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Geoff works at an Aspen ski shop. He has just gotten a shipment of new snowboards
and realizes that the company has priced its snowboards higher than the rest of the
boards in Geoff's shop. Since Geoff took a marketing class in college, he knows that the
company is using _____________.
A.Product line pricing
B.Captive pricing
C.Price bundling
D.Reference pricing
E.Prestige pricing
Prestige pricing lends prestige to a product by virtue of a price relatively higher than the
competition. Since the company has priced its snowboards higher than the rest of the
boards in Geoff's shop, it is using prestige pricing.
A particular characteristic that helps meet the customer's needs is a(n)
____________________.
A.Advantage
B.Awareness
C.Benefit
D.Brand
E.Value proposition
An advantage is the particular product/service characteristic that helps meet the
customer's needs.
Touchpoints are ________________.
A.Static and mobile
B.Interactive and noninteractive
C.Frequent and expensive
D.Infrequent and inexpensive
E.Frequent and inexpensive
Touchpoints are interactive and noninteractive. In interactive touchpoint, there is a
direct interface between the customer and a company representative whereas in
noninteractive touchpoint, such direct interface is absent.
______________ is a distinct advantage of personal selling over the other marketing
communication methods.
A.Ability to tailor the message
B.Delayed feedback
C.Adds more noise to the communication process
D.Cost of delivering the message
E.Customers have a hard time saying €no'
The ability to tailor the message to the customer is a distinct advantage that personal
selling has over other marketing communication methods. No other marketing
communication method does a better job of creating personal, unique customer
messages in real time. Salespeople generate distinctive sales messages that directly
address customer problems and concerns.
Small changes in consumer demand can lead to considerable shifts in business product
demand and it is referred to as the ____________.
A.Deceleration effect
B.Transverse effect
C.Modified effect
D.Acceleration effect
E.Trickle effect
Small changes in consumer demand can lead to considerable shifts in business product
demand. This is called as the acceleration effect. This makes forecasting the sale of
consumer products important because making even a small mistake in estimating
consumer demand can lead to significant errors in product production.
Promotion should be viewed as a(n) ____________________.
A.Cost
B.Liability
C.Investment
D.Revenue
E.Income
Promotion in general should be viewed as an investment, not a cost. From an
accounting statement perspective, promotional expenses will show up as costs. But the
budget for promotion dollars should be developed as an investment to grow a brand
rather than as an afterthought of last year's revenues.
The _______________ stage of the AIDA model is most important when we want to
influence customers to feel that they simply can't do without the item.
A.Decoding
B.Interest
C.Desire
D.Action
E.Attention
Moving from interest to desire means that a customer has to move past a need and
begin to really want the product. To stimulate ultimate purchase, marketers often rely
on salespeople, accompanied by some form of sales promotion, to close the sale.
The wristwatch industry was surprised when consumers began telling time by looking
at their cell phones. This trend is identified by Wiersema's new market reality of
_____________________.
A.Increase in demand
B.Customers have less time than ever
C.Information overwhelms and depreciates
D.All secrets are open secrets
E.Competitors proliferate
Most companies are facing ever accelerating competition because of the speed at which
competitors and their products enter and leave markets. And this competition often
comes from unexpected sources.
The owner of a small furniture-manufacturing firm is considering conducting marketing
research. He should consider examining secondary data before collecting primary data
because secondary data offers a(n) ___________ advantage over primary data.
A.Specificity
B.Cost
C.Customization
D.Fit
E.Accuracy
The cost of collection of secondary data is relatively less than that of primary data
collection. Though it may not be very accurate, specific, customized, or exactly suited
to your specific needs, it has an advantage of being less expensive.
All of the following are true about a private-label brand EXCEPT:
A.Private label brands are also known as house brands
B.The manufacturer of a private-label brand is not identified
C.The design and characteristics of the product are decided by the manufacturer
D.Retailers set design and product characteristics
E.The retailer accepts full responsibility for distribution and marketing of the product.
In the case of private-label brands, retailers set design and product characteristics and
then contract with outside manufacturers.
Sheila Smith, the marketing manager of Big Kid Toys, decided to collect and analyze
some secondary data before engaging in primary data collection to determine the types
of toys that are going to be in the biggest demand this Christmas. After only a few hours
she had found several sources of information related to her problem. This demonstrates
the _________ advantage of secondary data.
A.Timeliness
B.Cost
C.Speed
D.Fit
E.Accuracy
Secondary data is a fast way to get information; just a few minutes on a search engine
can yield a lot of information.
High pressure selling _____________.
A.Is practiced today by most companies
B.Has a marketing orientation
C.Sparked laws to protect consumers
D.Is totally a thing of the past
E.Is endorsed by the American Marketing Association
During the sales orientation era, salespersons pushed product on customers. Gradually,
customers grew wary of high-pressure selling, sparking laws at all levels to protect
consumers from unscrupulous salespeople.
Generally speaking, a new product will get ________ level of budget with respect to
communication than established products.
A.A lower
B.The same
C.A mid
D.A higher
E.A percentage
New products almost always have additional communication budgets to support the
product's introduction.
Greg and Mark, CRM consultants, have been hired by Devon to guide her company
through the CRM implementation process. All employees are on cross-functional teams
to focus transforming the firm into a relationship-based enterprise. Greg and Mark have
asked the teams to answer these questions: "How do we measure our performance?"
and "How do we increase our capacity for change?" It is clear that they are focusing on
_______.
A.Customers
B.The relationship between the customer and the firm
C.The managerial issues
D.Supplier issues
E.Distribution issues
To transform a firm into a relationship-based enterprise, various questions related to
managerial decision making should be answered. The answers to these questions guide
the selection of CRM solutions.
When the objective is to obtain maximum product exposure throughout the channel,
a(n) _________________ strategy is designed to saturate every possible intermediary
and especially retailers.
A.Market development
B.Intensive distribution
C.Selective distribution
D.Exclusive distribution
E.Product development
An intensive distribution strategy is designed to saturate every possible intermediary
and especially retailers and it is typically associated with convenience goods and
impulse goods.
The marketing manager of QRS Children's Furniture is designing a new label for her
line of highchairs. The two key aspects of the label that she is working on are the
assembly instructions and the simple usage instructions. These are examples of the
________ requirement of labeling.
A.Legislative
B.Marketing
C.Legal
D.Industry
E.Consumer
Consumers want to use products out of the box, and package labeling is the most
convenient place for initial use instructions. This case is an example of the consumer
requirements of labeling.
Of people born after 1965, which generation or generations do marketers favor and
why?
Ralph and Marie are buying Lisette, their 16 year-old daughter, her first car. Consider
the product experience from the parent's point of view and Lisette's point of view. Why
is this perspective important to marketers?
Timothy thinks that electronic retailing is overrated and a fad. He keeps telling you that
people will lose interest and go back to the stores. Tell Timothy what the advantages of
electronic retailing are.
What are three major activities in new-product development?
Describe the sections of a SWOT analysis.
(p.33 and 37)This chapter discusses the Boston Consulting Group Growth-Share Matrix
and Generic Business Strategies. How do these models relate? Which growth strategy
would you recommend for companies or SBUs in each of the four cells of the BCG
model?
