Differences between nations are often less than differences within nations.
Strategically pricing below customer value is often called pricing to value.
Economists often use cross-elasticity of demand as an indicator of substitutability.
Marketing can create and deliver value, but customer choices should be influenced by
salespeople.
In considering the purchase of technology-based products, a customer will adopt an
innovation only if she or he considers it to be an improvement over the current product
being used to satisfy the same need.
When the domestic currency is weak, full-costing or cost-plus pricing does not hurt you
so much because the exchange rate keeps the selling price down.
Coupons permit marketing managers to price discriminate, that is, charge different
prices to different households.
Which of the following categories is particularly affected by low barriers to entry?
A) microchip processors
B) automobile manufacturers
C) professional services
D) oil drilling
According to the VALS system developed by SRI International, ________ are
successful, sophisticated, and active people with high self-esteem and significant
resources.
A) achievers
B) believers
C) makers
D) innovators
Which of the following is a benefit of the target costing approach?
A) The product development process is continuously guided by the top management.
B) It produces a superior product with unique product benefits.
C) It decreases the likelihood that low-margin products will be introduced.
D) It shortens the product development cycle.
“If you do not satisfy the customer the first time, you may not get a second chance.”
Identify this customer service principle.
A) great service is measured by customer satisfaction
B) service is the backbone of any business
C) compensation plans determine behavior
D) sales and service departments are complementary
The service quality model suggests that:
A) quality of services is determined by customer perceptions.
B) standardized methodologies are needed to measure the quality of services.
C) service quality is costlier than manufactured products quality.
D) there are numerous stages in the quality measurement of services.
A ________ strategy targets customers who have not yet purchased the product or
service.
A) market formation
B) market penetration
C) market modification
D) market development
Identify the correct statement about differentiation.
A) It usually implies lower costs for the customers.
B) For highly technical products, differentiation is built solely on the basis of
perception.
C) It is based on obtaining an observable point of difference that customers will value.
D) Consumer products are usually differentiated through real difference.
Which of the following best describes the main benefit of a panel?
A) the ability to select a new random sample at each measurement period
B) the ability to observe changes in behavior caused by changes in marketing variables
or other factors
C) the ability to design a focus group study using the customers in the panel as a sample
D) the ability to generate new product ideas by brainstorming
Activities such as competitor analysis and market research are valuable investments of
time that do not generate revenue. Which of the following components of a
compensation plan is best suitable for encouraging such activities?
A) salary
B) commission
C) bonus
D) incentive payment
Which of the following types of appeals focuses on the functional or practical aspects
of the product and emphasize facts, learning, and persuasion?
A) social appeals
B) behavioral appeals
C) informational appeals
D) emotional appeals
With reference to price-oriented promotion, shelf “talkers” is best described by:
A) price signs posted on the shelf.
B) instant pull-off coupons.
C) end-of-aisle displays.
D) coupon distribution in the retail store.
Which of the following involves an in-depth study of consumer consumption through
interviews and observing behavior, and requires people with a variety of skills beyond
marketing research, including anthropology?
A) exploratory research
B) clinical research
C) ethnographic research
D) behavioral research
Which of the following refers to a group of products that are functional substitutes of
each other?
A) an industry
B) a product variant
C) a product type
D) a product class
Charging different prices to different segments according to their price elasticity or
sensitivity is commonly known as:
A) price segmentation.
B) price differentiation.
C) price discrimination.
D) price preference.
Which of the following stages of the family life cycle best describes young married
couples with younger children under age 6?
A) empty nest I
B) full nest III
C) full nest I
D) newly married couples
Which of the following approaches to budgeting is the ultimate in “advertising as a cost
of doing business” thinking and is similar in spirit to the percentage-of-sales method?
A) affordability
B) experimentation
C) decision calculus
D) competitive parity
Industrial products are normally more complex than consumer products. It means that
industrial companies are more likely to be:
A) product focused rather than customer focused.
B) customer focused rather than product focused.
C) market focused rather than customer focused.
D) technology focused rather than market focused.
________ is the person who first recognizes the need for the product or service.
A) The initiator
B) The influencer
C) The decider
D) The purchaser