management. List the four main steps that you would most likely go through to accomplish this task.

The steps would be: 1. identifying and establishing brand positioning 2. planning and implementing brand marketing 3. measuring and interpreting brand performance 4. growing and sustaining brand value

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