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When Home Depot stores entered the Canadian market, there were already stores
providing similar services and products. To get people to try Home Depot, the chain
deliberately sold merchandise below the price that the Canadians were used to. What
type of pricing objective did Home Depot use?
A) market share
B) profit
C) competitive effect
D) customer satisfaction
E) image enhancement
Which of the following is used to measure the difference between a customer's
expectations of service quality and what actually occurred?
A) break-even analysis
B) SERVQUAL
C) the critical incident technique
D) gap analysis
E) SWOT analysis
A consumer purchase decision made with a great deal of consumer effort is a type of
________.
A) habitual decision making
B) extended problem solving
C) compensatory decision
D) heuristic
E) limited problem solving
Which of the following statements about the service encounter is true?
A) The quality of service delivered by a company is only as good as its best employee.
B) The customer plays a minimal role in the quality of the service encounter.
C) An employee's actions, words, and physical appearance do not represent the
organization.
D) The quality of information provided by the customer does not affect the quality of
the service encounter.
E) The service encounter has a social contact dimension and a physical dimension.
The most appropriate strategy for a firm that wants consumers to see it as a specialist
with a clear, specific position in the market is a(n) ________.
A) full-line strategy
B) limited-line strategy
C) undifferentiated strategy
D) upward line stretch
E) downward line stretch
Which of the following is a common objection to relying exclusively on ROMI for
measuring marketing success?
A) In a company's accounting statements, marketing expenditures tend to appear as
investments rather than costs.
B) Calculating ROMI requires knowing what would have happened if the marketing
expenditures had never taken place.
C) ROMI tends to lead managers toward a more long-term perspective on decision
making.
D) ROMI focuses on a firm's sustainability commitments to the detriment of its
short-term performance.
E) ROMI calculates profit by deducting expenditures rather than dividing by
expenditures.
Which of the following is the best example of the long tail approach to selling?
A) Nearly 20 percent of the videos delivered by Netflix are older or obscure titles from
its vast collection of videos.
B) Kraft Foods focuses on the 20 percent of U.S. households that purchase 80 percent
of the Miracle Whip the company markets.
C) Barnes & Noble stocks the most popular books and magazines in its retail stores.
D) Google lets advertisers target certain ads to certain segments of search engine users.
E) Staples segments its business-to-business markets based on sales volume.
Which of the following is the most likely description of the modern catalog customer?
A) someone who has little or no access to retail stores
B) someone who has little or no access to Internet technologies
C) someone who wants to save time shopping
D) someone who shops only for sales bargains
E) someone who does not accept telemarketing calls
Once a new product or service passes the business analysis phase, it moves into the
________ phase.
A) concept development
B) technical development
C) market testing
D) strategy development
E) product proposal
The Wright Bros. Collection is a catalog retailer that sells clothing and collectibles to
aviation enthusiasts. Its ________ might be men and women between the ages of 25
and 55 who are risk takers. They belong to organizations such as the American Legion,
the VFW, and the National Rifle Association of America. They are either pilots
themselves or have close ties to a pilot. They prefer camping to taking a luxury cruise.
Annually, they spend $900 on items purchased from catalogs.
A) value analysis
B) customer potential assessment
C) segment profile
D) internal market audit
E) brand personality
Which of the following is NOT a step in the hierarchy of effects?
A) create awareness
B) inform the market
C) create demand
D) create desire
E) build loyalty
________ refers to how positive a person's ________ is.
A) Personality; psychography
B) Affect; attitude
C) Attitude; affect
D) Self-concept; self-esteem
E) Self-esteem; self-concept
________ are companies that collect and sell personal information about consumers.
A) Data brokers
B) Search engine optimizers
C) Data warehouses
D) Web scrapers
E) Channel partners
What is the first step a marketer should take to estimate a product's potential sales?
A) determine maximum production levels
B) conduct a survey of buyers' intentions
C) estimate total demand for the product in the market
D) determine how to expand market share
E) predict the company's market share
Kao Corp., which makes Ban deodorant, invited teenage girls to create an ad that would
encourage other girls to buy the product. This program is an example of ________.
A) the wisdom of crowds
B) the production concept
C) the selling orientation
D) open-source modeling
E) consumer-generated content
Consumer ________ is the belief that the products made in one's own country are
superior to those from other countries.
A) nationalization
B) ethnocentrism
C) domestication
D) expropriation
E) democratization
________ is a term that refers to a system in which everyday objects are able to
communicate information throughout an interconnected system.
A) Big Data
B) The Internet of Things
C) Data Science
D) Data warehousing
E) Data mining
Which of the following would marketers most likely learn by "scraping the Web"?
