After calculating the CLV of its customers, American Auto Supplies identified its most
profitable customers and also found that a significant percentage of its customers are
unprofitable. Which of the following actions would American Auto Supplies most likely
take based on these findings?
A. fire its unprofitable customers
B. offer the highest level of customer service to its unprofitable customers
C. encourage unprofitable customers to become product champions
D. discontinue discounts for all but its most profitable customers
E. provide slightly lower levels of customer service to its most profitable customers
Which of the following is the focus of the first step in a typical brand tracking model?
A. brand personality
B. brand attributes
C. brand recognition
D. media recognition
E. media footprint
________ involve a like, dislike, or ambivalence toward something.
A. Motivations
B. Reference groups
C. Attitudes
D. Cues
E. Reinforcements
A wholesaler who ________ legally owns the goods being handled.
A. breaks bulk
B. takes title
C. creates assortments
D. takes consignments
E. selectively distributes
Which of the following is the best example of a company promoting sustainability?
A. a company adopting a code of marketing ethics
B. a company contributing a portion of revenues to a specific nonprofit organization
C. a company making its products out of recycled materials
D. a company making special efforts to hire a multiculturally diverse staff
E. a company using the social marketing concept
Most businesses focus the majority of their marketing efforts toward managing the
________.
A. legal environment
B. internal environment
C. microenvironment
D. macroenvironment
E. economic environment
Which of the following would most likely appear on a company’s balance sheet?
A. KPI metrics
B. ROMI factors
C. CRM metrics
D. accounts payable amounts
E. data analytics
Communication between consumers about a brand, marketing offer, or marketing
message is referred to as ________.
A. publicity
B. public relations
C. direct marketing
D. word of mouth
E. personal selling
Customer perceived value is determined by a customer’s ________ of the benefits and
costs of a product.
A. personal assessment
B. rational expectations
C. accurate assessment
D. objective evaluation
E. emotional expectations
Tommy Baker is in charge of CRM for American Pie Nostalgia. As a result of his
successful efforts in this area, his firm will likely enjoy all of the following EXCEPT
________.
A. providing higher levels of customer services
B. developing deeper customer relationships
C. creating offers tailored to specific customer requirements
D. understanding the competition better
E. identifying trends in customer concerns
Refer to the scenario below to answer the following questions.
The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge’s fashionable
shopping district, catering to a wealthy, mature clientele. Many other specialty shops
lined the main avenue over the next few years. But as Forest Ridge began to attract an
affluent, younger, and more demographically diverse population, the once-popular
shopping district was increasingly perceived as stodgy and snobby. By the late 1980s,
many of these specialty shops suffered financially. Most shops attracted only tourists
who enjoyed browsing through the displays of alligator belts and shoes, piles of scented
soaps, and useless flowered parasols, often laughing at the ridiculously high prices.
Owners of The Attic Trunk had noticed the shifts in population and buying behavior of
the typical shopper by the late 1980s. In fact, the owners had observed that the
once-fashionable shopping district in Forest Ridge no longer attracted a “typical
shopper.” The wealthy, mature clientele had been partially replaced with affluent
families with children, a mix of Asian and African Americans as well as Caucasians.
Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name
apparel, colognes, and jewelry. Other owners followed suit in the early 1990s, bringing
restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.
It is most likely that each consumer segment attracted to The Attic Trunk would have
which of the following in common with the other consumer segments?
A. subculture
B. personality
C. attitudes
D. self-identity
E. perception
A(n) ________ is a state of readiness, based on experience, that influences an
individual’s response to something.
A. drive
B. motive
C. belief
D. attitude
E. perception
Which of the following was NOT among the top ten in Business Week’s Annual Rating
of the Best Global Brands for 2009?
A. Gap
B. Coca-Cola
C. Microsoft
D. IBM
E. Toyota
________, such as Best Buy and Sears, allow customers to serve themselves, but also
have knowledgeable sales associates available to provide guidance.
A. Self-service retailers
B. Full-service retailers
C. Specialty retailers
D. Off-price retailers
E. Limited-service retailers
The survey-based process known as ________ is designed to explore advertising
effectiveness.
A. brand awareness
B. brand health
C. return on investment
D. key performance indication
E. copy testing
A magazine targeted to readers who love to in-line skate primarily uses ________
segmentation.
A. demographic
B. ethnographic
C. values
D. needs
E. psychographic
All of the following are examples of NGOs EXCEPT which one?
A. the Consumers Union
B. People for the Ethical Treatment of Animals
C. the Consumer Product Safety Commission
D. the Better Business Bureau
E. Greenpeace
Which of the following is NOT considered an important American subculture by
marketers?
