Book Title
Marketing 5th Edition

BUSMKT 32458

February 5, 2017
Convenience for the customer is seldom a factor for manufacturers when choosing a
retail partner.
The four Ps of the marketing mix include product, promotion, planning, and place.
A complex product that is best described in writing will be difficult to explain to
consumers who are unable to read. For this reason, a segment in which many
consumers could not read would be considered unattractive because the consumers
would not be responsive.
For products like pencils and paper clips, marketers should probably use an
undifferentiated targeting strategy.
Automobile manufacturers could build cars specially designed for very tall people (for
example, over seven feet), but it is likely that this segment is not substantial.
Global expansion often begins when a firm receives an order for its product from
another country.
Pepsi has cooperated with America on the Move to improve many of its products and
their labels, such as reducing the saturated fat in its Frito-Lay Ruffles. This form of
social responsibility most directly impacts shareholders.
Demographics are transmitted by words, literature, and institutions from generation to
The RFP process is used by buyers to allow customer input into value creation.
Sometimes all that needs to be done to satisfy a customer complaint is to listen to the
One of the key characteristics of brainstorming sessions is that bad ideas should be
immediately rejected so the group can focus its attention on good ideas.
Dynamic pricing is also referred to as individualized pricing.
Maintaining a unique value proposition can be sustained in the long term only in
monopoly situations or monopolistic competition situations.
To build a sustainable competitive advantage, companies should focus on a single
About half of smartphone users in the United States have used them to make purchases.
Short-term profit decisions can cause firms to lose customers in the long run.
A pulsing advertising schedule uses periods of heavy advertising followed by periods of
no advertising.
An advertisement stating "Buy now: no money down" is a persuasive-type ad.
What types of unethical behavior are most frequently encountered in marketing?
Setting high customer expectations is a good strategy that will help avoid customer
dissatisfaction in the long run.
The target audience for advertisers is not always the same as current users of the
Among the various international trade agreements, the North American Free Trade
Agreement represents the highest level of integration across individual nations.
When Hakim asked Marta where she wanted to go for lunch, she said Chili's because
she went there at least once a week and always liked it. Marta conducted an internal
search for information.
The demand curve for prestige products generally slopes downward due to higher
Garage sales and online classified ads are examples of C2C marketing.
In the communication process of marketing communications, the marketing department
often functions in the role of transmitter.
Marketing channel relationships evolve when the parties have common goals.
Merck and Co., having learned from the Johnson & Johnson Tylenol incident, was
quick to respond when the first reports of problems with Vioxx arose.
A value proposition compares the price of a product to its benefits.
When businesses support cultural or sporting events, such as the Discover Orange Bowl
football game, this is known as cause-related marketing.
Many services marketers use training and standardization to reduce service
The sales reward is more important than the way in which it is operationalized.
At the break-even point, profits are maximized.
Firm A has set very low prices for its products in an attempt to drive its competitor,
Firm B, out of business. This is known as monopolistic pricing.
Zappos, an online shoe company, knows shoes are typically a(n) __________ good,
with consumers often spending time comparing alternatives. It overcomes that aspect of
consumers' search process by offering a free, no-questions-asked return policy.
A. specialty
B. shopping
C. convenience
D. ritual
E. impulse
While ethical and legal issues are associated with all aspects of marketing, personal
selling presents unique issues because
A. salespeople tend to be unethical.
B. sales managers are the only people in most sales organizations who worry about
C. salespeople interact directly with customers and are, therefore, more visible.
D. laws regulating personal selling are detailed, complex, and often mistakenly ignored.
E. customers tend to expect unethical behavior from salespeople.
Advertising agencies often provide the IMC function of comparing their customer's
target audience with the viewer, listener, or reader profile of the communication channel
being considered. The agency is most likely trying to avoid noise problems associated
A. competing messages.
B. lack of clarity in the message.
C. a poor choice of medium.
D. an extended feedback loop.
E. a flaw in the medium.
For marketers using a price skimming strategy, once the initial demand is met for new
and innovative products, they will likely
A. leave the market.
B. discontinue the product and create a new one.
C. offer deep discounts to create a loss leader pricing strategy.
D. lower the price to capture the next most sensitive market segment.
E. use zone pricing to maximize differences.
As director of a small art gallery, one of Frederica's major concerns is the preferences of
the people who buy her artists' work. Frederica recognizes that the center of her
marketing efforts is
A. profits.
B. her target customers.
C. artistic social responsibility.
D. competing art galleries.
E. the arts movement.
Which of the following factors, listed in a situation analysis for a major U.S. auto
manufacturer, is the best example of a threat?
A. The factory that manufactures a new, popular car cannot build enough vehicles to
meet the demand, while other factories have excess capacity.
B. Recent consumer studies have indicated that Chinese consumers prefer American
C. A New York law firm has filed a $10 million class action suit against the company on
behalf of car owners whose gas tanks exploded.
