Firms competing in a given target market, at any point in time, are similar in their
objectives and resources.
Customer relationship management helps manage detailed information about individual
customers and maximize customer loyalty.
In a pure monopoly, the market consists of many buyers and sellers who trade over a
range of prices rather than a single market price.
If used infrequently, price promotions create “deal-prone” customers who wait until
brands go on sale before buying them.
Many shoppers now check out merchandise in-store and then buy it online. This process
is called webrooming.
Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, and who might require separate products or marketing
programs is known as market diversification.
A company cannot stretch its product line downward.
Global organizations don’t think of themselves as national marketers that sell
internationally, but as global marketers.
Asian-American consumers are the least brand conscious of all ethnic groups.
Market penetration involves offering modified or new products to current markets.
In recent years, convenience stores have redesigned their stores to closely focus on
serving their primary target market made up of young, blue-collar men.
Department stores carry narrow product lines with deep assortments within those lines.
In a product sales force structure, no single salesperson can become an expert in all of
the product categories, so product specialization is required.
Experimental research is best suited for gathering descriptive information.
A company launching a new product into the market must first decide where to launch
the product.
Marketing is managing profitable customer relationships.
The whole-channel view recognizes that to compete internationally a company must
effectively design and manage a standardized global marketing plan.
To avoid too few new product ideas and the failure of many good ideas, management
should implement an innovation management system that collects, reviews, evaluates,
and manages new product ideas.
A person’s occupation has no effect on the goods and services that she buys.
Benchmarking refers to the process that turns marketing plans into marketing actions to
accomplish strategic marketing objectives.
The major activity in strategic planning is business portfolio analysis, whereby
management evaluates the products and businesses that make up the company.
Acquisitions of competitors can be an effective way to gain economies of scale that can
lead to lower costs and, subsequently, lower prices.
A service refers to an activity, benefit, or satisfaction offered for sale that is essentially
intangible and does not result in the ownership of anything.
For international researchers, language is a primary obstacle.
If demand changes greatly with price, the demand is inelastic.
Print-Fast Printers prices its printer cartridges at a premium, since customers must buy
Print-Fast cartridges to work with their Print-Fast printer. Print-Fast uses
optional-product pricing.
Human needs are shaped by culture and individual personality.
A trend has been people’s growing mastery over nature through technology and the
belief that nature is bountiful, but also the realization that it is finite and fragile.
If Audi develops a new low-priced model for entry-level consumers in Europe, it would
be an example of straight product extension.
Creating a brand-marketing event or serving as a sole or participating sponsor of events
created by others is known as event marketing.
A market-coverage strategy in which a firm decides to target several market segments
and designs separate offers for each is known as ________.
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing
Describe the factors that might draw a company into the international arena.
The term demand chain is considered limited because it ________.
A) advocates a make-and-sell view of the market that relies on a responsive supply
network
B) suggests that planning starts with raw materials, productive inputs, and factory
capacity
C) takes a step-by-step, linear view of purchase-production-consumption activities
D) ignores the evolution of the global marketplace
E) overlooks the needs of target customers
What are the two dimensions of product quality?
A) consistency and level
B) performance and conformance
C) design and innovation
D) conformance and style
E) feature and design
Which of the following statements is true about creating customer loyalty and
retention?
A) Losing a customer means losing the entire stream of purchases that the customer
would make over a lifetime of patronage.
B) Customer delight creates a rational preference and not an emotional relationship
with the brand.
C) The aim of customer relationship management is to focus solely on customer delight.
D) Losing a customer hardly makes a difference to a company’s sales.
E) The aim of customer relationship management is to focus solely on customer
satisfaction.
Pat thought he had received the best deal on his new car. Shortly after buying the car,
Pat started to notice certain disadvantages of his new car as he learned more about other
cars available in the market. Pat is experiencing ________.
A) dissonance-reducing buying behavior
B) need recognition
C) postpurchase dissonance
D) marketing myopia
E) complex buying behavior
If a company’s offer delivers greater value by exceeding the competitor’s offer on
important attributes, the company can charge a higher price and ________, or it can
charge the same price and ________.
