In the proposal solicitation stage of the business buying process, the buyer invites
qualified suppliers to submit proposals.
The aim of advertainment is to make ads so entertaining or useful that people want to
watch them.
A discount store buys at less-than-regular wholesale prices and charges consumers less
than retail.
Intermodal transportation refers to the combination of two or more modes of
transportation.
Co-branding occurs when retailers and wholesalers create their own store brands.
As baby boomers reach their peak earning and spending years, they become lucrative
markets for financial services, travel, and entertainment.
Like retailers, wholesalers must decide on product and service assortments, prices,
promotion, and place.
Advertising involves a personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships.
Advertising is a good way to engage, inform, and persuade, regardless of the objective
of the message.
A market segment consists of consumers who respond in different ways to a given set
of marketing efforts.
Rachel Stein works for the LeBray Beverage Company. She helps define product
specifications and also provides information for evaluating alternatives. Rachel plays
the role of gatekeeper.
The strongest brands do not engage customers on a deep, emotional level.
At the narrowest level, a company can define its competitors as other companies
offering similar products and services to the same customers at similar prices.
A company buying a product or service for the first time faces a new task situation.
Convenience products are less frequently purchased consumer products and services
that customers compare carefully on suitability, quality, price, and style.
Foreign firms are expanding aggressively into new international markets, and home
markets are no longer as rich in opportunity.
Entrepreneurial marketing exclusively involves developing formal marketing strategies
and adhering to them closely.
A good competitor plays by its own rules at the expense of the industry as a whole.
The meaning of value is perceived identically by all consumers.
Informative ads are used primarily in the growth stage of the product life cycle.
“At Joe’s Diner, we serve great burgers” is a product-oriented business definition.
Line extension refers to extending an existing brand name to new product categories.
In consumer-generated marketing, marketers play a bigger role in shaping consumers’
brand experiences and those of others.
For most marketers, customer relationship management is exclusively a matter of
customer data management.
Agencies bring an outside point of view to solving a company’s problems, along with
lots of experience from working with different clients and situations.
Gatekeepers have formal or informal power to select or approve the final suppliers.
Companies can allow their suppliers access to online sites on which the company posts
its buying needs, requests bids, negotiates terms, and places orders, thus minimizing
research steps and costs.
In the follow-up stage of the selling process, the salesperson asks the customer for an
order.
Supermarkets are located near residential areas and are open long hours, seven days a
week. They carry a limited line of high-turnover goods.
Department stores that practice everyday low pricing typically provide frequent sale
days, early-bird savings, and bonus earnings for store credit-card holders.
The major criticisms of marketing include harming consumers through high prices,
deceptive practices, high-pressure selling, shoddy or unsafe products, planned
obsolescence, and poor service to disadvantaged countries.
Online-only companies are more successful than omni-channel marketing companies.
In some markets, competitors live in relative harmony.
The relative power of buyers affects segment attractiveness.
Specialty products are consumer products and services that customers evaluate on
suitability, quality, price, and style, by gathering information and making comparisons.
Nontariff trade barriers include restrictive product standards.
While lower prices may attract additional customers, it is possible for pricing strategies
to result in the product becoming a commodity in the customers’ eyes.
When backed by buying power, needs become wants.
Buyers prefer to work with salespeople who are good listeners.
Companies use PR to build good relations with consumers, investors, the media, and
their communities.
Blue Fizz Inc. sponsors every race that takes place at the Sears Racing Track in Orange
County, California. The high-octane racing at Sears is perfect for Blue Fizz to sell its
energy drinks and to establish the desired brand image of the company. Which type of
promotion is evident here?
A) event marketing
B) mass marketing
C) point-of-purchase promotion
D) solution selling
E) advertising specialties
Which of the following terms refers to the wholesalers and retailers that form a vital
link between the firm and its customers?
A) factory-supply networks
B) downstream partners
C) resource banks
D) upstream partners
E) supply channels
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services
by an identified sponsor is called ________.
A) sales promotion
B) direct marketing
C) advertising
D) personal selling
E) public relations
Manufacturers must comply with specific laws regarding ________.
A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles
Buyer responses are influenced by marketing stimuli. The responses to the stimuli
include all of the following EXCEPT ________.
