Book Title
Marketing 5th Edition

CE 10256

February 5, 2017
Top-of-mind awareness is when consumers indicate that they know the brand when the
name is presented to them.
Hilton Hotels trains its front desk employees to dress neatly and conservatively to
project a professional image. This relates to the service dimension of tangibles.
A pricing strategy and a pricing tactic are essentially the same thing.
When a retail store rarely sells deeply discounted or sale products, it is known as
"everyday low pricing."
Beverage companies often pay movie producers to have their products used and shown
in movies. This is an example of product placement.
Slotting allowances are used to get retailers to feature a manufacturer's product in their
advertising and promotional efforts.
A product label is just a required sticker on a package.
The process of creating a strong ethical business climate begins with the frontline
employees who interact directly with customers.
Fabricworld buys fabric from China and sells it to clothing manufacturers in the United
States. Fabricworld is a retailer.
Firms with strong ethical climates tend to be more socially responsible.
One of retailers' most fundamental activities is providing the right mix of merchandise
and services that satisfies the needs of the target market.
The "implement marketing mix" step of the strategic marketing planning process is part
of the control phase.
Wholesalers are often used in an indirect marketing channel.
Unlike buying products on the Internet, stores don't offer consumers immediate
Good marketing is not a random activity.
Rarely is the lowest-price product offering the dominant brand in a given market.
Contests and sweepstakes are both forms of sales promotions, but a contest requires
some sort of skill or effort, while a sweepstakes is a drawing of entrants' names.
For market penetration pricing to work, the product or service must be perceived as
breaking new ground in some way.
The maturity phase of the product life cycle is characterized by greatly reduced
The marketing research process follows five steps, and to be effective they must be
followed in order without omitting any steps.
Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists.
In a SWOT analysis for Duke's, the possibility that the recession might cut back on
tourism in Hawaii would be considered a weakness.
A disadvantage of the current design of mobile apps is that they are able to fulfill only
one need at a time.
A customized carved cedar wood sign for your house is an example of a convenience
Lisle Hair Company keeps track of the gender and age of its customers so it can target
e-mails to them and be sure to have the right hair products in stock when they visit. This
is an example of the use of demographics in marketing.
Effective omnichannel operations require an integrated CRM (customer relationship
management) system with a centralized customer data warehouse.
If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its
gaming systems), this would be an example of a line extension.
Once the marketing strategy is implemented, controls must be in place to be certain that
the firm has actually done what it has set out to do.
A high/low pricing strategy relies on the promotion of sales, during which prices are
temporarily reduced to encourage purchases.
In both new buy and straight rebuy situations, several members of a buying center will
be intensely involved in the purchasing decision.
Glenn is trying to promote his new, self-published financial guidebook. By directly
promoting it to readers in the Wall Street Journal, he is using a push strategy.
Quentin is in a group of 8 to 12 people and is being asked questions by a trained
moderator. Quentin is part of an in-depth interview group.
An iPad mini advertisement appearing in the New York Times is an example of using a
niche media channel.
Exporting refers to a situation where a company maintains ownership of its plants,
operational facilities, and offices in a foreign country in which it sells its products.
Frequency describes the percentage of the target population exposed to a specific
marketing communication, such as advertisement, within a specified period of time.
Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a
new car model. Which of the following would you not expect to find in the RFP?
A. a description of the required features for the device
B. a time frame when the devices are needed
C. specifications for connecting the device to the car
D. a vendor analysis
E. instructions for preparing proposals
It was during the market-oriented era that firms first discovered "marketing." In what
timeframe did this occur?
A. around the turn of the 20th century
B. shortly before the Great Depression
C. just after World War II
D. during the Roaring Twenties
E. during the civil rights movement
Henri wants customers in his specialty tobacco store to feel at home, as if they were in
their personal smoking den. He uses lighting, music, and soft chairs to create a "look
and feel" that will get customers to relax and return. Henri is focusing on which aspect
of the marketing mix?
A. price
B. place
C. policy
D. promotion
E. product
Negative attitudes are typically difficult for marketers to change because
A. most consumers' attitudes depend on prices.
B. consumers weigh performance risk against functional needs when assessing their
C. attitudes are learned and long lasting.
D. attitudes shift consumers from limited to extended problem-solving situations.
E. consumers' attitudes are derived from unchanging decision rules.
Barak is considering buying a hybrid car, but he's not sure that he believes the gas
mileage estimates. Barak is concerned about
A. physiological risk.
B. social risk.
C. financial risk.
D. safety risk.
E. performance risk.
E-books, in addition to being an alternative product form, provide __________ value
creation since they can be downloaded via the Internet immediately when and where
they are needed.
A. product
B. place
C. promotion
D. price
E. primary
India, like some other countries, may require entering firms to create _________ when
expanding into their markets, limiting outsiders' control of businesses.
