The final stage of the creative selling process is the close.
Off-price retailers obtain surplus merchandise from manufacturers and offer
brand-name, fashion-orientated goods at low prices.
Happy customers are more likely to tell their friends about their pleasant customer
experiences than unhappy customers are to tell their friends about their unpleasant
customer experiences.
Every action you take online leaves a digital imprint, data that can be used to create
valuable insights into consumer behavior.
Perception is an example of an internal influence on the consumer decision-making
process.
Gross rating points (GRPs) are a measure of the quantity of media included in a given
media plan.
Captive pricing is illegal.
The gross domestic product (GDP) is the overall pattern of changes or fluctuations of
an economy, such as prosperity, recession, and recovery.
Marketers can have little to no effect on the evaluative criteria consumers use.
The individual who develops the product specifications for a complex product would
likely assume the role of influencer in the buying center.
Value pricing is the opposite of cost-based pricing.
The consumer orientation maintains that marketers must satisfy customers’ needs in
ways that also benefit society.
In a laboratory experiment, a rat in a maze learns the quickest route to a piece of cheese
after several attempts. This is an example of observational learning.
In limited-service retail operations, such as specialty stores and first-class department
stores, salespeople assist customers in every phase of the shopping process.
Middlemen is an older term for intermediaries.
The focus group format can be used online.
A syndicated research report is an example of a secondary data source.
The only types of retailers that have proven that e-commerce can be profitable are the
traditional bricks-and-mortar retailers.
Existing brand equity can hamper the success of a brand extension strategy.
Sora is a teenager who loves to shop for clothes. She has a points card from Trend
Town, her favorite shop. Sora’s card is scanned each time she makes a purchase at
Trend Town, and the more she uses the card, the more special offers she receives from
the shop. Managers at Trend Town are likely to use information from Sora’s shopping
for the purpose of customer acquisition.
In a monopolistic competition market structure, each seller is very conscious of other
sellers’ actions, since there is a small number of sellers in the industry.
Consumers would perceive a ceiling fan as having greater trialability than a new kind of
snack food.
Capacity management primarily deals with the intangibility characteristic of services.
Using a CRM approach, customers are prioritized and communication is customized
accordingly.
Marketers define a need as the difference between a consumer’s actual state and some
ideal or desired state.
Foreign exchange rate is used more frequently than gross domestic product (GDP) as a
measure of a country’s economic health.
The marketing intelligence system uses corporate espionage to gather information about
competitors.
Managers using the Boston Consulting Group growth-market share matrix are assessing
the potential of a firm’s existing SBUs to generate cash needed to invest in other
businesses.
Because of recent advances in data warehousing and data mining, the amount of data
we produce is expected to decrease in the near future.
Although having something to eat or drink may be a want, the desire for a specific
brand name is referred to as a need.
The principles of marketing can apply to people, just as they apply to goods and
services.
Rack jobbers are important to both the producers and the customers of bulky products
such as coal, oil, or lumber.
Companies should identify critical incidents so they can plan how to recover before a
problem even occurs.
Mall intercept studies are a commonly used type of face-to-face interview.
Opinion leaders influence younger consumers but usually have little or no effect on
adults seeking to make a major purchase.
Southern Security makes safes for storing valuables. When Ed sold safes for the
company, he would deal with a prospect’s concerns such as the cost of the safe and then
ask, “Are you ready to purchase a safe for your family, or are there other concerns that
we need to discuss?” When Ed asked this question, he was ________.
A) using a last objection close
B) fostering a transactional relationship
C) anticipating objections
D) engaging in the approach stage of the creative selling process
E) using a standing-room-only close
Advertising, sales promotion, public relations, and buzz building activities are all
________.
A) channels that should be integrated under the concept of integrated marketing
communications
B) channels focused more on interactive marketing than traditional marketing
C) promotional tools used for push strategies but not pull strategies
D) promotional tools used for pull strategies but not push strategies
E) promotional tools adapted for use in mass marketing
________ 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
Interactive videos, games, and contests are all ways that marketers provide ________
for online shoppers.
A) in-home shopping
B) virtual experiential marketing
C) off-price retailing
D) pop-up marketing
E) network marketing
According to the law of demand, which of the following is true?
A) If prices decrease, customers will buy more.
