The zone of tolerance for a service is the perceived economic benefit in relationship to
the economic cost.
Marketing channels are the set of pathways a product or service follows after
production, culminating in purchase and consumption by the final end user.
Growth in the retail market is centered firmly in the middle market, leaving luxury
retailers and discounting specialists struggling.
Narrative branding is based on deep metaphors that connect to people’s memories,
associations, and stories.
A fad is more predictable and durable than a trend.
One of the advantages of having a strong brand is the ability to have a more elastic
consumer response to price decreases of the brand.
Marketers have traditionally classified products on the basis of characteristics such as
durability, tangibility, and use.
True Value is a retailer-owned cooperative with over 4,000 independent retail locations
worldwide. Members of True Value own their individual stores and operate
independently. True Value helps its members procure materials at a low cost. What kind
of marketing system is True Value? Explain briefly.
Brand personality is the specific mix of human traits that may be attributed to a
particular brand.
To be useful, market segments must be measurable.
The nicher achieves high sales volume, whereas the mass marketer achieves high
margin.
Most marketing plans conclude with a section that indicates how the plan will be
implemented.
The product hierarchy stretches from basic needs to particular items that satisfy those
needs.
A corporate vertical marketing system combines successive stages of production and
distribution under single ownership.
Value pricing requires a company to reengineer its operations to become a low-cost
producer.
Forecasting is the art of anticipating what buyers are likely to do under a given set of
conditions.
An example of a subculture would be a person’s geographic region.
Featuring exclusive national brands that are not available at competing retailers is a way
of differentiating a retailer.
For segmenting a business market, situational factors include urgency, specific
application, and size of order.
Companies sometimes initiate price cuts in an attempt to dominate the market through
lower costs.
Advertising can build up a long-term image for a product or trigger quick sales.
Some firms might delay a new product launch until after the competitor has borne the
cost of educating the market and its product may reveal flaws the late entrant can avoid.
This can be classified as a parallel entry.
The industry concept of competition reveals a broader set of actual and potential
competitors than competition defined in just the market concept.
Marketing channel functions such as storage and movement and communications
constitute a backward flow of activities.
A person who has a bad customer experience is more likely to talk about it, but
someone who has a good experience will talk to more people.
Services represent the fastest-growing sector of the global economy and account for
two-thirds of global output.
Loyalty is a person’s feelings of pleasure or disappointment that result from comparing
a product’s perceived performance to expectations.
A firm’s branding strategy is also called the brand architecture.
The customer relationship management process involves all the activities related to
receiving and approving orders, shipping the goods on time, and collecting payment.
Relationship marketing aims to build mutually satisfying long-term relationships with
key parties.
When examining products, consumers compare an observed price to an internal
reference price they remember or an external frame of reference.
Value-augmenting services include installation, staff training, maintenance and repair
services, and financing.
Psychological discounting involves setting an artificially high price and then offering
the product at substantial savings.
The actual success of a social marketing program should be evaluated in terms of the
program objectives.
Wholesaling includes all the activities in selling goods or services to those who buy for
resale or business use.
Exclusive dealings and tying agreements are illegal and prohibited by law.
Brand equity can be built by linking the brand to sources, such as channels of
distribution, as well as to other brands.
Volkswagen concentrates on the small-car market and Porsche on the sports car market.
These would be examples of what is called ________.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
When a business gets to know market segments intimately and pursues either cost
leadership or differentiation within the target segment, it is employing a ________
strategy.
A) defined
B) focus
C) value-added
D) competitive advantage
E) customer-focused
Moonburst is a newly launched brand of energy drinks, one among many other recently
introduced competing brands. The advertising agency handling Moonburst’s account
decides that to better promote Moonburst, it has to zero in on an advertising medium
that would offer flexibility to alter its advertising message and the ability to fit in with
the modest advertising budget. Also, the medium has to provide a high repeat exposure
of the advertising message to the target audience. The advertising agency would be
happy to trade off audience selectivity and creative possibilities if the medium satisfies
the above criteria. Which of the following would be the best option for Moonburst?
