Quiz 1, Quiz 2, Quiz 3

Pricing a product based on consumers' reference prices is referred to as ________ pricing. A. geographical B. psychological C. allowance D. by-product E. captive-product

B. psychological

JJ Distributors Ltd. buys electronic products from manufacturers for wholesale and sells them to various retail outlets. To which of the following markets does JJ Distributors Ltd. directly cater? A. business markets B. reseller markets C. manufacturer markets D. supplier markets E. consumer markets

B. reseller markets

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________. A. functional discount B. seasonal discount C. promotional allowance D. trade-in allowance E. quantity discount

B. seasonal discount

Which of the following is true of business markets? A. The business marketer normally deals with far more but far smaller buyers than the consumer marketer does. B. Business markets generally involve far less money and items than do consumer markets. C. Business demand is derived demand as it ultimately derives from the demand for consumer goods. D. A small percentage decrease in consumer demand can cause a large increase in business demand. E. The total demand for business products is much affected by price changes in the short run.

C. Business demand is derived demand as it ultimately derives from the demand for consumer goods.

A firm has a huge amount of individual customer data saved in different databases. Which of the following can be used to integrate, analyze, and apply the available information effectively? A. online market research tools B. integrated marketing systems C. CRM systems D. internal survey methods E. quality assurance tools

C. CRM systems

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A. Competition-based B. Value-added C. Cost-based D. Good-value E. Demand-based

C. Cost-based

Erica Jenson has a limited budget to conduct a market research. Which of the following research approaches would provide Erica with the most cost-effective way to reach a large number of respondents in a short period? A. telephone surveys B. personal interviews C. Internet-based surveys D. mail surveys E. focus group interviews

C. Internet-based surveys

_______ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. A. Customer-driven B. Mass C. Sustainable D. Customer-driving E. Ambush

C. Sustainable

Which of the following statements is most likely true about the new product development process? A. The first step in developing a new product involves determining any budgetary or distribution limitations. B. Most firms discourage employees from contributing new product ideas because of legal concerns. C. In most cases, concept testing is followed by concept development. D. A product concept should be developed for each idea before it goes through idea screening. E. Customers, competitors, and suppliers are major sources of new product ideas.

E. Customers, competitors, and suppliers are major sources of new product ideas.

Which of the following is true about the introduction stage of a new product? A. Profits are typically high. B. Promotion spending is relatively low. C. Less money is needed to attract distributors. D. Companies tend to avoid basic versions of the product. E. Sales growth tends to be slow.

E. Sales growth tends to be slow.

Which of the following statements about buying centers is true? A. The buying center is a fixed and formally identified unit within a buying organization. B. Roles in the buying center are specified in the organizational chart of a firm. C. The CEO of an organization is always the decision maker in a buying center. D. An individual's role in a buying center does not change with time. E. Some buying centers involve informal participants.

E. Some buying centers involve informal participants.

Which of the following is most likely a true statement about baby boomers? A. They are the first generation to have grown up with computers B. They constitute the largest demographic group in the United States. C. They were born between 1965 and 1976. D. They are the most educated generation of Americans. E. They are the wealthiest generation in U.S. history.

E. They are the wealthiest generation in U.S. history.

Setting a price for products that must be used along with a main product is known as ________ pricing. A. by-product B. market-penetration C. product line D. product bundle E. captive-product

E. captive-product

According to the text, ________ are the most important actors in a company's microenvironment. A. stockholders B. employees C. suppliers D. resellers E. customers

E. customers

Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A. capital B. loyalty C. wealth D. esteem E. equity

E. equity

Expanding a product line by adding more items within the present range of the line is known as product line ________. A. stretching B. widening C. strengthening D. mixing E. filling

E. filling

In a SWOT analysis, which of the following would be considered a weakness of a company? A. an unfavorable economic climate that discourages consumption B. the exit of a competitor from the market C. inflation that leads to higher prices of the company's products D. falling consumer interest in its products E. obsolete technologies used by the company

E. obsolete technologies used by the company

Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect? A. information search B. situational analysis C. alternative evaluation D. purchase decision E. postpurchase behavior

E. postpurchase behavior

GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying process. A. problem recognition B. general need description C. product specification D. supplier search E. proposal solicitation

E. proposal solicitation

Service inseparability means that ________. A. the evaluation of services is subjective and changes from customer to customer B. service quality depends on who provides them and how they are provided C. services cannot be stored for later sale or use D. services cannot be seen, tasted, felt, heard, or smelled before they are bought E. services become a part of their providers, whether the providers are people or machines

E. services become a part of their providers, whether the providers are people or machines

Which of the following concepts holds that consumers will favor products that are available and highly affordable? A. the marketing concept B. the product concept C. the societal marketing concept D. the selling concept E. the production concept

E. the production concept

Which of the following statements is true in the context of the BCG growth-share matrix? A. Stars often need heavy investment to finance their rapid growth in a market. B. The positions of SBUs in the growth-share matrix rarely change over time. C. The income from one SBU cannot be used to support other business units. D. Dogs promise to be large sources of cash. E. Cash cows typically turn into stars.

