Gary Hirshberg started the Stonyfield Farm yogurt company. His marketing strategy:
building a casual bond with customers using guerilla marketing. This is an example of
formulated marketing.
Answer:
Sequential product development has the advantage of not only being a team-oriented
approach, but also of being faster in bringing products to market.
Answer:
Product costs set the ceiling for prices.
Answer:
Using the PLC concept to develop marketing strategy can be problematic because
strategy is both a cause and a result of the product’s life cycle.
Answer:
Persuasive advertising aims to build broad demand.
Answer:
The EU acts as an umbrella organization that oversees GATT and mediates global
disputes.
Answer:
When using product bundle pricing, sellers combine several of their products and offer
the bundle at an increased price for increased profit.
Answer:
While many consumers welcome the convenience that mobile marketing ads offer,
marketers still must be smart about how they engage people on mobile devices.
Answer:
Dissonance-reducing buying behavior typically occurs when a buyer sees little
difference among brands but is highly involved with the purchase.
Answer:
A break-even chart shows the total cost and total revenue expected at various sales
volume levels.
Answer:
The first step in the selling process is preapproachlearning about an organization and its
buyers.
Answer:
Local publics include consumer organizations, environmental groups, minority groups,
and others.
Answer:
The role of marketing intermediaries is to transform the assortments of products made
by retailers into the assortments wanted by producers.
Answer:
The marketing mix consists of people, property, planning, and position.
Answer:
The life cycle of new retail forms is getting longer.
Answer:
Companies seldom solicit ideas from customers during the idea generation stage of
product development.
Answer:
Training online instead of on-site can cut travel and other training costs, and it takes up
less of a salesperson’s selling time.
Answer:
A firm can obtain new products through acquisition or new product development
efforts.
Answer:
The benefits of e-procurement include access to new suppliers, lower purchasing costs,
and more time-efficient order processing and delivery.
Answer:
Most major companies have now appointed a chief privacy officer (CPO), whose job is
to safeguard the privacy of the companies in the international business environment.
Answer:
In a product sales force structure, no single salesperson can become an expert in all of
the product categories, so product specialization is required.
Answer:
If demand is elastic rather than inelastic, sellers will consider lowering their prices.
Answer:
Companies use PR to build good relations with consumers, investors, the media, and
their communities.
Answer:
Asian American consumers are the least brand conscious of all ethnic groups.
Answer:
Launching a fighter brand is an effective way to deal with a situation in which the
market segment being lost is price sensitive and will not respond to arguments of higher
quality.
Answer:
Product mix width refers to the total number of items a company carries within its
product lines.
Answer:
Telemarketing has ceased to be an important tool for most B-to-B marketers owing to
the federal government’s Do Not Call Registry.
Answer:
Personality is a person’s pattern of living as expressed in his or her psychographics.
Answer:
Marketers must increasingly consider the special needs of traditional households
because this segment of the population is growing more rapidly than nontraditional
households.
Answer:
The international growth of many professional and business services such as
accounting, consulting, and advertising led to the globalization of the client companies
they served.
Answer:
Trade shows most likely help companies to ________.
A) maximize productivity
B) find new sales leads
C) trim overhead costs
D) reduce the inside sales force
E) shorten the selling process
Answer:
A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier
in a country, was changing its name to M-Mobile and that to begin the makeover
process it had replaced spokesperson Robert Garmon with Catherine Naylor. Which of
the following elements of a promotion mix is represented in this example?
A) sales promotion
B) advertising
C) public relations
D) personal selling
E) direct marketing
Answer:
In a ________ situation, the “in” suppliers may become nervous and feel pressured to
put their best foot forward to protect an account and the “out” suppliers may see the
present situation as an opportunity to make a better offer and gain new business.
A) straight rebuy
B) new task
C) reverse auction
D) modified rebuy
E) solutions selling
Answer:
A runner-up firm that wants to hold its share in an industry without rocking the boat is a
________.
A) market follower
B) market maven
C) market challenger
D) market nicher
E) market leader
Answer:
In the ________ stage of the new product development process, products undergo
rigorous tests to make sure that they perform safely and effectively, or that consumers
will find value in them.
