The more loyal a firm’s profitable customers, the lower its customer equity.
Answer:
Unsought products are consumer products that the consumer either does not know
about or knows about but does not normally consider buying.
Answer:
An airline runs a 6-month promotional program where all baggage fees are waived. It is
using a cost-based pricing strategy.
Answer:
The first step for most firms that are venturing into online marketing involves sending
promotional e-mails.
Answer:
Neuromarketing techniques provide easy-to-interpret data that allow researchers to
analyze consumer involvement with products.
Answer:
Early mainstream adopters are opinion leaders in their communities and adopt new
ideas early but carefully.
Answer:
Value-based pricing is often product driven, and customer value perceptions are
secondary.
Answer:
Product modifications are an important source of new products for organizations.
Answer:
While handling buyer objections, salespeople should use a positive approach to turn
logical or psychological objections into reasons for buying.
Answer:
Most major new innovations are unsought until consumers become aware of them
through advertising.
Answer:
Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage,
and obsolescence.
Answer:
The augmented product is considered the basic level among the three levels of product.
Answer:
SBUs identified as cash cows need less investment than stars.
Answer:
In markets with few customers and high margins, sellers should try to develop basic
relationships rather than full partnerships.
Answer:
Omni-channel retailing creates a seamless cross-channel buying experience that
includes in-store and online shopping but excludes mobile.
Answer:
The goal of any logistics system should be to maximize sales, not profits.
Answer:
Even if a segment has the right size and growth and is structurally attractive, a company
must consider its own objectives and resources before targeting that segment.
Answer:
Digital marketing through online, mobile, and social media provides a sense of brand
engagement and community.
Answer:
Overuse of promotional pricing can erode a brand’s value in the eyes of customers.
Answer:
A sequential product development approach is team-oriented, enabling firms to bring
products to market very quickly.
Answer:
Market skimming makes sense when a product’s quality and image support its higher
price, and enough buyers want the product at that price.
Answer:
Marketing ROI measures the profits generated by investments in marketing activities.
Answer:
In the context of income distribution, the middle class in the United States has grown in
size over the past several decades.
Answer:
Many companies motivate their salespeople by setting sales quotas.
Answer:
Consumers rarely compare shopping products before purchasing them.
Answer:
Dynamic pricing is particularly suitable for Internet-based companies like Amazon who
want to be responsive to shoppers’ desires and marketplace changes.
Answer:
Early mainstream adopters are venturesome and typically try new ideas at some risk.
Answer:
The amount of test marketing needed is the same for each new product.
Answer:
Stephanie Archer has been saving her money to buy a BMW convertible. Archer has
spent hours on the BMW Web site choosing the exterior and interior colors and
studying the various options and models. In this case, Archer has been using BMW’s
marketing Web site.
Answer:
Service variability means that the quality of services does not depend on who provides
them.
Answer:
In a SWOT analysis, strengths and weaknesses refer to a firm’s external environment,
while opportunities and threats refer to the internal environment.
Answer:
Total quality management is an approach in which all of the company’s people are
involved in constantly improving the quality of products, services, and business
processes.
Answer:
A joint venture involves a company entering foreign markets by partnering with foreign
companies to produce or market a product or service.
Answer:
An increase in private goods, such as cars, typically leads to an increased need for
public services, such as parking spaces.
Answer:
Concept testing typically follows the marketing strategy development phase of the new
product development process.
Answer:
When buying unsought products, consumers spend considerable time and effort in
gathering information and making comparisons.
Answer:
Business-to-business e-procurement lowers purchasing costs and reduces the time
between order and delivery.
Answer:
The distribution of income in the United States has created a tiered market.
Answer:
Modifying a product is an ineffective strategy in the maturity period of the product life
cycle because the product’s decline is irreversible at this stage.
Answer:
Promoting the use of sustainable ingredients, recycling and reducing solid wastes, and
managing energy consumption relate to the consumer’s right to ________.
A) not buy a product that is offered for sale
B) be well informed about important aspects of a product
C) consume now in a way that will preserve the world for future generations
D) be protected against questionable products and marketing practices
E) influence marketing practices in ways that will improve quality of life
Answer:
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It
invites proposals from independent dealers who are willing to set up exclusive
showrooms that only sell Rage’s superbikes. Chosen dealers will sell and service the
superbikes, and Rage will oversee national advertising. This is most likely an example
of a(n) ________.
