The _____ is the product dimension of service, including decisions about the essential
concept of the service, the range of services provided, and the quality and level of the
service.
a. service strategy
b. service package
c. service recovery
d. service bundling
e. service loyalty
Common challenges for marketers using the marketing strategy center to manage across
business functions include which of the following?
a. The fostering of a shared appreciation of other functional units.
b. Minimization of interdepartmental conflict.
c. Elimination of interdependencies between functional units.
d. All of the above.
e. Only a and b.
Lansing Motor Works produces a line of precision motors. Based on feedback from the
sales force, management has learned that one of their new motors is especially
well-suited to high-speed packaging systems. The new motor requires less maintenance
and has a longer useful life than competing offerings. Lansing Motor Works is now
concentrating on this segment. This provides an illustration of segmentation on the
basis of:
a. usage rate.
b. purchasing strategy.
c. size of firm.
d. value-in-use.
e. organizational innovativeness.
Which of the following represent clues or techniques for identifying powerful buying
center members?
a. Isolating the personal stakeholders.
b. Following the information flows.
c. Identifying the experts.
d. All of the above.
e. None of the above.
The particular skills, abilities, and processes that an organization has developed to
manage close customer relationships are referred to as:
a. the customer-linking capability.
b. channel management.
c. derived demand.
d. the market-sensing capability.
e. the extended enterprise.
The main factor stimulating the megatrend of sustainability is
a. Intensified global competition for natural resources
b. Escalating public concern
c. Escalating government concern
d. Natural resource depletion
e. All of the above
Successful pricing strategies are:
a. value based.
b. proactive.
c. profit-driven.
d. all of the above.
e. only a and c.
Research suggest that over _____ % of joint ventures are disbanded or fall short of
expectations.
a. 10
b. 20
c. 30
d. 40
e. 50
The Thompson Spring Company has developed a separate marketing strategy for each
of the industries that uses its products. These industries include makers of machine
tools, bicycles, surgical devices, telephones, and missile systems. This provides an
illustration of segmentation on the basis of:
a. usage rate.
b. product application.
c. type of buying situation.
d. the structure of procurement.
e. key decision criteria.
Using the behavior-based measurement approach to salesperson performance, sales
managers:
a. monitor and direct the activities of salespeople.
b. use subjective measures of salesperson behavior.
c. emphasize a compensation system with a large fixed component.
d. consider the knowledge and presentation skills of the salesperson.
e. all of the above
Motorola reduced the price of the electronic engine control that it sells to Ford by 10
percent and experienced a 15 percent increase in quantity demanded. This suggests that
Ford’s price elasticity of demand is:
a. elastic.
b. inelastic.
c. neither elastic nor inelastic.
d. insensitive to price changes.
e. none of the above.
Which of the following statements concerning business market segmentation is(are)
true?
a. The decision to enter a particular market segment carries with it significant long-term
resource commitments for the industrial firm.
b. In evaluating alternative bases for segmentation, the marketer is attempting to
identify good predictors of differences in buyer behavior.
c. Segmentation decisions can be reversed more easily in the business market than in
the consumer market.
d. all of the above
e. (a) and (b) only
When a manager is in charge of intangible and heterogeneous services, he/she should
develop marketing strategies that:
a. emphasize word-of-mouth communication.
b. provide tangible evidence.
c. employ value pricing.
d. all of the above.
e. (b) and (c) only.
The business market can be segmented on several bases, broadly classified into two
major categories:
a. economic and demographic.
b. macro and micro.
c. top-down and bottom-up.
d. concentration and coverage.
e. organizational and end-use application.
Which of the following channels would give the business marketer the greatest amount
of channel control?
a. a channel consisting of merchant wholesalers
b. a channel composed of industrial distributors
c. a channel consisting of both manufacturers’ reps and distributors
d. a channel composed of jobbers
e. a channel consisting of manufacturers’ reps
What percentage of U.S. Gross Domestic Product is sold through indirect distribution
channels?
a. 10%
b. 25%
c. 40%
d. 60%
e. 80%
In hypercompetitive environments,
a. leading-edge firms are reluctant to lower prices because they enjoy attractive
margins.
b. successful firms sustain quality but drive to the next lower price point to enjoy a
burst of volume and an expansion of market share.
c. successful firms are reluctant to disrupt the equilibrium of the market.
d. successful firms look for the first opportunity to raise prices.
e. both (a) and (c).
_____ are those that support a number of activities that cannot be objectively assigned
to a product on the basis of a direct physical relationship.
a. Indirect traceable costs
b. Attributable costs
c. General costs
d. none of the above.
Selective _____ is the tendency to accept communication messages consistent with
existing attitudes and beliefs.
a. exposure
b. attention
c. perception
d. retention
e. memory
The basic premise of his CBBE model is that the power of a brand lies in
a. What consumers have learned, felt, seen, and heard about the brand over time
b. The market share it commands
c. How the decision maker perceives the ultimate value of the item
d. None of the above
e. All of the above
Which of the following statements about major installations is true?
a. Personal selling or account management is the dominant promotional tool.
b. Initial price, distribution, and advertising play lesser roles.
c. Only economic factors matter as buying motives.
d. All of the above are true.
e. Only (a) and (b) are true.
