To the extent that a company can differentiate and position itself as providing superior
customer value, it gains ________.
A) competitive advantage
B) complementary assets
C) service life
D) core competencies
E) contingent liability
Which of the following leads to cultural pollution?
A) commercial noise
B) air pollution
C) language barriers
D) inflation
E) redlining
________ is one of the best ways to increase share of customer.
A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Divesting
E) Partnership marketing
According to the service profit chain, superior internal service quality results in
________.
A) lesser service value
B) increased word-of-mouth sales
C) reduced after-sale services
D) more satisfied, loyal, and hardworking employees
E) negative brand equity of newly launched products
Which of the following product mix pricing strategies did Polaroid use when it set the
general price range of its cameras low and the markup on its film high?
A) product-segmented pricing
B) by-product pricing
C) customer-segmented pricing
D) captive product pricing
E) product bundling pricing
By definition, ________ pricing is used when a firm sells a product or service at two or
more prices, even though the difference in price is not based on differences in cost.
A) segmented
B) variable
C) flexible
D) cost-plus
E) reference
Target return pricing is a variation of which of the following cost-oriented pricing
approaches?
A) cost-plus pricing
B) break-even pricing
C) markup pricing
D) value-based pricing
E) fixed cost pricing
Mission statements should be defined in terms of ________.
A) the advantages a company’s products provide
B) satisfying basic customer needs
C) the value a company’s products provide
D) the profitability of a company’s products
E) the variety they offer to a customer
Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to
influence legislation that affects the manufacturing industry. Katrina’s firm takes a(n)
________ stance toward the marketing environment.
A) reactive
B) proactive
C) adversarial
D) passive
E) altruistic
Marketing logistics includes all of the following EXCEPT ________.
A) reverse logistics
B) inbound logistics
C) outbound logistics
D) customer-centered logistics
E) producer-centered logistics
A mission statement serves as a ________.
A) statement of the organization’s net profits
B) plan for short-term sustainability
C) statement of the organization’s purpose
D) statement of the organization’s current liabilities
E) reward plan for the organization’s highly skilled employees
As a consequence of the concern for the natural environment, many companies are
developing strategies and practices that support ________.
A) government intervention
B) environmental sustainability
C) deregulation
D) mass marketing
E) rapid exploitation of natural resources
Teen Mania Inc., a company marketing adventure sports merchandise for teenagers,
targets the world’s teenagers, who have similar needs and buying behavior even though
they are located in different countries. Which market segmentation is evident here?
A) income segmentation
B) psychographic segmentation
C) gender segmentation
D) intermarket segmentation
E) occasion segmentation
Companies with lower costs ________.
A) specialize in selling products with value-added features
B) usually market products with inferior quality, thereby justifying the low selling price
C) can set lower prices that result in smaller margins but greater sales and profits
D) tend to overprice products owing to their monopolistic advantage
E) usually set higher prices that result in higher margins
________ show(s) consumer perceptions of a company’s brands versus competing
products on important buying dimensions.
A) Differentiation
B) Positioning
C) Market targeting
D) Perceptual positioning maps
E) Market segmentation
Refer to the scenario below to answer the following question(s).
Casey Brickly opened The Landing, a convenience store on the north shore of Witmer
Lake, in 1962. With a sandwich counter on one side and a bait shop and grocery on the
other, The Landing was an immediate hit with weekend lake visitors and local residents
alike. In the summer, boaters parked at the piers and bought all their fishing needs, such
as rods and reels, bait, snacks, and soft drinks at The Landing. Even during the winter
months, snowmobilers and ice fishermen were lured to The Landing for snacks and hot
coffee or hot chocolate.
As time passed, the business changed and grew tremendously. What was formerly a
weekend tourist area gradually became a full-fledged residential area. Many of the
houses, which were built as cottages in the 1950s and 1960s, were remodeled into
residential homes. By the end of the 1970s, the days of small motorboats and 10
mile-per-hour speed limits were gone; skiing and fast speedboats became the rage.
Through it all, The Landing continued to attract flocks of patrons.
In the 1980s, however, Casey started to realize that the grocery area in The Landing
could not compete with larger local retailers. He eventually enlarged the sandwich
counter, transforming the bait shop and grocery into a restaurant with a full menu
typical of any diner. “Getting rid of the bait shop was hard to do,” Casey admitted. “I
still had a summer crowd that relied on us for their fishing needs, but we couldn’t
survive a whole year on four months of profit.”
