To increase its ‘share of customer,” a firm concentrates on retaining as many customers
as possible over its lifetime.
Value-based pricing uses the sellers’ perception of value as the key to pricing.
In the general needs description of the buying process, the buyer describes the
characteristics and quantity of the needed item.
The government market consists of schools, hospitals, nursing homes, prisons, and
other institutions that provide goods and services to people in their care.
The percentage-of-sales method wrongly views sales as the cause of promotion rather
than as the result.
Many companies now use customer profitability analysis to identify and weed out
unprofitable customers.
A person’s occupation has no effect on the goods and services that she buys.
A brief glimpse of the latest LG phone on the television series Modern Family is an
example of an advertainment.
In the United States, the lines between social classes are not fixed and rigid, but people
can only drop to a lower social class and not move up into a higher one.
The technological environment is predominantly static.
Department stores carry narrow product lines with deep assortments within those lines.
Advertisements for prescription drugs often feature potential benefits and negative side
effects that consumers may experience with use of the medication. These ads present
two-sided arguments.
Local publics include consumer organizations, environmental groups, minority groups,
and others.
Product mix width refers to the total number of items a company carries within its
product lines.
Sustainable marketing consists of five principles: consumer-oriented marketing,
customer-value marketing, innovative marketing, sense-of-mission marketing, and
societal marketing.
Retailers first must position themselves in a market and then decide how they will
define the target customers in these markets.
Advertising specialties include displays and demonstrations that take place at the point
of sale.
A product position is the way a product is defined by consumers on important attributes.
The business analysis stage represents the first large jump in financial investment in the
new product development process.
In a company, the job of a chief privacy officer is to ________.
A) ensure timely product deliveries
B) detect patent infringements and copyright violations
C) safeguard the privacy of a firm’s customers
D) engage in niche marketing
E) safeguard the privacy of senior executives
Which form of marketing research involves talking with people in their homes or
offices, on the street, or in shopping malls?
A) individual interviewing
B) focus-group interviewing
C) telephone interviewing
D) mail questionnaires
E) observational research
Eric Mason, an employee of Huntington Steelworks, is responsible for defining product
specifications and providing relevant information for evaluating alternatives in his
organization’s buying center. Eric, whose opinions affect the buying decisions of his
organization to a great extent, is most likely a(n) ________.
A) user
B) influencer
C) decider
D) gatekeeper
E) buyer
If a large retailer sold numerous items below cost with the intention of punishing small
competitors and gaining higher long-run profits by putting those competitors out of
business, the retailer would be guilty of ________.
A) price collusion
B) price fixing
C) predatory pricing
D) competitive pricing
E) penetration pricing
Benchmarking has become a powerful tool for increasing a company’s ________.
A) product mix
B) mass appeal
C) employee training services
D) distribution channels
E) competitiveness
Marketing communicators must be good at ________ messages that take into account
how the target audience ________ them.
A) delivering; encodes
B) sending; encodes
C) encoding; decodes
D) retrieving; perceives
E) decoding; receives
Which of the following is a significant challenge presented by the product life cycle?
A) increased expenses
B) increased competition
C) new product development
D) evaluation of results
E) recognizing the stages as a product goes through them
________ have filled the ultra low-price, high-volume gap by buying at
less-than-regular wholesale prices and charging consumers less than retail.
A) Off-price retailers
B) Specialty stores
C) Convenience stores
D) Chain stores
E) Supercenters
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
Critics say marketing benefits ________ more than ________.
A) consumers; manufacturers
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
Which of the following best describes permission-based e-mail marketing?
A) sending unsolicited, unwanted commercial e-mail messages
B) sending requests to users to join online social networking communities
C) sending e-mail pitches only to customers who “opt-in”
D) offering free promotional materials to new customers
E) gathering demographic details for customer databases
Refer to the scenario below to answer the following question.
Bryant and Anne are the owners of the Good Green Grocer, a small but successful chain
of organic food stores. The organic food sold by Good Green Grocer is of good quality.
Also, it is tasty and has long-term health benefits. Bryant and Anne’s business has
expanded as more and more consumers are interested in eating organic foods. What
started as one shop in Vermont has expanded to 15 stores in Vermont, New Hampshire,
Massachusetts, and Maine. Much to their delight, Bryant and Ann have found that many
people are willing to pay a bit more for food that is organically grown.
Sunday ads for the Good Green Grocer run in area newspapers, with special
promotional prices offered for a list of the “Top Ten Take Homes” each week. Regular
customers of the Good Green Grocer know that the promotional items often run out of
stock by mid-week, so the store typically sees its heaviest traffic on Sunday and
Monday.
Good Green Grocer wants to keep its customers happy. Its marketing strategy should be
designed with this goal. Which strategy focuses on satisfying the needs of Good Green
Grocer’s customers?
A) societal marketing
B) customer-value marketing
C) sense-of-mission marketing
D) innovative marketing
E) consumer-oriented marketing
Foreign businesses in India appear to receive unusually close scrutiny and special
regulations, aimed at protecting the local businesses. This is an example of a(n)
________.
A) nontariff trade barrier
B) tariff
C) boycott
D) exchange control
E) quota
Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages
that do not, even though the cottages and services offered are identical in every other
aspect. This form of pricing is called ________ pricing.
A) location-based
B) time-based
C) by-product
D) seasonal
E) captive product
Which of the following refers to a closing technique used by salespeople?
A) asking customers for referrals
B) developing solutions to customers’ problems
C) seeking out hidden objections
D) reviewing points of agreement
E) taking objections as opportunities to provide more information
________ represent(s) consumers’ perceptions and feelings about a product and its
performance.
A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes
Compare and contrast pure competition and oligopolistic competition.
Explain channel power in a vertical marketing system.
Compare and contrast the advantages and disadvantages of standardized global
marketing and adapted global marketing.
How does online marketing provide flexibility for sellers?
Internet marketing practices have raised a number of ethical and legal questions. Why is
invasion of privacy perhaps the number one online marketing concern?
What is observational research and when is it used?