Book Title
Marketing 5th Edition

CE 55552

February 5, 2017
Members of Generation Y are also called Millennials.
The diffusion of innovation curve follows the following sequence: innovators, early
majority, early adopters, late majority, and laggards.
In a joint venture, the burden of ownership, control, and profits is not shared.
Firms that use personal selling do so because the benefits exceed the costs.
Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new
customers in a segment it might not get with Diet Coke.
By paying close attention to customer needs and continuously monitoring the
environment in which it operates, a good marketer can identify potential opportunities.
Consumers involved in habitual decision making engage in little conscious decision
In entertainment licensing, the major risk to licensees is that the brand will become
Encoding means converting the sender's ideas into a message, which could be verbal,
visual, or both.
Maslow's Hierarchy of Needs is an interesting concept for psychology, but it has little
relevance for marketing.
Ethical issues are likely to arise at each stage of the strategic marketing planning
The sender of an integrated marketing communication controls the meaning individual
receivers take from the message.
The communications gap can be reduced by managing customer expectations.
Burger King no longer uses SpongeBob SquarePants to promote burgers and fries
because the character is no longer popular with young children.
Frazier is out of milk and bread and needs to decide what is for dinner. He will be
stopping at the grocery store on the way home. Frazier will likely engage in limited
problem solving.
Mobile marketing involves marketing to customers through wireless handheld devices
such as mobile phones.
One problem facing advertisers is that consumers screen out messages that are not
relevant to them.
Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's
The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI)
is a widely used tool for geographic segmentation.
Mary will not consider purchasing an "American" car brand based on negative
comments made by her parents; therefore, she has developed a negative attitude toward
American brand cars.
When using the rule-of-thumb method for IMC budgeting, prior sales and
communication activities are used for guidance.
Loyalty programs are sales promotions designed to retain current customers and
encourage multiple purchases over time with the promise of a reward or premium.
Business ethics and marketing ethics are synonymous terms.
The larger and more sophisticated the channel member, the more likely that it will use
supply chain intermediaries.
Private-label brands are imitations often sold by street vendors.
Although it is usually brief, the role of the subhead in print advertisements is to provide
additional product information.
The Robinson-Patman Act does not apply to end consumers, at which point many forms
of price discrimination occur.
Kristina sells sports equipment and wants to get customers into her store. She knows
from past experience that sales generate customer traffic, particularly when she puts
children's baseball equipment on sale. Kristina may consider a leader pricing strategy.
The three different methods that can help develop pricing strategies are cost based,
competitor based, and profit based.
Resellers differ from producers in that resellers significantly alter the form of goods
they sell.
The key to a successful emotional appeal is to create a bond between the consumer and
the brand.
Ethos Water donates 2 percent of its profits to children in need of clean water. This
action demonstrates that Ethos Water is a firm with a strong ethical climate.
A ________ is a facility for the receipt, storage, and redistribution of goods to company
A. circulation center
B. distribution center
C. supply chain hub
D. collaborative replenishment office
E. floor-ready franchising center
The goals of IMC need to
A. expand as the advertising budget expands.
B. be explicit and measurable.
C. be encoded before they can be decoded.
D. include both the noise effect and the transmitter effect.
E. be separate from budget.
Sometimes consumers have second thoughts after buying goods that are expensive,
infrequently purchased, or associated with a high level of risk. This is an especially
critical time for marketers, as their customers are dealing with
A. criteria reevaluation.
B. buyer's remorse.
C. competitive leverage.
D. purchase uncertainty.
E. consumer vulnerability.
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their
standard menu. These daily specials primarily provide the new product benefit of
A. keeping up in a market where sales come mostly from new products.
B. satisfying the changing needs of current and new customers.
C. avoiding market saturation from products that have been on the market for a long
D. creating diversification and reducing risk.
E. reduction in cost of ingredients.
Ashley was nervous about making the ___________. She knew it was likely to be the
largest expense in the advertising budget.
A. publicity plan
B. media flight plan decision
C. media mix choice
D. media buy
E. monitoring and evaluation plan decision
When testing new products, most firms consider the question of whether testing
products on animals
A. should always be done in the animal's natural environment.
B. should be done outside the United States to avoid consumer backlash.
C. should be done when the new product does not contribute to the health and
well-being of human users.
