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In high-low pricing, retailers charge low prices on an everyday basis with occasional
price increases.
Clubs that are open to everyone who purchases a product or service are good for
building a customer database.
Believers favor stylish products that emulate the purchases of those with greater
material wealth.
When a company combines two product concepts or ideas to create a new offering, it is
called reverse assumption analysis.
The franchisor owns a trade or service mark and licenses it to franchisees in return for
royalty payments.
A performance review is the first step in the buygrid framework.
A customer's profitability is judged on the basis of the lifetime stream of revenue and
cost, not the profit from a particular transaction.
When a parent brand covers a new product within a product category it currently serves,
it is called a line extension.
Companies in the "middle market" should never attempt to stretch their line in both
directions.
In a price-war trap, higher-priced competitors match the firm's lower prices but have
longer staying power because of deeper cash reserves.
A price-off pack is an example of a consumer franchise building sales promotions.
Armani uses a three-tier product line that is differentiated based on style, luxury,
customization, price, and distribution. During the recession, the lower priced, younger,
street savvy third tier, Armani Exchange, picks up the selling slack for the upper tiers,
which is in line with the recommendation to fine-tune brand and product offerings
during an economic downturn.
A franchise organization is a corporate retail organization.
Points are established for varying RFM levels; the more points, the more attractive the
customer.
Service quality depends on who provides them, when and where they are provided, and
to whom they are provided. Thus, services are highly ________.
A) inseparable
B) tangible
C) variable
D) perishable
E) intangible
________ requires people to create a collage from magazine photos or drawings to
depict their perceptions.
A) Brand personification
B) Projective technique
C) Visualization
D) Laddering
E) Zaltman Metaphor Elicitation Technique
Because of its flexibility, ________ are the most common technique of collecting
primary data.
A) questionnaires
B) telephonic interviews
C) behavioral research studies
D) experimental designs
E) focus groups
Which of the following terms is most closely associated with the statement: "attributes
or benefits consumers strongly associate with a brand, positively evaluate, and believe
that they could not find to the same extent with a competitive brand"?
A) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence
As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and
beaches, any mention of the country makes people think of sun and sand. This is an
example of ________.
A) collectivism
B) target market impact
C) ethnocentric thinking
D) country-of-origin effect
E) cognitive dissonance
Another way to describe a supply chain, where companies partner with specific
suppliers and distributors to ensure a smooth functioning of the system, is to call it a
________.
A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network
Some firms might delay the launch of their products until after the competitor has borne
the cost of educating the market. Such an entry is called ________ entry.
A) strategic payoff
B) parallel
C) balancing
D) late
E) compensating
JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently
initiated a program in association with the Food4Kids Foundation, which raises funds to
promote nutritional awareness of young children. The company plans to donate $1 for
every item it sells in the North American market. Also, JBJ has roped in professional
sports teams associated with it to wear the Food4Kids logo on their team gear. Which of
the following best describes the motivation for JBJ's involvement in the program?
A) entertaining key clients or rewarding key employees
B) expressing commitment to the community or on social issues
C) permitting merchandising or promotional opportunities
D) stimulating quicker or greater purchase of particular brands
E) identifying with a particular target market or lifestyle
Which company uses 150 different signals '” including dozens of online data feeds '” to
rate customer leads?
A) IBM
B) Avon
C) SAS
D) FABV
E) Infer
Mass merchandisers and discount stores typically fall into the ________ group with
respect to margins and volume.
A) mixed markup, high-volume
B) low-volume, mixed markup
C) low-volume, low-markup
D) high-volume, low-markup
E) high-markup, low-volume
The ________ segment of the US premium wine market skews male, has an average
age of 35, and uses wine as a badge to say who they are, so they are willing to pay more
to make sure they're getting the right bottle.
A) Savvy Shoppers
B) Image Seekers
C) Satisfied Sippers
D) Enthusiast
E) Overwhelmed
A(n) ________ is an extra payment designed to gain reseller participation in special
programs.
A) seasonal discount
B) allowance
C) discount
D) quantity discount
E) functional discount
In which of the following cases is building a database worthwhile for the company?
A) Clare's creates personalized sculptures for special occasions.
B) Sales of Clarity soap have fallen over the past few months in all regions.
C) 2Wheels sells its most profitable products to repeat customers.
