A marketing professor in Ithaca, New York, maintains a museum of failed consumer
products. Most new products in this museum failed during the __________ stage of
new product development, when they are introduced to a limited geographic area.
A. pretesting
B. product launch
C. test marketing
D. product development
E. concept testing
Answer:
Walmart’s “Everyday low prices” selling proposition is effective primarily because it is
A. unique to the industry.
B. meaningful to the consumer.
C. variable over time.
D. a one-time message.
E. generally unsustainable.
Answer:
What type of B2B organization is a retail store such as T.J.Maxx?
A. Internet
B. institution
C. government
D. manufacturer
E. reseller
Answer:
Regina just bought a gourmet bagel store. She is working with a freelance graphic artist
who is designing her logo and print advertisements. Regina is spending days looking
over the various designs and color options. She needs to remember that the creative
aspect of advertising design
A. is everything.
B. will determine pretesting and posttesting options.
C. dictates tracking alternatives.
D. should not overshadow the message.
E. should always include coupons.
Answer:
Variable costs change with
A. changes in fixed costs.
B. changes in cross-price elasticity.
C. changes in target return pricing.
D. changes in the quantity being produced.
E. competitive parity.
Answer:
For years, when considering new products, marketers at Celestial Seasonings asked
themselves, “What would Stacy think?” Stacy was a fictional character representing 25-
to 50-year-old educated, upper-income women who rarely watched television but did a
lot of reading. “Stacy” represented Celestial’s primary
A. mission statement.
B. positioning.
C. SBU.
D. target market segment.
E. sustainable competitive advantage.
Answer:
The _______ provides a detailed, multipronged “Statement of Ethics” that can serve as
a foundation for marketers by emphasizing how marketers serve not only their
organizations but also act as stewards of society.
A. Small Business Administration
B. American Marketing Association
C. Better Business Bureau
D. Federal Communications Commission
E. Advertising Association of America
Answer:
Ryan knows that one of the goals of value-based marketing is to provide greater value
to consumers than competitors offer. To accomplish this goal, Ryan’s firm must look at
everything it does
A. in order to value each person in the organization.
B. for each generational cohort.
C. to avoid cultural clashes.
D. from a consumer’s point of view.
E. to sensitize organization members to ethical values.
Answer:
Which of the following is not a characteristic of products in the maturity stage of the
product life cycle?
A. Laggards are a major focus of marketing efforts.
B. Price competition is intense.
C. Marketing costs increase as firms defend their market share.
D. The market may become saturated because nearly all potential customers have
adopted the product.
E. To increase the customer base, firms consider entry into new markets and new
market segments.
Answer:
There are approximately 1 billion people living in India. Only about 200 million of
these people earn more than the equivalent of $1,000 per year. According to Maslow’s
hierarchy, most of the other 800 million Indian consumers are primarily addressing their
__________ needs.
A. social
B. personal
C. psychological
D. esteem
E. physiological
Answer:
Ted is glad his company finally converted to an RFID system. Now, he no longer needs
to go through all the new goods to make sure what the company ordered was what it
received. Ted is responsible for __________ in his company.
A. checking
B. dispatching
C. receiving
D. JIT
E. quick response
Answer:
Parents of young children have been known to drive out of their way so their kids will
not see McDonald’s Golden Arches and plead with their parents to stop. For
McDonald’s, the Golden Arches reduce marketing costs because people (including
young children)
A. have memorized the McDonald’s menu.
B. prefer yellow to other colors.
C. know what the Golden Arches brand symbol means.
D. recognize increases in product line depth.
E. are sensitive to brand repositioning.
Answer:
Which U.S. government agency has the primary responsibility in reviewing food and
package labels to ensure claims made by the manufacturer about the product are true?
A. Federal Trade Commission
B. Federal Communications Commission
C. Consumer Product Safety Administration
D. Food and Drug Administration
E. Interstate Commerce Commission
Answer:
One of the major tools used by marketers to meet the needs of loyal customers is
A. SKU.
B. PDQ.
C. IMF.
D. CRM.
E. GATT.
Answer:
Which retailer, in 2013, suffered a massive security breach that allowed hackers to steal
credit and debit card information for 40 million customers?
A. Macy’s
B. Target
C. Kmart
D. Sears
E. JCPenney
Answer:
When Penguin Catering Services first opened, the owner decided to target only events
at resorts in its geographic region. Penguin Catering was using a(n) __________
targeting strategy.