A) brand engagement
B) buying attitudes
C) purchasing behavior
D) buying preferences
E) the “why” regarding the responses
In response to price cuts from competitors, a cereal company with several more
expensive and higher quality cereals introduced a lower-priced option to its product
line. This is an example of which of the following responses to a competitor’s price cut?
A) raising the perceived value of a product
B) improving product quality
C) accepting a reduced market share
D) launching a “fighter brand”
E) using high-low pricing
A(n) ________ chooses a strategy consistent with the intended product positioning. To
gain market leadership requires correct decisions from the beginning.
A) brand evangelist
B) market pioneer
C) early adopter
D) laggard
E) harvester
The full mix of benefits on which a brand is differentiated and positioned is known as
the brand’s ________.
A) value proposition
B) service life
C) value stream
D) supply chain
E) demand chain
Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a cliff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during
summer, but then faced a tremendous downturn in business during winter. “But, given
the established industries in the nearby towns, very little year-round competition, and
our close proximity to Portland,” Carol added, “I couldn’t understand why seasonality
had to hit Seagull Terrace so hard!”
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol’s plan also
involved a seasonal promotional gimmick—to be implemented from early winter to late
spring—that would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelers—both
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
“We still have a long way to go,” Carol admitted. “Our delicatessen offers entrees that
are a part of the local cuisine, but we’d like to expand that. We provide health club
privileges off-site, but we’d like to eventually provide our own. These are goals I hope
to achieve in a few years. Our first project, however, included a renovation of our guest
rooms and I’m quite proud of the results.” Carol then added, “Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways
throughout winter.”
Seagull Terrace offers its customers good accommodations, local delicacies, and
amazing seaside views. The overall experience provided at the motel is a part of its
________.
A) market offering
B) target market
C) market segment
D) product positioning
E) marketing mix
FencePro, a local company, has developed an entirely new mounting system for chain
link fences. After acquiring a distributor, FencePro now has the ability to market its
products nationwide. FencePro is most likely following a ________ strategy.
A) market penetration
B) market development
C) downsizing
D) product adaptation
E) product development
The early ________ cut expenses by offering few services and operating in
warehouse-like facilities in low-rent, heavily traveled districts.
A) department stores
B) hypermarkets
C) discount stores
D) supermarkets
E) full-service retailers
Which of the following is a price adjustment strategy?
A) product bundle pricing
B) by-product pricing
C) product line pricing
D) optional product pricing
E) discount and allowance pricing
Boxes, Inc. sells products to end users or to other companies that will sell to end users.
Boxes, Inc. is a ________.
A) reseller
B) marketing services agencies
C) financial intermediaries
D) physical distribution firms
E) wholesalers
The Internet offers ________, where the price can easily be adjusted to meet changes in
demand.
A) captive pricing
B) dynamic pricing
C) basing-point pricing
D) price bundling
E) cost-plus pricing
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm’s
strengths, opportunities, weaknesses, and threats. Which of the following would be best
suited for his purpose?
A) SWOT analysis
B) cluster analysis
C) portfolio analysis
D) regression analysis
E) Porter’s five forces analysis
A manager in a garment manufacturing company decided to replace the plastic
shopping bags currently used in his company with bags made of recyclable material.
Consequently, he asked the operations officer to gather relevant information and send a
list of alternatives to him. In the business buying process, the manager is preparing a(n)
________.
A) problem statement
B) general needs description
C) supplier list
D) proposal solicitation
E) order-routine specification
Loft Industries sells roof trusses to contractors and builders and is currently looking for
honest feedback on its services. However, in the past, most of its efforts to procure
feedback from customers did not yield any meaningful data. According to the marketing
managers of Loft Industries, feedback was more polite than honest. Which of the
following contact methods should Loft Industries most likely use to maximize its
chances of receiving honest and impersonal feedback?
A) online focus groups
B) telephone interviews
C) mail questionnaires
D) group interviews
E) personal interviews
Which of the following refers to a behavioral segmentation variable that involves
segmenting markets into nonusers, ex-users, potential users, first-time users, and
regular users of a product?
A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status
Which of the following does NOT apply to a customer-centered company?
A) watching customer needs evolve
B) deciding what customer groups are the most important to serve
C) matching or extending industry practices
D) focusing the resources on delivering superior value to target customers
E) setting long-range strategies that make sense
A society’s ________ are expressed in how people view themselves and others,
organizations, society, nature, and the universe.
