According to the theory of the wisdom of crowds, companies that make some of their
products available for free are actually able to generate more revenue than companies
that charge for all of their products.
To better tailor the services it offers to the needs of specific customers, First City Bank
should first collect, verify, and update the information it has about its customers.
In the future, global deregulation will likely affect the delivery of services of banks and
other financial service industries by reducing competition.
Direct-response TV (DRTV) includes short commercials of less than two minutes,
30-minute or longer infomercials, and home shopping networks such as QVC and HSN.
Rooms-To-Go furniture retailers perform a channel intermediary facilitating function by
providing financing for customers’ purchases.
Telemarketing is more profitable for consumer markets than for business markets.
A package delivery company sells intangibles to its customers.
Heuristics can be used to explain why Madelyn always buys a specific brand of
deodorant and why Ralph always buys whatever brand he happens to see first.
Microcultures are groups of consumers who identify with a specific activity or art form.
Within the context of the marketing mix, place refers to the availability of the product
to the customer at the desired time and location.
Personal selling is less effective but more cost-efficient than advertising.
In a conventional marketing system, no channel member has much control over the
other members, and no formal means exists for assigning roles and resolving channel
conflict.
On the BCG growth-market share matrix, question marks are also referred to as
problem children.
The members of Generation Y were born between 1965 and 1976.
Because Cie de Saint-Gobain of France is Europe’s leading distributor of building
materials in the high-growth building industry, it is an example of a cash cow.
Many not-for-profit organizations use marketing principles.
From a marketing standpoint, a new product is anything that customers perceive as new
and different.
Consumers pay for necessities out of their discretionary income.
A researcher investigating the amount of food waste in the typical four-person family
plans to sift through the garbage of a small sample of representative families. This
method is an example of an unobtrusive survey.
The purchase of a specialty product typically involves extended problem solving for the
consumer.
It is more difficult to determine the ROI on traditional media efforts such as TV
commercials than the ROI on digital media efforts such as banner ads.
A demand curve never appears on a graph as a straight line.
Descriptive research is typically expressed in qualitative terms.
Banners are online ads that pop up between changes on a Web site.
In 2001, IBM had hundreds of “Peace Love Linux” logos painted on sidewalks to
publicize the company’s adoption of the Linux operating system. This is an example of
buzz marketing.
Brand ambassadors are volunteers spreading a company’s brand message, while brand
evangelists are paid employees using potentially unethical marketing tactics to spread a
company’s brand message.
Public relations activities can be used to influence the attitudes and perceptions of
various publics toward politicians and celebrities.
A value proposition includes the whole bundle of benefits the firm promises to deliver,
not just the benefits of the product itself.
Like sales promotion, public relations components of the promotion mix are used to
create short-term increases in sales.
Differentiated marketing can involve connecting the same product with different market
segments by communicating differently to each segment.
In terms of the buyclass framework, the purchase of paper towels and toilet paper to
restock an employee restroom would be an example of a modified rebuy.
Data about how consumers use everyday products is likely to increasingly be
communicated through the Internet of Things.
The long tail approach to segmentation indicates that companies can make money
selling small amounts of items that only a few people want as long as they sell enough
different items.
Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce. This is
an example of cobranding.
A perceptual map is used to ________.
A) compare and contrast consumer psychographic segments
B) create consumer cross-tabulations for marketing research
C) locate consumers within a geographic information system
D) determine how consumers position products in relation to one another
E) identify the critical stage of the targeting process for the marketer
Which of the following most accurately describes PRIZM?
A) a method of removing heterogeneous variables from a target market
B) a method of data mining used to implement market development strategies
C) a database that classifies the U.S. population into segments based on socioeconomic
data and lifestyle attributes
D) a database that classifies the international population into segments based on
demographic and geographic characteristics
E) a positioning strategy used in the introduction of new consumer products
A cashier who purposely undercharges a customer or allows a friend to walk away
without paying for items would most likely be accused of which of the following?