A) earn lower profits; gain higher profits
B) earn higher profits; lose profits
C) earn higher profits; gain more market share
D) lose profits; gain more market share
E) lose profits; gain higher profits
In CRM, ________ techniques are used to sort through data and locate useful findings
about customers.
A) data warehousing
B) marketing analytics
C) niche marketing
D) data conservancy
E) mass marketing
Which of the following characterizes standardized global advertising?
A) higher advertising costs
B) no global advertising coordination
C) higher appeal to varying demographics
D) a more consistent worldwide image
E) lower reach
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the
side, two will require an extra plating process, and two will require an additional weld
operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number
of Alpha’s steel suppliers in an effort to cut costs. After obtaining updated price
quotations and steel samples from his current suppliers, Richard faced a dilemma. Until
now, he had selected his suppliers based on quality and price, but the major
consideration had been the type of steel required and the specialized production
processes of his respective suppliers. Not all of Alpha’s suppliers could produce the
exact grades of steel needed; some suppliers were better at producing certain types of
steel than others.
Richard contacted several employees at Alpha who had worked with the various types
of steel in the past. The quality control manager and line inspector, for example, could
help to determine which suppliers had the capabilities of producing specific types of
steel. The production control manager could provide input regarding which types of
steel worked best in which presses. The warehouse foreman gave inputs regarding how
long various types of steel could be held in inventory before rust spots began to form on
their surfaces. Each person contributed the necessary information to help Richard in
making his decision.
In this instance, Richard plays the role of a(n) ________.
A) decider
B) gatekeeper
C) influencer
D) proposal solicitor
E) product designer
Which of the following is most likely a risk associated with experience-curve pricing?
A) High-volume production facilities are unable to meet demand.
B) New technology often leads to productivity problems.
C) Demand for the product fluctuates unpredictably.
D) Consumers tend to prefer new brands over established ones.
E) Aggressive pricing often gives a product a cheap image.
Rudolf Technologies Inc. decided to enter the automobile service market. Consequently,
the company decided to procure the tools and machines needed from a reputable
supplier. Rudolf Technologies is facing ________.
A) a new task situation
B) a modified rebuy situation
C) negative competition
D) the need to outsource its primary service offering
E) the pressure to diversify its market
Companies know they cannot appeal to all buyers in the marketplace, or at least not in
the same way. Reasons for this include all of the following EXCEPT ________.
A) buyers are too numerous
B) companies vary widely in their abilities to serve different market segments
C) buyers are varied in their needs and buying practices
D) companies need more information to offer the right products to the right customers
E) buyers are widely scattered
Rachel works for a furniture company in Ireland. She is responsible for buying and
selling goods at a profit to small retailers. Rachel most likely operates in a ________
market.
A) business
B) reseller
C) wholesale
D) consumer
E) retail
Big Mike’s Health Food Store sells nutritional energy foods. The price of the products
sold varies according to individual customer accounts and situations. For example,
long-time customers receive discounts. This strategy is an example of ________.
A) time-based pricing
B) seasonal pricing
C) dynamic pricing
D) promotional pricing
E) penetration pricing
A ________ is a group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed through the same
type of outlets, or fall within given price ranges.
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand
Which of the following is the first step in developing an effective integrated
communications and promotion program?
A) designing a message
B) identifying the target audience
C) determining the communication objectives
D) collecting feedback
E) choosing the media through which to send a message
A financial services firm has several loyal customers who conduct business with them
exclusively. However, the company has noticed that this customer group is the least
profitable for the company, and in some cases, it increases their losses when engaging
in business with this group. Which of the following customer groups is being referred to
in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
Solutions selling ________.
A) is often a key business marketing strategy for winning and holding accounts
B) refers to a business buying situation in which the buyer purchases a product or
service for the first time
C) refers to a business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers
D) is equivalent to cold calling
E) refers to a business buying situation in which the buyer routinely reorders something
without any modifications
Which of the following statements about magazines as an advertising medium is true?
A) Magazines have long ad purchase lead times.
B) Magazines cannot offer high geographic selectivity.
C) Magazines lack credibility.