A) product design
B) idea generation
C) concept development and testing
D) product development
E) product activation
Answer:
According to Maslow’s hierarchy of needs, which of the following is the LEAST
pressing need?
A) physiological needs
B) social needs
C) esteem needs
D) self-actualization needs
E) safety needs
Answer:
Service companies can differentiate their service delivery by ________.
A) using symbols and logos
B) instituting a hierarchical organizational structure
C) offering innovative product features
D) de-emphasizing branding
E) having more able and reliable customer-contact people
Answer:
Companies need to know each competitor’s product quality, features, and mix; customer
services; pricing policy; distribution coverage; sales force strategy; and advertising and
sales promotion programs. These are all the dimensions that identify ________ groups
within the industry.
A) target
B) focus
C) control
D) strategic
E) experimental
Answer:
Rather than assuming that strategic options are bounded by the current environment,
firms adopting a(n) ________ to the marketing environment develop strategies to
change the environment.
A) environmental stance
B) proactive stance
C) reactive stance
D) relativist approach
E) no-compromise approach
Answer:
Consumer products refer to ________.
A) products purchased by consumers for further processing or for use in conducting a
business
B) products and services bought by final consumers for personal consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer’s production or operations, including installations
and accessory equipment
Answer:
Which of the following is the first step in developing an effective integrated
communications and promotion program?
A) designing a message
B) identifying the target audience
C) determining the communication objectives
D) collecting feedback
E) choosing the media through which to send a message
Answer:
Mark’s Markers, a manufacturer of white board markers, has required its dealers to
charge a specified retail price for its markers. Mark’s is most likely guilty of ________.
A) captive pricing
B) retail price maintenance
C) price discrimination
D) competitive pricing
E) unfair price skimming
Answer:
Underpriced products ________.
A) produce less revenue than they would if they were priced at the level of perceived
value
B) sell poorly in the global marketplace
C) produce more revenue than they would if they were priced at the level of perceived
value
D) mostly offer higher value than those with a high markup price
E) are characterized by rapidly declining demand
Answer:
Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and
households that buy Sparks’ products for personal use.
A) consumer
B) government
C) business
D) international
E) financial
Answer:
Which of the following refers to the course that a product’s sales and profits take over
its lifetime?
A) total product process
B) service life
C) product mix
D) product life cycle
E) marketing mix
Answer:
The marketing logic by which a company hopes to create customer value and achieve
profitable customer relationships is referred to as the ________.
A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing
Answer:
________ refers to the process of putting thought into symbolic form.
A) Sending
B) Encoding
C) Decoding
D) Receiving
E) Feedback
Answer:
Marbles Inc. has placed vending machines in most of its retail stores in Florida.
Consumers can order a pack of marbles by just selecting their requirements on the
touch screen. Which term best describes such machines?
A) POP
B) kiosk
C) virtual catalog
D) interactive television
E) automated teller machine
Answer:
By definition, ________ pricing is used when a firm sells a product or service at two or
more prices, even though the difference in price is not based on differences in cost.
A) segmented
B) variable
C) flexible
D) cost-plus
E) reference
Answer:
The ________ concept is specifically focused on future company needs.
A) societal marketing
B) strategic planning
C) direct marketing
D) telemarketing
E) consumer business
Answer:
Developing an effective message strategy begins with identifying ________ that can be
used as advertising appeals.
A) consumer trends
B) competitors’ weaknesses
C) competitors’ strengths
D) customer benefits
E) consumer emotions
Answer:
The ________ refer(s) to all the individuals and units that play a role in the purchase
decision-making process.
A) users
B) influencers
C) buying center
D) gatekeepers
E) systems sellers
Answer:
Marketers often segment international markets according to the type and stability of
government. In such instances, they segment markets based on ________.
A) geographic location
B) economic factors
C) cultural factors
D) political factors
E) socio-cultural factors
Answer:
Which of the following is NOT a deception or fraud concern for Internet users and
marketers?
A) phishing
B) viral marketing
C) malware
D) cyber spying
E) spyware
Answer:
The McDonald’s fast-food restaurant chain uses Ronald McDonald, a clown, as its
primary character. Which message execution style is used by McDonald’s?