A. concentrated
B. micromarketing
C. benefit-driven
D. differentiated
E. undifferentiated
Answer:
When a company offers consumers the ability to make purchases via a smartphone, this
is known as
A. M-commerce.
B. smart retailing.
C. cell selling.
D. P-commerce.
E. channel expansion.
Answer:
Merchandise that arrives in the delivery truck ready to be sold is considered
A. quick-response packaged.
B. ahead of the curve.
C. lead time synchronized.
D. floor-ready.
E. synthesized.
Answer:
One important measure of social media’s effectiveness is the percentage of site visitors
who take the action the site owner hoped formaking a purchase, subscribing to a
service, or donating money, for example. This measure is called the site’s
A. conversion rate.
B. extended network.
C. bounce rate.
D. hits.
E. click paths.
Answer:
When integrating ethics into a marketing strategy, a key task is to ensure all potential
ethical issues have been addressed and that all employees of the firm have acted
ethically. This action would take place during which stage of the strategic marketing
planning process?
A. brainstorming phase
B. planning phase
C. implementation phase
D. control phase
E. revision phase
Answer:
While on vacation, Martha had her camera stolen. Not wanting to waste vacation time
shopping for a new camera, Martha simply purchased another camera just like her old
one. For Martha, the __________ was low.
A. perceived benefit versus perceived cost of search
B. locus of control for this decision
C. determinant attribute for this decision
D. universal set of camera options
E. prepurchase dissonance factor
Answer:
Frequent buyer/user award programs are used to
A. increase price sensitivity.
B. decrease co-branding costs.
C. lower licensing fees.
D. expand product line depth.
E. maintain contact with loyal customers.
Answer:
Marketers often create a special marketing mix for loyalty segments because these
segments are
A. too large to service with ordinary targeting.
B. difficult to identify.
C. costly to acquire.
D. generally profitable.
E. constantly changing.
Answer:
In simple terms, the AIDA model is also known as the __________ model.
A. intention, action, interest
B. stop, look, listen
C. want, need, desire
D. inform, persuade, act
E. think, feel, do
Answer:
When a customer purchases a DVD at Best Buy, all of the following information flows
in the supply chain are started except
A. the sales associate scans the UPC recording the sale.
B. the sale is transmitted to Best Buy’s distribution center to adjust inventory data.
C. the purchase is added to the customer’s purchasing habit records.
D. Best Buy’s buyer aggregates sales at all stores and uses the information to send a
reorder to the manufacturer.
E. the point-of-sale terminal records the sale and sends it to Best Buy’s buyer.
Answer:
What is the name of the process in which customers collaborate in product design, often
providing additional value to the firm’s customers?
A. value cocreation
B. product positioning
C. B2C marketing
D. supply chain management
E. value-based marketing
Answer:
Alicia has been asked to approve a marketing campaign that, although not illegal,
promotes food products to children. She is concerned that the food products are not
particularly nutritious, although they are not as bad for children as some others sold by
competitors. By using the ethical decision-making metric, Alicia will
A. ignore the metric as unworkable, since the campaign might pass some of the tests
and fail others.
B. consider the profit potential first; then explore the vague tests in the metric.
C. not worry about the children; their parents are likely to make the buying decision,
and they should be able to decide for themselves.
D. evaluate the alternative using a series of questions.
E. consult the firm’s code of ethics for guidance and leave personal ethical
considerations out of the decision-making process.
Answer:
When marketers state that services are __________, they are referring to the fact that
services cannot be stored for use in the future.
A. intangible
B. inseparable
C. heterogeneous
D. durable
E. perishable
Answer:
A Groupon offer for discounted theater tickets was sent to targeted customers who had
previously purchased movie or theater tickets. This best describes which of the 4E
frameworks?
A. engage
B. energize
C. excite
D. experience
E. educate
Answer:
Marketers who design and offer new products and services to their existing customers
are pursuing a _________ growth strategy.
A. product proliferation
B. market development
C. market penetration
D. diversification
E. product development
Answer:
Dopson’s Hardware was in bad financial shape. It owed so much money that vendors
put the store on a cash-only delivery basis. As a result, the store had a dwindling
inventory of goods to sell. Whenever a customer asked about an unavailable item, the
owner directed the sales staff to say that it was on backorder and would be in stock next
week. When the customer returned, the item was still unavailable. The owner’s policy
created a(n) __________ gap.
A. knowledge
B. empowerment
C. communication
D. standards
E. tangibility
Answer:
As noted in your text, global segmenting, targeting, and positioning are more
complicated than domestic segmenting and positioning because of cultural nuances,
significant subcultures within countries, and
A. currency differences.
B. antidiscrimination regulations prohibiting segmentation and targeting in developing
countries.
C. differences in the way consumers see themselves and in the way they see products
and services.
D. complications due to franchising issues.
E. the taxes imposed by some foreign countries on marketing activities.
Answer:
Brenda was planning a small dinner party and had gone to a new specialty food store
with coupons she’d found in the food section of the paper. At the store she also found a
“buy one, get one free” deal and a gift offered with the purchase of a particular dessert.
She altered the menu as a result of the __________ and ended up spending less than
she’d planned.
A. in-store demonstrations
B. packaging
C. in-store promotion
D. product placement
E. store atmosphere
Answer:
One of the goals of value-based marketing is
A. to provide the greatest value for the least profit.
B. to sell products for the highest possible price.
C. to offer greater value than competitors offer.
D. to determine the value of the brand.
E. to sell to all consumers, regardless of their needs.
Answer:
Years ago, a hardware store had a sign that said, “If we don’t have it, you don’t need it.”
How is the implementation of a quick response system the complete opposite of this
marketing philosophy?
Answer:
Develop a lifestyle segmentation scheme for students at your university, and label and
describe three segments. You can think of this as developing your own version of the
VALS tool, but specifically for college students.
Answer:
Joe’s Deli is trying to compete with the local Subway store. When Subway offers lower
prices on certain sandwiches during its “customer appreciation month,” Joe’s Deli
reduces the price of its similar subs in order to compete. What pricing orientation is
being utilized by Joe’s Deli?
Answer:
When Deena was hired to the sales position in Austin, she found that the previous rep
had laid the foundation for several sales that resulted in half a million dollars in sales,
even though Deena never called on those customers. Noreen had only a $200,000
increase, but she took over a territory that had not been called on for two years. How
would you handle their evaluations and bonuses at the end of the year?
Answer:
How are the B2B and B2C buying processes different?
Answer:
Create a positioning strategy for your school’s business program. How do you want
potential students to view your program?
Answer:
Your marketing professor, Dr. Sullivan, has been asked to participate in the university’s
strategic marketing planning process. After completing the first three steps of the
process, Dr. Sullivan has been asked to assist with implementing the marketing mix and
allocating resources. What questions will Dr. Sullivan ask? Be specific to the
university’s strategic marketing planning process.
Answer:
Why would a company use a micromarketing strategy versus an undifferentiated
strategy?
Answer:
What does purchasing power parity mean?
Answer:
Jamie, a sales manager for an industrial materials company, reviews each sales
representative’s performance quarterly. She knows business has been good, but is
surprised to see some reps are selling much more than their goals while others are not
meeting their goals. What should Jamie do?
Answer:
Suppose that a friend asks you to drive him to the airport this weekend so he can catch a
flight. He pays you for the gas used driving to the airport and for the cost of parking the
car at the airport while you help him in with his bags. He then declares that you are now
“even,” since he has fully compensated you for any costs you incurred in helping him
get to his flight. From your perspective, what aspects of the “price” of taking your
friend to the airport has he omitted?
Answer:
In marketing, managers often face the choice of doing what is beneficial for them and
possibly the firm in the short run and doing what is right and beneficial for the firm and
society in the long run. How can this dilemma be addressed?
Answer:
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.
Answer:
Your best friend is considering a career in sales. What benefits of a sales career would
you explain to your friend?
Answer:
What are page views, and why might a blogger want to see a report showing page views
for the different pages of a blog?
Answer:
Briefly describe the four types of buying centers and give an example of each.
Answer:
In what type of retail situation would the old clich “location, location, location” be true?
Answer:
What elements, outlined in your text, contribute to the success of strategic
relationships?
Answer:
Though most universities are nonprofit organizations, they are engaged in marketing
strategy choices, just like businesses. For example, universities must decide if they
should increase or decrease product mix breadth, or increase or decrease product line
depth. Using your university, describe a real or plausible example of each of these four
potential changes.
Answer: