Costa Rica, the Dominican Republic, El Salvador, and several other Central American
countries formed the CAFTA economic community. This is an example of a policy of
protectionism.
Culture is society’s personality.
Ads for an airline promote its last minute fare savers program. This program is one way
to deal with the service characteristic of perishability.
Mail questionnaires give researchers full flexibility in the types of questions they can
ask as well as full control over the circumstances under which the respondents answer
the questions.
Introducing new products to consumers is not an objective that falls within the
responsibilities of the PR department.
An environmental analysis is an important step in distribution planning.
Consumers’ perception of relative advantage would help determine the success of a new
magazine targeted to girls between the ages of 14 and 17.
Crisis management is typically a public relations function.
Hispanic Americans are the fastest-growing minority group in the United States.
Product development strategies emphasize both new products and new markets.
The length of the introduction stage of the product life cycle is typically the same for all
products.
Customer insights experts work to understand how customers interact with each other.
The simplest pricing method is break-even pricing: adding a standard markup to the
cost of the product.
A company in an industry characterized by monopolistic competition is most likely to
adopt status quo pricing objectives.
The more innovative a new product is, the more quickly it will spread throughout a
population.
A merchandising allowance is a discount to a wholesaler or retailer based on the order
volume of a product.
Automobiles, haircuts, tutoring, and lighting fixtures are all examples of consumer
goods.
A firm’s pricing strategy includes plans for prices for the final consumer as well as
pricing that the firm will charge wholesalers and retailers.
The direct cause of market fragmentation is the large number of new technological
products introduced annually.
A mass marketing approach involves more advertising costs than a target marketing
approach does.
Opportunities and threats come from a company’s internal environment.
The trend of proliferation of information will provide greater opportunities for database
services, artificial intelligence systems, and other services that facilitate the storage and
transfer of knowledge.
The process of developing the Nike logo “Just Do It” as a way to communicate the
power and capability of people who wear Nike shoes is an example of encoding, as
defined by the communication model.
As a result of the federal government’s Do Not Call Registry, telemarketing is now
rarely used.
To posttest an ad for Maytag appliances, interviewers could ask consumers what
appliance ads they have seen in the last month.
The poor quality of American products in comparison to Japanese products in the 1980s
led to the ISO quality revolution in American industry.
When researchers suspect that research subjects will alter their behavior if they know
someone is watching, the researchers are likely to use unobtrusive observational
methods.
Once a brand’s position is established, marketers rarely attempt to change it.
Runnerz is a company that makes running shoes. The company has defined its mission
as follows: “At Runnerz, we make great running shoes.” By defining itself in terms of
its product, Runnerz has created a mission statement that is too broad.
The Value Meal Deal at a fast food restaurant in which you get a sandwich, fries, and a
drink for one price is an example of price bundling.
Through ________, an organization collaborates with customers and other stakeholders
to create worth in the new product development process.
A) augmentation
B) innovation
C) value co-creation
D) diffusion
E) adoption
Robert has taken up bicycle riding as a hobby and as a way to maintain his physical
stamina. He understands he will need to make sure he gets adequate water when he is
bike riding, so he wants to buy a hydration system. Having gathered a great deal of
information, he has decided to compare three systems: Waterbags for Roadies,
Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of his
purchase decision.
A) problem recognition
B) evaluation of alternatives
C) product choice
D) postpurchase evaluation
E) information choice
A 30-minute television advertising program marketing a single product is referred to as
a(n) ________.
A) home shopping network
B) infomercial
C) short-messaging system
D) m-commercial
E) mass marketing advertisement
Service ________ means that a service can only take place at the time the service
provider performs it on either the customer or the customer’s possessions.
A) inseparability
B) personalization
C) variability
D) intangibility
E) creativity
Which of the following statements about advertising is true?
A) Advertising is personal communication from an identified sponsor using the mass
media.
B) Consumers perceive advertising as always having a high level of credibility.
C) Advertising can be used to establish and reinforce a distinctive brand identity.
D) Advertising tends to be comparatively inexpensive.