When organizational buyers have well-defined criteria to apply to the purchase
decision, but are uncertain about which suppliers can best fit their needs, they are
operating in a stage of _____ problem solving.
a. cerebral
b. limited
c. selective
d. routinized
e. extended
Motorola introduced a new personal communicator priced at a significant premium over
competing models. Initially, Motorola will concentrate on the business user but the firm
plans to reduce the price later and capture a share of the consumer market. This policy
of beginning with a high price and then moving to a lower price is referred to as:
a. product differentiation.
b. market segmentation.
c. price administration.
d. time segmentation.
e. life cycle pricing.
The use of a product-family focus in planning should include which of the following?
a. Close interfunctional working relationships.
b. A short-term view of technology strategy.
c. A year-by-year commitment of resources.
d. All of the above.
e. Only b and c.
Development of the marketing mix is contingent upon the customer segment to be
served. How do customer service segments differ from product market segments?
a. Service segments are often narrower than product segments.
b. Service segmentation focuses on what business buyers need versus on what they
expect.
c. Service segments are often wider than product segments.
d. The demand patterns of each service segment are very similar.
e. none of the above
During the innovative firm’s monopoly period, a _____ is optimal if the demand curve
is stable over time (no diffusion) and production costs decline with accumulated
volume.
a. life cycle costing pricing policy
b. skimming policy
c. penetration policy
d. time segmentation policy
e. bid price policy
Which of the following are useful to business marketers trying to gauge competitive
responses to pricing?
a. Examining the cost structure and strategy of direct competitors.
b. Examination of annual reports and other public records.
c. Identifying which markets competitors deem as important.
d. All of the above.
e. Only (a) and (c).
Successful companies employ a high quality new product development process. Among
high performing firms,
a. the new product process was flexible-certain stages could be skipped in line with the
nature and risk of a particular project.
b. tough project Go/Kill decision points are included in the process and the Kill option
is actually used.
c. market and technical assessments are conducted before projects move into the
development phase.
d. all of the above.
e. (b) and (c) only.
Concerning international strategy, a firm that concentrates manufacturing and support
activities in one country but gives local marketing subsidiaries significant latitude in
each region of the world is following which type of international strategy?
a. a country-centered strategy
b. an export-based strategy
c. a purest global strategy
d. a segmented international strategy
e. a coordinated international strategy
Marketers who want to serve both consumer and business market sectors should:
a. develop a market oriented organizational plan.
b. become proficient in understanding customers.
c. become proficient in satisfying customers.
d. all of the above.
e. (a) and (b) only.
Concerning the classification of customers in the business market, General Motors is
a(n) ____ when purchasing a mainframe computer system from IBM, but is a(n) ____
when purchasing tires from Goodyear.
a. user; original equipment manufacturer (OEM)
b. user; distributor
c. original equipment manufacturer (OEM); user
d. user; upstream supplier
e. original equipment manufacturer (OEM); downstream supplier
The final, and critical, step for managing Business-to-Business advertising is:
a. integrating it with other business components.
b. formulating advertising objectives.
c. evaluating and selecting media.
d. evaluating the effectiveness of the campaign.
Which of the following statements concerning business market segmentation is(are)
false?
a. In selecting a market segment, the business marketer is also choosing a competitive
environment.
b. The cost of research increases if a microlevel of segmentation is required.
c. Compared to their consumer goods counterparts, business marketers can more readily
change segmentation strategies, shifting attention from one segment to another.
d. both (a) and (c)
On-going transactions in the business market where the customer and the supplier focus
only on the timely exchange of standard products at competitive prices could be
described as:
a. transactional exchange.
b. a partnership.
c. collaborative exchange.
d. a strategic alliance.
e. a joint venture.
A _____ represents a product or service that is not as good as currently available
alternatives, but that is typically simpler and less expensive.
a. sustaining innovation
b. disruptive innovation
c. a breakthrough innovation
d. None of the above.
Time series techniques are especially appropriate when management believes that sales
will behave differently in the future than they have in the past.
Recent research indicates that follow-up sales efforts generate higher sales productivity
when customers have already seen a company’s products at a trade show.
The four dimensions of a product market definition are customer function,
environmental, technological, and value-added system.
Manufacturers’ representatives and industrial distributors are both examples
of____________________channels.
Please identify the three main components of a strong customer-relating capability and
how each component helps develop a strong customer-relating capability. How does
customer-relating capability lead to a relationship advantage?
Answer:
n/a
A business marketer that uses industrial distributors will usually, as a matter of policy,
not utilize any manufacturers’ representatives.
Successful new product creation is a collective achievement that requires the energy
and commitment of multiple functions in the organization. Often, however, managers
who represent different functional areas hold sharply different views concerning the
course that product development should take. Discuss the source of this conflict.
Answer:
n/a
Visionaries make the bulk of technology purchases in organizations.
A purchasing manager could assume the roles of buyer, gatekeeper, and influencer in
the buying center.
The information needed for micro level segmentation in the business market can
usually be drawn from available secondary sources.
Custom-designed products are creates to meet the needs of one or a small group of
customers.
A finely-tuned market segmentation strategy is critical to success during the tornado
phase of the adoption life cycle.
In a collaborative exchange, the supply market dynamism would best be described as:
Process delegation services (PDS) represent those services where a manufacturer
performs specific processes on behalf of the customer.
Industrial firms lack the flexibility of their consumer-goods counterparts in moving into
and out of market segments.