A) administered vertical marketing system
B) horizontal manufacturing marketing system
C) manufacturer-sponsored retailer franchise system
D) manufacturer-sponsored wholesaler franchise system
E) direct marketing system
Answer:
Due to the limitations of the BCG and other formal portfolio planning models, many
companies are placing responsibility for strategic planning in the hands of
cross-functional teams of divisional managers who are close to their markets. In such
organizations, strategic planning is ________.
A) centralized
B) decentralized
C) purposeful
D) limited
E) informal
Answer:
Which of the following is a transaction site?
A) Wikipedia
B) Yahoo
C) eBay
D) IMDB
E) Facebook
Answer:
Which of the following is an example of branded entertainment?
A) a company placing its product in a movie scene
B) a company using a celebrity to endorse a product
C) a company airing its advertisements in movie theaters
D) a company using an acclaimed movie director to film an advertisement
E) a company using a famous song in its advertisement
Answer:
The salesperson should know how to meet and greet the buyer and get the relationship
off to a good start in which step of the selling process?
A) prospecting
B) preapproach
C) presentation
D) qualifying
E) approach
Answer:
Many marketers now embrace a ________ strategy, integrating ethnic and
cross-cultural perspectives within their mainstream marketing.
A) total market
B) cultural marketing
C) viral marketing
D) social marketing
E) cause marketing
Answer:
________ is any paid form of nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor.
A) Sales promotion
B) Personal selling
C) Advertising
D) Public relations
E) Direct marketing
Answer:
Posh Collections introduced a new watch to appeal to upscale consumers. The company
will most likely use a(n) ________ strategy.
A) market-skimming pricing
B) market-penetration pricing
C) optional-product pricing
D) by-product pricing
E) allowance pricing
Answer:
Mind and Body Fitness recently entered into a financial agreement that allows 25
independent business people at select locations across the country to set up
establishments that offer its holistic services and programs. They include
weight-management, group programming, sport-specific training, yoga, Pilates, and
nutrition. Which type of contractual retail association does this represent?
A) corporate chain
B) voluntary chain
C) franchise organization
D) independent retailer
E) retailer cooperative
Answer:
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle,
and Gershwin managers have decided to modify the product. What will Gershwin
managers most likely do to achieve this goal?
A) change distributors
B) offer coupons for the toy
C) change the packaging of the toy
D) launch an online advertising campaign
E) cut prices of the toy to attract new customers
Answer:
Which of the following is the primary purpose of branded community Web sites?
A) displaying digital catalogues
B) providing detailed descriptions of products
C) creating customer-product engagement
D) selling products and services
E) sending direct mails to consumers
Answer:
Which of the following is the best example of a salutary product?
A) cereal
B) cigarettes
C) bottled water
D) junk food
E) dental insurance
Answer:
Which of the following is true of direct and digital marketing?
A) Its marketing message is fixed and does not change according to the customer’s
requirements.
B) It is suited for highly targeted marketing efforts and for building one-to-one
customer relationships.
C) It is presented as company news rather than as a sales-directed communication.
D) It does not involve any interaction between the company and its customers.
E) It is an impersonal promotion tool that hinders two-way communication.
Answer:
P&G’s decision to eliminate dozens of major brands from its portfolio including Crisco,
Folgers, and Jif to focus on household care, beauty, and grooming products is an
example of ________.
A) pruning
B) harvesting
C) market segmentation
D) diversification
E) market saturation
Answer:
Which of the following is a type of joint venture?
A) direct exporting
B) contract manufacturing
C) direct investment
D) retailing
E) wholesaling
Answer:
In the competitive-parity method of setting an advertising budget, the budget is set
based on ________.
A) a percentage of future sales
B) the total revenues that a company makes
C) the amount spent by similar companies in the same industry
D) objectives set by the company and the cost required to accomplish them
E) a percentage of current sales
Answer:
Customers at Carat, a premium jewelry store, are encouraged to make an appointment
before a visit so that a customer service representative is assigned to them. These
representatives help every customer make a purchase that meets his or her needs and
budget after considering numerous options. The different styles and special features of
the jewelry are explained to each customer to aid the purchase decision. In this case,
Carat is an example of a(n) ________.
A) self-service retailer
B) off-price retailer
C) full-service retailer
D) supermarket
E) convenience store
Answer:
A business buyer is considering a change in product specifications, terms, and possibly
suppliers. This buying situation is referred to as a(n) ________.
