“Toughies” are old school buyers who pit sellers against one another.
Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and
individualistic.
Inseparability in the context of a service means that there is a provider-client interaction
involved as the provider is part of the service.
Customers usually have a lower price threshold below which prices signal inferior or
unacceptable quality, as well as an upper price threshold above which prices are
prohibitive and the product appears not worth the money.
Market demand for a product is the total volume that would be bought by a defined
customer group in a defined geographical area in a defined time period in a defined
marketing environment under a defined marketing program.
A fad is more predictable and durable than a trend.
The brand audit can be used to set strategic direction for the brand.
In the straight rebuy, “out-suppliers” try to get a small order and then enlarge their
purchase share over time.
A responsive marketer looks ahead to needs customers may have in the near future.
The principle of congruity implies that communicators can use their good image to
reduce some negative feelings toward a brand but in the process might lose some
esteem with the audience.
Reach of an advertising message is most important when launching new products,
flanker brands, extensions of well-known brands, or infrequently purchased brands.
As a market-follower strategy, an imitator duplicates the leader’s product and packages
and sells it on the black market or through disreputable dealers.
Attracting a new customer costs far more than retaining an existing one.
After a company has chosen a channel system, it must select, train, motivate, and
evaluate individual intermediaries for each channel.
Of the time US consumers spend with all media, almost half is spent online.
A firm employing a focus strategy concentrates on achieving superior performance in
an important customer benefit area valued by a large part of the market.
________ are products such as Kiehl’s skin care and Kendall-Jackson wines that are
priced between average middle-market and superpremium Old Luxury brands and are
also based on emotions.
A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods
Deducting the desired profit margin from the price at which a product will sell, given its
appeal and competitors’ prices, is known as ________.
A) overhead costing
B) target costing
C) activity-based costing
D) benefit analysis
E) estimate costing
Which of the following criteria relates to consumers seeing the brand association as
distinctive and superior to relevant competitors?
A) desirability
B) differentiability
C) believability
D) deliverability
E) deviance
One of the measures of online word of mouth at DuPont was the effort’s ________, or
how fast it spread.
A) authority
B) speed
C) relevance
D) scale
E) sustainability
Which of the following statements is true of marketing plans?
A) They can be independently developed without worrying about other functional areas.
B) They provide direction and focus for a brand, product, or company.
C) They are usually profit-oriented.
D) They are of limited use to nonprofit organizations.
E) They are typically five-year plans and they lay out the strategies required to achieve
targets in those five years.
As part of an antismoking crusade, the American Legacy Foundation hires teens as the
“Truth Squad” to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The
American Legacy Foundation is using ________ to reach Generation Y.
A) computer games
B) street teams
C) unconventional sports
D) online buzz
E) videos
Which of the following is true for direct product profitability?
A) It is highly correlated with the gross margin on a product.
B) It is negligible compared to the gross margin on a product.
C) It bears little relation to the gross margin on a product.
D) It is significantly lower than the gross margin on a product.
E) It is exactly the same as the gross margin on a product.
After Olay entered and took over the Indian market with its anti-aging lotion, Ponds
invested heavily in a similar product which used only natural ingredients. This is an
example of a ________ defense.
A) position
B) flank
C) counteroffensive
D) contraction
E) mobile
Which of the following is an example of a zero-level channel?
A) A company takes online orders from customers and ships the products to them.
B) An organization uses a combination of direct salespeople and sales agencies to
increase sales.
C) A company sells its products through wholesalers and retailers.
D) A company sells its products through chains of supermarkets and other large sellers.
E) A large company forms alliances with smaller companies to increase sales coverage.
In which of the following types of tests is a picture presented and respondents are asked
to make up a story about what they think is happening or may happen in the picture?
A) semantic differential test
B) word association test
C) story completion test
D) thematic apperception test
E) picture test
M-commerce refers to ________.
A) conducting business using mobile channels
B) the use of mass media communications to attract customers
C) providing mobile and on-site services to customers
D) the use of a specific medium to communicate with prospects
E) using the Internet as a medium for doing business
Timken achieved record revenue despite a recession by ________.
A) shifting attention into heavy processing, aerospace and defense industries
B) shifting attention into the auto industry
C) lowering prices on bearings for a tractor manufacturer’s medium-sized tractors
D) avoiding sales of high priced bearings for large tractors
E) all of the above
Which of the following is an example of enhancing the growth potential of each
customer through cross-selling?
A) In addition to bicycles, 2Wheels stocks 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.
A question that respondents can answer in an almost unlimited number of ways is called
a ________ question.
A) structured
B) closed-end
C) completely unstructured
D) dichotomous
E) multiple choice
A salesperson performing over-the-counter sales in a medical store can be referred to as
a(n) ________.
A) order taker
B) demand creator
C) solution vendor
D) phisher
E) missionary
As a marketing practice, monitoring involves ________.
A) designing the organization and setting up processes to respond quickly to changes in
the environment
B) becoming more accountable by measuring, analyzing, and documenting the effects
of marketing actions
C) tracking what is said online and elsewhere and studying customers, competitors, and
others to improve business practices
D) determining the most profitable businesses and customers and expending greater
organizational resources to capitalize on them
E) factoring the interests of customers, employees, shareholders, and other stakeholders
into the activities of the enterprise
Stacey wants to use a highly relevant, engaging, and implicit communications mix
mode to use a ‘soft sell” approach for her new makeup line. The communications mix
mode that has these characteristics is ________.
A) sales promotions
B) events and experiences
C) advertising
D) direct and interactive marketing
E) personal selling
Which of the following channel functions constitute only a backward flow?
A) movement of physical goods
B) placing orders with manufacturers
C) persuasive communication
D) storage of physical goods
E) overseeing actual transfer of ownership
What are the various functions performed by members of a marketing channel? Provide
examples.
In the customer support center where Carl works, employees are taught to make
conversation to put customers at ease. As customers don’t like being kept waiting, they
must also try to minimize the time that customers spend waiting for service. Thus, when
there are a number of customers lined up, Carl usually has to decide whether to answer
a customer’s questions in detail or move on quickly to the next customer. The firm’s
standards are not clear on how they want him to perform. When asked, his boss
answers, “You make the decision.” This is an example of which service-quality gap?
What is a marketing intelligence system? How can marketing intelligence data be
collected?
What is mental accounting? What, according to Thaler, are the core principles on which
mental accounting is based? Explain with examples.
Fingerpainted organizes art camps and craft activities for children. The company has
noticed that demand is highest during summer vacations and drops during the year.
What can Fingerpainted do to attract customers at other times of year?