A. franchises
B. export promotions
C. joint ventures
D. direct investments
E. strategic alliances
Managers of Wendy's fast-food restaurants keep track of prices at competitors such as
McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these
other fast-food restaurants will
A. increase the income effect for Wendy's products.
B. increase demand for Wendy's products.
C. decrease the income effect for Wendy's products.
D. increase the complementary effect for Wendy's products.
E. decrease demand for Wendy's products.
Sally could recall the brand of toothpaste she used only when a marketing researcher
mentioned the brand. This is known as
A. aided recall.
B. unaided recall.
C. top-of-mind awareness.
D. brand preference.
E. brand indifference.
The basic goal of integrated marketing communications is to
A. communicate the value proposition to the target market.
B. create desire.
C. manipulate consumers.
D. outspend competitors.
E. tell the world about your company.
Because there are only a few firms in markets with oligopolistic competition,
A. everyone is a price taker.
B. producers do not have to consider the reactions of rival firms.
C. government often encourages consolidation to reduce the number of competitors.
D. price wars may occur.
E. the many competitors will focus on product differentiation.
The observation that consumers are generally more sensitive to price increases than to
price decreases suggests that
A. most consumers cannot remember what price they paid the last time they bought a
particular product.
B. it is easier to lose customers with a price increase than to gain customers with a price
C. most consumers would rather skip buying a product than pay a higher price.
D. most consumers are emotionally attached to their favorite products and are unlikely
to change, even if the price changes.
E. firms gain more customers with price decreases than they lose with price increases.
One of the disadvantages of secondary research is ______, while one of the
disadvantages of primary research is often ________.
A. cost; outdated information
B. time required for collection; sources not original
C. potential bias; cost
D. outdated information; information not relevant to data needs
E. sophisticated training required to obtain it; potential bias
When making decisions, managers often have to decide between doing what is
beneficial for them (and possibly the firm) in the short run, and doing what is right and
beneficial for the firm and for society in the long run. To address this conflict, a firm
A. must evaluate its quarterly profit statement from an ethics standpoint.
B. must state its long-term goals in general terms, so as to not interfere with managers'
short-term goals.
C. must always put society's needs ahead of the firm's needs.
D. must ensure that long-term goals of the firm are aligned with the short-term goals of
each individual within the firm.
E. should adhere rigidly to legal standards in its industry.
Marketers frequently design customer relationship management programs to
A. retain loyal customers.
B. attract consumers who have safety needs.
C. reinforce postpurchase cognitive dissonance.
D. increase internal information search.
E. improve profit margins.
In marketing terms, the trade of things of value between the buyer and the seller so that
each is better off as a result is referred to as
A. a marketing exchange.
B. value cocreation
C. the marketing mix.
D. a value transaction.
E. relational marketing.
In a __________ pricing tactic, sellers advertise very low prices and then aggressively
pressure customers to purchase higher-priced versions of the product advertised with
the low price.
A. fixed offer
B. reference
C. seasonal
D. bait-and-switch
E. cost-based
The proliferation of new media alternatives has led many firms to shift their
promotional budgets from
A. publicity to public relations.
B. personal selling to advertising.
C. integrated marketing communications to disintegrated marketing communications.
D. indirect marketing to viral marketing.
E. advertising to direct marketing and website development.
"Effective marketing doesn't just happen." It is
A. promoted through STP analysis.
B. possible only for seasoned marketing executives to achieve.
C. planned.
D. introduced through control phase SBUs.
E. the result of competitor's failures.
The basic reason manufacturers spend time and money building their own brands is to
A. create brand awareness.
B. build brand equity.
C. offset the power of private-label manufacturers.
D. create positioning possibilities for their generic product lines.
E. maximize product line depth.
Jordana is a travel agent. Whenever she sells an expensive vacation package, she
encourages the customer to buy travel insurance, which provides reimbursement in case
of trip cancellation due to illness or another emergency. Jordana is trying to reduce her
customers' __________ risk.
A. psychological
B. financial
C. performance
D. social
E. physiological
Fees paid to retailers simply to get new products into stores or to gain more or better
shelf space for their products are called _______ allowances.
A. space
B. shelf
C. slotting
D. placement
E. location
When considering income as a demographic variable affecting marketing efforts,
marketers need to recognize that
A. everyone is equal.
B. income in the United States has become more unevenly distributed.
C. everyone has been equally affected by the recession.
D. there is increasing purchasing power among lower-income groups.
E. middle-income consumers are quickly becoming upper-income consumers.
Which of the following is not required to build a successful strategic relationship?