D) Uncle Jim's sells its range of snacks in stores throughout the country.
E) Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the
United States.
Which of the following methods is most likely to be used by buyers to review the
performance of chosen suppliers?
A) The buyer may contact different suppliers and ask for their evaluations.
B) The buyers may rate the end-users on several criteria using a weighted-score
method.
C) The buyer might aggregate the cost of poor performance to come up with adjusted
costs of purchase, including price.
D) The buyers may aggregate the opinions of various competitors and come up with the
adjusted cost of supply.
E) The buyers might adopt the Supplier Added Value Effort technique to calculate
supplier efficiency.
In outbound telemarketing, the call center employees ________.
A) sell high-involvement products
B) initiate calls from a location closer to prospects
C) offer huge discounts to customers
D) initiate calls to prospects and customers
E) answer the queries of consumers who call for information
Which of the following represents the objective of a social marketing campaign aimed
at changing people's actions?
A) Motivate people with obesity to eat healthy and exercise more often.
B) Change public attitudes and stereotypes associated with people who are obese.
C) Explain the different causes of obesity and how it can be prevented.
D) Encourage people to participate in a walkathon aimed at promoting awareness about
obesity.
E) Help people with obesity to implement lifestyle changes.
Pampers divides its market demographically on the basis of ________ into prenatal,
new baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
Adam wants to buy a washing machine and is looking for something that is not too
expensive. When he goes to make the purchase, he finds there are two options that meet
his requirements. One is a Maytag product, while the other is a newly imported South
Korean brand. Adam is not very familiar with the latter and does not hesitate in
choosing Maytag. This example implies that ________.
A) the imported brand will not survive the competition from Maytag
B) Maytag has a positive customer brand equity
C) the South Korean company has a low advertising budget
D) the imported brand is unreliable
E) the Maytag washing machine has better features than the imported brand
Annual-plan control requires making sure the company isn't overspending to achieve
sales goals. The key ratio to watch is ________.
A) stock turnover
B) gross margin
C) return on capital
D) cash flow return on investment
E) marketing expense-to-sales
The hallmark of an optimal brand portfolio is ________.
A) the ability of each brand to maximize equity in combination with all the other brands
in it
B) the ability of each brand to maximize its individual equity in isolation
C) maximum brand overlap
D) the eventual reduction of brand differentiation to create a unified brand appearance
E) maximum internal competition within the firm
A customer judges a product offering by three basic elements: product features and
quality, services mix and quality, and ________.
A) performance
B) utility
C) tangibility
D) price
E) availability
Producers often shift some functions to intermediaries. Which of the following is the
most significant benefit of doing this?
A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer's costs and prices.
E) It ensures greater information security.
Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its
coffee shops. This is an example of ________.
A) brand dilution
B) co-branding
C) brand variants
D) category extension
E) brand harmonization
Your firm has decided to enter the international market with your product called
"Trema," a combination of a pocket organizer and cell phone. Even though the product
has been a huge success in the home country, market research suggests some changes
may be required before it can be introduced in Europe. Your CMO is of the opinion that
the product requires certain extra features and the product will also have to be marketed
differently. Your CMO is advocating ________.
A) product invention
B) dual adaptation
C) straight extension
D) forward adaptation
E) product standardization
Chipotle engages customers through Facebook, Twitter, and other social media via its
grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells
and where it comes from. These are examples of ________ media.
A) owned
B) earned
C) paid
D) service
E) marketing
The advertisement for a pool reads "a vinyl pool from Parker's for just $5,000." When
David contacted the firm for the pool, the customer service representative tells David
that the total cost will be $8,000. When David enquires about the extra $3,000, the
customer service representative says that is for installation. Which service-quality gap
does this situation demonstrate?
DB Bank is launching a new investment product targeting senior citizens in the United
States. The company decides to use direct marketing for selling the product. What direct
marketing strategy would allow the company early testing and response measurement
of the product?
List the threats posed by the five forces identified by Michael Porter that determine the
intrinsic long-run attractiveness of a market or market segment.
Consumer attitudes are an interesting way to segment a market. What are the five
different consumer attitudes about a product that can be found in the market?
Belling begins most advertising messages by announcing category benefits and then
moving on to its specific positioning. Offer one reason why Belling may adopt this
strategy.