A) sweethearting
B) experiential shopping
C) retail borrowing
D) off-price retailing
E) customer profiling
Which of the following is essentially no branding at all?
A) national branding
B) ingredient branding
C) generic branding
D) sub-branding
E) store branding
A new company called LidRock is prospering because it figured out a novel way to get
music, video games, and movies into the hands of consumers: on mini-CDs tucked into
the lids of soft drinks. LidRock is focusing on which one of the four Ps?
A) product
B) price
C) promotion
D) place
E) profit
Which of the following is in place when a producer, dealer, wholesaler, retailer, or
customer interacts with more than one type of channel?
A) dual or multiple distribution system
B) intermediation
C) knowledge management
D) supply chain management
E) vertical marketing system
A company’s total marketing communications mix consists of a special blend of
advertising, sales promotion, public relations, personal selling, and direct-marketing
tools that the company uses to communicate customer value and build customer
relationships. This is also called ________.
A) direct marketing
B) integrated marketing
C) competitive marketing
D) the promotion mix
E) target marketing
________ is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large.
A) Demand satisfaction
B) Competitive advantage building
C) Marketing
D) Total quality management
E) Value chain management
Which of the following is true about marketing analytics?
A) Its importance has increased as consumers conduct more of their daily activities
online.
B) It generates Big Data to be used in marketing decision making.
C) It is a departmental approach to separately analyzing the performance of different
marketing initiatives.
D) It can be used for information gathered from traditional marketing efforts but not
from digital marketing channels.
E) It can be used for information gathered from digital marketing channels but not from
traditional marketing efforts.
Which of the following statements about price is true?
A) Pricing is the least important marketing mix element.
B) Price is always a monetary value.
C) Price can mean exchange of nonmonetary goods or services.
D) Most consumers believe price has little influence on their purchase decisions.
E) Pricing is unaffected by changes in the business cycle.
Which of the following is true about functional planning?
A) It is conducted by the various functional areas of a firm.
B) It is also called hierarchical management.
C) It encompasses a longer time span than strategic planning does.
D) It covers a shorter time span than operational planning does.
E) It is the same as strategic planning.
The ________ provides managers with four different fundamental marketing strategies:
market penetration, market development, product development, and diversification.
A) BCG growth-market share matrix
B) portfolio analysis
C) strategic plan
D) SWOT analysis
E) product-market growth matrix
The greater the ________ of a purchase, the higher the consumer’s level of involvement
will be.
A) perceived risk
B) cognitive dissonance
C) psychographics
D) heuristics
E) targeting
In which type of sales job is an employee LEAST likely to focus on relationship
selling?
A) new-business salesperson
B) team selling member
C) order taker
D) order getter
E) missionary salesperson
P&G makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice,
and Vidal Sassoon shampoos. Through its use of a separate and unique brand name for
each of these products, Procter & Gamble is using a(n) ________ strategy.
A) umbrella brand
B) family brand
C) individual brand
D) private-label brand
E) cobranding
In a market with ________, the market consists of many buyers and a few sellers who
are likely to have similar pricing.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) socialism
________ is a business practice in which a buyer shapes a supplier’s products and
operations to satisfy its needs.
A) Reciprocity
B) Functionalization
C) Reverse marketing
D) Bottom-up marketing
E) Crowdsourcing
Which of the following is a technique for measuring the impact of an advertisement
during the final step of developing an advertising campaign?
A) pretesting
B) attitudinal measures
C) pulsing
D) gross rating points (GRPs)
E) cost per thousand (CPM)
Limited-service merchant wholesalers are less likely than full-service merchant
wholesalers to do which of the following?
A) set the prices of the merchandise they sell
B) take title to the merchandise they sell
C) suffer financial losses if the merchandise they sell is damaged or stolen
D) offer marketing assistance or delivery for the products they sell
E) use their own sales force
________ involves a retailer buying a product at a discounted promotional price,
warehousing it, and after the promotion has expired, selling the inventory to other
retailers at a price that is lower than the manufacturer’s nondiscounted price but high
enough to turn a profit for the retailer.
