A corporate vertical marketing system combines successive stages of production and
distribution under single ownership.
Discount stores usually stock leftover goods, overruns, and irregular merchandise, sold
at less than retail.
In the aftermath of a crippling recession, luxury for many has become more about style
and substance, combining personal pleasure and self-expression.
Points-of-parity are attributes or benefits consumers strongly associate with a brand and
believe that they could not find to the same extent with a competitive brand.
Willingness to change is an internal marketing metric.
The first step in conducting a marketing profitability analysis involves assigning
functional expenses to marketing entities.
With respect to the buying center, approvers are people who have the power to prevent
sellers or information from reaching members of the buying center.
Companies should use normal investment criteria to budget for new-product
developments.
With respect to assessing customer value, in conjoint analysis customers are asked to
rank their preference for alternative market offerings or concepts.
Sheth and Sisodia say accessibility is ripest for improvement because most companies
are either ineffectual or inefficient at developing it.
Retailer cooperatives allow nonmember retailers to buy through them and share the
profits.
In general, a company prefers to enter countries that have high market attractiveness
and high market risk, regardless of whether it possesses a competitive advantage.
Customer-perceived value is based on the difference between benefits the customer gets
and
costs he or she assumes for different choices.
A firm’s branding strategy is also called the brand architecture.
Good marketing plans are usually short and to the point.
The five brand personality traits identified by Jennifer Aaker are consistently observed
regardless of nationality or culture.
For a magazine, subscription renewal rate is a good measure of retention.
The customer relationship management process involves all the activities related to
receiving and approving orders, shipping the goods on time, and collecting payment.
A brand community can be a constant source of inspiration and feedback for product
improvements or innovations.
Which of the following is an example of focusing disproportionate effort on high-profit
customers?
A) In addition to bicycles, 2Wheels sells biking gear such as helmets, bottles, jackets
and other accessories.
B) 2Wheels has a club for its regular customers, organizing cycling events and parties
for them.
C) Though 2Wheels previously offered free delivery, it now charges for deliveries made
outside the city.
D) 2Wheels allows existing customers to upgrade to a newer model at less than the
sticker price by trading in their older model.
E) 2Wheels encourages customers to send in their suggestions for product
improvement.
Served market share ________.
A) expresses the company’s sales as a percentage of total market sales
B) is sales as a percentage of the total sales to the market
C) is market share in relationship to the largest competitor
D) is always smaller than overall market share
E) measures the relative contribution of different factors to a gap in sales performance
Optimal order quantities exist when the curves for the order-processing cost per unit
and inventory-carrying cost per unit ________.
A) are collinear
B) are diagonal to each other
C) intersect
D) are parallel to each other
E) equal zero
________ are unbranded, plainly packaged, less expensive versions of common
products such as spaghetti, paper towels, and canned peaches.
A) Common carriers
B) Shills
C) Generics
D) Private labels
E) Marques
The sales gap due to reduced volume is ________ percent.
A) 0.4
B) 2.5
C) 28.5
D) 63
E) 71.4
The Nielsen Company and IRI are examples of ________, or firms that gather
consumer and trade information which they sell for a fee.
A) customer marketing research firms
B) internal marketing insights departments
C) qualitative marketing intelligence agencies
D) syndicated-service research firms
E) specialty-line marketing research firms
Campbells is a newly established company that specializes in preparing healthy but
tasty food for children under the age of 5. It is incurring huge production costs,
nonexistent profits, and slow sales growth. The company is in the ________ phase of its
life cycle.
A) stagnancy
B) introduction
C) maturity
D) decline
E) growth
If a prospective client does not want to buy from you because she feels the price is too
high, you are facing an objection due to ________.
A) psychological resistance
B) logical resistance
C) apathy
D) relationship inertia
E) reactance
As the manager of an organization that is attempting to build a Marketing Information
System (MIS), you have been informed that an MIS is built upon three fundamental
information sources. The sources are ________, marketing intelligence activities, and
marketing research.
A) external records and documents
B) databases found on the Internet
C) consultant reports
D) internal company records
E) secondary data from government sources such as the Better Business Bureau
When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands,
Dayton Hudson reduced space for Estee Lauder products in its department stores in
response to the ________ conflict.
