ABC Corp. is the number one leader in its industry. It will probably use comparative
advertising to reach its audience.
The scope of activities in direct foreign marketing is the same as in international
marketing or global marketing and occurs with no modification.
Linda imports fine art paintings and photographs that she sells to hotels. When the
dollar is weak against foreign currencies, she struggles to cover her costs. Business has
increased 400% in the last five years. With additional resources, she believes she can
expand into profitable hospitals and nursing home markets. According to the BCG
matrix, Linda’s business is a representation of dog strategy.
The most effective use of market information systems is to identify what problems are
currently occurring.
Motivation, attitude, perception, learning, and personality are all psychological
attributes.
The primary advantage of the television home shopping retail format is the ability to
show and demonstrate the product.
A key element that makes CRM possible is the degree to which a customer trusts the
firm with his or her information.
Direct mail is much more effective in B2B than B2C markets because reaching the
appropriate individual inside an organization is easier.
When formulating a response to a competitor’s price reduction, a firm should consider
its offering from the perspective of its overall value proposition to customers.
Throughout the life cycle stages, consumers typically stick with the same products and
purchase decisions.
A service is first produced and then sold.
Utilization of symbols, atmosphere, and creative media to create differentiation leads to
convenience leadership.
While popular with consumers, vending machines are not particularly profitable.
________________ offers even the smallest entrepreneur the opportunity to open a
shop on the Internet.
A.Direct selling
B.Television home shopping
C.Vending machine retailing
D.Catalog retailing
E.Electronic retailing
Electronic retailing is the communication and sale of products or services to consumers
over the Internet. E-retailing offers even the smallest entrepreneur the opportunity to
open a shop on the Internet.
Which of the following is a way in which B2B selling differs from B2C?
A.Good interpersonal and communication skills are needed in B2C but not in B2B.
B.Many of the goods and services sold by B2B salespeople are more expensive and
technically complex than those in B2C.
C.Excellent knowledge of the products being sold is vital in B2B but not in B2C.
D.An ability to discover customer needs and solve their problems is relevant only to
B2B selling.
E.B2C customers tend to be larger and engage in extensive decision-making processes
involving many people.
B2C and B2B selling differ in some important ways. Many of the goods and services
sold by B2B salespeople are more expensive and technically complex than those in
B2C. In addition, B2B customers tend to be larger and engage in extensive
decision-making processes involving many people. On the other hand, good
interpersonal and communication skills, excellent knowledge of the products being
sold, an ability to discover customer needs and solve their problems are common
characteristics to both sales environments.
Questions such as “How big is a potential target market?” “How do we reach this
potential target market?” and “How will this potential target market react to our
product?” each represent ________ that must be prioritized.
A.Research problems
B.Marketing research deliverables
C.Economic problems
D.Segmentation problems
E.Information system problems
There may be several research problems related to a given situation and they must be
prioritized based on what needs to be dealt with first.
Jack attributes the success of his pre-owned automobile business to the clear low-key
messages created by a small advertising agency. Lately a new media buyer at the
agency has changed the key radio stations where Jack’s Auto ads are played and his
sales are slipping. The problem occurs in the ____________ activity of the value chain.
A.Inbound logistics
B.Operations
C.Outbound logistics
D.Marketing and sales
E.Service
Marketing and sales is a primary activity in the value chain and it handles the firm’s
communication of the value proposition to the marketplace.
The more strategic the decision the greater the need for secondary data.
In markets where customers typically witness rapidly changing prices,
________________ can provide a source of competitive advantage.
A.Price elasticity of demand
B.Stability pricing
C.Pricing tactics
D.Auction pricing
E.Reverse auction
Stability pricing can provide a source of competitive advantage in markets where
customers typically witness rapidly changing prices. In case of stability pricing, a firm
attempts to find a neutral set point for price that is neither low enough to raise the ire of
competition nor high enough to put the value proposition at risk with customers.