A. Stars often need heavy investment to finance their rapid growth in a market.

_______ is the degree to which an innovation may be tried on a limited basis. A. divisibility B. compatibility C. communicability D. relative advantage E. complexity

A. divisibility

Which of the following is an example of an industrial product grouped under capital items? A. factory B. cement C. crude petroleum D. coal E. paint

A. factory

Which of the following is a social factor that influences consumer buying behavior? A. family B. life-cycle stage C. economic situation D. personality E. occupation

A. family

________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands. A. Selective retention B. Selective distortion C. Selective attention D. Restraint bias E. Subliminal perception

A. Selective retention

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A. find new market segments for the brand B. improve the overall quality of the product C. reduce mass media advertising expenses D. offer improved services to new buyers E. conduct controlled test marketing activities

A. find new market segments for the brand

Which of the following is a personal factor that influences a consumer's buying behavior? A. life-cycle stage B. motivation C. status D. family E. social networks

A. life-cycle stage

A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A. market-skimming pricing B. target costing C. deceptive pricing D. market-penetration pricing E. predatory pricing

A. market-skimming pricing

The ________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. A. marketing B. product C. production D. selling E. societal marketing

A. marketing

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. A. measurable B. accessible C. substantial D. actionable E. observable

A. measurable

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition. A. more-for-more B. more-for-the-same C. more-for-less D. all-or-nothing E. same-for-less

A. more-for-more

In a marketer's macroenvironment, the ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. A. political B. cultural C. technological D. natural E. internal

A. political

To which of the following elements of the marketing mix do design, packaging, services, and features belong? A. product B. price C. promotion D. place E. people

A. product

Which of the following criteria does the Boston Consulting Group approach use to provide a measure of a company's strength in the market? A. relative market share B. return on marketing investment C. market sentiment D. market growth rate E. annual profit

A. relative market share

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance. A. threats B. strategies C. weaknesses D. opportunities E. strengths

A. threats

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A. use aggressive sales promotions B. change features of the product C. improve product quality D. find new uses for the product E. explore new market segments

A. use aggressive sales promotions

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A. pure competition B. monopolistic competition C. oligopolistic competition D. a pure monopoly E. a pure monopsony

B. monopolistic competition

Combining several products and offering the collection at a reduced price is referred to as ________ pricing. A. by-product B. product bundle C. captive-product D. optional-product E. product line

B. product bundle

Which of the following best describes product positioning? A. differentiating a market offering to create superior customer value B. arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers C. identifying consumer needs and creating a product to meet those needs D. evaluating each market segment's attractiveness and selecting one or more segments to enter E. dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

B. arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market? A. promotion B. product C. price D. place E. position

B. product

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market. A. A sequential product development process B. A product life cycle C. Business analysis D. Vendor analysis E. Portfolio analysis

B. A product life cycle

Which of the following is most likely a characteristic of firms that adopt a reactive approach toward the marketing environment? A. They develop strategies to change the marketing environment. B. They take advantage of the opportunities provided by the environment. C. They take aggressive actions to affect the marketing environment. D. They view the marketing environment as a controllable element. E. They do not accept the marketing environment as it is.

B. They take advantage of the opportunities provided by the environment.

Market segments that can be effectively reached and served are said to be ________. A. measurable B. accessible C. substantial D. actionable E. profitable

B. accessible

Subsistence economies are best defined as economies that ________. A. constitute rich markets for many different kinds of goods and services B. consume most of their own agricultural output and offer few market opportunities C. offer outstanding marketing opportunities for innovative technological products D. offer huge marketing opportunities for industrial goods E. export all their agricultural and industrial products

B. consume most of their own agricultural output and offer few market opportunities

Which of the following has resulted from the increased educational levels of the U.S. population? A. lower acceptance of technological changes B. greater job growth for professional workers C. higher number of manufacturing jobs D. lower mobility of the U.S. population E. lower number of women in the workforce

B. greater job growth for professional workers

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A. product development B. introduction C. growth D. maturity E. adoption

B. introduction

Opinion leaders are also known as ________. A. lagging adopters B. leading adopters C. early mainstream adopters D. late mainstream adopters E. barnacles

B. leading adopters

Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________. A. brand extensions B. line extensions C. multibranding D. new product lines E. co-branding

