As required levels of distribution increase, so do customer prices relative to the
importer’s price.
Forecasting is the art of anticipating what buyers are likely to do under a given set of
conditions.
If setup costs are high, the manufacturer can produce the item often, and the average
cost per item is stable and equal to the running costs.
The best thing a company can do in the face of company mistakes is to discourage the
customer from complaining.
The historical approach correlates past sales to past advertising expenditures using
advanced statistical techniques.
Performance marketing requires understanding the financial and non-financial returns
to business and society from marketing activities and programs.
A brand promise will not be delivered unless everyone in a company lives the brand.
Repurchase rate is a sales metric that is used to evaluate the performance of marketing
plans.
A product system is a group of diverse and unrelated items that does not function in a
compatible manner and includes the product mix and product assortment.
Today, consumers are price takers and accept prices at face value or as given.
Exclusive dealings and tying agreements are illegal and prohibited by law.
Database marketing is ideal when a company does not have direct contact with its
customers.
Durable products normally require less personal selling and service and less seller
guarantees than nondurable goods.
Low prices on some items serve as traffic builders or loss leaders for retailers.
Why is the Web experience different for mobile phone users than for people who are
surfing from a computer?
A) smaller screen sizes
B) longer download times
C) lack of software
D) all of the above
E) none of the above
According to the ________ criterion for useful market segments, a segment should be
the largest possible homogenous group worth going after with a tailored marketing
program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Which of the following is the marketing communications objective for a
new-to-the-world product, such as electric cars?
A) enhancing brand awareness
B) developing brand attitude
C) increasing brand purchase intention
D) encouraging repeat purchases
E) establishing category need
The trade-off approach may be easier to use when there ________.
A) are many variables
B) are only a few alternatives
C) are observers that are biased
D) are possible offers that are limited
E) is only one highly desirable solution
One of the possible objectives of marketing communications is helping consumers
evaluate a brand’s perceived ability to meet a currently relevant need. Which of the
following is a positively oriented relevant brand need?
A) problem removal
B) social approval
C) normal depletion
D) problem avoidance
E) incomplete satisfaction
In his article, “Innovative Imitation,” Theodore Levitt argues that ________.
A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision
involved
________ risk occurs if the product fails to perform up to expectations.
A) Physical
B) Financial
C) Social
D) Psychological
E) Functional
________ marketing refers to training and motivating employees to serve customers
well.
A) External
B) Promotional
C) Direct
D) Internal
E) Interactive
Five characteristics influence the rate of adoption of an innovation. One of these is
________.
A) marketing expertise
B) relative advantage
C) packaging attractiveness
D) government regulations
E) place of value exchange
Which of the following is NOT one of the ways companies can utilize cell phones to
market to or track consumers?
A) utilize GPS data to provide location-based offers
B) utilize digital in-store signs that dispense coupons to smart phones
C) utilize cookies to track mobile activity
D) track behavior across tablets and mobile devices using screen identities
E) track loyalty program participation
Unlike its competitors in the online air travel industry, Travelocity provides its
customers with a greater variety of services such as cruise reservations, package tours,
hotel bookings, and car rentals. This is an example of a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional
A structured approach to assessing the sources and outcomes of brand equity and the
manner in which marketing activities create the financial worth of the brand is called
________.
A) the brand value chain
B) the brand portfolio
C) the brand life cycle
D) brand partitioning
E) brand positioning
Two complimentary approaches to measure marketing productivity are ________ and
marketing-mix modeling.
A) quality ratios
B) salesperson satisfaction rates
C) marketing metrics
D) retailer satisfaction indices
E) customer feedback surveys
Brand ________ are short, three- to five-word phrases that capture the irrefutable
essence or spirit of the brand positioning and ensure that the company’s own employees
understand what the brand represents.
A) mantras
B) symbols
C) logos
D) alliances
E) extensions
According to marketing consultant Pat LaPointe, the ________ metrics measurement
pathway of the marketing dashboard focuses on how well marketing expenditures are
achieving short-term returns.
A) customer
B) unit
C) cash-flow
D) brand
E) productivity
As a(n) ________, BurgerJacks, a fast food chain selling low-price burgers, has
differentiated itself by setting up base in a market not yet exploited by McDonald’s.
A) cloner
B) imitator
C) counterfeiter
D) adapter
E) innovator
Which of the following is an example of an interactive marketing communication
platform?
A) product demonstrations
B) factory tours
C) company museums
D) TV shopping
E) community relations
A salesperson sends e-mails to persuade prospects to buy the products of his company.
This is a type of ________ marketing.
A) buzz
B) virtual
C) word-of-mouth
D) direct
E) viral
When Nike attempts to get close to its customers at the local level by sponsoring local
school teams and providing shoes, equipment, and clothing to many of them, Nike is
using which of the following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing
When American Airlines asked “1) What types of first-class passengers would respond
most to ultra high-speed Wi-Fi service and 2) How many are likely to use it at different
price levels?”, it was ________.
A) setting specific research objectives
B) conducting exploratory research
C) outlining decisions
D) defining the problem
E) designing a research plan
Stores are using ________ to measure a product’s handling costs from the time it
reaches the warehouse until a customer buys it in the retail store.
A) electronic data interchange (EDI)
B) direct product profitability (DPP)
C) radio-frequency identification (RFID)
D) global positioning systems (GPS)
E) compounded annual grown rate (CAGR)
Which of the following is a policy a store can adopt to make low-profit customers more
profitable?
A) 2Wheels sends birthday greetings to its best customers and gives them discounts on
merchandise.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties
for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made
outside the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the
sticker price by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product
improvement.
Elance.com is a service provider that allows contractors to describe their level of
satisfaction with subcontractors. This is an example of a(n) ________.
A) independent customer goods and service review forum
B) public blog
C) customer complaint site
D) combo site offering customer reviews and expert opinions
E) distributor or sales agent feedback site
A consumer products firm manufactures and sells over 200 different sizes and varieties
of jams and jellies. We can say that this manufacturer’s product mix has high ________.
A) consistency
B) depth
C) intensity
D) range
E) width
A large retail chain in the United States decides to expand its operations by adding an
online site for e-commerce. This is called a(n) ________ company.
A) B2B
B) brick-and-mortar
C) m-commerce
D) pure-click
E) brick-and-click
Provide an example of a leverageable advantage.
You work for a company that produces and markets apparel for men and women, and is
planning to enter the Chinese market. If you were asked if the company should opt for a
straight extension or a product adaptation, what would you choose, and why?
From a consumer’s perspective, what are the limitations of getting information from an
online review?
How do the stages of buyer readiness affect the composition of a product’s marketing
communications mix?
Distinguish between controllable returns and uncontrollable returns.
How does consumer knowledge play a role in the success of new products associated
with existing brands?
Compare and contrast the use of negative and positive appeals in advertising messages.