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A Miami restaurant has created atmosphere through its subtle use of blue and green
lighting, ceiling fans over each table, and frozen drinks. If its electrical energy supplier
raises its prices, the restaurant will most likely ________.
A) continue its present operation because it has an elastic demand for electricity
B) ask other Miami restaurants to create a derived demand for cheaper electricity
C) decide to find other ways to use electricity
D) continue its present operation because it has an inelastic demand for electricity
E) remove its lighting, turn off its fans, and economize on its use of electricity
Which of the following is true due primarily to the inseparability of services?
A) Customers have to rely on reassuring physical cues that indicate quality service.
B) Service businesses cannot promise the same experience with every service
encounter.
C) A service is produced and consumed at the same time.
D) It is impossible for service businesses to exactly match supply with demand.
E) It is difficult for service businesses to live up to guarantees.
Price fixing occurs when two or more companies conspire to ________.
A) keep prices at a certain level
B) use predatory pricing
C) use loss-leader pricing
D) use bait-and-switch tactics
E) prohibit competitors from entering a market
________ strategies emphasize both new products and new markets to achieve growth.
A) Diversification
B) Market penetration
C) Market development
D) Product development
E) Cash cow
A sign manufacturer who uses plastic, metal, and neon tubing to create a motel sign has
performed the marketing benefit of creating ________ utility.
A) form
B) place
C) possession
D) time
E) creation
Marketers would be most likely to use a focus group in which stage of new product
development?
A) idea generation
B) problem recognition
C) business analysis
D) positioning strategy
E) product adoption
P&G makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice,
and Vidal Sassoon shampoos. Through its use of a separate and unique brand name for
each of these products, Procter & Gamble is using a(n) ________ strategy.
A) umbrella brand
B) family brand
C) individual brand
D) private-label brand
E) cobranding
Which of the following is an advantage offered by cobranding?
A) Manufacturers do not have to invest in creating their own brand names.
B) Retailers have exclusive products that cannot be purchased from competitors.
C) Advertising, sales, promotion, and marketing can be managed independently.
D) Brand equity is stabilized.
E) A company can expand its existing brand into a category it otherwise might have
difficulty entering alone.
Which of the following is the best example of a cultural value?
A) Marriage is important.
B) Americans should display their patriotism on the Fourth of July.
C) People who are not close friends or family should be addressed formally.
D) Extended warranties are never worth the money consumers pay for them.
E) Professionals should wear business clothes to work.
________ is research a single firm conducts to provide answers to specific questions.
A) Syndicated research
B) Custom research
C) Customer insight research
D) Longitudinal research
E) Institutional research
A customer got a great haircut at a salon and went back six weeks later to the same
person to get a second haircut. This time, the customer received one of the worst
haircuts of his life. The difference between the two haircuts is due to the ________
characteristic of services.
A) perishability
B) responsiveness
C) personalization
D) variability
E) inseparability
Ads on the sides of delivery trucks, ads on the fence around a baseball field, and ads
that you see on interstate billboards are all examples of ________ media.
A) out-of-home
B) place-based
C) branded entertainment
D) owned
E) earned
During ________ the company receives materials it needs to manufacture its products.
A) inbound logistics
B) operations
C) outbound logistics
D) marketing and sales
E) service
________ is a new business strategy of offering a basic version of a product free of
charge and then charging for upgraded versions of the product.
A) Prestige pricing
B) Freemium
C) Price segmentation
D) Reverse marketing
E) Dynamic marketing
Marketers use the metric of ________ to see the effectiveness of their marketing efforts
in comparison to their competitors' actions.
A) clickthrough rate
B) conversion rate
C) bounce rate
D) sentiment analysis
E) market share
According to the long tail approach to selling, ________.
A) the Internet provides reduced opportunities for segmenting markets
B) companies can make the most money by focusing on the "bottom-of-pyramid"
market
C) companies should focus on the 20 percent of customers who purchase the greatest
volume of their product
D) companies should focus on the 80 percent of customers who purchase the greatest
volume of their product
E) companies can make money by selling small amounts of items that only a few
people want
In media metrics, frequency is which of the following?
A) the total number of people who will be exposed to an ad placed in one media vehicle
B) the percentage of people who will be exposed to an ad more than once
C) the percentage of people who will be exposed to the media vehicle
D) the number of times a person in the target group will be exposed to an ad
E) the total number of ads in one advertising campaign
A company that intends to maintain low-end pricing policies to make the market
unattractive for its competitors is using which of the following pricing objectives in its
price planning?
