Customer perceptions of the product’s value set the floor for prices.
Cost-based pricing involves setting prices based on consumer perception of value.
A market is the set of actual and potential buyers of a product or service.
Kiosk marketing connects users around the world to each other and to an amazingly
large information repository.
CAFTA-DR has eliminated all trade barriers and investment restrictions among the
United States, Canada, and Mexico.
The demographic data of a customer is comprised of his or her age, income, family
members, and birthdays.
Marketers often involve actual customers in product testing.
A good competitor plays by its own rules at the expense of the industry as a whole.
The simplest way to enter a foreign market is through direct investment.
Integrating the promotion mix starts with suppliers.
The decisions about reach, frequency, and impact of an advertisement fall into the
category of ________ decisions.
A) sales objectives
B) budget
C) message
D) media
E) advertising evaluations
Which of the following is the practice of inviting broad communities of customers,
employees, independent researchers, and members of the public into the new-product
innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
While comparing hotel rates on Google’s search engine, Brenda came across text-based
ads and links alongside the search results. This form of advertising is known as
________.
A) contextual advertising
B) rich media ads
C) content sponsorship
D) aerial advertising
E) space advertising
________ is the only element in the marketing mix that produces revenue.
A) Price
B) Product
C) Place
D) Fixed costs
E) Variable costs
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit
preserves aisle, alongside the jam jars of a better known brand-whose products are
priced at $8 apiece. Store managers reason that customers are more likely to choose the
store brand instead of the better known brand when they realize the price difference.
What price adjustment strategy is evident in the supermarket’s reasoning?
A) by-product pricing
B) product bundle pricing
C) captive product pricing
D) psychological pricing
E) seasonal pricing
Which of the following is most likely a shortcoming of advertising?
A) It is the most expensive promotion tool.
B) It cannot reach masses of geographically dispersed buyers.
C) It is impersonal and lacks the direct persuasiveness of company salespeople.
D) It cannot trigger quick sales.
E) It cannot be used to build up a long-term image for a product.
Formed in 1957, the ________ set out to create a single European market by reducing
barriers to the free flow of products, services, finances, and labor among member
countries and developing policies on trade with nonmember nations.
A) Uruguay Round
B) European Union
C) European Organization
D) European Central Bank
E) CAFTA
________ online marketing sites are online exchanges in which consumers search out
sellers, learn about their offers, initiate purchases, and sometimes even drive transaction
terms.
A) B-to-C
B) B-to-B
C) G-to-B
D) C-to-B
E) B-to-G
________ refers to buying a packaged solution to a problem from a single seller, thus
avoiding all the separate decisions involved in a complex buying situation.
A) Systems selling
B) Outsourcing
C) Insourcing
D) Cold calling
E) Direct marketing
________ refers to the characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality
A shoe manufacturing company uses ads featuring the members of a country music
band with the hope that the band’s fans will see them wearing the company’s shoes and
hence purchase the same brand of shoes. The shoe company believes that the band
portrays the image of a ________ to the band’s fans.
A) membership group
B) reference group
C) status symbol
D) subculture
E) lifestyle
Justbuy.com offers a wide variety of merchandise to its buyers. Customers order the
product on the Web site and get it delivered directly to their address. Which of the
following best describes Justbuy.com?
A) click-only company
B) click-and-mortar company
C) brick-and-mortar company
D) buy -here pay-here company
E) shell company
________ occurs when product or service producers cut out intermediaries and go
directly to final buyers or when radically new types of channel intermediaries displace
traditional ones.
A) Extensive distribution
B) Multichannelization
C) Disintermediation
D) Inclusive distribution
E) Cross merchandising
According to the concept of ________, new retailing forms often begin as low-margin,
low-price, low-status operations to challenge established retailers. Such retailers then
become successful, and eventually become like the conventional retailers they replaced.
A) ambush marketing
B) flash sales
C) wheel-of-retailing
D) warehousing
E) product life cycle
When a competitor cuts its price, a company should ________ if it believes it will not
lose much market share or would lose too much profit by cutting its own prices.
A) reduce its production costs
B) reduce its marketing costs
C) maintain its current prices and profit margin
D) increase its marketing budget to raise the perceived value of the product
E) increase its production costs to improve the quality of the product
Which of the following is true about behavioral segmentation on the basis of the loyalty
variable?
A) Consumers tend to pay more for products that are targeted at their respective
age-group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn
about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth
publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a
given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral
segmentation based on the loyalty variable.
As a manufacturer increases the price, ________.
A) efficiency drops
B) the break-even volume drops
C) competition is minimized
D) the total costs increase
E) the profit margin shrinks
What are the differences between innovators and early adopters?
Describe the six buyer-readiness stages along with the marketing strategies used at each
stage.
Briefly describe occasion segmentation.
Give examples of pure tangible goods.
In reacting to the marketing environment, what strategies do firms adopt to shift from a
reactive to a more proactive stance?
Compare and contrast pure competition and oligopolistic competition.
How does a personality symbol impact a brand?
Why are more companies using team selling? What are its pros and cons?