________ pricing takes into account a host of inputs, such as the buyer’s image of the
product performance, the channel deliverables, the warranty quality, customer support,
and attributes such as the supplier’s reputation, trustworthiness, and esteem.
A) Perceived-value
B) Value
C) Going-rate
D) Auction-type
E) Markup
Receivers of a message generally see a source as credible if they perceive the source to
have expertise, trustworthiness, and ________.
A) congruity
B) “borrowed interest” devices
C) likability
D) appeals
E) experience
Which of the following is a positive factor when considering the development of a
customer database?
A) The product is a once-in-a-lifetime purchase.
B) There is no contact between the buyer and seller.
C) There is a lot of customer churn.
D) The unit sale is very small.
E) Customer lifetime value is high.
Using the push strategy is most appropriate when ________.
A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store
Which of the following statements is TRUE of the role of advertising in business
markets?
A) Advertising is unsuitable for explaining a product’s features.
B) Business marketers tend to spend comparatively more on advertising.
C) Business buyers consider advertising inappropriate for reaching them.
D) Advertisements can legitimize the company and introduce its products.
E) Salespeople generate leads through personal selling and use advertising for
follow-up.
Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent
because the perfume is from a well-known brand. What does this image pricing suggest
about these consumers?
A) They process prices from left to right.
B) They use the price as an indicator of quality.
C) They are rounding up the price.
D) They are remembering an external frame of reference.
E) They are breaking the price into smaller units.
Which of the following is TRUE regarding price elasticity?
A) The higher the elasticity, the lesser the volume growth resulting from a one-percent
price reduction.
B) Long-run and short-run price elasticity may differ, delaying the impact of a price
change.
C) If demand is elastic, sellers assume that lowering the price will decrease total
revenue.
D) Price elasticity does not depend on magnitude and direction of the contemplated
price change.
E) When demand is inelastic, sellers should lower prices in order to increase total
revenue.
The airline and hospitality industries use ________, by which they offer discounted but
limited early purchases, higher-priced late purchases, and the lowest rates on unsold
inventory just before it expires.
A) special-customer pricing
B) yield pricing
C) cash rebates
D) location pricing
E) customer-segment pricing
The most effective communications mix tool at later stages of the buying process is
________ because it is particularly effective at building buyer preference, conviction,
and action.
A) sales promotions
B) personal selling
C) advertising
D) direct and interactive marketing
E) events
Companies address needs by putting forth a ________, a set of benefits that they offer
to customers to satisfy their needs.
A) brand
B) value proposition
C) deal
D) marketing plan
E) demand
A manufacturer of hiking boots looks at data that indicate that their subsegment of the
market called ‘serious hiker” is declining and is predicted to decline into the future. The
firm decides to enter the “low-price” segment with its new items. This is an example of
a firm’s ________ to reach a new market.
A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation
In segmenting its markets, an aluminum company first looked at which end-use market
to serve: automobile, residential, or beverage containers. This is an example of
________.
A) macrosegmentation
B) microsegmentation
C) geographic segmentation
D) global segmentation
E) short-term segmentation
A large staff, along with a higher proportion of specialty goods and slower-moving
items and many services, are usually features of ________ retailing.
A) self-service
B) self-selection
C) limited service
D) full-service
E) limited-selection
________ defense involves occupying the most desirable market space in the minds of
the consumers and making the brand almost impregnable.
A) Position
B) Flank
C) Preemptive
D) Mobile
E) Contraction
________ is the difference between the prospective customer’s evaluation of all benefits
and all costs of an offering and the perceived alternatives.
A) Perceived usefulness
B) Failure avoidance rate
C) Total customer benefit
D) Customer-perceived value
E) Competitors’ market share rate
Which of the following is NOT a weakness of a customer equity perspective (relative to
a brand equity perspective)?
A) It offers limited guidance for go-to-market strategies.
B) It has quantifiable measures of financial performance.
C) It ignores the advantages of creating a strong brand.
D) It overlooks the option value of brands.
E) It does not fully account for social network effects or word-of-mouth.
If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and
every Ford GT coming off the assembly line does this, the model is said to have high
________.
A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability
The most frequently cited shortcomings of current marketing plans, according to
marketing executives, are lack of realism, insufficient competitive analysis, and a
________ focus.
A) long-term
B) profit
C) short-run
D) product
E) price
When the total market expands, the market ________ usually gains the most.
A) challenger
B) leader
C) follower
D) nicher
E) entrant
The elapsed time between an order’s receipt, delivery, and payment is called the
________ cycle.
A) variable-costs-to-payment
B) product-to-payment
C) inventory-to-sale
D) order-to-inventory
E) order-to-payment
The process of selecting one or more market segments to enter is called market
________.
A) targeting
B) dominance
C) positioning
D) segmentation
E) research
As economies advance, a growing proportion of the economy’s activities focuses on the
production of ________.