B) Customers are not aware of small price changes.
C) The effect on demand from changes in price cannot be accurately predicted.
D) Demand equals supply.
E) If prices increase, customers will buy more.
People, places, and ideas are all ________ that often need to be ‘sold” by someone and
“bought” by someone else.
A) tangibles
B) goods
C) intangibles
D) values
E) benefits
U-Frame-It is a small company that has hired a local ad agency to put together an
advertising campaign. Which of the following questions should be addressed before the
others?
A) What percentage of the budget should be for U-Frame-It radio ads?
B) Which type of media is most appropriate for U-Frame-It ads?
C) What are the message objectives of U-Frame-It?
D) How does U-Frame-It’s competition advertise?
E) What type of appeal will work best for U-Frame-It’s products?
To purchase an item from an Internet site, you will be asked to provide a credit card
number. Because of ________, a computer hacker who intercepts this number as it is
being sent to the seller would likely see D$&0PDJLJL, or something equally as
meaningless.
A) decoding
B) back-translation
C) encryption
D) the firewall
E) reverse encoding
A manufacturer with a product in the decline stage of the product life cycle would most
likely decide to ________ if there is reason to believe that there will be a residual
demand for the product.
A) maintain the product without change
B) let existing stocks of the product run out
C) drop the product immediately
D) search for replacements
E) increase sales promotion efforts
The purchase of a set of flannel sheets from the Lands’ End catalog Web site is an
example of ________ e-commerce.
A) B2B
B) B2C
C) POS
D) C2C
E) C2B
Which of the following statements about the break-even point is true?
A) It is used to determine how many more units need to be sold to increase market
share by a specific amount.
B) It is a technique used to calculate fixed costs.
C) It determines the amount of retained earnings a company will have during an
accounting period.
D) It is a technique marketers use to examine the relationship between supply and
demand.
E) It is calculated using contribution per unit costs and total fixed costs.
________ is the third, or “nuts-and-bolts,” level of planning.
A) Strategic planning
B) Functional planning
C) Operational planning
D) Product development
E) Business planning
An undifferentiated marketing strategy is most likely to be successful in which of the
following scenarios?
A) The market has many competitors.
B) The product or service has wide appeal.
C) Growth of the market has stabilized.
D) The market is slowly shrinking.
E) The market has a few strong competitors.
Magazines targeted to people who love in-line skating, people who enjoy cooking, or
people who prefer living more simply use ________ segmentation variables.
A) demographic
B) ethnographic
C) geodemographic
D) socioeconomic
E) psychographic
The ________ for a guest paying for a night’s stay at a hotel would include express
checkout and superb room service.
A) actual product
B) value network
C) augmented product
D) potential product
E) core product
In price planning, a firm would be most likely to set a profit objective for which of the
following products?
A) a commodity such as coal
B) toothpaste
C) a fad such as Beanie Babies
D) lightbulbs
E) construction materials
All of the following are forms of utility created by marketing processes except
________.
A) form utility
B) place utility
C) time utility
D) possession utility
E) price utility
The dentist’s office calling to remind you of your scheduled appointment for the next
day is an example of ________.
A) CRM
B) customer equity
C) undifferentiated targeting
D) share of customer
E) repositioning
Social networking is an integral part of which of the following?
A) the triple-bottom-line orientation
B) lifetime value of a customer
C) the value chain
D) Web 2.0
E) Web 1.0
A type of m-commerce that simply involves sending a text message is known as
________.
A) predictive marketing
B) spam
C) short-message system marketing
D) telemarketing
E) e-commerce
Which of the following types of retail stores would likely offer the broadest assortment
of merchandise and services?
A) convenience stores
B) factory outlet stores
C) specialty stores
D) box stores
E) hypermarkets
A flash mob is a type of ________.
A) lobbying
B) guerilla marketing
C) sponsorship
D) crisis management
E) ambient advertising
Which of the following is an example of a dual distribution system?
A) Walmart locating in several countries
B) J.C. Penney’s catalog and retail store sales
C) Avon’s door-to-door distribution
D) Starbucks located inside a bookstore
E) a hotel providing guest privileges at a nearby health spa
A new-task buy ________.
