Some brands have tapped into the hip-hop culture to market a brand in a modern
multicultural way, as Apple did with its iPod.
Electronic shelf labeling allows retailers to check inventory levels instantaneously.
“What will we do if it happens?” is a question that managers typically ask while
conducting a scenario analysis.
Position defense means occupying the most desirable market space in consumers’
minds, making the brand almost impregnable.
The value proposition is also known as the core positioning of the offering.
Most business buyers reject what is called systems buying from one seller.
Though the target audience can be profiled in terms of demographic, psychographic, or
behavioral segments, it is often useful to do so in terms of usage and loyalty.
A firm’s core competency has applications only in the specific market in which the firm
operates.
According to the research conducted by Jennifer Aaker, one of the five traits of a
product’s brand personality is its physical structure.
Aida decided to switch doctors after she had to wait two and a half hours at her
scheduled appointment to see her doctor. She experienced the ethical problem factor
that leads to customer switching behavior.
Marketing expenses and investments as inputs can be quantified only in the long run,
whereas the resulting outputs such as broader brand awareness, enhanced brand image,
greater customer loyalty, and improved new product prospects manifest themselves in
the short run.
________ can track customer satisfaction directly, measure repurchase intention and
also gauge a consumer’s willingness to recommend the company and brand to others.
A) Periodic surveys
B) Mystery shoppers
C) Customer loss rates
D) Customer focus statements
E) Sales summary reports
The most effective communications mix tool at later stages of the buying process is
________ because it is particularly effective at building buyer preference, conviction,
and action.
A) sales promotions
B) personal selling
C) advertising
D) direct and interactive marketing
E) events
The weighted number of exposures (WE) of an advertising message over a given
medium is given by ________.
A) WE = reach × frequency
B) WE = (reach × frequency) / impact
C) WE = reach × frequency × impact
D) WE = (reach + frequency) / impact
E) WE = frequency / reach
The last step in the value creation and delivery sequence is ________ the value where
the sales force, sales promotion, advertising, and other communication tools announce
and promote the product.
A) developing
B) positioning
C) communicating
D) reversing
E) researching
ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of
submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan
currency. As per the agreement, ROC must also spend a substantial amount of the
money it generates through this deal within the country. In accordance with the
contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the
following forms of countertrade?
A) descending bid
B) offset
C) barter
D) compensation deal
E) buyback arrangement
________ research is designed to capture cause-and-effect relationships by eliminating
competing explanations of the observed findings.
A) Experimental
B) Behavioral
C) Observational
D) Focus group
E) Descriptive
Which of the following statements accurately describes what demographers are calling
the “boom-boom effect”?
A) Consumers are demanding more “bang for their buck.”
B) Baby boomers still rule the marketplace.
C) Generation Y and their concern about environmental issues will dominate the market
in the future.
D) Products that appeal to 21-year-olds also appeal to baby boomers.
E) Companies must gain success quickly.
By 2010, only ________ percent of US households were traditional households.
A) 20
B) 25
C) 28
D) 31
E) 33
Which of the following is a major advantage of adding more channels for selling?
A) It helps the company increase its market coverage.
B) It helps the company reduce its fixed costs.
C) It reduces the likelihood of channel conflict.
D) It is the best strategy for selling low-involvement consumer products.
E) It results in economies of scale.
Which of the following will help a service provider overcome the limits imposed by the
inseparability of services?
A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process
Benz & Frendz Corp., a manufacturer of high end consumer durables, experienced
sluggish sales growth in most of its product categories during three consecutive quarters
of 2009. However, market analysis revealed that its competitors’ sales had also
slackened during this period. Analysts pointed out that when all firms are losing sales, it
is extremely important to adopt strategies that are aimed at retaining customers. This led
the firm to reduce operation costs while maintaining product quality. They also
revamped their marketing strategy to focus on the values created by their products.
Which of the following can be inferred from the strategies adopted by the firm?
A) The company was trying to protect its market share and continue to operate as a
market leader.
B) The company was focusing on geographical expansion.
C) The company was aiming to capture a new market segment.
D) The company was marketing its products amidst an economic downturn.
E) The company was focusing on market penetration.
A low market-penetration index indicates ________.
A) it will be expensive for the firms to attract the few remaining prospects
B) substantial growth potential for all firms
C) the rival firms try to capture greater market share by lowering their product price
D) the profit margins of the firms decline
E) the firms cannot raise demand substantially by raising its market expenditure
When first-mover advantage is crucial and a high degree of competitive intensity
prevails, the ________ approach is better.
A) waterfall
B) born global
C) rifle
D) sprinkler
E) franchisee
A scale that connects two bipolar words is called a ________.
A) dichotomous question
B) multiple-choice question
C) Likert scale
D) semantic differential
E) word association
Regular maintenance and repair costs are known as ________ costs.
A) service contract
B) out-of-pocket
C) fixed
D) facilitating services
E) value-augmentation
According to consumer-packaged goods companies, which of the following effects is
attributed to the heavy use of sales promotion?
A) increased brand loyalty
B) focus on long-run marketing planning
C) improved brand-quality image
D) increased price sensitivity
E) greater coupon redemption rates
Which of the following channel conflict resolution techniques is used only if everything
else proves ineffective?
A) legal recourse
B) mediation
C) arbitration
D) co-optation
E) superordinate goals
Of customers who register a complaint, ________.
A) all will do business with the company again because they are unwilling to dedicate
the effort required to find another vendor
B) none will do business with the company again
C) customers whose complaints are satisfactorily resolved are more likely to provide
publicity than those who are dissatisfied
D) the speed of resolution has no impact on the likelihood of repeat business
E) some will do business with the company again if their complaint is resolved
LifeTime Insurance screens its customers and tries to get unprofitable customers to buy
services from competitors. This is an example of ________.
A) trying to increase the retention rate for low-profit customers
B) terminating the relationship with low-profit customers
C) enhancing the growth potential of each customer through up-selling
D) increasing the longevity of the customer relationship
E) reducing the rate of customer defection
The prices of tickets to the opera vary depending on where the person would like to be
seated ‘” in the gallery or in the stalls. This is an example of ________ pricing.
A) channel
B) time
C) image
D) product-form
E) location
What percentage of total digital ad spending is accounted for by mobile?
A) 1 percent
B) 7 percent
C) 17 percent
D) 30 percent
E) 43 percent
What is the role of print media in advertising? What are the major advantages and
disadvantages associated with print advertising media?
Explain the concept of differentiated marketing.
Which type of questions allow salespeople to understand facts or explore the buyer’s
present state of affairs?
What are the different types of price discounts and allowances?
List the three premises on which Anderson’s long tail theory is based and the two
aspects of Internet shopping that support these premises.
HCN is a wholesaler that supplies consumer good products to a number of retailers.
HCN has witnessed the worrying trend of its competitors losing out on suppliers who
approach retailers directly. How can HCN strengthen its relationship with
manufacturers and prevent this?
Provide an example of brand revitalization. Evaluate its success and note any factors
that contributed to or possibly hurt its success.
What are the two basic advantages that a company’s marketers have in identifying
significant changes in the market?
An oil drilling company ordered a pumpjack for its operations. The pumpjack
manufacturing company not only set up the machine but also provided training to the
people who needed to use it. It also let the drilling company know that it would be
undertaking the maintenance and repair services for the pumpjack. What kind of a
service is the manufacturing company providing?
Explain total customer satisfaction.