A) horizontal channel
B) multichannel
C) vertical channel
D) grid channel
E) end-customer
In order to map out the service process, the points of customer contact, and the evidence
of service from the customer’s point of view, service firms should develop a ________.
A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint
A consumer tells another consumer, “Every time I eat at Big Bill’s Steakhouse, I get
poor service.” Whether this is true or not, it is the consumer’s perception. This is an
example of consumers basing future predictions on the quickness and ease with which a
particular example of an outcome comes to mind. This scenario would be an illustration
of the ________ heuristic.
A) discrimination
B) differentiation
C) availability
D) screening
E) representativeness
Angela switched to a new hair stylist after getting a bad haircut from her previous
stylist. This is an example of which of the following factors leading to customer
switching behavior?
A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition
The Caesar Park Hotel generally caters to business customers during the week, but has
now decided to promote mini-vacation weekends for non-business customers as well.
What is the Caesar Park Hotel trying to do?
A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.
In a retailer cooperative, ________.
A) profits are equally divided among members
B) members plan their advertising jointly
C) nonmembers cannot buy through the co-op
D) members rely on distribution programming
E) members standardize their selling practices
Which of the following elements of the marketing communications mix consists of a
collection of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by consumers, or the trade?
A) advertising
B) public relations
C) sales promotion
D) events and experiences
E) personal selling
________ are a person’s enduring favorable or unfavorable evaluations, emotional
feelings, and action tendencies toward some object or idea.
A) Discriminations
B) Values
C) Beliefs
D) Feelings
E) Attitudes
________ call(s) for the producer to establish a schedule of discounts and allowances
that intermediaries see as equitable and sufficient.
A) Exclusive dealings
B) Mutual services
C) Territorial rights
D) Price policy
E) Tying agreements
The popular music talent show American Idol has been generally acknowledged as the
most profitable TV series in US history, in terms of advertising and merchandising
revenue. Major sponsors of the show include Coca-Cola, AT&T Wireless, and iTunes,
among others. Cups bearing the Coca-Cola logo were a prominent prop found on the
show’s judges’ tables. The show also urged viewers to vote for contestants using
AT&T’s sms service. Contestants were routinely shown rehearsing for their
performances with the help of Apple iPods. Which of the following advertising
practices is apparent in this example?
A) ambush advertising
B) product placement
C) angel dusting
D) co-branding
E) subliminal advertising
Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before
they are bought. This is known as the ________ aspect of services.
A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity
Which of the following does NOT contribute to the custo Brasil (“the cost of Brazil”)
for businesses?
A) Brazil had serious disputes with neighboring countries.
B) Brazil’s transportation costs are higher than other markets.
C) Unloading a container is twice as expensive in India and takes three times longer
than in China.
D) Strict and costly labor laws inspire an underground economy that takes urban jobs.
E) Crime and corruption are problems.
BEL is a small seller of specialized auto parts, while MES is a large seller of auto parts.
Both firms want to approach the same car company with a view to supplying parts to it.
How will their approaches differ?
Shoe retail chain Berry’s has noticed an increase in complaints about customer service
at its stores and is beginning to lose customers to competitors. The company needs to
identify the problems and rectify them. Give two methods Berry’s can use to discover
the problem.
Describe the six main service differentiators.
In planning its market offering, the marketer must address the five product levels of the
customer-value hierarchy. Describe the “customer-value hierarchy” and identify the five
levels of product contained within.
Bicycle store 2Wheels wants to maximize sales from each customer. The marketing
team suggests that 2Wheels uses cross-selling techniques. How can the company
implement this technique?
Compare and contrast the typical traditional organization chart for an organization
against the modern customer-oriented organization chart.
Define a category-management organization.
Give an example of a cognitive social marketing campaign.
Tide laundry detergent maintains the same market share it had 50 years ago because of
the sales contributions from its various line extensions. It can be said that Tide employs
a preemptive cannibalization strategy in generating line extensions. What does this
mean?
Outline three guidelines for correctly implementing a bundling strategy.