A) products
B) events
C) experiences
D) luxury goods
E) services
Which of the three transformative forces mentioned in the chapter is associated with the
Boston Consulting Group believing brand marketers must enhance their “digital balance
sheets”?
A) demographics
B) accountability
C) social responsibility
D) globalization
E) technology
Which of the following channel functions constitute only a backward flow?
A) movement of physical goods
B) placing orders with suppliers
C) persuasive communication
D) storage of physical goods
E) overseeing actual transfer of ownership
Newlyweds in the United States buy more in the first six months than an established
household does in five years. Newlyweds are an example of a(n) ________ segment.
A) life stage
B) age
C) behavior
D) user status
E) income
To keep their strategic alliances thriving, corporations have begun to develop
organizational structures to support them and have come to view the ability to form and
manage strategic alliances as core skills. This is called ________.
A) value managed partnership
B) decentralized partnership
C) centralized partnership
D) partner relationship management
E) intensive growth management
XM Consulting collects information on various industrial products. When faced with
buying decisions, businesses can visit XM’s website to purchase detailed information on
the various options available to them. XM Consulting can be called a(n) ________.
A) infomediary
B) market maker
C) customer community
D) third party arbitrator
E) informant
SJC is a new retailer that targets the youth market. SJC needs to make an impression
using advertising, and decides to use funny or irreverent ads to get its point across. Each
ad features one of SJC’s competitors and conveys an advantage SJC has over that
competitor. Which of the following is the company using to convey its membership in
the retail segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes
Companies that produce many products for many markets may adopt a ________
marketing organization.
A) flat
B) brand
C) product
D) matrix
E) top-down
A brand ________ can be defined as any information-bearing experience a customer or
prospect has with the brand, its product category, or its market.
A) value
B) personality
C) trait
D) character
E) contact
When Volvo runs ads suggesting that its cars are the safest that money can buy, it is
trying to ________.
A) segment the market
B) provide a service
C) enter a new market
D) develop brand loyalty
E) position its product
Four key customer markets are the consumer, business, global, and ________ market.
A) demographic
B) physical
C) nonprofit
D) product
E) exclusive
________ lines up customers along columns and products along rows to show the
profitability of selling a product to a customer.
A) Mystery shopping
B) Activity-based costing
C) Customer profitability analysis
D) Customer lifetime value
E) American Customer Satisfaction Index
The milder information search state where a person simply becomes more receptive to
information about a product is called ________.
A) active information search
B) information search
C) heightened attention
D) purchase decision
E) dynamic information search
Which of the following can be considered a primary activity in the value chain process?
A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure
Berry’s is a chain of shoe stores. The company recently reviewed its customer relations
strategy and suggested that the brand communication be consistent across all customer
touch points. What are the various touch points for Berry’s?
What circumstances lead companies to initiate price cuts, and what are the traps that
companies can fall into if they do?
List and explain the four service levels offered by retailers.
Today, companies are increasingly concerned about customer defection. There are three
main steps a company can take to reduce the defection rate. Identify those three steps.
Consumers often have many needs that are not readily obvious. Just observing their
behavior inside a retail store is not enough to get a true understanding of their “needs.”
List and briefly describe the five types of needs that most consumers have.
The service-quality model highlights the main requirements for delivering high service
quality. Name and describe the five gaps that cause unsuccessful delivery.
Flash Designs is an apparel manufacturing company and has adopted a franchising
model to distribute and sell its garments. The company recently received complaints
from a particular franchisee that another competing franchisee was infringing on its
territory. What type of conflict is this?
Explain three variables a firm should consider when analyzing potential threats posed
by competitors.
Describe the differences between a straight rebuy, a modified rebuy, and a new-task
purchase.
On sites such as eBay and Amazon.com, the seller puts up an item for sale and bidders
raise the offer price until the top price is reached. What kind of auctions are these?
Cell phone manufacturer LZT has to choose between two options for sourcing parts:
Japan-based Keiko Inc. and U.S.-based Global Tech. Though Keiko’s products are
priced lower than Global’s, the non-monetary costs of doing business with Keiko may
lead LZT to choose Global Tech. What can Keiko do to obtain LZT’s order?
Most brands are adapted to some extent to reflect significant differences in consumer
behavior, brand development, competitive forces, and the legal or political
environment. Identify the five international product and communication strategies
available to firms that expand their businesses to foreign countries.
In planning its market offering, the marketer must address the five product levels of the
customer-value hierarchy. Describe the “customer-value hierarchy” and identify the five
levels of product contained within.
What are the six steps involved in the marketing research process?
What are the elements of a direct-mail offer?
Briefly describe the basic types of intermediaries.
Give an example of two products that have different performance quality but are of
equal conformance quality.