MGMT 466 Test 2

Principles Of Marketing Edition 15
In customer value-based pricing, price is considered along with all other marketing mix
variables before the marketing program is set.
The business analysis stage represents the first large jump in financial investment in the
new-product development process.
Return on marketing investment refers to the net return from a marketing investment
divided by the costs of the marketing investment.
GreenTree Lawn and Garden Products is engaged in marketing strategy development.
The first part of the marketing strategy statement created by management should outline
the product's planned price, distribution, and marketing budget for the first year.
Geographic segmentation divides the market into segments based on variables such as
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and
Dove body soaps are sold successfully in essentially the same form around the globe.
This is an example of straight product extension.
Creating a brand-marketing event or serving as a sole or participating sponsor of events
created by others is known as event marketing.
The Internet is making global price differences more obvious, forcing companies
toward more standardized international pricing.
The four major communication functions are encoding, decoding, response, and noise.
The direct mail medium has very low cost per exposure.
Vertical conflict occurs among firms at the same level of the channel.
In a subsistence economy, fast growth in manufacturing results in rapid overall
economic growth.
A seasonal discount is a price reduction to buyers who buy merchandise while the
products are in season.
Average cost tends to increase with accumulated production experience.
Recently, a class-action lawsuit was brought against BigBurger, a fast food chain,
charging that its food has contributed to the nationwide obesity epidemic. The suit was
eventually dismissed, but many critics continue to point out the health dangers of
typical "fast food" menu items. These critics are most likely concerned that the fast food
industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
Which of the following terms best describes a large, low-cost, low-margin,
high-volume, self-service store that carries a wide variety of grocery and household
A) convenience store
B) supermarket
C) specialty store
D) warehouse club
E) factory outlet
The advertisements which use the AFLAC duck or Tony the Tiger are using the
message execution style of ________.
A) lifestyle
B) technical expertise
C) testimonial evidence
D) slice of life
E) personality symbols
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness.
He wants to buy a hydration system since he will need a lot of water as he cycles.
Having gathered a great deal of information, he has finally narrowed down his choices
to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water.
Robert is in the ________ stage of the buyer decision process.
A) need recognition
B) evaluation of alternatives
C) product trial
D) postpurchase evaluation
E) information search
Using ________, marketers form segments of consumers who have similar needs and
buying behaviors even though they are located in different countries.
A) psychographic segmentation
B) demographic segmentation
C) occasion segmentation
D) benefit segmentation
E) intermarket segmentation
Governments develop public policy to ________.
A) encourage deregulation
B) identify demographic patterns
C) identify cultural patterns
D) guide commerce
E) protect marketers
Which of the following is an advantage of adding new channels in a multichannel
distribution system?
A) limiting market complexity
B) reducing control over the system
C) expanding sales and market coverage
D) decreasing marketing needs and costs
E) minimizing mass customization of products
Jolene's firm markets preplanning services for a mortician. She finds that most of her
target market avoids discussing future funeral needs. She convinces people to invest in
the firm's services through her large-scale promotional efforts. Jolene's firm most likely
practices the ________.
A) production concept
B) marketing concept
C) selling concept
D) product concept
E) societal marketing concept
A product's ________ identifies the product or brand, describes several things about the
product, and promotes the brand.
A) line extension
B) portfolio
C) label
D) design
E) feature
Which of the following is a market leader strategy?
A) expanding market share
B) multiple niching
C) full frontal attack
D) following at a distance
E) following closely
If a buying center is most influenced by authority in the business buying process, it can
be safely concluded that ________ factors have a major influence on its buying
A) technological
B) systemic
C) interpersonal
D) strategic
E) economic
Which consumer group tends to show more brand loyalty and make shopping a family
event, with children having a big say in the purchase decision?
A) Hispanic Americans
B) African Americans
C) Arabs
D) working class consumers
E) lower class consumers
Alpha Motors offers "Green automobiles for a greener world." This refers to the
________ of Alpha automobiles.
A) brand resonance
B) position
C) brand equity
D) hedonic value
E) added value
In the ________ stage of the new-product development process, products undergo
rigorous tests to make sure that they perform safely and effectively, or that consumers
will find value in them.
A) product design
B) idea generation
C) concept development and testing
D) product development
E) product activation
________ are a type of limited-service wholesalers who carry a limited line of
semiperishable merchandise (such as milk, bread, snack foods), which is sold for cash
as deliveries are made to supermarkets, small groceries, or hotels.
A) Industrial distributors
B) Wholesale merchants
C) Full-service wholesalers
D) Truck jobbers
E) Purchasing agents
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion
made her skin feel and look to her expectations about Brand X lotion, Sally was
measuring her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value
Different soft drinks target different personalities. This is an example of ________
A) psychographic
B) demographic
C) occasion
D) life-cycle
E) benefits
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example
of ________.
A) a frequency marketing program
B) a basic relationship
C) a club marketing program
D) partner relationship management
E) sustainable marketing
Which of the following is a new digital medium that is used by advertisers to reach
consumers directly?
A) mobile phone
B) direct mail
C) newspapers
D) billboards
E) television
Discuss why business legislation is enacted. Provide examples.
What are the advantages of multichannel distribution systems?
Define marketing planning. What are the contents of a marketing plan?
Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight
How can a customer database be used as a relationship-building tool?