Shabreka Lopez, marketing manager for Yaard-Vark Lawn Tractors, is interested in the
relationship between the prices of lawn tractors and the level of sales. To test whether
increasing prices will lead to a change in sales and how much of a change, she should
use ________ research.
A.Causal
B.Descriptive
C.Random
D.Academic
E.Exploratory
Causal research tries to discover the cause and effect between variables. In this
example, it will help find out relationship between the prices of lawn tractors and the
level of sales.
Moving a customer past a need to really want the product is the _____________ stage
in AIDA model.
A.Attention
B.Interest
C.Desire
D.Action
E.Advertise
Moving from interest to desire means that a customer has to move past a need and
begin to really want the product.
Marketers spend heavily in the product launch phase in order to move people through
________.
A.The trial phase and into the adoption phase to get loyalty as soon as possible
B.Awareness, interest and evaluation getting them to try the product quickly
C.The evaluation phase quickly in order for them to search out as much information as
possible
D.The adoption phase so they can be product advocates as early as possible
E.None of the above
Marketers, particularly those involved in a new-product launch, want to move
consumers through the process as quickly as possible. One reason to spend heavily at
the product launch phase is to move people through awareness, interest, and evaluation,
getting them to try the product quickly.
Julie has been a stay-at-home mom for the past 15 years. Prior to becoming a mom,
Julie was a District Manager at a successful retail company in Atlanta. Julie has just
joined your company and is excited to be working again, but you realize her ideas are a
bit dated. When she starts talking about the customer interface, you know you need to
fill her in on some changes. How has the customer interface changed?
A strategy of _______________addresses the objective of entering a market at a
relatively high price point.
A.Penetration pricing
B.Price skimming
C.Target ROI
D.Competitor based pricing
E.Value pricing
A strategy of price skimming addresses the objective of entering a market at a relatively
high price point. In proposing price skimming, the marketing manager usually is
convinced that a strong price-quality relationship exists for the product.
A window manufacturer has trouble getting raw materials for production. The problem
occurs in the ____________ activity of the value chain.
A.Inbound logistics
B.Operations
C.Outbound logistics
D.Marketing and sales
E.Service
Sourcing raw materials is part of the inbound logistics activity of the value chain.
Shabreka, a senior partner with a law firm, likes to shop in a designer boutique located
in a city 30 miles from her home. This store offers _________ utility.
A.Time and place
B.Form
C.Ownership
D.Form and ownership
E.Place
The location is not convenient and we assume it takes a long time to travel to the shop.
We can assume that Shabreka chooses the designer clothing because of style (form
utility) and because she is willing to pay a high price (ownership utility).
With reference to the VALS¢ framework, the primary motivation for thinkers is
________.
A.Self-expression
B.Achievement
C.Ideals
D.Money
E.Recognition
With reference to the VALS¢ framework, the primary motivation for thinkers is ideals.
Lauren went to Leisure Travel to book a vacation to the Bahamas. The travel agent told
her about multiple all-inclusive resorts where the price of the airfare, hotel, and food are
all included. The resort is using a __________________ strategy.
A.Product line pricing
B.Captive pricing
C.Price bundling
D.Reference pricing
E.Prestige pricing
When customers are given the opportunity to purchase a package deal at a reduced
price compared to what the individual components of the package would cost
separately, the firm is using a price bundling strategy. Since the package offered by the
resort includes various benefits like airfare, hotel, and food, it is using a price bundling
strategy.
Define Transactional Cost Analysis.
Define brand equity according to David Aaker and list the corresponding dimensions.
Why is the early success of a new product launch so important? Give an example.
Ron’s grandfather was born in 1934. What generation does he belong to and what are its
characteristics?
What are new-to-the-world products? What are the two categories these fall into? Give
an example of each.
How does the North American Industrial Classification System (NAICS) help in B2B
marketing?
Barry’s company has just acquired a food retailer through a merger. Barry has been put
in charge of managing the food retailer. While Barry has always worked in retail, he has
never worked for a food retailer; what are some of the things that make food retailers
unique?
What problems can organizational employees experience due to differences in
nonverbal communication? How does this affect marketing?