In the early 2000s, the atmosphere of Witmer Lake and the neighboring lakes became
upscale. “I could see that people were spending more on their speed boats than what
they had originally paid for their cottages!” Casey exclaimed. Many of the cottages
were inherited by children and grandchildren of the original owners. Once again, the
scene started to change as many of the lake houses were used only as weekend lake
homes. Unlike the previous generation, a vast number of the current owners could
afford to live closer to their jobs while maintaining lake homes. “At this point, business
wasn’t growing,” Casey said.
As local competition continued to increase, Casey converted the diner of The Landing
into a bar with a lounge area. “The change might have been too drastic,” Casey said,
“but it was the only way we could maintain a strong, year-round business in spite of the
population shifts and competitive forces.”
Which of the following is the macroenvironmental force that benefitted The Landing
the most?
A) the legal environment
B) the natural environment
C) the economic environment
D) the political environment
E) the technological environment
The term media multitaskers refers to ________.
A) competing brands which use the same media vehicle
B) people who absorb more than one medium at a time
C) media planners who also head the creative department
D) media planners who use more than one advertising medium
E) ad agencies whose clients are competitors of each other
Railroads were once operated based on the thinking that users wanted trains that would
offer the most in quality, performance, and innovative features. The railroad managing
companies overlooked the fact that there could be other modes of transportation. This
reflects the ________ concept.
A) product
B) production
C) selling
D) marketing
E) societal marketing
Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that
Uganda has a(n) ________ economy.
A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing
Hannah Adams is a senior sales manager in Elmo Corp., a rapidly growing company
manufacturing personal computers and printers. In order to handle sales effectively,
Hannah insists on using the services of different groups of people from different
departments within the company such as the sales, marketing, technical support, and
finance departments. In this instance, Hannah makes use of ________.
A) team selling
B) competitive marketing intelligence
C) hybrid selling
D) occasion segmentation
E) sales force automation systems
Retailers are classified on characteristics including the amount of service they offer, the
breadth and depth of their product lines, how they are organized, and ________.
A) the relative prices they charge
B) the number of locations they have
C) the strength of their Internet presence
D) their sustainability and environmental policies
E) the stability of their financial situation
Critics point to which of the following factors when they accuse marketing of harming
consumers through high prices?
A) quotas
B) nontrade tariffs
C) excessive markups
D) government taxes
E) changes in currency values
Trendy Teens manufactures fashionable clothing and accessories for the tween and teen
female markets. New merchandise with a very different look is rolled out each season
and heavily promoted as the “must-have” style in a variety of media. This information
indicates that Trendy Teens is most likely to be criticized for ________.
A) deceptive promotions
B) shoddy products
C) high-pressure selling
D) poor service to disadvantaged consumers
E) perceived obsolescence
When McDonald’s offers its products inside of a Walmart store, it is using a(n)
________.
A) conventional marketing system
B) corporate VMS
C) contractual VMS
D) administered VMS
E) horizontal marketing system
Which kind of social media networks are smaller communities likely to join or create?
A) blog
B) niche
C) Internet
D) video
E) commercial
________ consumers are one of the fastest-growing U.S. population subsegments and
are expected to surge to nearly one third of the total U.S. population by 2030.
A) African American
B) Hispanic American
C) Asian American
D) Baby boomer
E) Millennial
Advertising is used mostly by ________.
A) governments
B) business firms
C) social agencies
D) independent professionals
E) not-for-profit organizations
Once the prototype of Wainwright Industries’ new riding lawnmower, made especially
for women, passes product tests, the next step is ________.
A) test marketing
B) focus group surveys
C) commercialization
D) concept testing
E) business analysis
A particular automobile company works to keep its customers happy after each sale,
aiming to delight each one of them in order to increase their customer lifetime value.
Which of the following steps of the buyer decision process does the company
exemplify?
A) need recognition
B) information search
C) evaluation of alternatives
D) purchase decision
E) postpurchase behavior
Which of the following is true of vertical marketing systems?
A) Producers, wholesalers, and retailers act as a unified system.
B) Channel members have no control over each other.
C) Channel conflict is governed by informal mechanisms.
D) The system is dominated by the consumer.
E) Channel members work independently with no cooperation from other members.
Which of the following statements is true regarding the vital importance of the
media-planning function?
A) With changing technologies, media costs are declining.
B) Brand content is usually created in-house by the company.
C) Which media to use is sometimes more critical than the creative elements of the
messaging.
D) Market targeting has declined in importance in the planning stages.
E) Because so many consumers use the same mobile and social media applications,
messaging can be less focused.
