Which of the following is the first step in setting a pricing policy?
A) selecting a pricing method
B) selecting the pricing objective
C) determining demand
D) estimating cost
E) analyzing competitors’ costs, prices, and offers
The ________ lays out the target markets and the value proposition that will be offered,
based on an analysis of the best market opportunities.
A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement
Qualities such as candor, humor, and naturalness make a spokesperson ________,
which is an important component of spokesperson credibility.
A) likable
B) an expert
C) trustworthy
D) transformational
E) informational
Apple’s iPod Shuffle is an example of ________.
A) a sub-brand
B) a parent brand
C) family brand
D) a brand mix
E) an umbrella brand
What function does a company’s public relations department perform when it promotes
understanding of the organization through internal and external communications?
A) lobbying
B) corporate communications
C) press relations
D) product publicity
E) counseling
When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn
the maximum amount of revenue from the various segments of the market. Two months
after the introduction, the price had come down to $399. What kind of a pricing did
Apple adopt?
A) loss-leader pricing
B) market-penetration pricing
C) market-skimming pricing
D) target-return pricing
E) value pricing
Pepe Homes manufactures a range of bathroom accessories and fittings that include
bath tubs, shower stalls, etc. While deciding on an effective advertising media vehicle
for its planned advertising campaign, the marketing department decides that its
advertising objectives would be best achieved if they used a medium that would portray
their brand as prestigious and a symbol of luxury. To this effect, the medium should
offer marketers a high degree of audience selectivity and high-quality reproduction.
Which of the following advertising media would best serve the advertising purposes of
Pepe Homes?
A) outdoor media
B) radio
C) magazines
D) television
E) newspapers
BMW is ________ the customer experience when it offers 500 side-mirror
combinations, 1,300 front bumper combinations, and 9,000 center-console
combinations and provides new buyers a video link to watch their car being “born”
while waiting for delivery.
A) identifying
B) synthesizing
C) integrating
D) acknowledging
E) personalizing
Rolex calls itself the “Official Timekeeper” of the Wimbledon and Australian Open
lawn tennis championships, by virtue of its sponsorships of the marquee events. What is
the most likely objective for Rolex’s sponsorship deal with these events?
A) to permit merchandising or promotional opportunities
B) to express commitment to the community or on social issues
C) to create experiences and evoke feelings
D) to identify with a particular target market or lifestyle
E) to increase salience of company or product name
When food product companies advertise recipes that use their branded products in
entirely different ways, they are increasing the ________ consumption of the brand.
A) amount of
B) level of
C) dedication to
D) frequency of
E) awareness
Optimal order quantities exist when the curves for the order-processing cost per unit
and inventory-carrying cost per unit ________.
A) are collinear
B) are diagonal to each other
C) intersect
D) are parallel to each other
E) equal zero
Alcart Solutions is a large distributor of Aldor phones in Canada. The company
distributes products to various retailers in the New Brunswick province. Recently Aldor
received several complaints from its retailers that their orders are not delivered on time.
This is an example of ________ conflict.
A) multichannel
B) horizontal
C) vertical
D) intermediate
E) parallel
When Lola asked what the advertising campaign should say, she was concerned with
which of the five Ms?
A) Mission
B) Money
C) Message
D) Media
E) Measurement
Which of the following marketing communications tools has the highest
cost-effectiveness in the introduction stage of the product life cycle?
A) personal selling
B) sales promotion
C) interactive marketing
D) direct marketing
E) events and experiences
A factory outlet is an example of a(n) ________ retailer.
A) off-price
B) specialty
C) discount
D) department
E) catalog
When museums charge a lower admission fee to students and senior citizens, this form
of pricing is known as ________.
A) perceived value pricing
B) third-degree price discrimination
C) first-degree price discrimination
D) second-degree price discrimination
E) psychological discounting
Sammy’s is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its
marketing efforts on all the experiences the customers will have on the way to obtaining
their food order and eating it. Hence, Sammy’s is focusing its marketing efforts on its
________ system.
A) horizontal marketing
B) cost versus benefit
C) consumption
D) marketing channel
E) value delivery
A large retail chain in the United States decides to expand its operations by adding an
online site for e-commerce. This is called a(n) ________ company.
A) B2B
B) brick-and-mortar
C) m-commerce
D) pure-click
E) brick-and-click
Which of the following sales positions is most likely to have fixed compensation?
A) an FMCG salesperson selling to supermarkets
B) a salesperson who handles the industrial customers
C) an insurance agent who works part time
D) a service representative in charge of handling incoming customer queries
E) a telemarketer calling up existing customers to bring in additional sales
A key driver of sales frequency is the product ________ rate.