A. mutual trust
B. open communications
C. creation of a joint venture
D. common goals
E. credible commitments
Marketing involves all of the following except
A. conducting exchanges.
B. satisfying customer needs and wants.
C. creating value.
D. efforts by individuals and organizations.
E. production scheduling.
Business-to-business marketing involves buying and selling goods or services by all of
the following except
A. manufacturers.
B. consumers.
C. retailers.
D. producers.
E. wholesalers.
Which of the following types of data would be the best choice for Wendy's fast-food
restaurants if the headquarters office wants to know how many hamburgers versus
chicken sandwiches it has sold in past years?
A. internal secondary data
B. external secondary data
C. survey responses
D. focus group data
E. primary data
The process by which the use of a new product or service spreads throughout a market
group is referred to as
A. new product introduction.
B. lead user dispersion.
C. diffusion of innovation.
D. the product life cycle.
E. product development diffusion.
The value of a brand is often calculated by assessing the
A. difference between brand equity and brand liability.
B. corporate profitability divided by the monthly brand earnings.
C. earning potential of the brand over the next 12 months.
D. effect of brand dilution if it occurred.
E. average product line depth.
Managers of fast-food restaurants struggle with a rapid turnover of personnel.
Employee turnover rates of 100 to 200 percent annually are common. The work
environment is difficult and customers can often be demanding. One of the first steps
managers can take to help workers deliver quality service is to
A. ban abusive customers from their restaurants.
B. reward service providers based solely on the speed of service.
C. provide emotional support and concern for their employees.
D. review the delivery support system.
E. make sure services delivery expectations are consistent and coherent throughout the
If values provide an end goal, and self-concept is the way one sees oneself in the
context of that goal, lifestyles are
A. visual images of how we should live our lives.
B. our underlying motivations.
C. how we live our lives to achieve our goals.
D. motivations turned into perceptual maps.
E. determined by demographics.
__________ are combating competitive pressures by offering fresh food and healthy
fast food, tailoring assortments to local markets, opening locations closer to where
consumers work and shop, and adding new services.
A. Warehouse clubs
B. Supercenters
C. Convenience stores
D. Department stores
E. Extreme value retailers
Singapore Airlines seeks to differentiate itself from competing airlines, in part through
innovative design of its airplane seats and in-flight entertainment systems. Through
continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________
macro strategy.
A. customer excellence
B. global excellence
C. locational excellence
D. operational excellence
E. product excellence
Thanh is starting a career in selling, but he eventually wants to become a senior
manager. A selling career may help Thanh achieve that goal by providing
A. structure.
B. scheduling flexibility.
C. job security.
D. income.
E. visibility to management.
As the text explains, Nike, the prominent athletic shoe manufacturer, relies heavily on
athlete sponsorships to build demand for its products. Spectators at major sporting
eventsboth those attending in person and those watching at homefrequently see the
Nike 'swoosh" logo worn by elite athletes. Given the vast worldwide audience for
Olympics broadcasts, an Olympic year gives Nike increased exposure. On a Nike
situation analysis in an Olympic year, would you consider this exposure to be a strength
or an opportunity? Explain your reasoning; be specific.
If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex
watches offered lower-priced products, what might happen to the demand for their
products? Why?
Fenton has always used standard markups to determine the prices for his clothing
products. You are advising him to change his pricing strategy. What advice would you
give Fenton?
Describe your actions (or someone you know) in a situation where you (or they) were
an innovator in the diffusion of innovation curve.
Why might an active Facebook user also want to participate in LinkedIn?
Why do marketers need to create an advertising plan before they initiate a campaign?
Explain how social media have changed how firms communicate with their customers
relative to traditional forms of marketing products.
What are slotting allowances? Why do some marketers consider them unfair?
Marketers in the United States are learning that Hispanic and other minority groups are
not alike. How do cultural differences affect purchase decisions? What can be said
about the buying power of Hispanics?
Why do many American firms begin their global expansion efforts by exporting?
In new product development, what advantage do first movers have?
What methods might a firm use when pricing based on a profit orientation and how do
they differ?
Garden Gate is a one-location nursery business, selling plants and flowers for home
gardeners. The new owners want to grow through either a product development or
diversification strategy. What will the owners likely do if they pursue either strategy?
If there are no correct answers to ethically troubling situations you might face in your
career, how can you be expected to perform ethically?
What is the difference between government regulation of business and corporate social
The World Trade Organization creates proposals that are then discussed by more than
150 member countries and not approved until the proposal is agreeable to all. What type
of organizational culture exists in the WTO?
What does an everyday low pricing strategy say to consumers?
Suppose that a restaurant near campus wants to use social media to get more students to
visit the restaurant. The manager plans to offer a free dessert to anyone who "likes" the
restaurant's Facebook page. Describe some data the restaurant should collect to measure
the effectiveness of the campaign.
What is the difference between a trade deficit and a trade surplus? If a firm wants to
manufacture in another country, which of these trade situations would it prefer?