D. Due to outdated engine technology, the company's cars get lower gas mileage than
those of major competitors.
E. The company has lower manufacturing costs than its key competitors, allowing it to
sell its cars at low prices.
In most large organizations, several people are responsible for making a purchase
decision. This group is called the
A. supply chain.
B. reselling team.
C. decider group.
D. buying center.
E. expediters.
In which of the following categories would a dry cleaning business be placed?
A. services retailer
B. specialty store
C. category killer
D. superstore
E. discount store
If a telecommunications company drastically cuts the price for cellular phone service in
order to eliminate local competitors, the company could be charged with
A. loss leader pricing.
B. bait-and-switch pricing.
C. price fixing.
D. unfair slotting.
E. predatory pricing.
Which of the following is true about quantitative research?
A. It is always conducted using primary data collection.
B. It revises the research objective based on data mining.
C. It confirms insights and provides a basis for taking a course of action.
D. It offers conclusions that are always correct.
E. It includes focus group interviews.
Reese and Janelle own a boutique in the United States. Recently they took a trip to
China and while there, the couple purchased a large quantity of name-brand handbags
for a cost significantly lower than what the manufacturer charges for the same product
in the United States. Upon their return, the couple sold the handbags in their store for
less than any other store in the area. This is an example of what takes place in a(n)
_______ market.
A. black
B. gray
C. unsupervised
D. oligopolistic
E. unauthorized
Jonathan prefers shirts made with 100 percent cotton, but he will sometimes buy shirts
with less cotton if they are less expensive. Jonathan uses __________ to decide which
shirts to buy.
A. a compensatory decision rule
B. a noncompensatory decision rule
C. habitual decision making
D. social factors
E. temporal factors
Like any effective salesperson, Frazer walks into a customer's office, shakes hands,
looks the customer in the eye, and smiles. After exchanging pleasantries, Frazer will
immediately try to create interest in his company's product and establish
A. which type of follow-up will be needed.
B. how much time has been allocated for the presentation.
C. which of the alternative products to demonstrate.
D. whether to quote a full price or discount price.
E. where the customer is in the buying process.
When marketers state that services are ____________, they are referring to the fact that
services are not always of the same quality from one time period to another or from one
service provider to another.
A. intangible
B. inseparable
C. heterogeneous
D. perishable
E. viable
If a fast-food restaurant collected photographs of its regular customers so that it could
use facial detection software to identify visitors captured by security cameras, this
would be an example of using
A. external secondary data.
B. biometric data.
C. social media monitoring.
D. illegal surveillance methods.
E. sentiment mining.
Global marketers are under constant pressure to shorten distribution channels in order
A. improve promotion efficiency.
B. reduce trade deficits.
C. afford tariffs.
D. meet trade agreement guidelines.
E. reduce costs.
When retailers accumulate merchandise from producers in large amounts and sell to
consumers in smaller amounts it is considered _______ marketing.
A. B2C
B. B2B
C. R2C
D. C2C
E. C2B
When the detailed opinions of a few industry experts or experienced consumers are
needed, __________ is(are) often the best qualitative research method.
A. observation
B. surveys
C. social media studies
D. in-depth interviews
E. secondary data mining studies
Marketers with successful brands sometimes hesitate to expand their brands because
A. Federal Trade Commission regulations limit the number of products that can be
marketed under an individual brand name.
B. it is costly to maintain many product lines, and it might weaken the brand's meaning.
C. it is often difficult to get additional marketing communications coverage for the
D. manufacturing divisions usually control brand expansion and are often in conflict
with the marketing division.
E. the current economy can support only a limited number of product options.
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from
experience that 5 to 10 last-minute customers will call after 8 p.m. each evening
looking for a room and asking the price. Yolanda has empowered her staff to offer
discounts when the motel is largely vacant, and to quote the standard price when the
motel is close to full. She knows her service is __________, meaning that if no one
stays in the room, it generates no revenue that evening.
A. intangible
B. inseparable
C. heterogeneous
D. durable
E. perishable
After defining objectives and research needs, the next step in the marketing research
process involves
A. research evaluation.
B. data collection.
C. data analysis.
D. research design.
E. report writing.
Cost-based pricing assumes that costs
A. will vary with the level of prices.
B. are used to estimate value.
C. are calculated based on historical consumer perceptions of what things should cost.
D. will continue to decrease as production increases.
E. will not vary much for different levels of production.
In most companies, portfolio management is typically done at the SBU or ___________
level of the firm.
A. corporate
B. product line
C. customer care
D. sales representative
E. accounting
Regardless of the objective of an advertising campaign, each campaign's objectives
must be
A. sincere and emotional.
B. consistent with those of the available media.
C. either informative or persuasive but not both.
D. specific and measurable.
E. designed for use in both a pull and a push strategy.
A salesperson's compensation can be made up of some combination of salary,
commission, and __________, which are payments made at a manager's discretion
when the salesperson achieves certain goals.
