Telemarketing is cheaper than direct mail.
Franchising works particularly well when the service can be standardized across
disparate geographic locations.
Panel conditioning refers to a problem that the panel members may not remain on the
panel throughout the required time period.
Market penetration strategies are used to attract customers who have never purchased
the product.
Econometric models are large-scale, multiple-equation regression models that are
frequently used in product forecasting.
Retail stores often make lower margins on private-label brands because of their lower
prices.
TV is better than print ads to target specific audiences.
The task facing the marketing manager is to identify variables that describe customers
in terms of their inherent characteristics, called descriptors, and to link those variables
to customer behavior toward the product or service.
In a product category, higher price levels can be sustained if the barriers to entry are
low.
A large portion of marketing communication is focused on personal channels of
communication.
Quality of a service is not dependent on the customers perceptions of the physical
evidences.
One of the main purposes of a concept test is to choose the most promising concept
from a set of alternatives.
One of the major sources of channel conflict is goal divergence.
Unlike trial which is nondecreasing, repeat rates tend to decrease.
Direct fixed costs do not vary with sales volume.
Which of the following analyses is more useful for trend-spotting than for developing
segments for individual brands?
A) cohort analysis
B) regression analysis
C) factor analysis
D) SWOT analysis
Firms can compete on price if they:
A) focus on market development strategy.
B) focus on global raw material sourcing.
C) focus on controlling costs.
D) focus on merging or acquiring a competitor.
Market share pricing is also known as:
A) competitive pricing.
B) investment pricing.
C) penetration pricing.
D) skimming.
Which of the following statements is true regarding a focus group?
A) It is a quantitative research method.
B) The most popular use of focus groups is for scientific research.
C) It usually involves a professional moderator.
D) The results obtained can be safely generalized.
An audit is conducted:
A) after the planning period is over.
B) before finalizing the marketing plan.
C) after the marketing plan is completed.
D) before preparing the marketing plan.
In a customer analysis, understanding how to expand the market and achieve sales
closer to market potential is most likely to be achieved by analyzing:
A) competitors customers.
B) former customers.
C) people who have never purchased the product.
D) current customers.
A back-of-the-envelope approach to calculating lifetime customer value (LCV) is a
margin “multiple,” which can be used to multiply the current margin generated by each
customer to estimate the LCV. This multiple is shown by the formula: r/(1 + i + r). In
this formula, “r” stands for:
A) retention rate for the product.
B) failure rate for the firms products.
C) rate of return of the product by the customers.
D) the reliability of the product.
Which of the following terms is used to refer to one-to-one marketing?
A) value marketing
B) benefit segmentation
C) mass customization
D) sales orientation
Identify the appeals that are intended to tap an underlying psychological benefit of the
purchase decision?
A) feature/benefit appeals
B) competitive advantage appeals
C) favorable price appeals
D) emotional appeals
Sampling is most likely to be used:
A) in the maturity stage of the product life cycle.
B) in the decline stage of the product life cycle.
C) when a new product or brand is being introduced.
D) to create interest among laggards and to generate sales in the decline stage.
Which of the following is most likely a reason of why some categories have large
numbers of product variants?
A) to reduce price visibility
B) to keep competitors from getting shelf space
C) to increase product recall
D) to enhance the brand image
Some companies manufacture and sell both their own brand as well as a private-label
brand. What is the greatest risk to the company by pursuing this strategy?
A) lack of cost control
B) cannibalizing its own brand
C) poor capacity utilization
D) competition with a leading brand
Which of the following is an excellent vehicle for delivering perceived images and
feelings?
A) direct mail advertising
B) community sponsorships
C) sales promotions
D) electronic and print advertising
Which of the following is a causal method of sales forecasting?
A) correlation
B) moving average
C) Delphi method
D) executive opinion
Which of the following refers to a strategy of entering the market with a high price and
creating a narrow market?
A) switching
B) penetration
C) skimming
D) scanning
Which of the following is a monetary award typically given for particularly outstanding
sales performance?
A) a salary
B) an incentive payment
C) a trade allowance
D) a spiff
________ is a notion that costs fall with cumulative production or delivery of a service
and that, using the first few years of a products life as a yardstick, the continued decline
in costs is predictable.
A) Benchmarking
B) Experience curve
C) Economies of scale
D) Reintermediation