The phrase ‘Unused service capacity is lost forever’ refers to which major challenge
associated with the marketing of services?
a. client-based relationships
b. limited standardization
c. simultaneous production and consumption
d. perishability
e. heterogeneity
Many large firms, such as Walmart, Home Depot, Lowe’s, and Barnes & Noble, have
been accused of predatory pricing because their business practices have put many local,
mom-and-pop firms out of business. In reality, these large firms are not necessarily
guilty of predatory pricing. Why?
a. Because the courts have found little evidence that predatory pricing has occurred.
b. Because the weak marketing activities of the local firms are to blame.
c. Because the large firms have efficient cost structures and lower variable costs.
d. Because the large firms are more guilty of superficial discounting than predatory
pricing.
e. Because the large firms simply have stronger brand equity than local firms.
Procter & Gamble is well known for its use of __________ branding because every
product in P&G’s portfolio has a different brand name.
a. differentiated
b. individual
c. corporate
d. segmented
e. family
For laptop computers, processor chips, memory chips, and hard drives are examples of
__________ because they are finished items that become a part of the computer after
assembly.
a. raw materials
b. process materials
c. installations
As a tool of Blue Ocean Strategy, the strategy canvas provides a way to visualize the
firm’s strategy relative to other firms in the industry. The central portion of the strategy
canvas is the __________, or the graphic representation of the firm’s relative
performance across its industry’s factors.
a. value curve
b. strategy line
c. strategic focus
d. divergence curve
e. action diagram
Overall, what is the difference between differentiation and positioning?
a. Differentiation is about the product whereas positioning is about the brand.
b. Differentiation is based on real differences between products, while positioning is
completely perceptual.
c. Differentiation is about creating differences among competing products, while
positioning is about creating a mental image in consumers’ minds.
d. Differentiation is used in tangible goods, while positioning is used in services.
e. There is no difference between differentiation and positioning.
Changing value propositions in today’s economy’”such as changes caused by the growth
in e-commerce’”have forced marketers to learn a tough lesson about customers. What is
that lesson?
a. Customers will always seek the best value regardless of quality.
b. Customers will always turn to the most recognized brand.
c. Customers would rather perform service for themselves to save money.
d. Customers will turn to the most convenient, least expensive alternative in situations
where they see goods and services as commodities.
e. Customers will always seek the best quality regardless of price.
Which of the following firms is most likely to adopt a decentralized marketing structure
in order to promote creativity and flexibility?
a. Walmart
b. Dell
c. Southwest Airlines
d. Microsoft
e. Ritz-Carlton
With respect to developing a marketing plan, what does it mean for a marketing plan
outline to be consistent?
a. The outline should be sufficient to ensure that information is not omitted.
b. The outline should have the ability to be modified to fit the situation.
c. The outline should flow in a logical manner.
d. The outline should have some connection to other functional area plans.
e. The outline should be consistent across firms in the same industry.
Branding strategy involves much more than developing a clever brand name or brand
mark. To be truly effective, a brand should succinctly capture the total offering in a way
that:
a. clearly distinguishes it from competiting offerings.
b. utilizes at least 5 brand attributes.
c. answers a question in the customer’s mind.
d. clearly ties the brand name together with the brand mark.
e. associates the brand with a customer emotion such as happiness or love.
With respect to evaluating and compensating employees, which of the following
statements about outcome-based systems is FALSE?
a. They are based on measurable, quantitative standards.
b. They are fairly easy to use.
c. They require more supervision than other systems.
d. They work well when market demand is fairly constant.
e. They work best when employee efforts directly affect sales or profits.
Many firms attempt to distinguish or differentiate their product offerings through the
use of __________ strategies. This involves establishing a mental image of the product
offering relative to competing offerings in the minds of target buyers.
a. product positioning
b. branding
c. perceptual marketing
d. image marketing
e. comparative
Issues such as marketing’s position and authority in a firm’s hierarchy, the overall
market orientation of the firm, and the emphasis on short- or long-term planning are
examples of which component of the internal environment?
a. resource availability
b. organizational structure
c. marketing objectives
Although break-even analysis and cost-plus pricing are important tools in setting prices
based on the firm’s cost structure, they should never be the driving force behind pricing
strategy. Why?
a. Because firms want to make a profit, not just break even.
b. Because customer expectations are far more important in setting prices.
c. Because prices should be based on demand, not costs.
d. Because different firms have different cost structures.
e. Because competitor’s prices are far more important in setting prices.
The goal of __________ is to maximize sales, gain widespread market acceptance, and
capture a large market share quickly by setting a relatively low initial price.
a. price skimming
b. odd pricing
c. penetration pricing
In launching its new line of power tools, Black and Decker spent a considerable amount
of time and resources to educate, motivate, and compensate members of its supply
chain. By investing heavily in these types of promotions, Black and Decker hopes its
__________ strategy will lead to a more effective product launch.
a. pull
b. AIDA
c. institutional
__________ is/are considered to be the ‘glue’ of successful implementation that binds
the entire organization together as a single, functioning unit.
a. Organizational structure
b. Marketing strategy
c. Systems and processes
Overall, what is the major disadvantage associated with the use of public relations and
publicity?
a. It is normally very expensive.
b. The amount of negative publicity always outweighs the good.
c. Few, if any, customers pay attention to public relations messages.
d. Most people find it to be less credible than advertising.
e. The firm has limited control over how the message will be delivered or interpreted.
In which of the following situations would a customer become more tolerable of weak
or poor product performance?
a. When the customer is in a hurry.
b. When the customer’s personal needs are high.
c. When the purchase situation is highly involving.
d. When the customer has fewer product alternatives.
e. When the purchase is for a special occasion.
When Meghan went to buy groceries, she found everything on her list except Pampers
diapers. While the store had other competing brands in stock, Meghan left and drove
five miles to the next store where she found the Pampers. It appears that Meghan
exhibits a high degree of __________ for Pampers diapers.
a. brand recognition
b. brand preference
c. brand insanity
With respect to customer expectations, which of the following best describes the zone
of tolerance?
a. It explains situations where customer expectations will be higher than normal.
b. It represents the degree to which customers recognize and are willing to accept
variability in performance.
c. It explains situations where customer satisfaction will be exceptionally low.
d. It explains why customers tolerate weak performance when performance is beyond
the control of the firm.
e. It explains situations where customers will hold lower than normal expectations.
According to the internal marketing approach to marketing implementation, which of
the following could be best characterized as the ‘internal product’?
a. additional employee training
b. internal company newsletters
c. new tasks or attitudes on the part of employees
d. the additional effort needed to implement the strategy
e. All of the above.
The collection of strategic activities aimed at marketing an organization, its issues, and
its ideals to potential stakeholders is referred to as __________. It typically involves
marketing activities that are not directed to the end users of a firm’s products.
a. external affairs
b. corporate affairs
c. public relations
Identify and explain the major characteristics of marketing objectives.