B. line extensions

Demographic, economic, natural, technological, political, and cultural forces form the ________ of an organization. A. supply chain B. macroenvironment C. marketing intermediary network D. internal environment E. microenvironment

B. macroenvironment

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________. A. market-skimming pricing B. market-penetration pricing C. optional-product pricing D. by-product pricing E. allowance pricing

B. market-penetration pricing

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________. A. market-skimming pricing B. market-penetration pricing C. value-added pricing D. target costing E. deceptive pricing

B. market-penetration pricing

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A. The product's quality supports its high price. B. Alternative products can enter the market easily. C. The market for the product is highly price sensitive. D. Prices increase incrementally as sales volume increases. E. Production costs rise with an increase in marketing efforts.

C. The market for the product is highly price sensitive.

Which of the following is true of perceptual positioning maps? They are used by marketers to divide a market into smaller groups with distinct characteristics. B. They are used by marketers to identify supplier and retailer perceptions of a product. C. They are used to analyze consumer perceptions of a brand versus competing products. D. They are used to divide buyers into groups based on their perceived income and age. E. They are used to plot the geographic segments that a company needs to target.

C. They are used to analyze consumer perceptions of a brand versus competing products.

Business portfolio analysis is defined as the process in which management ________. A. studies the products and strategies of competitors to improve the company's own products B. analyzes consumer feedback in order to better position the company's brand image C. assesses the attractiveness of an SBU's market and the strength of its position in the market D. segments the company's markets to reach target consumers effectively E. conducts marketing research to evaluate the company's marketing strategy

C. assesses the attractiveness of an SBU's market and the strength of its position in the market

Which of the following sets the upper limit for a product's pricing? A. profits B. product costs C. consumer perceptions of value D. elements of the product mix E. competition

C. consumer perceptions of value

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing. A. value-added B. good-value C. cost-plus D. competitor-based E. break-even

C. cost-plus

The overall process of dealing with all aspects of acquiring, keeping, and growing customers is referred to as ________. A. perceived-value management B. societal marketing C. customer relationship management D. partner relationship management E. enterprise resource planning

C. customer relationship management

The marketing manager of Appeal Inc. has noticed a sharp decrease in sales over the last two months. The manager decides to conduct marketing research to identify potential causes for the drop in sales. Which of the following should the manager do first? A. develop a research plan B. determine a research approach C. define the problem and objectives D. select a research agency to collect data E. conduct exploratory and descriptive research

C. define the problem and objectives

Fred's faith in his favorite brand makes him consider new initiatives and products introduced by the brand. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community. Fred is best described as a(n) ________. A. lagging adopter B. innovator C. early adopter D. early mainstream adopter E. late mainstream adopter

C. early adopter

Which of the following groups is included in both a company's value chain and its value delivery network? A. customers B. suppliers C. employees D. distributors E. competitors

C. employees

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. A. elastic B. flexible C. inelastic D. variable E. cyclical

C. inelastic

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy? A. market segmentation, differentiation, positioning, and market targeting B. positioning, market segmentation, mass marketing, and market targeting C. market segmentation, market targeting, differentiation, and positioning D. market alignment, market segmentation, differentiation, and market positioning E. market recognition, market preference, market targeting, and market insistence

C. market segmentation, market targeting, differentiation, and positioning

Product mix width refers to the ________. A. number of versions offered for each product in the line B. ways in which the various product lines are related C. number of different product lines the company carries D. total number of items a company carries within its product lines E. total market share captured by the entire product line

C. number of different product lines the company carries

Store brands are also known as ________ brands. A. national B. manufacturer's C. private D. extended E. licensed

C. private

When a market segment is large or profitable enough to serve, it is termed ________. A. measurable B. accessible C. substantial D. actionable E. profitable

C. substantial

Which of the following sources constitutes the internal database of a company? A. commercial online databases B. conversations on social media C. the company's sales records D. reports sold by market research firms E. the Web

C. the company's sales records

Which of the following transforms marketing strategies into real values for consumers? A. share of customer B. customer equity C. the four P's of marketing D. a firm's value proposition E. customer satisfaction surveys

C. the four P's of marketing

Which of the following is part of the microenvironment of a firm's marketing environment? A. the political state of the country in which the firm exists B. the cultural forces that exist in a society C. the suppliers who work with the company D. the technological resources available to the company E. the different demographic trends in the market

C. the suppliers who work with the company

Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________ A. consumers' brand experiences B. competitors' threats C. consumers' existing wants D. competitors' strengths E. consumers' future demands

C. consumers' existing wants

________ involves using an existing brand name for a new product category. A. Line extension B. Co-branding C. New branding D. Brand extension E. Multibranding

D. Brand extension

Which of the following statements is most likely true about the product life cycle? A. Throughout the product introduction stage, sales are zero. B. The growth stage is the longest stage of the product life cycle. C. Profits are nonexistent in the growth stage. D. Growth is a period of rapid market acceptance and increasing profits. E. Maturity is the period when sales fall off but profits continue to rise.