A) outdoor media
B) radio
C) magazines
D) television
E) Yellow Pages
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
________ are rules of thumb or mental shortcuts in the decision process.
A) Attitudes
B) Beliefs
C) Heuristics
D) Discriminations
E) Biases
Which of the following is an advantage of using radio as an advertising medium?
A) higher attention than television
B) standardized rate structures
C) long duration of ad exposure
D) high quality reproduction
E) high geographic selectivity
As Ben manages communications for his company’s watch brand, which has reached
the decline stage in the product life cycle, which of the following marketing
communications mix tools is he most likely to continue?
A) interactive marketing
B) advertising
C) personal selling
D) direct marketing
E) sales promotion
Services high in ________ qualities are those services that have characteristics that the
buyer normally finds hard to evaluate even after consumption.
A) trial
B) search
C) experience
D) privacy
E) credence
A profitable customer yields a ________.
A) cost stream that exceeds by an acceptable amount his revenue stream
B) revenue stream that exceeds the company’s cost stream
C) cost stream that exceeds the company’s revenue stream
D) revenue stream that exceeds by an acceptable amount his cost stream
E) revenue stream that equals the company’s cost stream
In the ________ category of buyer-supplier relationship, although bonded by a close,
cooperative relationship, the seller adapts to meet the customer’s needs without
expecting much adaptation or change on the part of the customer in exchange.
A) contractual transaction
B) cooperative system
C) collaborative
D) mutually adaptive
E) customer is king
________ testing is a customer test that involves placing the product within the firm to
see how it performs in different applications.
A) Beta
B) Research
C) Sales-wave
D) Alpha
E) Simulated
Although Brenda previously used the US Postal Service because it offered better prices
on package shipping, she now uses only FedEx, because it gives her the facility of
shipping from any FedEx location 24 hours a day. Which of the following factors led to
Brenda’s customer switching behavior?
A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching
In markets that are characterized by products that are highly homogeneous, how should
a firm react to a competitor’s reduction in price?
A) shrink the amount of the product available
B) substitute expensive materials or ingredients
C) reduce product features
D) reduce product services
E) augment the product
Customers today want separate prices for each service element, and they also want the
right to select the elements they want. Customers are said to be pressing for ________
services.
A) complementary
B) perishable
C) variable
D) unbundled
E) shared
Red Bull enlisted college students as “Red Bull student brand managers” to distribute
samples, research drinking trends, design on-campus product promotion activities, and
write stories for student newspapers. From a marketing management perspective, which
of the following brand equity drivers is most applicable in the given scenario?
A) the profitability associated with brand development
B) associations indirectly transferred to the brand by linking it to a person
C) the product and all accompanying marketing activities and supporting marketing
programs
D) the initial choices for the brand elements or identities making up the brand
E) associations indirectly transferred to the brand by linking it to a place
Galaxy chocolate has successfully competed with Cadbury by positioning itself as
“your partner in chocolate indulgence” and featuring smoother product shapes, more
refined taste, and sleeker packaging, which represents which of the following main
strategies for growing the core of the business?
A) Make the core of the brand as distinctive as possible.
B) Drive distribution through both existing and new channels.
C) Offer the core product in new formats or versions.
D) Increase costs and revenue.
E) Expand to another geographic region.
To be useful, a market segment should be ________, which means the largest possible
homogeneous group worth going after with a tailored marketing program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
Discount stores that try to keep prices as low as possible are more likely to function
using ________ operations.
A) limited service
B) self-selection
C) full-service
D) self-service
E) limited-selection
The ________ market is the set of consumers with an adequate interest, income, and
access to a particular offer.
A) potential
B) available
C) target
D) penetrated
E) reserve
One way marketers are addressing consumers’ desire for convenience in services is by
providing ________.