E) Advertising always relies on factual information.
Marketers communicate a product’s value proposition to the target market by
implementing a ________.
A) product segment
B) promotional strategy
C) pricing strategy
D) distribution strategy
E) marketing metric
What strategy would a marketer most likely use to promote something that cannot be
seen, has no smell, and cannot be felt?
A) idea marketing
B) place marketing
C) people marketing
D) relationship marketing
E) one-to-one marketing
Which of the following is an example of a transaction that might occur in
business-to-business marketing?
A) Maurice buys a new razor on his way home from work.
B) The amateur gardener buys a new wheelbarrow.
C) The retail outlet buys athletic shoes to sell in its store.
D) The professional chef bakes a birthday cake for her son.
E) Robyn’s mother hires a math tutor to help Robyn pass algebra.
The business analysis for a new product begins with ________.
A) idea generation
B) problem recognition
C) assessing how the new product will fit into a firm’s total product mix
D) perceptual mapping
E) identifying the distribution channel for the product
Which of the following is a form of protectionism?
A) joint ventures
B) bribery
C) extortion
D) collectivism
E) local content rules
Some cellular providers are signing deals with business partners wanting to market
products based on specific phone users’ locations and calling habits. These cellular
providers are participating in a new trend called ________.
A) telemarketing
B) data warehousing
C) reality mining
D) virtual mining
E) prediction marketing
A situation analysis is also known as a(n) ________.
A) business review
B) portfolio analysis
C) market review
D) growth strategy review
E) action plan
Some retailers advertise items at very low prices or even below cost just to get
customers into the store. The rationale for implementing this ________ strategy is the
belief that once a customer is in the store she will buy the advertised item as well as
other items at regular prices.
A) bait-and-switch
B) price lining
C) predatory pricing
D) loss leader pricing
E) dynamic pricing
Sellers should know that the less elastic the demand for their product, the more
advantageous it is for them to ________.
A) drop the price
B) raise the price
C) maintain the price
D) discontinue the item
E) bundle the item with another product
When using the SERVQUAL scale, a store focused on employee willingness to help
customers and provide prompt service would likely pay the most attention to the results
in the ________ dimension.
A) creativity
B) empathy
C) assurance
D) responsiveness
E) reliability
Bossa Nova founder and CEO Alton Johnson was fascinated with the fruits of Brazil, a
fascination that led him to develop juices with these new fruit flavors for the American
market. Johnson’s interest in Brazilian fruits is an example of ________.
A) idea screening
B) idea generation
C) concept testing
D) product development
E) product manufacturing
A(n) ________ is made on the spur of the moment without any planning or search
effort.
A) high-involvement purchase
B) commodity purchase
C) impulse purchase
D) unsought purchase
E) fast-moving purchase
Within a larger corporation, each SBU ________.
A) has its own business portfolio
B) has access to equal resources
C) has separate shareholders
D) is a separate profit center
E) is dependent upon central management for a mission statement
To take advantage of the massive amount of data now available, sophisticated analysis
techniques called ________ are becoming a priority for many firms.
A) data mining
B) prospecting
C) cold calling
D) data warehousing
E) data tallying
A company’s first step in customer relationship management should be to ________.
A) rank its customers in terms of sales volume
B) identify customers that cost the company money
C) identify types of transactions and determine which will be abandoned
D) identify customers and get to know them in as much detail as possible
E) determine which aspect of the product will be customized to meet the individual
needs of its customers
Consumer behavior is best described as a(n) ________ process.
A) impersonal
B) subliminal
C) ongoing
D) affective
E) cognitive
With target costing, marketers first ________ and then ________.
A) build the marketing mix; identify the target market
B) identify target markets; set different prices for each market
C) design the product; determine its cost
D) use skimming pricing; use penetration pricing
E) determine a reasonable selling price; target costs to ensure that the price is met
France, Italy, and Germany boast sophisticated marketing systems and are three good
examples of ________.
A) preindustrial countries
B) least developed countries (LDCs)
C) developing countries
D) developed countries
E) BRIC countries
The 80/20 rule is most directly related to ________ segmentation.
A) demographic
B) behavioral
C) geodemographic
D) socioeconomic
E) psychographic
The major categories of business-to-business customers are ________.
A) producers, retailers, and consumers
B) resellers and governments
C) organizations, producers, and manufacturers
D) producers, resellers, and organizations
E) consumers and retailers
A company uses a(n) ________ to allow certain suppliers, customers, and others
outside the organization to access its internal system.
A) corporate Web site
B) search engine
C) extranet
D) private exchange
E) intranet
When considering the four Ps in international marketing, advocates of ________ focus
on the similarities among cultures and argue that basic needs and wants are the same
everywhere.
A) nationalization
B) standardization
C) localization
D) expropriation
E) ethnocentricism
There are numerous kinds of shampoo, including vitamin-enriched, fruit-enhanced,
color-sensitive, therapeutic, and so on. Shampoo that simply promises to clean hair,
however, has seen declining sales, has little or no advertising, and has been phased out
by most manufacturers. Shampoo that makes no other promise than to clean hair is in
the ________ stage of its product life cycle.
A) maturity
B) leveling
C) repositioning
D) withdrawal
E) decline
________ is the step of the decision-making process in which the consumer checks her
memory and surveys the environment to identify what options might solve her problem.
A) Product evaluation
B) Behavioral targeting
C) Problem recognition
D) Problem screening
E) Information search
Which of the following refers to marketing strategies that support environmental
stewardship by establishing an environmentally founded differential benefit in the
minds of consumers?
A) greenwashing
B) green marketing
C) triple-bottom-line orientation
D) societal marketing
E) social networking
BMW allows customers to design their own vehicles from a set of options at BMW’s
Web site. What is this called?
Marketers can choose from two basic strategies: push or pull. Compare these two
strategies.
Discuss the components and functions of a marketing information system (MIS).
Periodically, the Walt Disney Company recycles its oldest animated films, such as Snow
White, back into movie theaters to delight a new generation of consumers. To what
classification of the BCG growth-market share matrix would these old movies belong?
Explain.
Explain how companies identify and use brand ambassadors and brand evangelists.
Briefly discuss how marketers measure return on marketing investment. Explain why
this figure may not be sufficient to judge marketing’s effectiveness.
Describe the different types of Big Data sources available to marketers. How can
marketers use this information?
Explain why it is difficult to standardize services and why many consumers may not
necessarily want service standardization.
In one section of the Sunday newspaper there are four-color, magazine-style
advertisements for different stores. Each of these advertisements informs consumers of
the products being marketed at sale prices during the coming week. How are these
magazine-style advertisements examples of the implementation of sale promotions?
Why are direct channels of distribution common in business-to-business markets
dealing with high-dollar, high-profit items?
Marketers monitor the technological environment. How can changes in technology
impact marketing communication strategy? Provide at least two examples.
Explain impulse products. Identify two challenges marketers may have regarding
impulse products.
How might measuring service quality be more difficult than measuring product quality?
A manager in a grocery store decides to place packages of pound cake in two different
locations in the store. One display of the cake also includes other bakery items. The
second display of the cake is in the vegetable section of the store, placed next to the
shelf full of boxes of fresh strawberries. The grocery store manager wants to learn
which of the two locations will most encourage customers to buy the cake. What format
of research is the store manager conducting? Explain your answer.
Explain the concept of nonstore retailing, giving one example of a well-known product
that has been marketed this way.
Microsoft launched a massive $500 million marketing campaign when it introduced the
Xbox, promoting the new product through in-store merchandising, retailer incentives,
events, and sponsorships, in addition to traditional advertising. What stage of the
consumers’ adoption of a new product was Microsoft most trying to influence? Support
your answer.
How are marketing objectives different from corporate objectives?
Why is it important for marketers to analyze the positions of both direct and indirect
competitors? Give an example of direct and indirect competitors for a supermarket.
Describe the function of an economic community and explain how its policies can be
advantageous to marketers. Give two examples of important economic communities.