A) Hoarding
B) Forward buying
C) Diverting
D) Discounting
E) Rebating
Producers benefit from using intermediaries because they ________.
A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are rarely backlogged with orders
E) will store products indefinitely
A ________ consists of all possible customers in a market regardless of the differences
in their specific needs and wants.
A) popular culture
B) value chain
C) marketing mix
D) marketing concept
E) mass market
A ________ is a marketplace offering that fairly and accurately sums up the value that
will be realized if the good or service is purchased.
A) product position
B) market segment
C) mass market
D) value proposition
E) target market
Which of the following is NOT true of the Universal Product Code (UPC)?
A) It is printed on the side or bottom of all non-perishable items sold in grocery stores
and other mass-merchandising outlets.
B) It supplies information about the type of item.
C) It identifies the manufacturer of the product.
D) It is read by an electronic scanner.
E) Retailers use information from UPC bars to track sales and control inventory.
Which of the following refers to the process of assigning meaning to a stimulus?
A) cognition
B) attention
C) affect
D) interpretation
E) exposure
In terms of the communication model, ________ is the process whereby a receiver
assigns meaning to a message.
A) sourcing
B) encoding
C) decoding
D) feedback
E) receiving
A hotel and resort company launched a new employee program that includes intensive
training in different service encounter scenarios. This training program is most likely
designed to lessen the problems related to the ________ characteristic of services.
A) perishability
B) intangibility
C) creativity
D) inseparability
E) personalization
An organic farmer has identified three distinct groups who might be interested in his
products: vegetarians, people who are concerned about chemicals in their foods, and
people who consider themselves innovators and trendsetters. These three groups are
examples of ________.
A) marketing mixes
B) market segments
C) product mixes
D) mass markets
E) market positions
The average price Xerox charged when it introduced the first stand-alone fax machine
was $12,700. This premium price was a way for Xerox to recoup some of the research
and development costs that went into production. Xerox used ________.
A) a skimming price
B) a trial price
C) penetration pricing
D) prestige pricing
E) target costing
Which type of segmentation can center on the use of the word when, such as when
consumers get the idea to buy, when they actually make their purchase, or when they
use the purchased item?
A) usage occasions
B) psychographic
C) needs
D) demographic
E) geotargeting
Explain channel power in a vertical marketing system.
Describe three ways in which a firm could move toward greater sustainability.
Explain how a firm benefits from customers who make multiple purchases versus
customers who make just one purchase.
Explain why the Hispanic American population is particularly important to marketers.
How do marketers use the assumption that “birds of a feather flock together”?
Compare the three product strategy choices a firm like General Electric has when
selling in foreign markets.
Why might a company be interested in using sustainability metrics?
What is the difference between data and information?
Explain how a computer company might use mass customization to meet the needs of
its customers.
Explain the three layers of the product the marketer needs to understand to adequately
serve the consumer.
Why is search engine optimization an important process for online marketers?
Marketers classify innovations into three categories based on their degree of newness.
Explain these categories, identifying the role the consumer has in each.
Explain the relationship between one-to-one marketing and CRM.
How do marketing organizations benefit from cultural diversity?
How have marketers responded to an increasing sense of time poverty among
consumers?
What are the advantages and disadvantages of using demand-based pricing?
Identify the seven steps in the creative selling process. What may be the most difficult
step for most salespeople?
A new marketing buzzword is metrosexual. What are some characteristics of a person
who would be classified in this segment?
The telephone system in Argentina is antiquated and is just starting to work properly
after years of neglect by the government. What does this tell a marketer about
Argentina, and why would a marketer need to know this?
Why might public relations efforts have a strong impact on public awareness at a
substantially lower cost than advertising?