D) Magazines provide better local coverage than newspapers.
E) Magazines have poor reproduction of images.
________ is determined by a customer’s evaluation of the benefits and costs of a market
offering relative to those of competing offers.
A) Customer-perceived value
B) Customer lifetime value
C) Share of customer
D) Customer-managed relationship
E) Brand value proposition
A manufacturer of a variety of technological devices asked its marketing department to
develop inexpensive methods of building and maintaining brand awareness and
excitement. The marketing department then recruited consumers who were early
adopters of technological devices to spread the word about the company’s new products.
This is an example of ________.
A) a reverse marketing activity
B) nonpersonal marketing
C) sales promotion
D) buzz marketing
E) direct marketing
The product development stage requires ________.
A) a huge jump in investment
B) salespeople to contact potential customers
C) financial analysis
D) a few hours
E) management approval
Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with
toxic materials, which threatened the health of several children. Which purpose of
government regulation to protect consumers is involved?
A) misleading customers in their advertising
B) deceiving consumers through their packaging
C) making shoddy products
D) deceiving consumers through their pricing
E) invading consumer privacy
Which of the following is NOT part of a company’s decision about which customers it
will serve and how?
A) differentiation
B) targeting
C) budgeting
D) segmentation
E) positioning
Gen Zers are highly mobile, connected, and social. They base their purchases on
________.
A) input from their friends
B) text messages
C) social media ratings
D) product research on their own
E) their parents’ opinions
Which of the following is true about survey research?
A) It involves sending observers to watch and interact with consumers in their natural
environments.
B) It is best suited for gathering causal information.
C) It involves selecting matched groups of subjects, giving them different treatments,
controlling related factors, and checking for differences in group responses.
D) The level of flexibility in survey research is lower than most other research
methodologies.
E) Survey research is the most widely used method for primary data collection.
An increasing number of American workers currently work from their homes or remote
offices and conduct their business by phone or the Internet. This trend has created a
________.
A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises
Which of the following is used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople?
A) business plan
B) SWOT analysis
C) POP promotion
D) benchmarking
E) business promotion
John assured his venture capitalists an earning of 25-percent return on equity when he
began his IT startup. In order to achieve this result, he will most likely use which of the
following pricing approaches?
A) value-based pricing
B) markup pricing
C) EDLP
D) customer-based pricing
E) target return pricing
Sara is about to purchase a new television. She is using several attributes to evaluate her
choices. Which of the following is least likely to be a criterion Sara is using?
A) price
B) size of screen
C) color of body
D) network connectivity
E) availability
Which of the following best characterizes the decline stage of product development?
A) rapid market acceptance
B) slow sales growth
C) sales and profits decline
D) high investment costs
E) increasing profits
Give an example of a slice-of-life message execution style.
Describe the different types of off-price retailers. Provide examples of each type.
What are stars according to the BCG growth-share matrix?
Discuss the four evolving company orientations. Which orientation is considered most
successful and why?
What is a demand curve? Explain its importance in the context of pricing decisions.
Marketers can prolong the lives of many products in the maturity or decline stages of
the PLC, sometimes even moving these products back into the growth stage. How is
this undertaken?
Describe the three types of appeals that marketers use.
Explain common reasons for the failure of new products. What must be the goals for a
company to create successful new products?
Compare the three distribution strategies that producers use, providing examples of
products for each type of distribution.
Distinguish between undifferentiated and differentiated marketing strategies.
A consumer’s behavior is influenced by social factors, such as the consumer’s small
groups, family, and social roles and status. Explain the differences among these social
factors.
How are local retailers affected by global competition?
Explain what marketers can expect from individuals in the customer relationship group
classified as “butterflies.”
What are the desirable qualities for a brand name?
Explain why some critics worry that American multinationals are causing countries
around the globe to lose their individual identities. Give an example of the
“Americanizing” of the world’s cultures.
How can wholesalers improve their use of promotions?
How does the buying process typically begin?
Compare and contrast the four competitive positions that are often used to describe
market structures.
How is the societal marketing concept related to marketing ethics?
List some important factors that companies need to consider when choosing a
market-targeting strategy.