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New product development adds value to a firm's products and services through
innovation.
Answer:
Procedural fairness pertains to a customer's perception of the benefits received
compared to the costs of the inconvenience or loss.
Answer:
The knowledge gap is where "the rubber meets the road," where the customer directly
interacts with the service provider.
Answer:
Because the goals of IMC are only part of the overall promotional plan, they do not
need to be explicit or measurable.
Answer:
When purchasing a mobile phone, the product you are buying is more than just the
phone.
Answer:
Public relations is the component of IMC that has received the greatest increase in
aggregate spending.
Answer:
Ethical and legal issues are likely to arise between the sales force and corporate policy
when the salespeople become conflicted between doing what they believe is ethical and
what their company asks them to do in order to make a sale.
Answer:
Product penetration is one of the four major growth strategies.
Answer:
The greater the wealth of a country, generally, the better the opportunity a firm will
have in that particular country.
Answer:
Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition
to the traditional seats it had always ordered. This is a straight rebuy.
Answer:
Short-term profit decisions can cause firms to lose customers in the long run.
Answer:
The Gaps Model allows systematic examination of all aspects of the product creation
process.
Answer:
As personal computers became popular, the sale of typewriters decreased significantly
and now typewriters are only used by a very small segment of consumers. Typewriters
are in the maturity stage of the product life cycle.
Answer:
Manufacturers might use selective distribution by allowing only a few selected retail
customers in a territory to sell its products.
Answer:
The most basic corporate social responsibility to employees is to ensure the highest pay
for the work performed.
Answer:
Cheryl wants to quickly establish a dominant market share for her new line of
ergonomic pens. To do this, she will likely use a market penetration pricing strategy.
Answer:
The STP process is made up of strategy, targeting, and promotion.
Answer:
The B2B buying process tends to be more formal than B2C buying.
Answer:
An advantage of a corporate blog is that all content on the blog can be completely
controlled by the company.
Answer:
On the diffusion of innovation curve, the first group of buyers who want to be the first
on the block to have the new product are known as early adopters.
Answer:
Top-of-mind awareness is when consumers indicate that they know the brand when the
name is presented to them.
Answer:
According to the American Marketing Association, marketing is the activity, set of
institutions, and processes for creating, capturing, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large.
Answer:
Betty is assessing the effect of her firm's marketing communications. She should
remember that the ultimate goal is to drive the receiver to action.
Answer:
Off-price retailers specialize in having a consistent line of merchandise available at
discount prices.
Answer:
Demographic profiles of customers provide an easily understood 'snapshot" of the
typical consumer in target markets.
Answer:
LinkedIn is useful for networking in the B2B marketplace, but Twitter is not typically
used.
Answer:
Glocalization refers to a global marketing strategy in which each of the four Ps is
customized for each country.
Answer:
Good marketing is not a random activity.
Answer:
Firms become value driven, in part, by focusing on the competition.
Answer:
Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is
considered a specialty product.
Answer:
Public service announcements (PSAs) typically focus on social marketing objectives.
Answer:
Retailers can gain valuable knowledge about their customers from the transaction
process and from
A. trade industry profiles.
B. store brand/private-label brand ratios.
C. omnichannel flow process.
D. the insights of store personnel.
E. end-of-aisle positioning studies.
Answer:
Which of the following is not one of the four general types of organizational buying
cultures?
A. autocratic
B. democratic
C. consultative
D. capitalist
E. consensus
Answer:
While ethical and legal issues are associated with all aspects of marketing, personal
selling presents unique issues because
A. salespeople tend to be unethical.
B. sales managers are the only people in most sales organizations who worry about
ethics.
C. salespeople interact directly with customers and are, therefore, more visible.
D. laws regulating personal selling are detailed, complex, and often mistakenly ignored.
E. customers tend to expect unethical behavior from salespeople.
Answer:
Which of the following is not one of the typical outlets used by retailers?
A. catalogs
B. the Internet
C. business-to-business requests for proposals (RFPs)
D. brick-and-mortar stores
E. restaurants and hotels
Answer:
Managers and sales experts agree that certain personal traits are necessary to be a
successful salesperson. Which of the following is not one of these traits?
A. being optimistic
B. being stubborn
C. being resilient
D. being empathetic
E. being self-motivated
Answer:
During the __________ phase of the strategic marketing planning process, marketers
utilize systems to check whether each potential ethical issue raised in earlier phases was
addressed.
