A public is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives.
Domestic-based export merchants seek and negotiate foreign purchases for a
commission.
Design can shift consumer perceptions to make brand experiences more rewarding.
Companies prefer customers who are less price sensitive.
The product-line length can be obtained by averaging the number of variants within the
brand groups.
During the 2012 election, much of the $690 million raised online by the Obama
campaign resulted from carefully targeted and tested e-mails.
Services account for nearly 40 percent of global trade.
Electronic shopping is a form of direct marketing.
Firms are increasingly recognizing the importance of influencing consumers at the point
of purchase.
All companies should practice one-to-one marketing.
Corporate chain stores such as Subway, Jiffy-Lube, Holiday Inn, Supercuts, and
7-Eleven account for $1 trillion of annual US sales and 40 percent of all retail
transactions.
Which of the following is an advantage of using magazines as an advertising medium?
A) high-quality reproduction
B) short ad purchase lead time
C) high efficiency in circulation
D) no ad competition in same medium
E) low cost of advertising
Which of the following is a benefit of product mapping?
A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices
Sales promotion expenditures increased as a percentage of budget expenditure for a
number of years. Growth has, however, recently slowed. Which of the following is a
factor that has contributed to the growth of sales promotion expenditures?
A) Many brands have come to be seen as dissimilar.
B) The efficiency of advertising as a promotion has improved.
C) The trade demands more deals from manufacturers.
D) Consumers have become less price-oriented.
E) The number of brands in the market has decreased.
Which of the following terms describes the practice of retailers purchasing a greater
quantity during a sales promotion period than they can immediately sell?
A) diverting
B) panic buying
C) straight rebuy
D) buyout
E) forward buying
In the corporate headquarters of a supermarket chain, ________ are responsible for
developing brand assortments and listening to salespersons’ presentations.
A) central buyers
B) brokers
C) specialist buyers
D) agents
E) specialized wholesalers
Armac Ltd. is a sluice-box manufacturer based in China. A sluice-box is used for gold
prospecting. Armac is interested in selling a few of its machines to an American mining
company, but it wants 95 percent of the machines’ price in gold and the rest in ores
recovered by using the machines. This is an example of a ________.
A) buyback arrangement
B) functional discount
C) barter deal
D) compensation deal
E) sealed bid
A company has developed the prototype of a mobile phone that it plans to launch in the
next few months. The phone comes equipped with the most advanced technological
features. As part of its test marketing efforts, the company allows customers to examine
and use the prototype and also gathers feedback regarding product features and price.
The results of this test marketing effort show that customers are willing to pay at least
$500, considering the phone’s various features. As such, the company has discovered
customers’ ________.
A) last paid price
B) expected future price
C) lower-bound price
D) upper-bound price
E) typical price
BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without
it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch
someone” are all examples of brand ________.
A) slogan
B) personality
C) mission
D) architecture
E) vision
The introduction of Diet Coke by the Coca-Cola Company is an example of ________.
A) line extension
B) brand harmonization
C) category extension
D) brand dilution
E) co-branding
Which of the following is a disadvantage of using television as an advertising medium?
A) high absolute cost
B) low audience attention
C) lack of reach among audience
D) high audience selectivity
E) absence of clutter
A belief is a person’s enduring favorable or unfavorable evaluation, emotional feeling,
and action tendency toward some object or idea.
Which of the following personal communications channels consist of family members,
neighbors, friends, and associates talking to target buyers?
A) expert channels
B) advocate channels
C) social channels
D) formal channels
E) sponsored channels
Which of the following is an advantage of sales-wave research?
A) It gives surprisingly accurate results on advertising effectiveness.
B) It allows the brand to gain favorable shelf position.
C) It guarantees immediate brand recognition and high sales volume.
D) It can be implemented quickly with a fair amount of security.
E) It easily creates a buzz in the minds of customers.
According to the BRANDZ model of brand strength, brand building involves people
progressing through a sequential series of steps. Which of these steps would address or
answer the question “Does this brand offer me something?”
A) advantage
B) presence
C) relevance
D) bonding
E) performance
Which of the following is an example of a pure service?
A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal
Cell phone manufacturer LZT has to choose between two options for sourcing parts:
Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total
customer cost for LZT?
A) by absorbing some risk by offering a warranty
B) by improving the functional aspects of the products
C) by augmenting the psychological benefits of the products
D) by training service personnel to improve their skills
E) by investing in brand building for the products
Points-of-parity are important while designing brand mantras for brands facing
________.
A) rapid growth
B) market saturation
C) slow and steady growth
D) rapid decline
E) stability in sales volume
Dell computers is a manufacturer of computers. Dell accepts orders for computers
online and ships the products to the customer. Explain the likely physical flow of
materials in this case.
What are the steps in a customer value analysis?
What are the four factors that customers who thrive in customer contact positions have
an internal drive to do?
Marketers should be skilled in stimulating demand for a company’s products. Just as
production and logistics professionals are responsible for supply management,
marketers are responsible for demand management. Marketing managers seek to
influence the level, timing, and composition of demand to meet the organization’s
objectives. List and briefly describe the eight different demand states.
Define brand equity.
If you were a purchasing agent facing a modified rebuy situation, how would you
describe that situation?
Gravity is a company that markets customized T-shirts to its customers. Gravity runs an
ad that seeks to attract more customers. Apply the macromodel of the communications
process to describe the communication between Gravity and its target customers.
What are some of the forces that are driving companies to practice corporate social
responsibility?