Firms that can develop substitute materials for finite nonrenewable resources have an
excellent opportunity.
The marketing funnel identifies the profitability of consumers at each stage in the
decision process.
Customers usually have a lower price threshold below which prices signal inferior or
unacceptable quality, as well as an upper price threshold above which prices are
prohibitive and the product appears not worth the money.
The most constructive response to protecting market share is continuous innovation.
A superstore is a storeless retailer serving a specific clientele who are entitled to buy
from a list of retailers that have agreed to give discounts in return for membership.
The expectancy-value model of attitude formation posits that consumers evaluate
products and services by combining their brand beliefs according to importance.
The supply-side measurement method focuses on potential exposure to a brand by
assessing the extent of media coverage of an event, and the demand-side method
focuses on exposure reported by consumers.
MPR is effective in blanketing local communities and reaching specific groups and
hence has to be planned separately from the less cost-effective advertising.
Demand creators are not permitted to take an order but expected rather to build
goodwill or educate the actual or potential user.
Aida decided to switch doctors after she had to wait two and a half hours at her
scheduled appointment to see her doctor. She experienced the ethical problem factor
that leads to customer switching behavior.
Examples of manufacturer promotions include price cuts and feature advertising.
The main disadvantage of direct investment is that the partners might disagree over
investment, marketing, or other policies.
Manufacturers of systems such as razors and ink jet printers use a system of pricing
called “two-part pricing”: one price for the disposable products and another for the
“hardware.”
To analyze its competitors, a company needs to gather information about both the real
and the perceived strengths and weaknesses of each competitor.
The higher the forgetting rate associated with a brand, product category, or message, the
lower the warranted level of repetition.
Cause-related marketing efforts are unlikely to backfire as customers generally view the
company’s motives as genuine.
The business buyer makes the fewest decisions in the straight rebuy situation and the
most in the new-task situation.
Pricing has no negative effect on customer loyalty.
Concept testing means validating the product concept by discussing within the design
group.
An ethical concern in direct marketing is whether some companies exaggerate the
features of their products in catalog copy.
Firms should design the highest performance level possible for their products.
Manufacturers that add online channels may avoid alienating retailers or other
intermediaries by offering different brands or products through online channels than in
stores.
Marketing communications allow companies to link their brands to other people,
places, events, brands, experiences, feelings, and things.
More stocking locations mean goods can be delivered to customers more quickly, and
warehousing and inventory costs are lower.
Price is one of the two elements of the marketing mix that produces revenue.
Small sellers concentrate on multilevel in-depth selling instead of reaching the key
buying influencers.
Price elasticity depends upon the magnitude and direction of the contemplated price
change.
Indirect exports are characterized by high investment, and therefore high risk.
Customer lifetime value describes the net present value of the stream of future profits
expected over the customer’s lifetime purchases.
Companies who want to carry near-zero inventory should build for order, not for stock.
The value delivery system includes all the experiences the customer will have on the
way to obtaining and using the offering.
Companies must adopt and disseminate a written code of ethics, build a company
tradition of ethical behavior, and hold their people fully responsible for observing ethics
and legal guidelines if they wish to demonstrate ethical behavior.
Interactive marketing describes the employees’ skill in serving the client.
Stores are using ________ to measure a product’s handling costs from the time it
reaches the warehouse until a customer buys it in the retail store.
A) electronic data interchange (EDI)
B) direct product profitability (DPP)
C) radio-frequency identification (RFID)
D) global positioning systems (GPS)
E) compounded annual grown rate (CAGR)
The value delivery process can be divided into three phases, out of which “choosing the
value” implies ________, which is the essence of strategic marketing.
A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering
________ management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating
superior customer value.
A) Marketing
B) Knowledge
C) Operations
D) Strategic
E) Distribution
Which of the following is a form of cheating or undersupply relative to an implicit or
explicit contract which usually takes place when buyers cannot easily monitor supplier
performance?
A) institutional sale
B) business buying
C) opportunism
D) vertical integration
E) contractual transactionism
When Goodyear began selling its popular tire brands through Sears, Walmart, and
Discount Tire, independent dealers that sold the same tires at higher prices were angry.
This is an example of a(n) ________ conflict.
A) horizontal
B) vertical
C) intermediate
D) multichannel
E) parallel
Personal influence in marketing communications carries great weight when the product
being marketed ________.
A) is a convenience item
B) is considered to be safe and risk-free
C) suggests something about the user’s status or taste
D) is purchased on a frequent basis
E) is used without being recommended by others
In offering a product line, companies normally develop a ________ and modules that
can be added to meet different customer requirements.
A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform
The result of positioning is the successful creation of ________, which provides a
cogent reason why the target market should buy the product.
