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In first-degree price discrimination, the seller charges less to buyers who purchase in
larger volumes.
Sales agents and brokers are called facilitators in a marketing channel.
Some business practices, such as deceptive advertising, exclusive dealing, and
predatory competition, sharply divide critics regarding whether they are clearly
unethical or illegal.
Firms benefit when they democratize innovations and replace groundbreaking ideas
with lowest-common-denominator solutions.
As discount retailers improve their quality and image, consumers have been willing to
trade down.
Households comprised of single, separated, widowed, and divorced individuals
generally demand larger apartments and expensive appliances, furniture, and
furnishings.
People who authorize the proposed actions of deciders or buyers are initiators.
It is difficult for marketers to trace the effects of online marketing communications.
Marketing communications in almost every medium and form have been on the rise,
and some consumers feel they are increasingly invasive.
Bloggers do not need to disclose their relationship with marketers whose products they
endorse.
It often makes sense to operate in fewer countries, with a deeper commitment and
penetration in each.
Consumers now receive sales offers through direct-mail letters and catalogs, television,
cell phones, and the Internet. The nonstore-based retailers are taking business away
from store-based retailers.
Often the more committed a company is to sustainability and environmental protection,
the more dilemmas that can arise.
Direct marketing produced $2.05 trillion in sales in 2012, accounting for approximately
8.7 percent of GDP.
A major drawback of conjoint analysis is that it cannot be used to measure objective
attributes such as estimated market share and profit.
Most companies would prefer to remain domestic if their domestic market were large
enough.
A ________ is the maximum sales available to all firms in an industry during a given
period, under a given level of industry marketing effort and environmental conditions.
A) company demand
B) market demand
C) company sales potential
D) sales quota
E) total market potential
A company does not set a final price until the product is finished or delivered. This is
known as ________.
A) delayed quotation pricing
B) an escalator clause
C) special-event pricing
D) time pricing
E) the shallow-pockets trap
A ________ scorecard records how well the company is doing year after year based on
measures such as the average perception of the company's product quality relative to its
chief competitor.
A) customer-performance
B) stakeholder-performance
C) marketing balanced
D) vendor
E) generic
A company can learn a great deal by analyzing the degrees of brand loyalty. For
example, ________ can show the firm which brands are most competitive with its own.
A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals
The customer service representatives at a call center have been asked to handle each
call within five minutes. At the same time, they have been asked to answer all customer
queries in detail and provide appropriate solutions. What kind of service gap is apparent
here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
Which marketing channel is associated with the highest value added per sale?
A) retail stores
B) sales force
C) distributors
D) Internet
E) telemarketing
The bottom rung of the customer loyalty ladder is ________.
A) word of mouth/buzz
B) repeat purchase
C) satisfaction
D) evangelism
E) ownership
An efficient method of estimating area market potentials makes use of the ________,
developed by the US Bureau of the Census in conjunction with the Canadian and
Mexican governments. It classifies all manufacturing into 20 major industry sectors and
further breaks each sector into a six-digit, hierarchical structure.
A) Nielsen Media Research
B) Multiple-Factor Index Method
C) Brand Development Index
D) Market Buildup Method
E) North American Industry Classification System
Zodiac Inc. is one of the leading producers of designer bags in its country. The
company is considering shifting some of its production to India. Which of the following
could have prompted this move?
A) People in India prefer imported designer bags.
B) Zodiac can target a niche market of high-profile consumers who have a high income.
C) Zodiac can improve its market share if it can offer better prices than its competitors.
D) People in the home country have an ethnocentric approach.
E) Market research indicates that Indian consumers have a low per-capita income.
Domestic-based export merchants ________.
A) buy manufacturers' products and then sell them abroad
B) manage a company's export activities for a fee
C) buy foreign products and sell them in the domestic country
D) seek and negotiate foreign purchases
E) carry on exporting activities on behalf of several producers
________ are basic human requirements, while ________ are the ways in which those
requirements are satisfied.
A) Wants; needs
B) Demands; wants
C) Needs; wants
D) Needs; demands
E) Demands; needs
What are hollow corporations?
A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated
Which of the following products is most likely to undergo alpha and beta testing?
A) food products
B) industrial goods
C) consumer products
D) commodities
E) FMCG products
Which of the following is an advantage of using television as an advertising medium?
A) high attention and reach
B) low absolute cost
C) absence of clutter
D) long duration of ad exposure
E) high audience selectivity
Which of the following is NOT true about Tata Nano?
A) Its cost is three times India's annual per capita income.
B) It targets the 7 million Indians who buy scooters and motorcycles every year.
C) It has a negative stigma attached to it because it is considered a "cheap" car.
D) It has received positive feedback for reminding people of the tuk-tuk.
E) Some target customers were intimidated by Tata's showrooms.
Which of the following is considered a wholesaler?
A) retailers
B) brokers
C) producers
D) manufacturers
E) farmers
The customer service representatives at G.K.'s customer service center must know as
much about the products as possible, so that they can help customers solve their
difficulties without sounding hesitant or unsure of themselves. Which of the following
determinants of service quality are they being asked to demonstrate?
A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility
The most scientifically valid research is ________ research.
A) observation
B) focus group
C) survey
D) behavioral
E) experimental
When Amy goes shopping for clothes, she goes into every store in the mall looking for
the best deal. She is very price conscious. On the basis of loyalty status, Amy can be
described as a(n) ________.
A) switcher
B) split loyal
C) shifting loyal
D) hard-core loyal
E) anti-loyal
The last time Betty visited Zing's, the food was excellent. Tonight is her anniversary
and she was looking forward to an enjoyable evening. After the meal, she starts feeling
that the service was not up to par and the evening was not as successful as she had
hoped. According to the service-quality model, which gap is obvious here?
Describe three methods by which a brand can communicate category membership.
When Hayley had some problems with the applications on her cell phone, she gave her
cell phone to the service center for a software update. The service center returned the
phone to Hayley the next day, with the software update complete. Two days later, the
service center called Hayley to enquire if the phone was functioning well. Which area
of services marketing does this incident illustrate? Why is this important?
According to researchers, what steps can improve the likelihood of starting a buzz?
An opinion leader is the person in informal, product-related communications who offers
advice or information about a specific product or product category, such as which of
several brands is best or how a particular product may be used. According to the text,
how do marketers try to reach opinion leaders?
