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For market skimming to be successful, the cost of producing a smaller quantity of
goods should not be higher than the prices charged.
Customers located close to a firm are less likely to benefit from FOB-origin pricing
than customers located further away.
Sense-of-mission marketing means that the company should define its mission in broad
social terms rather than narrow product terms.
In segmented pricing, the difference in prices is based on differences in costs.
The most obvious advantages that Internet-based survey research offers over mail and
personal interviewing approaches are high speed and low costs.
Buzz marketing involves cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities.
The microenvironment consists of larger societal forces that affect a company, such as
demographic, economic, political, and cultural forces.
According to Maslow's hierarchy of needs theory, when the most important need is
satisfied, it will stop being a motivator, and the person will then try to satisfy the next
most important need.
The aim of the entire value delivery network is to serve target customers and create
strong relationships with them.
A mission statement is a document embodying an organization's short-term goals.
Prices have a direct impact on a firm's bottom line.
Sales assistants confirm appointments, follow up on deliveries, and answer customers'
questions when outside salespeople cannot be reached.
The message execution style of personality symbol involves creating a character that
represents the product.
Opinion leaders are also referred to as ________.
A) influentials
B) lower uppers
C) innovators
D) laggards
E) surrogate consumers
According to the five-step model of the marketing process, a company should
________ before designing a customer-driven marketing strategy.
A) determine how to deliver superior value to customers
B) build profitable relationships with customers
C) use customer relationship management to create full partnerships with key customers
D) understand the marketplace and customer needs and wants
E) construct an integrated marketing program
Sanguine Services is a small company that uses a marketing strategy in which its
limited resources are employed to target a large share of two small market segments.
Sanguine most likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
The two major citizen movements to keep businesses in line are environmentalism and
________.
A) consumerism
B) protectionism
C) liberalism
D) capitalism
E) materialism
In a(n) ________, new products and marketing tactics are tested among specifically
identified groups of customers and stores.
A) controlled test market
B) simulated test market
C) standard test market
D) systematic sample
E) accidental sample
Brad works with a reputed retailer and leads a team that collects market information
from a wide variety of sources ranging from marketing research studies to monitoring
online conversations where consumers discuss Brad's firm or its products. Brad's team
uses this information to arrive at a better understanding of consumer behavior and their
buying motives. This, in turn, allows Brad's firm to successfully generate more value
for consumers. Brad leads the ________ team.
A) product development
B) strategy implementation
C) human resource
D) customer relationship management
E) customer insights
Boson Corp. is introducing consumers to its new car with the help of an advertisement
campaign. This introductory campaign most likely aims to affect the ________ stage of
buyer-readiness.
A) liking
B) awareness
C) preference
D) insistence
E) conviction
Which of the following is an example of a raw material exporting economy?
A) Sweden
B) Russia
C) the United Kingdom
D) Chile
E) Brazil
Wilma Roberts is conducting research to determine consumers' personal grooming
habits. Because of the personal nature of the survey questions involved, Wilma wants to
select the contact method that is most likely to encourage respondents to answer
honestly and that will allow her to easily collect large amounts of data. Which of the
following is best suited to meet Wilma's requirements?
A) mail questionnaires
B) telephone interviews
C) individual interviews
D) focus group interviews
E) immersion group discussions
Which of the following is an advantage of using an internal database?
A) Data always remains current in internal databases.
B) Highly sophisticated equipment and techniques are not required for maintaining
internal databases.
C) Internal databases can be accessed more quickly and cheaply than other information
sources.
D) Internal databases require less maintenance efforts.
E) Information obtained from internal databases is almost always sufficient for making
marketing decisions.
________ calls for dividing the market into regions, states, counties, cities, or even
neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation
The first step in designing support services is to ________.
A) add new services that will both delight customers and yield profits to the company
B) closely observe the product and pricing strategies of consumers
C) survey customers to assess the value of current services and obtain ideas for new
ones
D) prevent brand dilution
E) encourage customers to try new products
Why do firms have difficulty accessing potential market areas in developing countries,
such as China and India?
A) inadequate distribution systems
B) anti-globalization efforts
C) highly centralized rural markets
D) limited manpower
E) high operating costs
Mary Conti, a sales manager at National Computer Training, wants to evaluate the
performance of her sales force in the New England territory. Which of the following
would Mary most likely use?
A) SWOT analysis
B) breakeven analysis
C) sales forecast
D) expense reports
E) BCG matrix
Which form of geographic pricing is a company using when it charges the same rate to
ship a product anywhere in the United States?
A) FOB-origin pricing
B) psychological pricing
C) zone pricing
D) uniform-delivered pricing
E) basing-point pricing
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy
truck industry. Although Reliable Tools only has 15 customers, the company is the sole
supplier of hub and axle components to those customers. Monthly sales at Reliable
Tools are approximately $1 million. "You might say we have all our eggs in one
basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but
large accounts. Ninety-five percent of Reliable Tools' customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively
short. However, given the nature of the industry, time spent with each customer is
crucial.
Which of the following is the first step in the personal selling process?
A) handling objections
B) follow-up
C) presentation and demonstration
D) preapproach
E) prospecting and qualifying
________ marketing is more suited for uniform products, such as grapefruit or steel.
A) Niche
B) Undifferentiated
C) One-to-one
D) Trigger-based
E) Local
Which of the following situations is expected to enhance the use of targeted advertising
messages by marketers?
A) increase in derived demand in the market
B) increase in ethnic populations
C) rising global inflation rates
D) inadequate quality control
E) low advertising budgets
Using a(n) ________ strategy, the producer directs its marketing activities toward final
consumers to induce them to buy the product.
A) pull
B) blitz
C) push
D) buzz
E) pulse
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered
vacuum cleaner. But the concept was practical and the technology used in the vacuum
was the same as that used in many electronic toys. After setting up a demonstration
booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea
would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such
as how much they would pay for the vacuum, what colors they would prefer, and why
they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory
nodes along the edges. After being charged in the sunlight, the vacuum could run for 7
hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into
table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the
objects in various directions. This is the same type of technology used in the
manufacture of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go
consumers who lead busy lives. The price would be above average but would likely be
reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and
several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will
notice it, even if they don't buy it right away."
Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is
designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.
A) product placement
B) product concept
C) product image
D) product idea
E) virtual product
Why do businesses use cash discounts when they are in essence losing some money on
the sale?
What is the goal of training salespeople?
How are specialty products distributed?
Discuss the four evolving company orientations. Which orientation is considered most
successful and why?
How do influencers contribute to the purchase decision process?
Evaluate how public policy affects distribution decisions.
How do Internet consumers differ from traditional offline consumers?
Explain how the creation of the National Do Not Call Registry may have helped
telemarketers more than it hurt them.
Briefly describe the process of value-based pricing.
Explain the methods of evaluating the performance of a sales force. Why is the
evaluation of a company's sales force considered necessary?