D. should be done only by companies large enough to be ethically responsible.
E. should be done with animal activists present.
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per
rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and
his profit last year was $20,000. For Jacob, the contribution per unit is
A. $100.
B. $80.
C. $800.
D. $1,000.
E. It cannot be determined from the information provided.
A pricing strategy is
A. a long-term approach to setting prices in a companywide integrated effort.
B. the use of one-time seasonal discounts to reduce inventory.
C. the use of slotting allowances to gain access to distribution channels.
D. a short-term approach to setting prices.
E. associated with competitive threats in the marketplace.
Cathy has used Olay beauty products for years, even though there are many competitors
on the market. She plans to purchase a recently introduced micro-sculpting cream from
Olay's Regenerist line. Olay is in the _________ stage of the product life cycle.
A. introduction
B. growth
C. evaluation
D. maturity
E. decline
The __________ situation usually involves more members of a buying center and
involves more time to complete than the other buying situations.
A. modified rebuy
B. new buy
C. adapted buy
D. straight rebuy
E. generic buy
__________ offer a limited assortment of general merchandise at very low prices and
are often found in lower-rent locations.
A. Department stores
B. Off-price retailers
C. Discount stores
D. Extreme value retailers
E. Category specialists
Gabriel was importing sweaters made from alpaca. They were exquisitely soft and
extremely warm. Once a potential customer tried one on, it was almost always sold.
Which channel should Gabriel select to reach his potential customers: store or Internet?
An ad for Bud Light ran six times during a recently televised football game. When
measuring IMC results for this ad, six would be the __________ for this telecast.
A. frequency
B. reach
C. gross rating points
E. click-through rate
A major factor contributing to the growth in the use of direct marketing IMC efforts is
A. reduced government regulation of deceptive advertising practices.
B. expanded use of personal selling.
C. a shift from objective-and-task to rule-of-thumb budgeting.
D. increased use of credit and debit cards, and online shopping by consumers.
E. the reduction in IMC noise, allowing for a decreased lagged effect.
The IMC communication process includes all of the following except
A. evaluation.
B. the sender.
C. the transmitter.
D. the communication channel.
E. the receiver.
Mary decided to purchase an electronic toothbrush priced at $100 because of a special
offer from the manufacturer. By sending proof of purchase and the receipt to the
manufacturer, she could receive a $40 check in return, making the final price $60. This
pricing tactic is known as a
A. markdown.
B. rebate.
C. coupon.
D. cash discount.
E. price line.
Whenever the president of the local public university promotes the institution, he
emphasizes the university's price (much lower than neighboring private colleges) and
high quality. He is positioning the institution based primarily on
A. the value proposition.
B. product attributes.
C. symbols.
D. competitive comparisons.
E. profitability.
Customers must see value in a product or service before they are willing to exchange
time or money to obtain it, but not all customers see the same value in a product. To
analyze how many units will be sold at any given price point, marketers draw on
A. a demand curve.
B. the law of averages.
C. multiple regression analyses.
D. target return strategies.
E. a sales orientation.
The local skydiving team is buying new parachutes. The team's coach has invited all
team members to make recommendations, after which he will select the successful
vendor. The skydiving team's buying center has a(n) __________ organizational
A. democratic
B. consultative
C. consensus
D. autocratic
E. bureaucratic
When Goodwish Marketing decided to upgrade its computer network, many people
were involved in the decision. In B2B buying systems, decisions are often made
A. quickly.
B. by a single expert.
C. at auction sites.
D. by a committee after considerable deliberation.
E. through community debating organizations.
Some companies have been accused of taking advantage of the current social trend of
green marketing, positioning their products as environmentally friendly when this may
not actually be the case. This is called
A. fake greening.
B. greenwashing.
C. greenbaiting.
D. green puffery.
E. red marketing.
Personal selling is an especially important part of IMC in
A. business-to-business markets.
B. cause-related marketing.
C. event sponsorships.
D. stealth marketing.
E. web tracking.
During the __________ stage of the product life cycle, there are few but an increasing
number of competitors.
A. growth
B. introduction
C. maturity
D. decline
E. innovation
What makes a high/low pricing strategy appealing to sellers?
A. It attracts two distinct market segments.
B. It allows the seller to market itself as an "everyday low price leader."
C. It doesn't require the seller to continually offer sales or deep discounts.
D. It allows sellers to capture the most profit from a new product or service.
E. It reduces the need for slotting and advertising allowances.
The saying "leaving money on the table" is associated with
A. a price skimming strategy that forces consumers to choose between products.
B. a market penetration strategy when there is an opportunity for price skimming.
C. vertical price fixing in markets where horizontal price fixing would be more
D. a predatory pricing strategy that results in excessive seasonal discounts.
E. loss leader pricing that drives consumers to competitors' products.
Even though they operate from out-of-the-way airports and offer few extra services,
discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers
obviously consider
A. the extra services offered by these airlines to be the most thorough in the industry.
B. the long-term relationships established by these airlines to be a critical benefit.
C. the prices to be slightly lower, but not low enough to have much influence.
D. the benefit of lower prices to be greater than the cost of reduced services and less
E. the major airlines to be worthless.
When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom
was forced to merge with MCI. One of the ramifications of this merger was the loss of
WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The
tournament funds the Heritage Foundation, a major community charity. This example
A. the need to identify issues.
B. that the impact of unethical actions can reach far beyond the corporation.
C. that unethical firms cannot be socially responsible.
D. the lack of information needed to make ethical decisions.
E. the questionable advantage of social responsibility.
Toothpastes sold in supermarkets and pharmacies promise various results, such as
whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste
marketers are using __________ segmentation.
A. benefit
B. geodemographic
C. psychographic
D. loyalty
E. demographic
Persuasive advertising is often used when competition
A. is nonexistent.
B. is cooperating.
C. is most intense.
D. is declining.
E. is ineffective.
Successful firms focus their efforts on satisfying customer needs that
A. are easiest to satisfy.
B. provide minimal core value.
C. are important to all generational cohorts.
D. competitors have tried and failed to satisfy.
E. match their core competencies.
Describe the three types of vertical marketing systems.
The text lists a number of major syndicated data services including Nielsen and IRI.
Obviously, these firms provide value to marketers or they would go out of business.
What advantages do syndicated data services provide relative to marketers conducting
primary research to address their research needs? What are the disadvantages associated
with using syndicated data services?
When the U.S. Army advertises "Be All You Can Be, Join the Army," which of the three
primary promotional objectives is it pursuing?
Describe an extreme value retailer. Who is their target customer and what does this
customer seek?
How could you use marketing ideas to market yourself to potential employers after you
Why is it important for marketers to identify who plays which role in a buying center?
What is brand extension? Provide an example of brand extension.
Marketers know that coupons might not result in a net increase in sales, yet they
continue to issue them. Why do marketers continue to use coupons?
Briefly describe the three phases of the strategic marketing planning process and give
one example of an ethical dilemma that might arise during each phase.
UPS, FedEx, DHL, and the United States Postal Service are four major competitors in
the private package delivery market. Choose one of the four firms and describe its
positioning efforts.
Tyrone runs an ice cream shop on the pier in Atlantic City, New Jersey. Tyrone closes
his business in winter, when the weather turns cold. What type of advertising schedule
should Tyrone use?
Why do the authors state that "using profit as the sole guiding light for corporate
action" can harm the company?
Define convenience, shopping, and, unsought products and give an example of each.
Ronaldo is developing an Internet auction-based business. After establishing his
objectives, describing potential market segments, and evaluating the attractiveness of
each segment, Ronaldo now has to choose which target market to focus his efforts on.
What factors should influence his decision?
Suppose that you and a friend decide to turn your favorite sports activityinline
skatinginto a business. You plan to design a line of fashionable clothing that integrates
elbow and kneepads. For each of the four macro strategies, briefly describe the most
important thing your company should do if you intend to focus on that strategy. Your
answers should be specific to the inline skating business.
When Roger decides which airline to use to fly from Baltimore to San Diego, he
considers the price, number of stops, and frequent-flyer miles he will earn. However,
earning frequent-flyer miles is the most important factor for him. Is Roger using a
compensatory or noncompensatory decision rule? Explain your reasoning.
Suppose your college roommate sees you reading your marketing textbook and says,
"Marketing is just advertising and selling." How do you respond?
"Everything has a price, though it doesn't always have to be monetary." What else is
included in a price?