A) an award-winning promotional campaign
B) a customer-focused value proposition
C) a demand channel
D) everyday low pricing
E) employee value proposition
A(n) ________ is a storeless retailer serving a specific clientele”usually employees of
large organizations”who are authorized to buy from a list of retailers that have agreed to
give discounts in return for inclusion on the list.
A) direct-selling vendor
B) direct marketing vendor
C) buying service
D) automatic vendor
E) corporate retailer
Despite its weaknesses, markup pricing remains popular for which of the following
reasons?
A) Sellers can determine demand much more easily than they can estimate costs.
B) By tying the price to cost, the pricing task becomes more sophisticated.
C) When all firms in the industry use markup pricing, price competition flourishes.
D) Sellers take advantage of buyers when the latter’s demand becomes acute.
E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.
An independent retailer using a central buying organization and joint promotion efforts
with other retailers is part of a ________.
A) corporate chain store
B) voluntary chain
C) retailer cooperative
D) merchandising conglomerate
E) franchise organization
Whirlpool took a 53 percent stake in the Dutch electronics group Phillips’ home
appliances business. Sharing ownership and control of this business enabled Whirlpool
to leapfrog into the European market. This is an example of ________.
A) a straight extension
B) a joint venture
C) an exporting agreement
D) a licensing agreement
E) a sprinkler approach
The key to utilizing organizational core competencies is to ________ that make up the
essence of the business.
A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces
The customer service representatives at G.K.’s Heating and Cooling must know as
much about the products as possible, so that they can help customers solve their
difficulties without sounding hesitant or unsure of themselves. This is an example of a
high-quality strategy for ________.
A) life-cycle cost
B) postsale service
C) self-service technologies
D) out-of-pocket costs
E) expectation management
Susanna wanted to check out a new salon in her locality, so she decided to go for a hair
styling session. She was very happy with the way her stylist connected and related with
her concerns. She is judging the service based on its ________.
A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing
The fact that services are typically produced and consumed simultaneously is known as
the ________ aspect of services.
A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability
The original and oldest form of direct marketing is ________.
A) billboards
B) banner advertising
C) mail campaigns
D) outbound telemarketing calls
E) field sales calls
Which of the following statements about technology support for salespeople is NOT
true?
A) Computer-based decision support systems have been created for sales managers and
sales representatives.
B) Social media sites make it easier to sell with few, if any face-to-face meetings.
C) Going online, salespeople can prime themselves on backgrounds of clients.
D) Salespeople often have online access to brochures and prewritten sales letters.
E) All of the above are true.
In a marketing plan, the financial projections include a sales forecast, expense forecast,
and ________.
A) situation analysis
B) list of tactics
C) communications strategy
D) break-even analysis
E) implementation controls
With respect to the sampling plan, three decisions must be made: 1) the sampling
unitwho is to be surveyed; 2) sample sizehow many people should be surveyed; and 3)
________.
A) sample cost”how much does sampling cost
B) surveyor skill”who should conduct the survey
C) sample security”how should the sample data be protected
D) sampling procedure”how should respondents be chosen
E) sample supervisor”who leads the sampling effort
Companies provide rewards to customers who buy often and in substantial amounts.
These reward schemes are referred to as ________ programs.
A) benefit
B) frequency
C) satisfaction
D) profitability
E) quality
Which of the following statements is most consistent with the integrated marketing
approach?
A) A good product will sell itself.
B) If left alone, consumers are inclined to purchase only inexpensive products.
C) All communication to consumers must deliver a consistent message irrespective of
the medium.
D) In order to succeed, the main focus should be on having an efficient production
process in place.
E) Online marketing is less important than traditional marketing efforts.
Which of the following statements about marketing is TRUE?
A) It is of little importance when products are standardized.
B) It can help create jobs in the economy by increasing demand for goods and services.
C) It helps to build a loyal customer base but has no impact on a firm’s intangible
assets.
D) It is not needed in an Internet-fueled environment.
E) It is seldom used by nonprofit organizations.
________ are a person’s enduring favorable or unfavorable evaluations, emotional
feelings, and action tendencies toward some object or idea.
A) Discriminations
B) Values
C) Beliefs
D) Feelings
E) Attitudes
Rade and Talion are competitors in the business of manufacturing wrist watches. While
Rade promises to deliver design and quality to its customers, Talion promises to deliver
durability and cost effectiveness. When both these companies deliver their respective
promised qualities, they are delivering ________.
A) performance quality
B) customer support
C) unique quality
D) accuracy quality
E) conformance quality
What is the major difference between a conventional marketing channel and a vertical
marketing system (VMS)?
