Within a given hotel reputed for its superior service, one registration-desk employee
may be cheerful and efficient, whereas another may be irritable and slow. This
exemplifies service variability.
If the pull strategy is effective, then consumers will demand the product from channel
members, who will in turn demand it from producers.
Rational appeals are often used to urge people to support social causes, such as a
cleaner environment or helping the disadvantaged.
In the customer sales force structure, each salesperson is assigned to an exclusive
geographic area and sells the company’s full line of products or services to all
customers in that territory.
A break-even chart shows the total cost and total revenue expected at various sales
volume levels.
A brief glimpse of the latest LG phone on Grey’s Anatomy will be an example of an
advertainment.
To overcome price escalation when selling to less-affluent consumers in developing
countries, companies make simpler or smaller versions of their products that can be
sold at lower prices.
Marketing Web sites give consumers online places to congregate, socialize, and
exchange views and information.
To plan effective marketing strategies, the company must ignore its competitors.
Business promotions are used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople.
Which of the following is a marketing stimuli?
A) economic stimuli
B) price stimuli
C) technological stimuli
D) social stimuli
E) cultural stimuli
________ refers to purchasing through electronic connections between buyers and
sellers-usually online.
A) E-procurement
B) Inverted sourcing
C) Strategic sourcing
D) Outsourcing
E) Value chain management
The lighting in Jake’s Steak Restaurant is dim. The chairs are covered in leather and
each table is covered with a white linen cloth. The colors are limited to earth tones with
an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant
melody that seems familiar but unrecognizable. The smells are extraordinarily varied.
This is a description of the restaurant’s ________.
A) promotions
B) target
C) atmosphere
D) services mix
E) product assortment
The ________ market consists of schools, hospitals, nursing homes, prisons, and the
like that provide goods and services to people in their care.
A) government
B) consumer
C) wholesale
D) for-profit
E) institutional
Which of the following is used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople?
A) business plan
B) SWOT analysis
C) POP promotion
D) benchmarking
E) business promotion
In Vi±a del Mar, Chile, a large number of shops specialize in selling the same quality of
seafood products along the beach frequented by tourists. No individual shop dares
charge more than the going price without fearing loss of business to other shop-owners.
This exemplifies ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) the dominant firm model
Customer information is buried deep in the separate databases and records of different
company departments. To overcome such problems, many companies are now turning
to ________ to manage detailed information about individual customers.
A) neuromarketing
B) customer needs marketing
C) customer relationship management
D) ethnographic research
E) netnography research
A value marketer is most likely to ________.
A) offer consumers superior quality of goods and services at a very high price
B) offer consumers only those products that are associated with status and prestige
C) offer consumers low quality goods and services at very low prices
D) offer consumers a balanced combination of product quality at a fair price
E) deny discounts to consumers to increase profits
Daizy’s is a shop which carries only plus-size clothing. According to this information,
Daizy’s differentiates itself from its competitors based on ________.
A) service mix
B) pricing
C) product assortment
D) store atmosphere
E) distribution strategy
Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and
electric skillets-under the brand name First Generation. Alden attempts to target
newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden
attempts to engage in target costing. “In doing this,” says Milt Alden, the co-founder of
Alden Electronics, “we have better control over keeping price right in line with
customers.”
Alden manufactures a three-speed blender, its top seller, along with a five-speed
blender. The hand mixers are manufactured in two variants-a small handheld mixer with
two rotating beaters and another that comes with an optional stand and an attached
mixing bowl. Alden’s temperature-controlled skillets are manufactured in a single style
with three color options.
“Our product offerings are narrower,” Milt Alden added, “but our line workers know
each product like the back of their hands. This allows us to produce superior products
while holding our prices low.
Milt Alden says that his line workers “know each product like the back of their hands,”
and that this knowledge helps the company keep its prices low. This indicates that
Alden Manufacturing most likely benefits from the ________.
A) cost-plus pricing
B) value-added pricing
C) experience curve
D) inelastic demand in the market
E) derived demand in the market
Stores such as Walmart, Best Buy, PetSmart, David’s Bridal, and DSW Shoes use
________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more
Cybertron Inc. was accused of deceptive pricing. Which of the following explains what
most likely occurred?
A) Cybertron refused to advertise sale prices in the local paper.
B) Cybertron sold only defective products at the advertised price.
C) Cybertron advertised a large price reduction from a phony high retail list price.
D) Cybertron misrepresented a product’s features in an ad.
E) Cybertron used misleading labeling.
Smaller companies may assign specific executives to watch particular competitors. A
manager who used to work for a competitor might follow that competitor closely to see
what it does in the marketplace. Such a manager would be considered the company’s
________ on that competitor.
A) market leader
B) market challenger
C) surrogate consumer
D) in-house expert
E) laggard
In the ________, each salesperson is assigned to an exclusive geographic area and sells
the company’s full line of products or services to all customers in that region.
A) territorial sales force structure
B) digital marketing system
C) product sales force structure
D) geographical operations system
E) customer sales force structure
Which of the following is the most effective€but most expensive€way to introduce a
new product or create new excitement for an existing one?
A) coupons
B) sampling
C) cash refunds
D) cents-off deals
E) satisficing
Which term refers to looking at merchandise at a traditional store and then purchasing
the merchandise online?
A) pop-up shopping
B) wheel-of-retailing
C) off-price retailing
D) showrooming
E) wholesaling
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who were intrigued by the lifestyle of Shipshewana’s largest population-the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same.
Mary Miller decorated the shop’s display room with authentic Amish d©cor and
eventually hired three Amish friends to sew and embroider napkins and other textiles as
per customer requests. In addition, two women from the Amish community sought
permission from the Millers to display home-baked pastries and jellies on Tuesdays and
Wednesdays, when Shipshewana attracts swarms of visitors to its flea market on the
south edge of town. The Millers also hired four more people to help customers
throughout the purchasing process and to provide the required product related
information to the customers.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
Which of the following would be the most logical way for Indiana Wood to expand?
A) establishing an online presence
B) pursuing retail convergence
C) implementing RFID inventory tracking
D) establishing a community-gathering environment in the store
E) joining a producers’ cooperative
In the communication process, an actual HP printer/fax machine advertisement would
be considered ________.
A) encoding
B) decoding
C) the product
D) the message
E) the medium
Which of the following statements is true of the idea generation stage in the
new-product development process?
A) The purpose of idea generation is to reduce the number of ideas to the least possible
number.
B) Truly innovative companies rely exclusively on a single source for new-product
ideas.
C) Customers are the least important sources of new-product ideas.
D) Truly innovative companies develop extensive innovation networks that capture
ideas and inspiration from every possible source.
E) Truly innovative companies seldom rely on customers and the general public for
ideas.
Marketing stimuli consist of the four Ps. Which of the following is NOT one of these?
A) product
B) packaging
C) price
D) promotion
E) place
Retail stores can be classified in terms of several characteristics. Name four of them.
Explain price elasticity. What determines the elasticity of demand?
Why are profound changes in marketing communications creating both exciting and
scary times for marketing communicators?
Why have firms adopted sales force automation systems?
Discuss the need to understand competitors as well as customers through competitor
analysis.
A marketer’s fixed costs are $400,000. The variable cost is $16 per unit, and the price of
the product is $24 per unit. If the company wants to make a profit, how many units
must it sell and at what price?