A) requires less time and effort than a modified rebuy
B) cannot be used if the buyer uses single sourcing
C) is characterized by uncertainty and high risk
D) is similar to routine decision making in the consumer market
E) begins with a SWOT analysis
Mattel teamed with Coca-Cola to market Soda Fountain Sweetheart Barbie. This is an
example of ________.
A) generic branding
B) family branding
C) franchising
D) cobranding
E) ingredient branding
Which of the following is NOT a survey method for data collection?
A) online questionnaires
B) mail questionnaires
C) mall intercepts
D) observations
E) face-to-face interviews
________ is the first, or “big picture,” level of planning.
A) Strategic planning
B) Functional planning
C) Operational planning
D) Product development
E) Business planning
The ________ environment refers to the characteristics of a society, the people who live
in the society, and the culture that reflects the values and beliefs of the society.
A) political and legal
B) sociocultural
C) economic
D) technological
E) natural
Which component of the market research process determines the consumer population
that a company will study?
A) the research design
B) the sampling method
C) the research objective
D) the collection method
E) the sampling design
AIO stands for ________.
A) activities, interests, and opinions
B) abilities, interests, and opinions
C) activities, interests, and organization memberships
D) abilities, income, and opinions
E) activities, income, and opinions
Which of the following is the process of evaluating and selecting the most viable
market segment to enter?
A) segmentation
B) differentiation
C) targeting
D) market mixing
E) positioning
ShopWell, a large supermarket chain, wants to offer a wider variety of fresh ready-to-go
meals for its customers. ShopWell has contracted with The Great Wall, a Chinese
restaurant, and Salad Heaven, a health food restaurant, to set up small take-out areas
within the supermarket. This arrangement is an example of ________.
A) convenience stores
B) leased departments
C) specialty stores
D) hypermarkets
E) off-price retailing
Because family needs and expenditures change over time, marketers may segment
consumers by ________.
A) age
B) generation
C) family life cycle stage
D) social class
E) psychographics
The main activities of value chain members include all of the following except
________.
A) bringing in materials to make the product
B) converting the materials into the final product
C) providing unbiased information about the product to consumers
D) shipping out the final product
E) servicing the product after purchase
Retail stores are often classified on the breadth and depth of their merchandise
assortment. The breadth of the merchandise is the number of different lines available.
The merchandise breadth may be classified as ________ or ________.
A) narrow; broad
B) narrow; deep
C) shallow; broad
D) shallow; deep
E) narrow; full
Why would a company create a knockoff of a product?
Identify an advantage and disadvantage of implementing multiple sourcing.
Describe several characteristics of Generation Y and Generation X that are important to
marketers.
The marketing team for Lots-o-Chocolate wants to understand the effectiveness of the
different components of its digital marketing campaign and put more resources toward
its three top-performing sites for ads. How can the marketing team use marketing
metrics and marketing control to achieve their objective?
The background for a Benadryl allergy medication ad appearing in the magazine Better
Homes and Gardens shows green grass and lovely flowers. The headline states
“Benadryl is 54 percent more effective than the leading prescription.” At the bottom of
the ad, in small print, is an explanation of how the effectiveness of Benadryl was
determined. The ad also shows a package of Benadryl so consumers can easily
recognize it at the store. Identify the different components of the communication model
for this advertisement.
Briefly explain how marketers use marketing controls.
Discuss the concept of escalating levels of commitment to a brand. How do consumers
progress in loyalty to a brand?
In the market research process, it is essential for marketers to define the research
problem. What does this mean?
Compare the traditional one-to-many marketing communication model to the updated
many-to-many communication model. What has caused the shift? What are the
advantages and disadvantages of the new model for marketers?
John Wanamaker, a famous retailer from the late 1800s, is credited with saying “Half
the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Explain the marketing issue highlighted by this quote and how marketing analytics
affects this issue.
Explain how prestige products may relate to some customers’ feelings of self-worth.
What is an example of a prestige product?
Identify two actions other than the purchase of a good or service that could be measured
through calculation of a conversion rate.
What is the rationale for a store advertising the sale of one item at a price that may be
potentially lower than the cost of the item to the store?
Why are companies often eager to form joint ventures?
Describe the function of the World Trade Organization (WTO) and explain how it
originated.
What promotional efforts would a marketer be likely to employ if the communication
objective was to create desire for the product?