A) what trends are emerging and what customers are talking about in real time
B) how consumers connect emotionally to the products they use on a daily basis
C) how consumers engage with different forms of visual marketing
D) what types of and how much media a consumer is exposed to in a given time period
E) who is watching which television shows at what time
Which of the following refers to everyday people participating in marketing by sharing
their opinions with their friends, neighbors, and acquaintances?
A) personal selling
B) buzz
C) indirect marketing
D) stealth marketing
E) social networking
When Tom wanted to buy a new gas grill, he searched for grills on the Internet. He was
able to gather information on grills and learn what features were available. Tom used
the Internet during the ________ stage of his purchase decision.
A) product choice
B) evaluation of alternatives
C) problem recognition
D) problem screening
E) information search
Do-it-yourself advertising is a type of ________.
A) user-generated content
B) advocacy advertising
C) sales promotion
D) corrective advertising
E) public service advertising
As a manufacturer increases price, the ________ drops.
A) target
B) break-even point
C) marginal revenue
D) total cost
E) variable cost
A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and
fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45.
Both of these restaurants are using ________.
A) demand-based pricing
B) cost-based pricing
C) psychological pricing
D) prestige pricing
E) penetration pricing
When sales are made in a local Walmart, the sales data is sent to Walmart headquarters
where the data are used to build a picture of the buying habits of people who shop at
individual Walmarts across the nation. The use of ________ makes this possible.
A) POS systems
B) social shopping
C) e-commerce
D) e-menus
E) beacons
The ________ was developed to eliminate monopolies and to guarantee free
competition.
A) Sherman Antitrust Act
B) Clayton Act
C) Robinson-Patman Act
D) Wheeler-Lea Act
E) Lanham Trademark Act
________ is the financial value of a customer throughout the lifetime of the customer
relationship.
A) Share of customer
B) The customer perceptual map
C) CRM
D) Customer equity
E) The 80/20 rule
In a(n) ________ culture, people tend to subordinate their personal goals to those of a
stable community.
A) collectivist
B) individualist
C) democratic
D) demographic
E) ethnocentric
The ________ environment refers to the local, state, national, and global laws and
regulations that affect businesses.
A) political and legal
B) sociocultural
C) economic
D) technological
E) natural
Which of the following is true of focus groups?
A) They are typically conducted in mall settings.
B) They are a type of descriptive research.
C) They are a type of one-on-one interview.
D) They are used to gather exploratory data.
E) They do not use a discussion leader.
On the Internet, price can easily be adjusted to meet changes in the marketplace. This is
called ________.
A) captive pricing
B) dynamic pricing
C) promo pricing
D) price bundling
E) payment pricing
White Wave Inc., the maker of Silk soy milk, gave away free samples of its product to
get consumers to try the first refrigerated soy milk sold in America. What stage of the
consumers' adoption of a new product was White Wave Inc. trying to influence?
Support your answer.
A market research bureau semiannually conducts national surveys of more than 25,000
consumers who complete monthly logs detailing their purchases of products. Many
companies subscribe to the bureau's report publication to learn of the findings of these
surveys. This information can be classified as ________.
A) primary data
B) secondary data
C) mined data
D) experimental data
E) ethnographic data
Allyson Godwin plans on setting up a small business where she will offer quilting
lessons, sell material and quilting kits that she will create, and market her own
creations. Last year her quilting skills earned her $2,000. She estimates that quilting as
a full-time business will earn $10,000 during her first year. She has budgeted five
percent of her sales estimate to be spent on promotion. What promotion method is
Godwin using? What are the advantages and disadvantages of this method?
Why might a company decide to use a beta test for a new product?
Identify an important difference between strategic planning and market planning.
An appliance, television, and stereo dealer serves as an authorized repair center,
provides maintenance contracts, and sells essential supplies to customers. What types of
channel functions are being implemented by this dealer?
The Ford Motor Company sponsored "The Great American Pony Drive II" in honor of
devotees of its legendary Mustang. In this example, how is the Ford Motor Company
considering the lifetime value of a customer of the Mustang?
Explain why consumers may not "sweat the details" when they choose among
nondurable goods but have a higher level of involvement when they choose among
durable goods.
As she stumbles over boxes of books in her cramped retail space, the owner of a
successful independent book store has been thinking that she either needs to find a new
location or expand her current space. What type of research design should she use to
determine how her customers feel about the current store? Why?
A customer has a piece of paper that states that he will receive five dollars off the
selling price if he purchases a certain brand of teeth whitening strips. What sales
promotion technique is being offered to this customer?
What is the difference between the measures of cost-per-order and margin on sales?
Why is it important for all business planning to be integrated?
Explain how a sporting goods retailer could use both structured and unstructured data to
retain customers.
What types of products are intensively distributed?
Why are direct channels of distribution common in business-to-business markets
dealing with high-dollar, high-profit items?
Why might a company try to determine the lifetime value of a customer? What must a
company do to determine this information?
Why is search engine optimization an important process for online marketers?