A) sales
B) profit
C) break-even
D) competitive effect
E) customer satisfaction
Which of the following is a discount retailer owned by a manufacturer that provides the
manufacturer a store to sell off defective merchandise?
A) a specialty store
B) a factory outlet store
C) a department store
D) a general merchandise discount store
E) a warehouse club
There are numerous kinds of shampoo, including vitamin-enriched, fruit-enhanced,
color-reviving, therapeutic, and so on. Shampoo that simply promises to clean hair,
however, has seen declining sales, has little or no advertising, and has been phased out
by most manufacturers. Shampoo that makes no other promise than to clean hair is in
the ________ stage of its product life cycle.
A) maturity
B) leveling
C) repositioning
D) withdrawal
E) decline
________ are responsible for the positioning of a brand and developing its brand equity.
They are likely to team with sales, finance, and logistics staff members as part of
customer business teams who work with major retail accounts.
A) Product category managers
B) Brand managers
C) Venture team managers
D) Market managers
E) Sales managers
When many men in the baby boomer segment started getting gray hair, they were
reluctant to use hair dyes made for women even though they were just as eager as
women to fight the aging process. To address this reluctance, hair care product
manufacturers introduced hair dying systems for men to use both on their heads and
their facial hair. These hair care product manufacturers used ________ segmentation to
define their target markets.
A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic
An American company wanting to be competitive in the European market would be
most likely to seek which type of certification?
A) ISO 14000
B) DMAIC
C) TQM
D) Six Sigma
E) ISO 22000
Which type of self-service store offers a limited line of inexpensive items, often at a
single price point?
A) convenience store
B) box store
C) specialty store
D) variety store
E) leased department store
________ is a well-known system based on psychological traits that correlate with
consumer behavior. It divides the entire U.S. population into segments and then sells
pieces of this information to clients for specific strategic applications.
A) VALS™
B) Decitica
C) AIO
D) PRIZM
E) NAICS
The purchase of a set of flannel sheets from the Lands' End catalog website is an
example of ________ e-commerce.
A) B2B
B) B2C
C) POS
D) C2C
E) C2B
Which of the following is most useful when a firm offers a variety of products that
serve the needs of a wide range of customers?
A) the single marketing manager structure
B) the independent brand manager structure
C) the sales manager structure
D) the product category manager structure
E) the market manager structure
________ is the feeling component of attitudes.
A) Affect
B) Cognition
C) Behavior
D) Motivation
E) Interpretation
Advertising account managers are typically responsible for which of the following?
A) writing the advertising copy
B) acting as liaison between the agency and client
C) posttesting advertisements
D) collecting data to make informed strategic decisions
E) identifying the most effective communication vehicles for the advertising campaign
Which of the following is NOT a major data source for a marketing information system
(MIS)?
A) internal company data
B) market intelligence
C) market research
D) acquired databases
E) modeling software
A(n) ________ provides most or all of the services needed to mount an advertising
campaign.
A) institutional agency
B) limited-service agency
C) creative services agency
D) in-house agency
E) full-service agency
Why might a marketer of laundry detergent be interested in viewing a perceptual map?
Explain the concept of opportunity cost, giving at least one example from your life.
How would the Internet most likely affect the distribution channel of an artisan who
makes handmade dolls that had previously been sold only at craft shows?
What is the difference between consumer goods and consumer services? Give an
example of each.
How do marketers use the assumption that "birds of a feather flock together"?
A major manufacturer of automobile tires sells its products at its dealership retail stores.
After a tire is sold, the customer can return to any manufacturers' retail store and the tire
can be rotated on the car at no expense to the customer. Should a repair to the tire be
needed, the customer will receive a discount from the list price bill as a form of a
warranty received at the time of purchase of the tire. Identify and explain the selling
approach being implemented by this manufacturer.
Why are people reached by direct mail better prospects for a company than those
reached by mass media such as television or magazines?
What is the difference between catalogs and direct mail?
Explain the concept of nonstore retailing, giving one example of a well-known product
that has been marketed this way.
What is the difference between institutional advertising and advocacy advertising?
Explain the roles of independent and dependent variables in causal research.
How are consumer demand and business-to-business demand of goods and services
related?
What must marketers do during the marketing strategy development phase of the
new-product-development process?
Explain the difference between elastic demand and inelastic demand.
Explain how the saying "Garbage In, Garbage Out" relates to market research.
In business-to-business products, what is the difference between capital equipment and
accessory equipment?
Social factors exert a broad and deep influence on consumer behavior. The marketer
needs to understand the role played by the buyer's culture, subculture, and social class.
Compare the roles of culture, subculture, and social class.