A) Elements in a conventional marketing channel act as separate businesses whereas
the elements in a VMS act as a unified system.
B) A VMS has many intermediaries whereas a conventional marketing channel has a
limited number of intermediaries.
C) A VMS is characterized by an independent producer whereas a conventional
marketing channel is characterized by multiple producers.
D) A conventional marketing channel has elements such as retailers and wholesalers
whereas these elements are not present in a VMS.
E) Producers have complete control over the other members in a conventional
marketing channel whereas this control is minimal in a VMS.
Marketers usually identify niches by ________.
A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways
Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were
offered chilled juice. Their check-in formalities were handled by the staff. When they
entered their room, they saw that chocolates had been placed on the pillows and a
flower arrangement on the table. These are examples of customer ________.
A) lifetime value
B) perceived value
C) value analysis
D) profitability analysis
E) touch points
Nivea became the leader in the skin cream class on the “gentle,” “protective,” and
“caring” platform. The company further moved into classes such as deodorants,
shampoos, and cosmetics. Attributes like gentle and caring were of no value unless
consumers believed that its deodorant was strong enough, its shampoo would cleanse,
and its cosmetics would be colorful enough. This is an example of ________.
A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence
In ________, the seller charges a separate price to each customer depending on the
intensity of his or her demand.
A) second-degree price discrimination
B) third-degree price discrimination
C) psychological discounting
D) special-customer pricing
E) first-degree price discrimination
________ is finding the most cost-effective media to deliver the desired number and
type of exposures to the target audience.
A) Media scheduling
B) Content analysis
C) Media selection
D) Communication design
E) Copy testing
With respect to the ‘six brand building blocks,” brand ________ describes the
relationship customers have with the brand and the extent to which they feel they’re “in
sync” with it.
A) imagery
B) judgment
C) resonance
D) salience
E) performance
Which of the following is a marketing advantage of strong brands?
A) no vulnerability to marketing crises
B) more elastic consumer response to price increases
C) guaranteed profits
D) additional brand extension opportunities
E) more inelastic consumer response to price decreases
Which of the following reflects the “people” component of the marketing mix?
A) the creativity, discipline, and structure brought to marketing management
B) the development of new products by the marketers
C) the firm’s consumer-directed activities
D) the right set of processes to guide activities and programs within the firm
E) the internal marketing of the firm
________ activities include those the company undertakes to make the product
accessible and available to target customers.
A) Line extension
B) Segmentation
C) Marketing research
D) Channel
E) New-product development
What is the purpose of profitability control, and how do marketers use it?
Differentiate between pure-click companies and brick-and-click companies.
You are the sales manager of a company that manufactures and markets server
computers. The company’s products require high-involvement from the sellers and
require salespeople to provide complex and technical information. What kind of a
compensation structure do you select for your sales representatives?
Distinguish between brand equity and brand valuation.
How do distributors, retailers, and other intermediaries help a company to improve the
quantity and quality of its marketing intelligence?
The marketplace isn’t what it used to be. List and briefly discuss the new behaviors,
opportunities, and challenges that await the marketer in the 21st century.
Briefly describe the different types of pricing objectives.
What would be the marketing network elements for a motorcycle company such as
Harley-Davidson?
Identify the five main characteristics that affect the diffusion of innovations. Describe
each and provide an example.
Over the past three years, skincare products retailer E&OE has realized that it is losing
sales to competitors who sell products online. E&OE has always cultivated an exclusive
upscale image, and the management feels that shifting to the online route will only
harm the brand image and sales in the long run. How can E&OE encourage customers
to frequent its stores?
Ford Motor Company knows that to reach its target markets, it may use three kinds of
marketing channels. What are these three marketing channels, and how might Ford use
each of them?
Fingerpainted organizes art camps and craft activities for children. The company has
noticed that demand is highest during summer vacations and drops during the year.
What can Fingerpainted do to attract customers at other times of year?
The growth of “house brands” has skyrocketed in recent years. What benefits do
intermediaries receive from sponsoring their own brands?
What can you learn from John Smith from the sales report reflected in the table?
Briefly summarize the two views of the value delivery process that may be followed by
organizations.
What are the five main challenges associated with database marketing?
What have been the recent trends in the use of sales promotions?
In your position as a marketing manager for a small industrial company, you have been
asked by the president to help differentiate the company’s product from its competitors.
In reviewing your marketing management notes, you note that the text stated that
physical products could be differentiated in nine ways. These nine areas comprise the
“meat” of the memo you are writing to the president of your firm. What are the nine
ways that physical products can be differentiated?
Describe the function of brand-tracking studies.
What technique is used for customer profitability analysis?