A) self-service technologies
B) product support services
C) perceived service and expected service
D) core service failure
E) involuntary switching
Which of the following best describes a car company’s value proposition?
A) We charge a 20 percent premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.
E&OE produces and markets its own brand of skincare products using herbal remedies
and natural ingredients through stand-alone stores as well as an online portal. E&OE is
a(n) ________ retailer.
A) off-price
B) specialty
C) discount
D) department
E) extreme value
The ________ sphere is the number of channel levels, from raw materials to final
product and distribution, in which a company will participate.
A) industry
B) vertical
C) product/application
D) competence
E) market segment
________ can be defined as a deeply held commitment to rebuy or repatronize a
preferred product or service in the future despite situational influences and marketing
efforts having the potential to cause switching behavior.
A) Value proposition
B) Loyalty
C) Satisfaction
D) Respect
E) Customer value
A brand ________ is the set of all brands and brand lines a particular firm offers for
sale to buyers in a particular category.
A) architecture
B) position
C) portfolio
D) extension
E) image
Which of the following activities is a reverse-flow channel of marketing?
A) raw materials movement
B) product recycling
C) materials ordering
D) finished goods storage
E) customer order placement
After determining its pricing objectives, what is the next logical step a firm should take
in setting its pricing policy?
A) It should analyze its competitors’ costs, prices, and offers.
B) It should select its pricing method.
C) It should select its final price.
D) It should determine the demand for its product.
E) It should estimate the cost of its product.
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 Net Promoter Score is calculated by subtracting ________ from ________.
A) promoters; detractors
B) detractors; promoters
C) detractors; passively satisfied customers
D) passively satisfied customers; detractors
E) passively satisfied customers; promoters
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
Which of the following is a purpose of product mapping?
A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices
The zone of ________ is a range where a service dimension is deemed satisfactory,
anchored by the minimum level consumers are willing to accept and the level they
believe can and should be delivered.
A) immunity
B) tolerance
C) reliability
D) assurance
E) flexibility
A manufacturer has invested $750,000 in a new product and wants to set a price to earn
a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units
in the first year. Calculate the company’s target-return price for this product.
A) $18.10
B) $18.23
C) $20.25
D) $20.70
E) $25.50
When companies search for new ways to satisfy customers and distinguish their
offering from others, they look at the ________ product, which encompasses all the
possible augmentations and transformations of the product.
A) consumption
B) expected
C) potential
D) augmented
E) basic
In evaluating different market segments, the firm must look at two factors: the
segment’s overall attractiveness and the ________.
A) company’s objectives and resources
B) effectiveness of the suppliers
C) flexibility of legal rules governing the business
D) socio-economic infrastructure
E) global nature of the product
Define the five kinds of service outputs that marketing channels produce.
Summarize the steps in brand revitalization, and name an example of a brand that has
been revitalized.
Briefly describe approaches to measuring the results of marketing communications.
What is a marketing intelligence system? How can marketing intelligence data be
collected?
Briefly describe the macromodel of the marketing communications process.
How does the marketing environment determine the position of the market demand
function?
Skincare company E&OE has realized that its customers are very loyal to the brand and
play a large part in popularizing it by word of mouth. E&OE wants to leverage this
customer loyalty by using it to generate sales outside its store format. What retailing
options are available for doing this?
What pricing decision should a company make if its competitor’s product contains
features that are not available in its own product?
With respect to positioning, explain points-of-parity and points-of-difference.
List some recent trends in retailing.
What criteria do marketers need to consider when selecting specific media vehicles?
Explain the country-of-origin effect.
What are the seven price-setting methods? Briefly describe each of them.
Hot Topic, a chain that sells rock-band-inspired clothes for teens, launched Torrid to
give plus-size teens the same fashion options. Identify the three parts of the value
delivery process and their function for Hot Topic.
Explain how companies achieve leadership by forming strategic alliances.