A. implementation
B. control
C. planning
D. assessment
E. social responsibility
Answer:
Jordan directs her salespeople to increase the company's share of wallet. Jordan is
directing her salespeople to
A. focus on increasing sales to their best customers.
B. focus on male consumers, and not female consumers.
C. sell more store brands and fewer private-label products.
D. become omnichannel salespeople.
E. expand retailing elasticity.
Answer:
From a firm's perspective, the biggest advantage of RFID is
A. it enables the firm to track an item from the moment it was manufactured.
B. it tells the firm who is buying the product and how it is being used.
C. it provides demographic information on the consumer for marketing use.
D. it is less expensive to use than other forms of marketing research.
E. it eliminates the need for communicating with the supply chain.
Answer:
When a pharmaceutical company develops a new medication, it typically applies for a
patent in order to prevent competitors from developing copycat products for several
years. Pharmaceutical companies apply for patents to establish
A. an operational excellence macro strategy.
B. a market penetration growth strategy.
C. a sustainable competitive advantage.
D. an efficient supply chain.
E. product efficiency.
Answer:
Walmart is known for its efficient logistical systems. Every time consumers buy
something, that purchase is recorded and sent to company headquarters, where it is used
to generate reorders to vendors. In addition, customers' billions of purchases are
analyzed to uncover patterns of consumers' purchasing behavior. This is an example of
A. data isolation.
B. data mining.
C. secondary data collection.
D. sentiment mining.
E. qualitative research.
Answer:
Sharon knew that her established customers liked her product much better than her
competitor's. She was planning to expand into new markets, and she was considering
pricing. She was leaning toward charging a higher price than competitors to help
demonstrate that hers was a high-quality product. Sharon was considering
A. a top of market strategy.
B. the value of quality.
C. advantageous pricing.
D. premium pricing.
E. differential pricing.
Answer:
Marketers in the United States are paying increasing attention to ethnic groups because
A. they represent a majority of the population in nonurban areas of the country.
B. approximately 80 percent of all population growth in the next 20 years is expected to
come from minority groups.
C. they are more susceptible to marketing messages.
D. government subsidies assist marketers attempting to communicate value to these
groups.
E. country culture is replacing regional culture as a key marketing consideration.
Answer:
One of the difficulties in measuring the effectiveness of IMC efforts is the __________,
where consumers do not act immediately after receiving a marketing communication.
A. decoding decomposition effect
B. lagged effect
C. noncommittal effect
D. viral effect
E. click-through delay
Answer:
Advertising slogans such as "Don't text and drive" and "Buy flood insurance before it is
too late" are examples of ads designed to
A. provide information.
B. remind consumers.
C. recruit employees.
D. persuade consumers to take action.
E. generate goodwill.
Answer:
__________ is any interference in the communication process.
A. Translation
B. Looping
C. Excessive reach
D. Noise
E. Feedback
Answer:
Marketers with luxury brands use brand extension cautiously in order to avoid
A. brand licensing fees.
B. exclusive co-branding arrangements.
C. diluting the core brand.
D. private-label branding disputes.
E. product line extension limitations.
Answer:
Which of the following brand strategies is being used when the local ice cream shop
decides to add a new flavor to its menu?
A. a line extension
B. a brand extension
C. a copycat brand
D. a premium brand
E. a multi-brand
Answer:
When Karen realized her dog had fleas, Karen was faced with
A. a social-perceptual incongruence.
B. a psychological need.
C. a cognitive learning failure.
D. a universal shopping need.
E. an unsatisfied need.
Answer:
Golden Years Vitamin Corporation targets consumers living in Florida who are over age
65. Golden Years is using __________ segmentation.
A. benefit
B. self-actualization
C. psychographic
D. loyalty
E. geodemographic
Answer:
One of the advantages of personal selling over other types of marketing communication
is that
A. salespeople can build strong relationships with customers.
B. personal selling almost always costs less than other marketing communication
alternatives.
C. personal selling has greater reach than advertising.
D. cold calling is easier than direct mail advertising.
E. personal selling requires less training than other types of selling.
Answer:
One of the greatest constraints faced by store-based retailersand one that the Internet
channel can addressis
A. price competition.
B. the amount of merchandise that can be carried in a physical store.
C. competition from other retailers.
D. common zoning restrictions limiting the kinds of merchandise that can be offered for
sale.
E. interactive customer service.
Answer:
A university using benefit segmentation and targeting students who want to get a degree
quickly while still working full-time would most likely focus on
A. providing classes at convenient times and offering online courses.
B. discount pricing for students taking more than twelve credit hours.
C. the higher average salaries earned by college graduates.
D. the great variety of classes offered.
E. the number of Nobel Prize winners on the faculty.
Answer:
Typical demographic data include all of the following except
A. gender.
B. income.
C. race.
D. education.
E. language differences.
Answer:
When travelers are bumped from overbooked flights, they are frequently offered
vouchers good for future travel. The dollar value of the voucher is the airline's estimate
of
A. perishable value.
B. distributive fairness.
C. empowerment.
D. procedural justice.
E. the size of the knowledge gap.
Answer:
A university that has separate graduate and undergraduate admission offices recognizes
that these are distinct
A. brand associations.
B. product lines.
C. product mixes.
D. brands.
E. augmented services.
Answer:
Several months ago, Veronica took over the sales territory managed by a very
successful salesperson. Veronica should use __________ as a first source of leads.
A. current customers
B. chamber of commerce gatherings
C. trade shows
D. census data
E. competitor databases
Answer:
One key feature of the value of a strong brand is that
A. it can protect the firm from competition.
B. it no longer needs to be supported by advertising and promotion.
C. if it becomes a generic name, the brand is worth even more.
D. it cannot be successfully imitated by a retailer's own brand.
E. competitors will typically abandon a sector altogether rather than compete.
Answer:
David manages a Shoney's restaurant. He is considering staying open later in the
evening. For David, the variable costs associated with staying open longer hours will
include all of the following except
A. ingredients used in preparing food.
B. hours worked by cooks.
C. rent on the restaurant building.
D. energy costs.
E. hours worked by the servers.
Answer:
A __________ growth strategy employs the existing marketing offering to reach new
market segments.
A. product proliferation
B. market development
C. market penetration
D. diversification
E. product development
Answer:
Marketers know that, compared to high school graduates who are working full time,
college students
A. will earn less over their working lifetime.
B. spend their disposable income differently.
C. are less likely to buy textbooks.
D. have almost identical spending patterns.
E. are more likely to drink beer and less likely to drink wine.
Answer:
As a promotion technique, samples are often used for new products when __________
will influence the diffusion of the product.
A. relative advantage
B. compatibility
C. observability
D. complexity
E. trialability
Answer:
Which of the following statements best describes global expansion through a strategic
alliance?
A. In a strategic alliance, a firm enters a new market and forms a new company with
shared ownership, profits, and control.
B. A strategic alliance is a relationship in which two firms collaborate on a business
opportunity, but do not invest in each other.
C. In a strategic alliance, two firms enter into a franchise agreement.
D. In a strategic alliance, a firm in one country sends products to a firm in another
country.
E. In a strategic alliance, a firm signs a trade agreement with a firm in another country.
Answer:
Often political candidates position themselves as "outsiders," not part of the
establishment. These candidates assume that voters have a negative attitude toward
incumbent politicians (i.e., those currently in office). Describe three components of
attitudes voters might have toward incumbent politicians.
Answer:
How could a marketer adapt a product to appeal to international markets? Give a
specific example.
Answer:
List the steps in the AIDA model and explain why each step is important to marketers.
Answer:
Kim's Kayak Tours identified active retirees living in the retirement community nearby
as one of her potential target markets. She knows she can tailor her service and
marketing message to the schedules and interests of this audience. How will Kim
evaluate the attractiveness of this segment?
Answer:
Using examples, describe the difference between impulse buying and habitual decision
making.
Answer:
Why do the authors state that "using profit as the sole guiding light for corporate
action" can harm the company?
Answer:
Why do marketers need to create an advertising plan before they initiate a campaign?
Answer:
Write a value proposition for your favorite restaurant.
Answer:
Jae is adapting the new routing software his company bought for its distribution center.
What factors will he likely include in the software program in order to maximize
distribution efficiency?
Answer:
Two of the characteristics of this generational cohort that distinguishes them from Baby
Boomers are that they were the first generation to grow up with both parents working,
and that half of them have divorced parents. They are the first generation of latchkey
children. Which generational cohort has these characteristics?
Answer:
How does the exchange of ideas provide value, and what is the role of marketing in this
process? Explain this using the example in the text of groups marketing bicycle
helmets, or choose your own scenario.
Answer:
Russia scores notably high uncertainty avoidance and power distance scores on
Hofstede's cultural dimensions graph. What does this mean to someone looking to
market a product in that country?
Answer:
Explain the process of customer relationship management (CRM) in terms of how it
impacts marketing activities.
Answer:
What is greenwashing and why do consumers need to be aware of it?
Answer:
Why do many people think advertising and marketing are synonymous?
Answer:
Kim and David's Kayak Tours offers a variety of coastal kayaking trips. When they
started their business, they experimented with advertising but were disappointed with
the results. A friend has suggested using sales promotions instead. What are their sales
promotion options? Which would have the best potential for success, and why?
Answer:
Once a company has decided to pursue a global market, it will explore the four Ps. List
the potential global product strategies a firm can employ.
Answer:
Why does loyalty segmentation make so much sense? Describe how a local pizza
restaurant could employ loyalty segmentation.
Answer:
