In virtual shopping, the consumer can use the simulation to view (on a screen) shelves
stocked with any kind of product.
Competitor analysis has an unsavory reputation due to many interpreting it as corporate
spying.
A product class is also called a product type.
The marginal economic method is a major method used to determine the size of the
sales force that is based on the forecasted sales level divided by an assumed average
sales per salesperson.
Existing customers are more expensive to serve than new customers.
A customer analysis is one of the key building blocks on which the marketing strategy
rests.
The advertisements that use news appeals make either a direct or indirect claim of
superiority against a targeted or general class of competitors.
Economic theory predicts that rational customers will collect information only to the
point at which the marginal benefit of obtaining the information in terms of incremental
value to making a choice equals the marginal cost.
The major drawback of personal selling is the expense.
In price bundling, the package price is usually higher than the sum of the individual
components.
Search attributes:
A) are typical of manufactured products.
B) cannot be measured before purchase.
C) are normally high for service goods.
D) refers to attributes of intangible products.
Which of the following describes establishing a price that provides the rate of return
demanded by senior management?
A) skimming
B) return on sales pricing
C) penetration pricing
D) competitive pricing
Which of the following best describes a research methodology that usually involves a
small group of participants taken from the population, produces information that does
not lead directly to a decision but is valuable as input for further research?
A) qualitative research
B) descriptive research
C) scientific research
D) quantitative research
Which of the following methods of sales forecasting is most likely to be used to predict
the economic performance of a country?
A) executive opinion
B) Delphi method
C) econometric models
D) moving average
Identify the individual who serves as a go-between for the buyer and seller, but is not
seen as a permanent representative of the buyer or seller.
A) broker
B) manufacturers agent
C) distributor
D) retailer
Which of the following best describes off invoice allowance?
A) offering channel members a long period of time before payment is due
B) offering channel members below-market interest rates
C) offering channel members a discount on orders for a fixed period of time
D) offering money to help the channel members sell its products
Theater tickets cost more on weekends. This is an example of:
A) penetration pricing.
B) complementary pricing.
C) periodic discounting.
D) value pricing.
Which of the following best describes the degree to which experimental results can be
generalized to the real world or, more generally, to the target population?
A) internal validity
B) interpolation
C) flexibility
D) external validity
________ is the key to success of new product introductions and deals with the speed of
reducing the time it takes from concept generation to launch.
A) Strong market orientation
B) Sharp product definition
C) Careful launch planning
D) Fast time-to-market
Identify the two subcategories of contextual fit.
A) demographic fit and program and ad context
B) geodemographic fit and program and ad context
C) media fit and program and ad context
D) media fit and operations context
When the market growth becomes flat, we can say that this stage of the product life
cycle has been reached. Identify the stage.
A) introduction stage
B) growth stage
C) maturity stage
D) decline stage
Five sets of factors should be considered when deciding on how to enter a new foreign
market. Identify the key feature of country characteristics.
A) market size and growth
B) tariffs or quotas
C) government regulations
D) speed and sequence
Internal reference prices are formed from advertising, past purchasing experience, and
so on, and are often called ________ because the customer considers them the actual
prices of the products in a category.
A) competitive prices
B) perceived prices
C) price points
D) ceiling prices
Which of the following statements is true regarding the product life cycle (PLC)?
A) A product/service is in the same stage of the PLC in all the countries at the same
time.
B) PLC cannot be rejuvenated by marketing.
C) PLC is a conceptual framework.
D) It sketches the profit margin history of the product category over time.
LCV calculations are important for firms trying to calculate:
A) current profitability.
B) historic profit margins for the industry.
C) short-term profitability.
D) future profitability.
The flow of the service in a service blueprint begins when:
A) the customer interacts with the firm.
B) the provider accepts a service request.
C) the service in design is complete.
D) the service is delivered.
Special displays and other company-paid advertisements inside the store (e.g.
announcements for contests and sweepstakes, information about recipes, etc.) are
examples of:
A) point-of-purchase advertising.
B) off-invoice allowances.
C) premiums.
D) missionary marketing.
Customers will not always be able to tell you what products they want and need
because:
A) customers are aware of only the problems that they have.
B) customers are not conscious about the cost of product development.
C) a marketer may not have direct contact with the customer.
D) the solutions suggested by customers will not be feasible.
Identify the customer who is most likely to spread negative word of mouth about your
products.
A) Apostle
B) Mercenary
C) Laggard
D) Terrorist
American Express asking its members to upgrade from Gold to Platinum card is an
example of:
A) cross-selling.
B) reselling.
C) upselling.
D) mass selling.
Describe the four methods of implementing differential pricing.
List and briefly describe the major channel functions.
List and briefly describe the three major methods used to estimate the size of a sales
force.
List and briefly describe the three major categories of segmentation variables.
Explain the difference between a market penetration strategy and a market development
strategy.
List the six stages of the advertising decision-making process.
What is a marketing plan?