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To analyze its competitors, a company needs to gather information about both the real
and the perceived strengths and weaknesses of each competitor.
Guarantees are most effective when the product is well known and/or similar in
performance to other brands in the market.
Pricing cues such as sale signs and prices that end in 9 are more influential when
consumers are experienced in the category.
One of the weaknesses of using surveys to estimate the demand curve is that consumers
exaggerate their willingness to pay for new products and services.
Environmental regulations enforced by the government adversely affect automobile and
steel manufacturing companies.
A Web site's ease of use means the site downloads quickly, the first page is easy to
understand, and it is easy to navigate to other pages that open quickly.
An advertiser makes "local buys" when it buys TV time in just a few markets or in
regional editions of magazines.
Established brands usually are supported with lower advertising budgets, measured as a
ratio to sales.
The impact of country of origin is independent of the type of product.
There are three types of product-team structures: vertical, triangular, and horizontal.
Communications effectiveness depends solely on the content of a message, irrespective
of how it is expressed.
Companies typically must create a strong R&D and marketing partnership to pull off a
radical innovation.
Positioning requires that marketers define and communicate only the differences
between their brand and its competitors.
The product concept is based on the development, design, and implementation of
marketing programs, processes, and activities that recognize their breadth and
interdependence.
Pricing has no negative effect on customer loyalty.
Nestlé, Unilever, and Modelēz get close to or above 40 percent of their total
business coming from emerging markets.
A company must consider the product's stage in the life cycle and its importance in the
company's portfolio before responding to a competitor's price cut.
In order to clearly differentiate themselves from competitors, retailers must keep
merchandise and prices consistent.
Which of the following is an example of a trade promotion?
A) free samples
B) discount coupons
C) display allowances
D) contests for sales reps
E) premiums
The result of positioning is the successful creation of ________, which provides a
cogent reason why the target market should buy the product.
A) an award-winning promotional campaign
B) a customer-focused value proposition
C) a demand channel
D) everyday low pricing
E) employee value proposition
Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods.
B) Consumption of necessary goods decline.
C) Long-term credit is available at concessional rates of interest.
D) The purchasing power of the population declines.
E) The level of investment in the economy rises.
________ was originally pioneered by Japanese firms such as Toyota to produce goods
with minimal waste of time, materials, and money.
A) Electronic funds transfer (EFT)
B) Market logistics
C) Electronic data interchange (EDI)
D) Lean manufacturing
E) Supply chain management
The actual and potential rival offerings and substitutes that a buyer might consider are
referred to as the ________.
A) supply chain
B) global market
C) value proposition
D) competition
E) marketing environment
Which of the following is the main advantage of radio as an advertising medium?
A) low competition
B) more attention than television
C) longer duration of ad exposure
D) flexibility
E) standardized rate structures
Two advantages of ________ are that they can facilitate new-product acceptance and
provide positive feedback to the parent brand and company.
A) product licensing
B) brand extensions
C) brand architecture
D) brand audits
E) brand dilutions
In an adapted marketing program, the company ________.
A) ensures that uniform practices are adopted across countries
B) focuses more on brand image than consumer preferences
C) ignores differences in the legal environment
D) ensures the lowest cost marketing program is adopted
E) tailors the marketing programs to each target market
Which of the following benefits is offered by sales promotion tools?
A) Sales promotion tools are more authentic and credible to buyers than others such as
advertising, public relations, and personal selling.
B) Sales promotion tools can reach prospects who prefer to avoid mass media and
targeted promotions.
C) Sales promotion tools are typically an indirect form of 'soft-sell" and hence, better
received by customers.
D) Sales promotion tools incorporate some concession, inducement, or contribution that
gives value to the consumer.
E) Sales promotion tools allow buyers personal choices and encourage them to respond
directly.
Which of the following is true regarding price elasticity?
A) The higher the elasticity, the lesser is the volume growth resulting from a 1 percent
price reduction.
B) Within the price indifference band, price changes have little or no effect on demand.
C) If demand is elastic, sellers will consider increasing the price.
D) Price elasticity does not depend on magnitude and direction of the contemplated
price change.
E) When demand is inelastic, sellers should lower prices in order to increase total
revenue.
Jackson, the sales representative of a European manufacturer of commercial heavy duty
washing machines, calls on the hotels in California. During a sales call, he asks the
housekeeping manager of a hotel "How many bed sheets do you wash in a day, on
average?" This question can be classified as a(n) ________ question.
A) situation
B) problem
C) implication
D) need-payoff
E) consequence
Owing to its greater flexibility, a questionnaire is by far the most common instrument
used to collect primary data.
Which of the following types of retailing generally entails the highest costs?
A) full-service
B) self-service
C) limited-selection
D) limited service
E) self-selection
Marketers usually identify niches by ________.
A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways
Using the push strategy is most appropriate when ________.
A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store
Which of the following marketing communications principles implies that
communicators can use their good image to reduce some negative feelings toward a
brand but in the process might lose some esteem with the audience?
A) principle of closure
B) principle of duality
C) principle of delegation
D) principle of congruity
E) principle of neutrality
In its focus on bottom-line financial value, the ________ approach often overlooks the
"option value" of brands and their potential to affect future revenues and costs.
A) brand equity
B) brand value chain
C) customer tracking
D) customer equity
E) brand extension
________ operates an international word-of-mouth media network powered by 1
million demographically diverse, ordinary people who volunteer to talk up the products
they deem worth promoting.
A) Brand Advocates
B) Vocalpoint
C) P&G
D) BzzAgent
E) Influentials
How can a marketer overcome the negative effects of commoditization?
A) convince target consumers that the firm's products are as good as those of
competitors
B) convince target consumers that price is irrelevant in determining quality
C) convince target consumers that the firm's products are different from those of
competitors
D) convince target customers that buying the highest-priced product is no guarantee of
quality
E) convince target customers that all the products in the market are equivalent
According to BrandAsset® Valuator model, declining brands show ________.
A) higher levels of esteem and knowledge than relevance, whereas both differentiation
and energy are lower still
B) high relevance '” appropriateness of brand's appeal '” a lower level of energy and
differentiation, and even lower knowledge
C) high levels on energy, differentiation, relevance, knowledge, and esteem
D) higher levels of differentiation and energy than relevance, whereas both esteem and
knowledge are lower still
E) high knowledge '” evidence of past performance '” a lower level of esteem, and even
lower
relevance, energy, and differentiation
In the central role of strategic planning, only a handful of companies stand out as
master marketers '” Procter & Gamble, Southwest Airlines, Nike, Disney, Nordstrom,
Walmart, and McDonald's to name a few. From a consumer's perspective why do you
think they stand out? Explain.
What are the various steps a company can take to improve the quality of its marketing
intelligence function?
Explain the concept of brand knowledge.
In developing a service blueprint, The Flower Shop has outlined each step in the
delivery process of the service it provides. Which characteristic of services is The
Flower Shop attempting to minimize?
To be branded, products must be differentiated. List the possible ways that physical
products can be differentiated.
Highspeed Motors is planning to introduce its new sports bike into the market. It
collects data on prices, designs, features, and performance of sports bikes manufactured
by other companies from their respective Web sites. What type of data is being used by
Highspeed motors in this case?
Explain the term opportunism with respect to business relationships.
Most direct marketers apply the RFM formula to select customers. Explain this formula
and how it is used to select customers.
E-procurement Web sites are organized around two types of e-hubs. If you were in the
advertising business and were seeking to take advantage of e-procurement, what type of
e-hub should be constructed by your company?
In discussions with the packaging design team, you note that they do not have a firm
design objective for the final package. In an internal memo to your boss, outline the
objectives (both company and consumer oriented) that you wish to see implemented by
the design team.