D. Growth is a period of rapid market acceptance and increasing profits.

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself. A. Latent innovators B. Early adopters C. Early mainstream adopters D. Lagging adopters E. Late mainstream adopters

D. Lagging adopters

Which of the following statements regarding marketing intelligence is true? A. Marketing intelligence typically involves sensitive and confidential information kept out of the public domain. B. The advantage of using competitive intelligence is negligible as it is based only on internal sources of data. C. All marketing intelligence inputs are available at no cost to all potential users. D. Marketing intelligence is the systematic collection and analysis of publicly available information. E. Marketing intelligence efforts are more focused on gaining insights into a firm's consumers rather than its competitors.

D. Marketing intelligence is the systematic collection and analysis of publicly available information.

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying separate products and services from several suppliers. A. Modified rebuy B. Straight rebuy C. New task buying D. Systems selling E. Supplier development

D. Systems selling

Which of the following is an advantage of primary data? A. They are less expensive to obtain than secondary data. B. They can be obtained quicker than secondary data. C. They can be accessed from existing information. D. They are more relevant than secondary data. E. They are more reflective of past problems

D. They are more relevant than secondary data.

Introducing a new product into the market is called ________. A. test marketing B. segmentation C. product development D. commercialization E. market penetration

D. commercialization

Jeff Barkins is a conscientious marketing manager. Sometimes, Jeff and his staff are unclear what decisions to make when faced with moral dilemmas. Jeff and other managers could create broad guidelines that everyone in the organization must follow in the form of a ________. A. business value statement B. company mission statement C. company vision statement D. corporate marketing ethics policy E. financial statement

D. corporate marketing ethics policy

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation? A. geographic B. psychographic C. benefit D. demographic E. occasion

D. demographic

Zista, a boutique that caters to the clothing needs of women, manufactures two different lines of fashion wear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Zista most likely segments the consumer market based on ________ variables. A. geographic B. psychographic C. universal D. demographic E. behavioral

D. demographic

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find something in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process. A. product evaluation B. alternative evaluation C. need recognition D. information search E. purchase decision

D. information search

With a market development strategy, a company aims to improve sales by ________ A. increasing advertising efforts to build brand image in its current market B. introducing a new variant of its product in a new market C. increasing sales efforts in its current market with its current products D. introducing its product in a new market without making any changes to the product E. selling a new product in its current market

D. introducing its product in a new market without making any changes to the product

Which of the following will most likely be included in the "place" component of a company's marketing mix? packaging B. sales promotion C. brand name D. inventory E. discounts

D. inventory

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands. A. licensed B. private C. store D. national E. distributor

D. national

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation. A. psychographic B. demographic C. income D. occasion E. age and life-cycle

D. occasion

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A. segmented pricing B. psychological pricing C. geographical pricing D. promotional pricing E. dynamic pricing

D. promotional pricing

Lengthening a product line beyond its current range is referred to as product line ________. A. filling B. strengthening C. mixing D. stretching E. widening

D. stretching

The first part of a marketing strategy statement describes the ________ of a new product. A. planned price B. marketing budget C. marketing mix strategy D. target market E. planned long-run sales

D. target market

Which of the following best describes a company's business portfolio? A. the list of all the marketing activities in which the company invests B. the target segments of the company's various businesses C. the company's products or services in a particular market D. the collection of businesses and products that make up the company E. the company's strengths in terms of technology, people, and products

D. the collection of businesses and products that make up the company

Which of the following demonstrates the real value of a company's marketing research and information system? A. the amount of data it generates B. the variety of contact methods it uses C. the tools it uses to gather information D. the quality of customer insights it provides E. the type of sampling plan it follows

D. the quality of customer insights it provides

Specialty products are consumer products and services that customers generally buy ________. A. to conduct business B. frequently and immediately C. based on ready availability D. without making comparisons E. with minimal effort

D. without making comparisons

________ is the act of obtaining a desired object from someone by offering something in return A. Targeting B. Segmentation C. Differentiation D. Exchange E. Positioning

D. Exchange

According to the five-step model of the marketing process, the first step in marketing is ________ A. capturing value from customers to create profits and customer equity B. constructing an integrated marketing program that delivers superior value C. building profitable relationships and creating customer delight D. understanding the marketplace and customer needs and wants E. designing a customer-driven marketing strategy

D. understanding the marketplace and customer needs and wants