A. Hispanics
B. African Americans
C. the youth market
D. opinion leaders
E. Asians
The ________ of a service means that it cannot be perceived through the five senses
before it is produced and consumed.
A. utility
B. warranty
C. tangibility
D. intangibility
E. variability
Under which system of government is everything controlled by the government?
A. democracy
B. federal system
C. republic
D. dictatorship
E. social movement
Average cost per transaction is needed to determine ________.
A. future sales growth rates
B. current sales rates
C. payroll rates
D. the monthly fixed costs
E. the break-even point
Survey research is LEAST likely to be conducted through which of the following?
A. the Internet
B. the mail
C. the telephone
D. in person
E. observation
________ involves the systematic tracking of competitive actions and plans.
A. Marketing data
B. Marketing information
C. Sales management
D. Customer intelligence
E. Competitive intelligence
Which of the following best describes the components of the marketing mix?
A. all aspects of the marketing environment
B. everything considered during tactical planning
C. product, price, place, and promotion
D. production, price, distribution, and people
E. people, product, price, and placement
Refer to the scenario below to answer the following questions.
John Mayes opened Sparkle Janitorial in 1999. John began by acquiring two contracts
for office cleaning services from two local manufacturing facilities. For two years, John
and his wife, Barb, performed the cleaning services alone. After acquiring three
additional cleaning contracts in 2001, John hired two employees.
“Up to that point, we had room to grow but we really had no advertising plan,” John
stated. “We were relying mostly on word-of-mouth.”
By 2003, Barb hired another two full-time employees to begin Sparkle’s new endeavor:
carpet cleaning in homes and offices.
“Competition was getting tough for both of our services at that point,” Barb added. “We
ran a local radio spot three times each week. Then we had an advertiser print coupons
on placemats. That gave us a little more exposure.” John and Barb Mayes admit that
they never realized the value of a sound promotional plan before now. “We wish we
would have put together something catchy with a jingle way before now,” they said.
Based on the scenario, Sparkle Janitorial has used which of the following marketing
communication tools?
A. public relations
B. sales promotion
C. sponsorship
D. viral marketing
E. direct marketing
________ is a way of publicly associating a brand with an event, issue, or activity that
the company supports financially.
A. Publicity
B. Mass marketing
C. Sales promotion
D. Sponsorship
E. Specialty advertising
Fiskar’s “Fiskateers,” a program for the company’s most loyal customers that has
increased online interaction and sales, is an example of ________.
A. social network marketing
B. sponsorship
C. transactional marketing
D. broadcasting
E. advertising
SKU numbers and bar codes are both used to ________.
A. identify retail price
B. identify materials and components
C. monitor inventory
D. break bulk
E. identify end retailers
Which of the following transportation modes has the highest cost?
A. water
B. truck
C. air
D. pipeline
E. rail
Unlike public relations, ________ messages are by definition paid marketing
communications.
A. word of mouth
B. publicity
C. advertising
D. viral marketing
E. two-way marketing
Which of the following is NOT one of the four strategic options involved in the
development of brands?
A. multibrand offerings
B. brand protection
C. a line extension
D. a brand extension
E. new brands
What is the key benefit that nonstore retailing offers modern consumers?
In what way might a marketer rely on opinion leaders?
Describe how nonstore retailing is expected to grow in the coming decade.
Compare the advantages and disadvantages of the marketing communications tools of
advertising and public relations.
Identify and briefly describe the main components of a typical marketing plan.
Give two examples of how the digital environment influences consumer behavior.
Briefly explain the relationship among the 4 Ps.
What are the advantages of working with a cash-and-carry wholesaler?
Why might a marketer who segments customers based on lifestyles and interests be
more likely to advertise on a local radio station than in a local newspaper?
How do merchant wholesalers and agents/brokers differ?
Provide three reasons that a company may decide that marketing research is not
appropriate.
You want to determine whether no-smoking policies have affected employee morale in
the United States in the past two decades. Are any secondary data likely available?
Why?
Identify and describe five components of a successful business objective.
List the eight steps in the complete buyer purchase process in their correct order.
Identify the difference between tangible and intangible products and explain why most
products can be thought of as falling on a tangible/intangible continuum.
Identify two types of performance measures that a company could use to assess the
effectiveness of its marketing strategy.
Panasonic markets a line of digital cameras that use Leica lenses. Leica lenses are
legendary for their superb image quality. Panasonic is known for its consumer
electronics. What marketing strategy are Panasonic and Leica implementing? Support
your answer.
What are the costs of a high turnover within a company’s sales force?
Describe the job of a logistics manager and identify the benefits for a company with
well-managed logistics.
Explain the concept of CSR and how it can have positive long-term benefits for both a
company and society.