A. bonuses
B. metrics
C. awards
D. income segments
E. rebates
Naven knows that he needs to ask a series of questions early in his sales presentation,
but he also knows that he
A. should take control of the conversation.
B. should ask questions only if he already knows the answers.
C. needs to first determine whether the customer is an order getter or order taker.
D. needs to listen carefully to the answers.
E. should follow a strict structure with his questions.
Service providers often encounter rude and unreasonable consumers. Services
marketing managers can reduce the delivery gap, even for these customers, by
A. empowering consumers.
B. providing support and incentives for their employees.
C. directing zone of tolerance limits for employees.
D. doing effective customer screening.
E. forcing rude customers to use technology.
Which of the following is not one of Hofstede's cultural dimensions?
A. power distance
B. certainty assurance
C. masculinity
D. individualism
E. time orientation
Marlie designs and manufactures specialty furniture. She has a number of unique
products but can only produce in limited quantities. Marlie will probably not use a
market penetration strategy because
A. there are few barriers to competitive entry in the market.
B. she could not meet a rapid rise in demand.
C. a low price would indicate low quality.
D. she would have to determine zone pricing discounts.
E. the experience curve effect would drop unit costs too rapidly.
__________ refers to a potential customer's ability to recall that the brand name is a
particular type of retailer, product, or service.
A. Product familiarity
B. Brand association
C. Brand awareness
D. Marketing recall
E. Cognitive association
Caroline needs to find information about income and age distribution in Orange County,
California. The best source of secondary research of use to Caroline is likely to be
A. door-to-door surveys.
B. focus group interviews.
C. syndicated data.
D. sales invoices at public libraries.
E. U.S. Census data.
Ryan is debating how to allocate the IMC budget for his new ski equipment store. He
knows having knowledgeable salespeople in his store can simplify buyers' purchase
decisions. He should also consider that, compared to other IMC alternatives, personal
selling is
A. easy.
B. expensive.
C. ineffective.
D. overrated.
E. simple.
The marketing research process follows five steps, and researchers
A. may not always go through them in the exact sequence if the situation changes or
new information is discovered.
B. should maintain the integrity of the process by following each step sequentially and
C. often collect data before defining the research objectives.
D. should be prepared to present the results before completing the analysis if they are
under a great deal of pressure to meet a deadline.
E. may follow the process by completing all steps at once instead of planning the
process first.
Most customers want to achieve a fair solution following a service failure. Which of the
following is not a factor that affects a person's perceptions of "fairness" in these kinds
of situations?
A. the nature or severity of the service failure
B. the customer's experience with other firms
C. the firm's policy on service recovery
D. observed treatment of other customers
E. stories of service recovery told by friends and family
SanDisk's MP3 player product line (called the Sansa) has a low relative market share.
The MP3 player market is expected to decline over the next few years. In Boston
Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog.
Describe a company that would be likely to use a company sales force, and a second
company that would be likely to use manufacturer's representatives. Explain why these
companies would make these choices.
Why would the manufacturer of custom-made yachts not use a market penetration
Why are attitudes important in consumer decision making?
Identify two methods used in segmenting markets and give an example of a situation
where each might be used.
As the text states, "Firms typically are most successful when they focus on
opportunities that build on their strengths relative to those of their competition." Using
the automobile industry in the United States, describe an example of this type of
positioning strategy.
What is noise in the communication process? What are the three typical sources of
noise? Provide an example of noise you have experienced or observed.
Name three ways a B2B marketer can enhance customer relationships.
When visiting a museum, you would expect to find knowledgeable museum guides who
would be able to give you historical information on the museum's collections and
special exhibitions. If you did not find any trained museum guides to assist you, then
the museum has what type of gap? Explain why you chose your answer.
If Eddie Bauer stores allowed a travel company to market adventure travel using the
Eddie Bauer brand name, what would Eddie Bauer be doing?
"Income distribution in the United States has grown more polarized." What does this
mean in general, and what does it mean especially to marketers in the United States?
In a perceptual map of two dimensions, how are these dimensions determined?
What is the advantage to the firm of paying salespeople based on straight commission?
What happens when a product has been in the marketplace for a long time? How can
this be avoided?
During which phase(s) of the strategic marketing planning process are ethical issues
likely to arise?
What is greenwashing and why do consumers need to be aware of it?
What forms of social media are good choices for "exciting" the customer?
Arden, a sales manager for a Best Buy electronics store, is putting together a training
seminar for his sales force. He wants to use the five dimensions of service quality to
emphasize the importance of follow-up in the selling process. Create an example of
each of the five service quality dimensions that Arden could use in training his Best
Buy sales staff.
How has the relationship between manufacturers and retailers changed?
What is the difference between a functional need and a psychological need? How can
getting a college education fulfill both types of needs?
What short-run versus long-run ethical dilemma do marketers often face?