A) social codes
B) cultural values
C) demographics
D) public policies
E) norms
Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a
variety of producers at less-than-regular wholesale prices and then charges customers
less than retail, is a(n) ________.
A) specialty store
B) off-price retailer
C) factory outlet
D) wholesale club
E) category killer
A marketer of women’s hair care products targeting Chinese customers created an
advertising message that told women their hair could be worn any way they wanted as
opposed to wearing it straight. The message suggested the women did not need to
conform to the mainstream media definition of beauty. It is most accurate to say that
this ad was based on an understanding of customers’ ________.
A) social class
B) life-cycle stage
C) self-concept
D) status
E) role
Which of the following is true with regard to the inside sales force of a company?
A) The inside sales force is invariably more attentive to customer needs than the outside
sales force.
B) Unlike the outside sales force, the inside sales force does not require training.
C) Inside sales representatives engage in face-to-face interaction with customers.
D) The inside sales force is far more knowledgeable about customer habits than are
outside salespeople.
E) Inside salespeople provide support for the outside sales force, freeing them to spend
more time selling to major accounts and finding new prospects.
Disadvantages of social selling include ________.
A) its impact on efficiency
B) its ability to provide information
C) its expense and the difficulty of presenting some things via the Internet
D) the ability to spot opportunities
E) its impact on productivity
More and more, companies are shifting their brand management focus from brand
profitability toward ________.
A) technology management
B) product management
C) customer management
D) functional management
E) geographic management
One look at a Pedigree ad or a visit to the Pedigree.com Web site confirms that the
people behind the Pedigree Brand really do believe the “We’re for dogs” mission.
Associates are even encouraged to take their dogs to work. To further fulfill the “We’re
for dogs” brand promise, the company created the Pedigree Foundation, which along
with the Pedigree Adoption Drive campaign, has raised millions of dollars for helping
“shelter dogs” find good homes. This information indicates that Pedigree is practicing
________.
A) consumerism
B) environmental sustainability
C) a sustainability vision
D) innovative marketing
E) sense-of-mission marketing
As discount stores traded up, ________ have filled the ultra low-price, high-volume gap
by buying at less-than-regular wholesale prices and charging consumers less than retail.
A) off-price retailers
B) specialty stores
C) convenience stores
D) chain stores
E) supercenters
A(n) ________ controls the flow of information to others in the buying center.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
FedEx offers its customers fast and reliable package delivery. When FedEx customers
weigh these benefits against the monetary cost of using FedEx along with other costs of
using the service, they are acting upon ________.
A) brand loyalty
B) customer equity
C) customer-perceived value
D) customer lifetime value
E) a societal marketing campaign
Brand ________ is the differential effect that knowing the brand name has on customer
response to the product and its marketing.
A) differentiation
B) knowledge
C) equity
D) personality
E) relevance
Many marketers now use ________ research to dig deeply into consumer psyches and
develop better marketing strategies.
A) analytical
B) interpretive
C) causal
D) descriptive
E) experiential
Paul Robinson has identified a group of potential customers who seem to respond in a
similar way to a series of magazine and radio advertisements for his company’s product.
Paul has identified a ________.
A) target market
B) market segment
C) niche market
D) product attribute
E) product design
________ refers to purchasing through electronic connections between buyers and
sellers—usually online.
A) E-procurement
B) General need specification
C) Strategic sourcing
D) Proposal solicitation
E) Value chain management
Explain how the creation of the National Do Not Call Registry may have helped
telemarketers more than it hurt them.
Why is government regulation necessary to protect consumers from unfair business
practices?
What does a market segment consist of?
What is competition-based pricing?
What is deceptive pricing?
What is cause-related marketing? Illustrate with examples.
Compare and contrast the four types of buying decision behavior exhibited by
consumers.
Give two examples of products for which captive product pricing might be used.
Compare the consumerism and environmentalism movements.
Discuss sales promotion.
How do consumers perceive products?
Explain why electronics and pharmaceuticals manufacturers use customer-driving
marketing.
In what way does the government regulate pricing?
Sensenig Propeller manufactures replica antique wooden airplane propellers. In the
process of production, the company generates a great deal of scrap hardwood. How can
using by-product pricing benefit the company?
How do firms practicing channel differentiation gain competitive advantage?
When would a marketer most likely use a comparative ad?