If a calculator company produces 100,000 hand calculators at a cost of $10, but the cost
drops to $9 when it produces 200,000 and $8 when it produces 400,000 hand
calculators, the decline in average cost with accumulated product experience is called
the price elasticity of demand.
Communication adaptation occurs when companies change marketing communications
for each local market.
Coercive and referent power are subjective and depend on the ability and willingness of
parties to recognize them.
The competitive frame of reference defines which other brands that a brand competes
with.
Selective distribution severely limits the number of intermediaries and is appropriate
when the producer wants to maintain control over the service level and outputs offered
by the resellers.
A successful extension cannot only contribute to the parent brand image but also enable
a brand to be extended even farther.
The experience qualities of a good or service can be evaluated after purchase.
Many companies focus on multiple cause-related marketing programs to simplify
execution and maximize impact.
Social marketing programs take little time to develop and are generally easy to
implement.
If messages are too conflicting, audiences will counterargue and disbelieve them.
Why do firms employ more than one persona to gather information about target
consumers?
A) Within a group, consumers usually exhibit similar tastes and preferences.
B) The distribution of income and wealth are more or less equal across different
customer segments.
C) Although customers have unique needs, essentially their basic needs and
requirements are the same.
D) Any target market may have a range of consumers who vary along a number of key
dimensions.
E) The firms want to provide consumers with a greater number of product choices.
________ is the process of carefully managing detailed information about individual
customers and all customer “touch points” to maximize loyalty.
A) Customer relationship management
B) Customer lifetime value
C) Customer profitability analysis
D) Customer satisfaction analysis
E) Customer-value delivery
In which of the following is a person performing the role of a gatekeeper?
A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the
possible alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah’s job to weed out the
good prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.
A(n) ________ vertical marketing system combines successive stages of production
and distribution under single ownership.
A) corporate
B) administered
C) contractual
D) regulatory
E) controlled
Place advertising, or out-of-home advertising, is a broad category that includes many
creative and unexpected forms to grab consumers’ attention, including all of the
following EXCEPT ________.
A) billboards
B) yellow pages
C) public spaces
D) product placement
E) point of purchase
The sales forecasting method of ________ builds sets of equations that describe a
system and statistically derives the different parameters that make up the equations
statistically.
A) time-series analysis
B) statistical demand analysis
C) econometric analysis
D) cost effectiveness analysis
E) exponential smoothing
Which of the following is NOT one of the four main categories of online marketing
communications?
A) Web sites
B) guerrilla marketing
C) search ads
D) display ads
E) e-mail
Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the
X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon.
To communicate its unique position ‘” and to avoid association with its Explorer and
Country Squire models ‘” the vehicle, eventually called Freestyle, was designated a
‘sports wagon.” According to the given scenario, Ford Motor Co. conveyed their brand’s
category membership by ________.
A) announcing category benefits
B) identifying counter examples
C) relying on the product descriptor
D) focusing on reliability
E) comparing to exemplars
The way the user performs the tasks of getting and using products and related services
is the user’s total ________.
A) consumption system
B) consumable system
C) consistent use system
D) augmented system
E) potential system
The relatively homogeneous and enduring divisions in a society, which are
hierarchically ordered and whose members share similar values, interests, and behavior
constitute a ________.
A) culture
B) subculture
C) social class
D) family
E) group
According to the VALS segmentation system, ________ are successful, goal-oriented
people who focus on career and family. They favor premium products that demonstrate
success to their peers.
A) Thinkers
B) Innovators
C) Achievers
D) Believers
E) Experiencers
For which of the following categories of products will demand forecasting be easiest?
A) commodities which are in the initial stage of their product life cycles
B) products which have many close substitutes in the market
C) goods which are produced in an oligopoly market
D) products whose sales fluctuate widely
E) products whose consumers are highly sensitive to change in price
A company decided to conduct a market survey for its new MP3 player that the
company had priced at $150. In the survey, 95 percent of participants said that the
maximum they would pay for the MP3 player is $100. This is an example of which of
the following possible consumer reference prices?
A) historical competitor price
B) expected future price
C) usual discounted price
D) upper-bound price
E) last price paid
When eBay and Amazon.com cut out the majority of middlemen that normally would
participate in the exchange process, it is an example of ________.
A) deregulation
B) reverse auctioning
C) reintermediation
D) disintermediation
E) diversification
According to BrandAsset® Valuator model, energized differentiation and relevance,
the two pillars of brand equity combine to determine what is called brand ________.
A) position
B) image
C) depth
D) knowledge
E) strength
Joseph, a student of Columbia University, finds many of his classmates have purchased
an iPad tablet from Apple. The iPad, launched a few months before has been identified
as a very useful product and many students in the US have rated it highly. Considering
all these, Joseph also decides to purchase an iPad. Which of the following is the adopter
group to which Joseph belongs?
A) early adopter
B) innovator
C) late majority
D) laggard
E) early majority
Brand ________ is the added value endowed to products and services.
A) loyalty
B) equity
C) preference
D) identity
E) licensing
When the government of any country restricts the sale of a particular commodity to
certain groups ‘” for example, restricting sales of alcohol to individuals of age 21 and
over ‘” the eligible consumers who have income, interest, access, and qualification
constitute the ________ market.
A) accessible
B) target
C) potential
D) qualified potential
E) qualified available
E&OE is trying to minimize its inventory costs, which are extremely high. The
company has realized that it can achieve this by maintaining a near-zero inventory and
producing more products only once it is ordered. Which of the following will be true for
E&OE?
A) Short production runs will be more expensive than longer ones.
B) Setup and order-processing costs will be high.
C) The order point will be high.
D) Order-processing costs will be lower than the inventory-carrying costs.
E) E&OE can reduce the average cost per unit by producing a long run.
If consumers were largely indifferent to a $0.05 increase in the price of a gallon of milk,
the price rise is said to fall within customers’ ________.
A) price indifference band
B) experience curve
C) arm’s-length price
D) learning curve
E) net price index
When Starbucks extended its brand into coffee drinks and ice creams to reach
customers who did not use its brand, it was using a(n) ________ strategy.
A) geographical-expansion
B) new-market segment
C) market-penetration
D) larger package size
E) increased frequency
Illustrate the differences between a straight rebuy, a modified rebuy, and a new-task
purchase.
Belling wants to analyze the threats posed by its competitors. Which three variables
must it monitor to achieve this?
Roler Telecom, a leading mobile telephone operator in Asia, engages in aggressive
marketing promotions. The company sends promotional messages to customers and
makes promotional calls on a regular basis. However, these aggressive promotion
efforts often irritate its customers. What could be the likely outcome of this?
In systems buying, the US government often solicits bids from prime contractors. What
do prime contractors do?
Researchers have found that buyer-supplier relationships can be classified into eight
different categories. What category would be appropriate for a relationship where,
although bonded by a close, cooperative relationship, the seller adapts to meet the
customer’s needs without expecting much adaptation or change on the part of the
customer in exchange?
What are the major shortcomings of marketing-mix modeling?
Identify and describe the four value stages of the brand value chain.
Compare and contrast paid search ads, banner ads, and interstitials. In your response,
please identify the advantages and disadvantages of each advertising format.