The value proposition is stated in the price of a product and readily recognized by the
average consumer.
Two products with very different performance qualities can have the same conformance
quality if both products deliver their respective promised quality.
A good illustration of a member of the institutional market would be Boeing because it
is a member of the aviation institution structure.
The time between introduction of products and peak production is shrinking.
When PepsiCo sold its cola syrup to Russia for rubles and agreed to buy Russian vodka
at a certain rate for sale in the United States, it was engaged in the form of countertrade
known as an offset.
Demographic variables are popular because they are often associated with consumer
needs and wants and they are easy to measure.
Brand equity is essentially the same as brand valuation.
Psychographics is the science of using psychology and demographics to better
understand consumers.
Vertical marketing systems achieve economies through size, bargaining power, and
elimination of duplicated services.
Facebook is an early warning system for firms that permits rapid response, whereas
Twitter allows deeper dives to engage consumers in more meaningful ways.
MPR’s contribution to a company’s bottom line is the easiest to measure among all the
available promotion tools.
The marketing mix component called “people” reflects all the creativity, discipline, and
structure brought to marketing management.
Services have five distinctive characteristics, one of these being “pure service.”
James Franks lives in Miami. He buys local products from manufacturers in Miami and
other parts of Florida and sells them abroad, mainly to Caribbean nations. Mr. Franks is
a(n) ________.
A) domestic-based export merchant
B) domestic-based export agent
C) cooperative agent
D) export-management agent
E) direct exporting agent
Business buyers may get new ideas at a trade show, see an ad, or receive a call from a
sales representative who offers a better product or a lower price compared to the current
in-supplier. These situations motivate the ________ stage.
A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review
________ is the totality of features and characteristics of a product or service that bear
on its ability to satisfy stated or implied needs.
A) Performance
B) Value
C) Quality
D) Customer retention
E) Customer loyalty
Which of the following consumer promotion tools refers to explicit or implicit promises
by sellers that the product will perform as specified or that the seller will fix it or refund
the customer’s money during a specified period?
A) product warranties
B) coupons
C) free trials
D) rebates
E) patronage awards
Business marketers can stimulate problem recognition by ________.
A) ensuring a presence in trade directories
B) direct mail, telemarketing, and calling on prospects
C) encouraging the Better Business Bureau to release statistics
D) using consumer advertising
E) conducting surveys of existing customers
A market nicher is considered to be a(n) ________ specialist if the firm specializes in
producing a certain type of product or product feature such as Rent-a-Wreck, that rents
only “beat-up” cars.
A) end-user
B) vertical-level
C) customer-size
D) channel
E) product-feature
Clorox runs ads stressing the many benefits of its bleach, such as how it eliminates
kitchen odors, in order to generate additional opportunities to use the brand in the same
basic way. This is an attempt to ________ of consumption.
A) increase the amount
B) increase the level
C) increase the perception
D) increase the frequency
E) increase the emotional implications
Poga International, a multinational beverage corporation identifies that one of its
competitors is launching an apple flavored drink. The company decides to launch an
apple flavor brand along with its competitor. What timing strategy is used here?
A) first entry
B) blunt entry
C) parallel entry
D) late entry
E) exchange entry
Which of the following steps will help service firms to increase their quality control?
A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand
Which of the following is true of qualitative research?
A) It is a structured measurement approach that permits a range of possible responses.
B) It is indirect in nature, so consumers may be less guarded.
C) It requires large sample sizes.
D) Its results can be easily generalized to broader populations.
E) It generally results in similar results and conclusions across researchers.
In a ________ marketing system, two or more unrelated companies put together
resources or programs to exploit an emerging marketing opportunity.
A) reverse flow
B) vertical
C) horizontal
D) lateral
E) forward flow
________ teams are cross-functional groups charged with developing a specific product
or business.
A) Virtual
B) Venture
C) Fundamental
D) Elemental
E) Transitory
A major advantage of a ________ strategy is that the company does not tie its
reputation to the product.
A) blanket family name
B) licensing
C) separate family brand name
D) category extension
E) brand revitalization
Sales of woolen clothing usually increase during the winter season and decline
thereafter. This is an example of ________ demand.
A) irregular
B) declining
C) impulse
D) latent
E) negative
Companies that produce many products for many markets may adopt a ________
marketing organization.
A) flat
B) brand
C) product
D) matrix
E) top-down
An example of a restaurant with a narrow and deep assortment is a ________.
A) small lunch counter
B) cafeteria
C) large restaurant
D) casual dining restaurant chain
E) delicatessen
If a marketer is seeking to segment a business market, which of the following variables
is generally felt to be the most important?
A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches
When Japanese teenagers carry DOCOMO phones from NTT and use them to order
goods, they are engaged in ________.
A) B2B e-commerce
B) brick-and-click commerce
C) infomediation
D) dilution
E) m-commerce
If a brand is developing an offering with multiple frames of reference, which of the
following is NOT advisable?
A) create a combined positioning that addresses all competitors
B) prioritize competitors
C) choose the most important set of competitors to serve as the competitive frame
D) adopt lowest common denominator positioning
E) develop the best possible positioning for each type or class of competitors
Mountain Dew is a brand known for sponsorships of adventure events such as
snowboarding and skateboarding competitions. What is the most likely objective of
Mountain Dew’s sponsorship of these events?
A) to enhance corporate image
B) to express commitment to the community or on social issues
C) to entertain key clients or reward key employees
D) to create perceptions of key brand image associations
E) to become part of a personally relevant moment in consumers’ lives
The first step in estimating demand is to ________.
A) analyze competitors’ cost
B) select a pricing method
C) understand what affects price sensitivity
D) calculate fixed costs
E) decipher the experience curve
With respect to the ‘six brand building blocks,” brand ________ focuses on customers’
own personal opinions and evaluations.
A) salience
B) performance
C) imagery
D) judgment
E) resonance
Designing a research plan calls for decisions on all of the following EXCEPT
________.
A) research objectives
B) data sources
C) research approaches
D) research instruments
E) sampling plans
________ means inviting the Internet community to help create content or software,
often with prize money or a moment of glory involved.
A) Stage-gating
B) Cocreation
C) Microstocking
D) Buzzing
E) Crowdsourcing
Explain the concepts of sales-wave research and simulated test marketing.
Suppose the brand development index of the detergent manufactured by Fasclean in
Boston is 90 and in Austin is 48. Compare the marketing opportunity of Fasclean
detergent in the two cities.
Copra, a manufacturer of cigarettes, conducts a survey before launching its new range
of herbal cigarettes. What is the basic purpose of undertaking such a survey by Copra?
Explain the concept of greenwashing along with an example.
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.
What is the purpose of profitability control?
Studying how consumers shop, how they use a particular product or service, and how
they dispose of the product when consumed is important for marketers. This
information forms the basis of product strategy. Define the consumption system and
identify the two upcoming product strategies that are affected by this knowledge.