A) modified rebuy
B) new-task situation
C) straight rebuy
D) dual distribution channel
E) exclusive distribution channel
Answer:
When a seller requires that only certain dealers carry its products, its strategy is known
as ________.
A) horizontal restraint of trade
B) intensive distribution
C) vertical distribution
D) disintermediation
E) exclusive distribution
Answer:
Imaginative Web sites, smartphone apps, and social media allow marketers to deliver
messages that are direct and personal so consumers can ________.
A) live the brand
B) sustain the brand
C) deliver the brand
D) enhance the brand
E) establish the brand
Answer:
Electronics International has experienced a significant decline in sales for SweetTunes,
its MP3 player, during the past two years. In response, the company has reduced its
advertising and sales expenditures for SweetTunes in an attempt to improve short-run
profits. Which term best describes Electronics International’s strategy for SweetTunes?
A) sales outsourcing
B) product modification
C) industry repositioning
D) product harvesting
E) marketing mix modification
Answer:
________ is a method of gathering primary data that involves asking people questions
about their knowledge, attitudes, preferences, and buying behavior.
A) Observational research
B) Archival research
C) Survey research
D) Experimental research
E) Causal research
Answer:
In which step of the selling process does a salesperson set call objectives?
A) preapproach
B) approach
C) presentation
D) qualifying
E) prospecting
Answer:
Efforts to convert ________ into loyal customers are rarely successful.
A) barnacles
B) strangers
C) true believers
D) laggards
E) butterflies
Answer:
Under Armour increasing its advertising spending and offering an ever-increasing range
of styles and colors in its original apparel line is an example of a ________ strategy.
A) market penetration
B) market development
C) product diversification
D) business harvesting
E) product development
Answer:
Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to
identify potential customers in an effort to build long-term profitable relationships.
Karen Rogers is engaging in which step of the selling process?
A) demonstration
B) preapproach
C) prospecting
D) approach
E) presentation
Answer:
Which of the following is the most financially strapped generation in the post-recession
era?
A) Millennial
B) Generation X
C) Generation Z
D) the Lost Generation
E) baby boomers
Answer:
Which of the following is true of economic communities?
A) They are groups of nations organized to work toward common goals.
B) They were formed to increase trade barriers between member nations.
C) They were formed to mediate global trade disputes.
D) They require member countries to establish one currency.
E) They tend to improve imports and hinder exports.
Answer:
Bikers and non-bikers alike enjoy dining at the Harley Davidson Caf in Las Vegas.
Several Harley Davidson models are on display as well as a very large, uniquely crafted
American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the
Harley Hog sandwich. The Harley Davidson Caf most likely uses ________.
A) everyday low pricing
B) predatory pricing
C) self-service retailing
D) experiential retailing
E) franchising
Answer:
Describe the different types of value propositions on which a company might position
its products.
Answer:
Describe direct-response television (DRTV) marketing.
Answer:
Explain how the decision process in the business market and consumer market differ.
Answer:
What is a demand curve? Why is it useful to marketers?
Answer:
How do companies generally manage and motivate their channel members? What
technological tools are available to help with this task?
Answer:
Differentiate between the three types of marketing research objectives: exploratory
research, descriptive research, and causal research.
Answer:
Explain management contracting with an example. What are its advantages and
disadvantages?
Answer:
Describe spam and permission-based e-mail marketing.
Answer:
Why do today’s firms need integrated marketing communications systems? How do
firms benefit from such systems?
Answer:
Differentiate between straight product extension and product adaptation. Give a few
examples of each.
Answer:
Explain the whole-channel view of the distribution process.
Answer:
Describe the concept of sustainable marketing. How is it different from the marketing
concept, the societal marketing concept, and the strategic planning concept?
Answer:
What is marketing? Briefly describe the marketing process.
Answer:
Kronos Inc., a car manufacturer, makes a car called Hover that runs on the force
generated by super magnets. Kronos is the first company to use super-magnet
technology in automobile manufacturing, aiming to reduce dependency on
non-renewable fuels. If Kronos plans to release television advertisements about Hover,
what kind of advertising objective should it pursue when introducing the new product
into the market?
Answer:
What is disintermediation? With a suitable example, explain the opportunities and
problems that disintermediation presents for producers and resellers.
Answer:
Define customer-perceived value.
Answer: