In a vertical marketing system, two or more companies at one level join together to
follow a new marketing opportunity.
Internal databases usually can be accessed more quickly and cheaply than other
information sources.
Though marketers may make long-term gains with high-pressure selling tactics, this
approach can do serious damage to short-term customer relationships.
When backed by buying power, needs become wants.
In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or
suppliers.
It is most accurate to say that the recent recession has resulted in ________.
A) an overselling of private goods
B) a disbelief in the American dream
C) a decline in conspicuous spending
D) an increase in materialism
E) the elimination of false wants
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the
side, two will require an extra plating process, and two will require an additional weld
operation.
In the meantime, the purchasing agent Richard Koehl has been asked to reduce the
number of Alpha’s steel suppliers in an effort to cut costs. After obtaining updated price
quotations and steel samples from his current suppliers, Richard faced a dilemma. Until
now, he had selected his suppliers based on quality and price, but the major
consideration had been the type of steel required and the specialized production
processes of his respective suppliers. Not all of Alpha’s suppliers could produce the
exact grades of steel needed; some suppliers were better at producing certain types of
steel than others.
Richard contacted several employees at Alpha who had worked with the various types
of steel in the past. The quality control manager and line inspector, for example, could
help to determine which suppliers had the capabilities of producing specific types of
steel. The production control manager could provide input regarding which types of
steel worked best in which presses. The warehouse foreman gave inputs regarding how
long various types of steel could be held in inventory before rust spots began to form on
their surfaces. Each person contributed the necessary information to help Richard in
making his decision.
The management’s directive to reduce the number of steel suppliers refers to the
influence of ________ factors affecting the business buying behavior of Alpha.
A) political
B) organizational
C) interpersonal
D) individual
E) cultural
________ involves gathering primary data by asking people questions about their
knowledge, attitudes, preferences, or buying behavior. It is the most widely used
method for primary data collection.
A) Experimental research
B) Causal research
C) Ethnographic research
D) Survey research
E) Exploratory research
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm
wants to know how consumers will perceive the new product. The firm is concerned
with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement
Greater consumer control means that companies can no longer rely on ________.
A) promoting brand-consumer interaction
B) marketing by intrusion
C) creating market offerings and messages that involve consumers
D) developing marketing concepts with an outside-in perspective
E) marketing by attraction
Under ________, different versions of the product are priced differently but not
according to differences in their costs.
A) product-form pricing
B) optional product pricing
C) captive product pricing
D) by-product pricing
E) seasonal pricing
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a
single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos
Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis
has a GPS function. Which of the following is evident here?
A) channel differentiation
B) service differentiation
C) product differentiation
D) people differentiation
E) image differentiation
________ involves gathering primary data by closely examining relevant people,
actions, and situations.
A) Observational research
B) Survey research
C) Telephone interviewing
D) Causal research
E) Group interviewing
A regional supermarket chain runs print, radio, and television advertisements
announcing that 1 percent of each of its sales is donated to local after-school programs
for underprivileged youth. This is an example of ________.
A) cause-related marketing
B) generational marketing
C) sustainable marketing
D) market segmentation
E) product differentiation
Hart’s Department Store was accused of deceptive promotion. Which of the following
best explains what might have happened?
A) Hart’s refused to advertise sale prices in the local paper.
B) Hart’s advertised a bargain price on an out-of-stock product.
C) Hart’s advertised a large price reduction from a phony high retail list price.
D) Hart’s used misleading labeling on certain products.
E) Hart’s exaggerated its package contents through subtle design.
Critics charge that intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services
D) underprice their services
E) are too competitive
All the individuals and households that buy or acquire goods and services for personal
consumption make up the ________.
A) consumer market
B) market offering
C) market mix
D) subculture
E) social class
When Gary Hirshberg started the Stonyfield Farm yogurt company, he stated that his
company could do better with less advertising, less marketing research, and more
guerrilla marketing. He came up with innovative marketing ideas to promote his
products such as having sales personnel dress up as large yogurt cartons to distribute
free yogurt samples. Which of the following marketing strategies was being
implemented by Hirshberg?
A) formulated marketing
B) entrepreneurial marketing
C) ambush marketing
D) undercover marketing
E) intrepreneurial marketing
________ describes changes in an individual’s behavior arising from experience.
A) Lifestyle
B) Learning
C) Perception
D) Cognitive dissonance
E) Selective attention
Today several companies are adopting the concept of ________, which carefully
combines and coordinates the company’s many communication channels to deliver a
clear, consistent, and compelling message about the organization and its brands.
A) integrated marketing communications
B) pull strategy
C) vertical diversification
D) nonpersonal communication channels
E) buzz marketing
In a bid to attract more customers in a market which has several competitors,
Barrymore’s Bakery slashed the prices of all its products by 50%. Managers at the firm
reasoned that lower prices would draw in even more customers, making up for the
reduction in price several times over. Which of the following pricing strategies are they
using?
A) market-skimming pricing
B) market-penetration pricing
C) captive-product pricing
D) cash discount pricing
E) by-product pricing
Papillon, a popular retailer of chic women’s clothing, segments its market according to
consumer lifestyles. Papillon most likely uses ________ for segmenting its market.
A) geographic segmentation
B) psychographic segmentation
C) benefit segmentation
D) age and life-cycle segmentation
E) occasion segmentation
Explain why selective attention is not controllable by a marketer.
How has the direct marketing industry taken steps to address privacy and security
concerns?
Discuss direct marketing.
Compare and contrast the four competitive positions that are often used to describe
market structures.
Marketing managers need a deep understanding of a given competitor’s mentality if
they want to anticipate how the competitor will act or react. Discuss the different ways
competitors act or react. Why do they do so? Use examples to support your thoughts.
Describe the main objectives of reminder advertising.
Although competition is most intense within a strategic group, explain why there is also
rivalry among groups. Give examples.
What is a marketing strategy? How do marketing strategies help firms?
Describe how marketers use multiple-segmenting bases to their advantage.