A) consumption
B) disposal
C) refusal
D) utility
E) option
The ________ is the channel from raw materials to components to final products that
are carried to final buyers.
A) communication channel
B) distribution channel
C) supply chain
D) service chain
E) marketing chain
Unlike its competitors in the online air travel industry, Travelocity provides its
customers with a greater variety of services such as cruise reservations, package tours,
hotel bookings, and car rentals. This is an example of a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional
In order to promote ethical cultures, companies should do all of the following EXCEPT
________.
A) disseminate a written code of ethics
B) build a company tradition of ethical behavior
C) hold people responsible for observing ethical and legal guidelines
D) ensure every employee knows and observes relevant laws
E) encourage business practices that are not clearly ethical or unethical
A Japanese firm is ready to sell its recent technological innovation to the U.S.
government. But it has asked for 80 percent in cash and the rest in mica. The Japanese
firm is looking to enter into a(n) ________ with the U.S. government.
A) functional discount
B) compensation deal
C) buyback arrangement
D) offset agreement
E) barter deal
Club membership programsthat are open to everyone who purchases a product or
service ________.
A) are more powerful long-term loyalty builders than limited-membership clubs
B) will not help a company attract customers from competitors
C) prevent those with only a fleeting interest in a company’s products from joining
D) are useful for building a database of customers but are not very good as long-term
loyalty builders
E) are useless unless there are fees and membership conditions
Which of the following observations is TRUE?
A) In today’s business environment, marketers mainly focus on sales.
B) Marketing has the sole ownership of customer interactions.
C) Satisfying customers is the responsibility of all employees, not just marketers.
D) Marketers must ensure that every customer receives a personalized marketing
message.
E) Marketers must maintain a strict separation from other organizational departments.
Pittsburgh-based Consol Energy’s coal business largely depends on orders from utilities
and steel companies which, in turn, depend on broader economic demand from
consumers for electricity and steel-based products like automobiles and appliances
because of ________.
A) fluctuating demand
B) derived demand
C) professional purchasing
D) multiple buying influences
E) multiple sales calls
Most new-product activities are devoted to ________.
A) changing the target markets
B) developing new-to-the-world products
C) introducing backward integration
D) improving existing products
E) changing the existing market dynamics
Many banks and phone companies now charge fees for once-free services to ensure
minimum customer revenue levels. This helps banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
Another way to describe a supply chain, where companies partner with specific
suppliers and distributors to ensure a smooth functioning of the system, is to call it a
________.
A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network
Your firm has experienced a decline in sales over the last three quarters. You have
traced the problems to distribution inefficiencies. Which of the following should you
track to ensure that the firm’s distribution efficiency is maximized?
A) average sales per point of sale
B) sales from new products
C) trial rate
D) repurchase rate
E) new customer gains
Explain the concepts of sales-wave research and simulated test marketing.
Product-mix pricing can involve a number of pricing strategies for the brand manager.
List each of these strategies and briefly define each.
What are the situations in which guarantees are most effective?
Bicycle store 2Wheels wants to attract and retain customers to maximize customer
profitability. What are the basic tactics it can use to manage customers that vary in
loyalty, profitability, risk, and other factors?
The management of Keiko has learned that the company risks losing a long-time
customer, LZT, to a competitor. What basic measures can Keiko take to build loyalty
with LZT?
List the eight different variables associated with customer switching behavior, and give
an example of each.
What are the four types of advertising timing patterns available to marketers when
launching a new product?
Based on the service-quality model, researchers have identified five determinants of
service quality. List these determinants in order of importance.
The digital revolution has placed a whole new set of capabilities in the hands of
consumers and businesses. Describe the advantages that you as a consumer have today
that your parents or grandparents didn’t have.
What are the methods available to the buyer to review the performance of the chosen
supplier? What advantage does performance review offer to the buyer?
Explain the classification of advertising objectives.
The United States has one of the world’s highest percentages of college-educated
citizens. What can be the possible implications of this observation to the marketing
environment of a U.S. firm?
A toaster manufacturer has invested $1 million in the business and wants to set a price
to earn a 20 percent return on investment, specifically $200,000. What pricing method
should it choose?
Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate
for sale in the United States for the next five years. What kind of a countertrade did
both the parties indulge in?
Kellogg’s uses its corporate brand name with its individual product brands as with
Kellogg’s Rice Krispies, Kellogg’s Raisin Bran, and Kellogg’s Corn Flakes. Which
branding strategy is being used by the company?
Describe the six main service differentiators.
How can firms promote ethical behavior among their employees?