A) technical expertise
B) lifestyle
C) personality symbol
D) image
E) slice of life
Answer:
Experimental research is best suited for gathering ________ information.
A) exploratory
B) causal
C) random
D) unstructured
E) descriptive
Answer:
Which of the following questions is an example of a closed-end question?
A) Why do you think some people are more comfortable taking risks than others?
B) How can I improve my presentation skills?
C) Why do you think a single vote makes a difference?
D) Would you like to try our new ice cream flavor?
E) What is the best way to prevent weeds in a garden?
Answer:
All of the following organizations are likely part of the institutional market EXCEPT
________.
A) LaGrange Community Hospital
B) Worthampshire Prison
C) Lancaster Real Estate Company
D) Water Street Nursing Home
E) Millersville Community College
Answer:
________ are communities over the Internet where people congregate, socialize, and
exchange views and information.
A) Corporate Web sites
B) Interactive television
C) Digital catalogs
D) Online social networks
E) Content sponsorships
Answer:
The Bookworm began delivering books directly to customers through mail instead of
selling through brick-and-mortar companies. This is an example of ________.
A) indirect marketing
B) disintermediation
C) franchising
D) exclusive distribution
E) intensive distribution
Answer:
Oscarz Aviation’s Web site, GoOscarzAv.com, informs customers about a wide variety
of services offered by the firm. It also has a guestbook where customers can provide
feedback on their experiences with Oscarz Aviation. They can also view videos Oscarz
Aviation posts, as well as read and respond to blogs and ask questions.
GoOscarzAv.com is an example of a(n) ________.
A) online social network
B) blog
C) kiosk
D) branded community Web site
E) digital catalog
Answer:
Which of the following is true with regard to the same for less value proposition?
A) Discount stores and “category killers” rarely use the same for less value proposition.
B) The same for less value proposition is mostly offered by marketers who sell higher
quality upscale products or services.
C) The same for less value proposition cannot generate profits.
D) Offering the same for less can be a powerful value proposition because everyone
likes a good deal.
E) The same for less positioning involves meeting consumers’ lower performance or
quality requirements at a much lower price.
Answer:
Product mix ________ refers to the number of different product lines the company
carries.
A) length
B) height
C) width
D) consistency
E) depth
Answer:
Arrow is “a different kind of company, manufacturing a different kind of a car”; the
RoadPro is “like nothing else.” Statements such as these reflect a firm’s ________.
A) portfolio
B) marketing segment
C) positioning
D) marketing mix
E) mission statement
Answer:
People tend to interpret new information in a way that will support what they already
believe. This is called ________.
A) selective retention
B) selective distortion
C) cognitive dissonance
D) selective attention
E) cognitive bias
Answer:
What constitutes retail convergence?
Answer:
Explain the practice of redlining and why it is criticized.
Answer:
Discuss customer intimacy. Why is it important? Provide an example of a company that
successfully abides by this value discipline.
Answer:
Why is government regulation necessary to protect consumers from unfair business
practices?
Answer:
Differentiate between a product idea, a product concept, and a product image.
Answer:
Define interactive marketing. Why is it considered an important skill for service
marketers?
Answer:
How does loyalty status enhance a company’s understanding of its consumers?
Answer:
What do marketers gain from gathering and analyzing information about customers and
the needs and motivations of those customers?
Answer:
Define customer equity and explain how a company can increase it.
Answer:
What is meant by cultural pollution? Give two examples.
Answer:
Describe the types of products are exclusively distributed and provide examples.
Answer:
An industry often contains “good” competitors and “bad” competitors. Define each term
and discuss scenarios with both “good” and “bad” competitors. How might “good”
competitors choose to react to “bad” competition?
Answer:
How can researchers and managers arrive at the best interpretation of research findings?
Answer:
Why is it important for marketers to understand cultural swings?
Answer:
Define a buying center and the major roles played by members of an organization in the
purchase decision process.
Answer:
Discuss sales promotion.
Answer:
Provide an example of a company that has used an imaginative distribution system to
gain a competitive advantage.
Answer:
Products and services fall into two broad classes based on the types of consumers that
use them. Name these two broad classes and describe how they are different from each
other.
Answer:
Evaluate how public policy affects distribution decisions.
Answer: