Doubtful positioning occurs when consumers have too narrow an understanding of the
company, product, or brand.
Variety is the number of different product items within a product category.
Customers always find it more agreeable when a firm raises a price than when it
reduces a price.
E-retailing is the fastest-growing retail format.
All product life cycles take the same length of time to move through the market.
Personality trait theories suggest that individuals have unique personal characteristics
but it is not possible to measure the differences between people.
Direct interface relates to touchpoints that are both interactive and noninteractive.
The concept of differentiation implies that consumers perceive the value of companies
differently and that they are willing to pay a premium for goods and services that they
see as unique.
Two important elements of nonverbal communication are time and space. Asians and
Americans have the same attitude towards both.
Winner’s Circle, Money and Brains, and Executive Suites are examples of _________.
A.PRIZM clusters
B.VALS¢ types
C.Behavioral segments
D.Geographic segments based on climate
E.None of the above
Winner’s Circle, Money and Brains, and Executive Suites are examples of PRIZM
clusters. PRIZM profiles every zip code in the United States by both demographic and
lifestyle (psychographic) variables.
When it is said that a market can be reached, it means that _______.
A.The market can be reached by transportation
B.The market can be reached by language
C.The market can be reached by technology
D.The market can be reached by communication
E.All of the above
The segment needs to be reached (both in terms of communication and physical
product) in order to deliver the value of the product. Barriers to reaching a segment
might include language, physical distance, or as in the case of some developing
markets, transportation, technology, and infrastructure challenges.
Companies often use features to differentiate themselves from competitors. However, a
company must balance the features customers want with __________.
A.What the competition is doing
B.The ability to manufacture the feature in a timely way
C.What they will pay at a given quality level
D.The configurations that make a positive brand look stylish
E.Whatever the current industry standard is going to be in the future
Delivering value is the primary driver in making product decisions, but a company must
balance the features customers want with what they will pay at a given quality level.
In a business market purchase decision process, the ‘_______’ stage comes immediately
before ‘search for suppliers’ stage.
A.Problem recognition
B.Response to RFP
C.Define the need and product specifications
D.Make the purchase decision
E.Post purchase evaluation
Once a problem has been identified, the next step is to clearly define the need. Once the
need and product specifications are defined, the ‘search for suppliers’ stage begins.
The marketing manager of Low Cost Retailer wants to gather descriptive research about
what customers buy, when they purchase, and how often they purchase certain products.
To gather this information he implements a frequent shopper program to track the
purchases of participating customers. He is collecting ________ data to answer his
research problems.
A.Survey
B.Qualitative
C.Behavioral
D.Observational
E.Interview
Behavioral data include information about when, what, and how often customers
purchase products. This is exactly what the manager of Low Cost Retailer wants to find
out.
Betty loves shopping at Rita’s Round-Up because she knows she will always find the
lowest price. Rita’s Round-Up uses a(n) _________________ strategy.
A.Product development
B.Exclusive distribution
C.Everyday low pricing (EDLP)
D.High/low pricing
E.Market development
Rita’s Round-Up uses an EDLP strategy and Betty responds to it knowing that she will
get a low price no matter when she goes to Rita’s.
Business-to-business demand is said to be relatively inelastic. This means that
_________.
A.As the price increases demand goes up
B.Changes in demand are not significantly affected by the price
C.As demand goes down price goes down with it
D.Demand and supply are independent of each other
E.As the price decreases demand goes down
Business products experience fairly inelastic demand, meaning changes in demand are
not significantly affected by changes in price. B2B companies make their contracts for
materials well ahead of the need to use them and thus demand is more inelastic.
Ajax Corp. has a subsidiary, Ajax TV Products, which makes cable television converter
boxes. This division has provided the parent company with a steady revenue stream for
over thirty years and it is expected to continue its contribution to revenue even in
future. Ajax TV Products most likely would be classified as a ____________.
A.Star
B.Cash cow
C.Dog
D.Problem Child
E.Top Gun
Since Ajax has generated high profits for many years and will continue to throw off
cash, it is a cash cow.
In a telemarketing campaign, a good ___________________ helps boost success rate
by 60%.
A.Media plan
B.Market space
C.Sales collateral
D.Catalog
E.List of prospects
In a telemarketing campaign, access to an accurate list of qualified prospects is very
important. Research suggests a good list of prospects boosts the success rate by 60
percent.
Gaining a thorough understanding of competitors’ marketing practices is a key element
of successful marketing planning and execution and utilizing that information to
determine your pricing is an example of __________________.
A.Penetration pricing
B.Price skimming
C.Target ROI
D.Competitor based pricing
E.Value pricing
Firms can often infer the pricing objectives of competitors by carefully analyzing their
historical and current pricing patterns. Based on such analysis, a marketing manager
may decide to price an offering at some market average price, or perhaps above or
below it. This is known as competitor-based pricing.
Which of the following is less likely to be considered as a condition to be fulfilled for
an exchange to take place?
A.Communication and delivery capabilities
B.Minimum requirement of two parties
C.Free will to accept or reject the exchange offer
D.Desirability to deal with parties
E.Assurance of exchange
For any exchange to take place, five conditions must be present. However, the existence
of these conditions does not guarantee that an exchange will take place.
Bryan gets reduced fees for his daughter’s piano lessons by maintaining her teacher’s
Web site. Bryan is practicing the central tenet of marketing called ____________.
A.Value
B.Exchange
C.Growth
D.Sustainability
E.Customization
A central tenet of marketing is the concept of exchange, in which people give up
something of value to them for something else they desire to have. Usually an exchange
is facilitated by money, but not always.
The fundamental philosophy behind __________________ is to reduce investment in
promotion and transfer part of the savings to lower price.
A.Psychological pricing
B.One price strategy
C.Variable pricing
D.Every day low pricing (EDLP)
E.High/low pricing
Firms practicing an EDLP strategy typically reduce their promotional budgets and
create buzz in the market place with the help of low prices.
Starbucks original marketing strategy called for little or no price-based promotion. For
a while, however, the company offered breakfast and a loyalty card program as a
response to market pressures. This kind of contingency planning is part of ______.
A.Marketing control
B.Marketing metrics
C.Marketing management
D.Marketing strategy
E.Marketing planning
Marketing control involves measuring results and making adjustments as needed to the
marketing plan.
Using scientific evidence in a comparative ad is an example of _____________.
A.Fantasy appeal
B.Endorsement appeal
C.Humor appeal
D.Research based appeal
E.Slice of life appeal
Research based appeals are often used in comparative ads where a brand provides
scientific evidence of its superiority.
Introducing even one intermediary into a channel can contribute to greatly
_______________ that are necessary to complete an exchange.
A.Increasing the costs
B.Reducing the transactions
C.Lowering the quality of the processes
D.Enhancing the quality of the processes
E.Increasing the duration of the transactions
Even one intermediary can reduce the number of transactions that are necessary to
complete an exchange.
Crest toothpaste is in the maturity stage of the product life cycle. What promotion mix
decisions would be best?
Identify the five major types of internal information sources and give an example of the
information found in each one.
You are a member of a corporation tasked with developing your firm’s vision statement.
What does your group need to consider?
Audrey is studying generational segmentation. What are the most important things she
needs to know about baby boomers?
Kiran runs Power3, a specialized battery manufacturer. His biggest account is an
international digital camera manufacturing company. Kiran would like to increase sales
and believes that if he lowers the price of his lithium batteries he will receive larger
orders from the digital camera manufacturer. What would you tell Kiran about the
demand for his product?