The overabundance of information available on the Internet has made it more difficult
for consumers to compare product features and prices.
Supply chain management starts before physical distribution.
The indirect approach to assessing brand equity assesses the actual impact of brand
knowledge on consumer response to different aspects of marketing.
If a specific campaign does not break even in the short run, it will not be profitable in
the long run, even if we factor in customer lifetime value.
The fixed amount in a salesperson’s salary is primarily designed to stimulate and reward
efforts from salespeople.
A market segment consists of a group of consumers who share a similar set of needs
and wants.
Because of insincere firms jumping on the “green” bandwagon, consumers bring a
healthy skepticism to environmental claims, but they are also unwilling to sacrifice
product performance and quality.
The last step in the seven-step marketing segmentation process would be to develop a
marketing-mix strategy reflective of segment positioning strategies.
Capital items are long-lasting goods that facilitate developing or managing the finished
products.
The value proposition is stated in the price of a product and readily recognized by the
average consumer.
The production concept is one of the newest concepts in business.
Marketing communications in almost every medium and form have been on the rise,
and some consumers feel they are increasingly invasive.
To achieve integrated marketing, marketers need a variety of different marketing
activities that consistently reinforce the brand promise.
Business-to-consumer telemarketing is increasing.
Experiments call for selecting matched groups of subjects, subjecting them to different
treatments, controlling extraneous variables, and checking whether observed response
differences are statistically significant.
Brands in highly-differentiated product classes require heavy advertising to establish a
unique image.
The quality of services is independent of who provides them.
Market managers are staff people, with duties like those of a product manager.
Direct marketing has the ability to test different elements of an offer strategy under real
marketplace conditions.
PlanetFeedback.com is a website where consumers can post complaints and
compliments about products and services. This is an example of a government-related
public resource, which is one of the main ways marketers can research competitors’
product strengths and weaknesses online.
Out-of-pocket costs are what the customer spends on regular maintenance and repair
costs.
The lower price of generics is made possible by lower-cost labeling and packaging and
minimal advertising, and sometimes lower-quality ingredients.
Forward invention refers to reintroducing earlier product forms that are well adapted to
a foreign country’s needs.
Door-to-door workers in a political campaign use attitude to determine how much time
to spend with each voter.
A company should try to retain a customer only as long as the cost to discourage
defection is lower than the lost profit.
Persuasive advertising aims to create brand awareness and knowledge of new products
or new features of existing products.
An innovation’s rate of adoption depends in part on compatibility, or the degree to
which the benefits of use are observable or describable to others.
After a company has chosen a channel system, it must select, train, motivate, and
evaluate individual intermediaries for each channel.
Customer-perceived value is the perceived monetary value of all the purchases a
customer makes on an annual basis.
A marketer’s only concern is how best to create demand for a new product produced by
his/her company. Marketing has little value for society as a whole.
Customer profitability analysis is best conducted with the tools of an accounting
technique called activity-based costing.
If firms wish to maximize their market share, they should opt for market-skimming
pricing.
A profitable customer is a person, household, or company that over time yields a
revenue stream that exceeds by an acceptable amount the company’s cost stream of
attracting, selling, and servicing the customer.
Cocreation can help a company create favorable word of mouth.
Wholesalers exclude manufacturers and farmers because they are engaged primarily in
production, but include retailers, as they are selling to the end consumer.
A written document that summarizes what the marketer has learned about the
marketplace and indicates how the firm plans to reach its marketing objectives is called
a vision statement.
“What will we do if it happens?” is a question that managers typically ask while
conducting a scenario analysis.
Marketers should assume that buyers will pass through the classic hierarchy of
affective, cognitive, and behavioral stages, in that order.
Marketers have little information about buyer wants, preferences, and behavior.
The result of positioning is the successful creation of an employee-focused value
proposition.
________ are formal statements of expected product performance by the manufacturer.
A) Insurances
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets
The bundle of costs customers expect to incur in evaluating, obtaining, using, and
disposing of a market offering is called the ________.
A) activity-based cost
B) customer profitability analysis
C) total customer cost
D) product life-cycle cost
E) direct product profitability
In his article, “Innovative Imitation,” Theodore Levitt argues that ________.
A) imitation is wrong and should be punished
B) product imitation might be as profitable as product innovation
C) innovation is not possible without substantial imitation
D) innovation cannot begin unless dissatisfaction with imitation occurs
E) imitation should be against the law because of the intellectual property decision
involved
Pampers divides its market demographically on the basis of ________ into prenatal,
new baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
Which of the following modes of entry into a foreign market involves the maximum
commitment and risk?
A) franchising
B) direct investment
C) joint ventures
D) licensing
E) direct exporting
In a sprinkler approach to international expansion, ________.
A) countries are entered when competition is limited
B) countries are gradually entered sequentially
C) countries in which the supply of raw material is greatest are entered first
D) countries in which the demand for the product is greatest are entered first
E) many countries are entered simultaneously
The ________ in the value chain cover the sequence of bringing materials into the
business (inbound logistics), converting them into final products (operations), shipping
out final products (outbound logistics), marketing them (marketing and sales), and
servicing them (service).
A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities
Indirect exports have two advantages for a firm: less investment and less ________.
A) paperwork
B) intrusion by the government
C) risk
D) competition
E) customer suits
Joe is a computer service technician. People in his neighborhood usually depend on his
suggestions for purchasing any computer accessory or hardware, as they believe that he
has access to far more information on computer technology than the average consumer.
The neighbors are also aware that Joe has the required knowledge and background for
understanding the technical properties of the products. Within this context, Joe can be
called a(n) ________.
A) transactional leader
B) opinion leader
C) role model
D) gate-keeper
E) international marketer
To be useful, market segments must rate favorably on five key criteria. What are those
criteria?
The ________ defines which other brands a brand competes with and therefore which
brands should be the focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis
Which of the following is the correct order of stages that a buyer is assumed to pass
through, by the four classic response hierarchy models?
A) cognitive stageaffective stagebehavioral stage
B) affective stagecognitive stagebehavioral stage
C) behavioral stageaffective stagecognitive stage
D) cognitive stagebehavioral stageaffective stage
E) affective stagebehavioral stagecognitive stage
Which of the following is TRUE for activity-based costing (ABC)?
A) ABC considers the real costs associated with each product.
B) With ABC, the company can estimate all costs coming from the customer, less
revenue.
C) The tools of ABC can be used to conduct customer profitability analysis.
D) It identifies the costs of products and services based on the revenue they generate.
E) ABC allocates indirect costs in proportion to direct costs.
Which of the following wholesaler functions reduces inventory costs and risks to
suppliers and customers?
A) selling and promoting
B) warehousing
C) transportation
D) market information
E) assortment building
Amtex Electronics, a consumer products brand, frequently advertises its products inside
supermarkets and retail stores to promote the process of memory ________ and
stimulate purchase.
A) verification
B) retrieval
C) decoding
D) formation
E) augmentation
In which of the following cases is building a database worthwhile for the company?
A) where the product is a once-in-a-lifetime purchase
B) where customers show little loyalty to a brand
C) where the company has a long relationship with its customers
D) where the unit sale is very small
E) where the cost of gathering the information is high
________ includes planning the infrastructure to meet demand, then implementing and
controlling the physical flows of materials and final goods from points of origin to
points of use to meet customer requirements at a profit.
A) Market logistics
B) Containerization
C) Transportation
D) Nonstore retailing
E) Wholesaling
Which of the following is an example of a gap between management perception and the
service-quality specifications?
A) The college brochure showed state-of-the-art classrooms, but when the visitors
walked in, they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication
that something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more
concerned with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has
not specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but
must serve a minimum of 50 customers a day.
________ is the perceived monetary value of the bundle of economic, functional, and
psychological benefits customers expect from a given market offering.
A) Total customer cost
B) Total customer benefit
C) Total benefits of ownership
D) Value proposition
E) Value delivery system
In an attempt to create greater competition and growth opportunities, countries often
________.
A) increase trade barriers
B) protect industries
C) deregulate industries
D) encourage intermediation
E) reduce privatization
Randall Ringer and Michael Thibodeau see ________as based on deep metaphors that
connect to people’s memories, associations, and stories.
A) cultural branding
B) narrative branding
C) brand journalism
D) emotional branding
E) personal branding
Pegasus writes about its target market and demographics in the ________ section of its
marketing plan.
A) Executive summary
B) Implementation
C) Situation analysis
D) Strategy
E) Tactics
Which of the following statements about market segmentation is TRUE?
A) It involves changing the identity of a product, relative to the identity of competing
products, in the collective minds of the target market.
B) It is a process of evaluating each segment’s attractiveness and selecting one or more
to enter.
C) It is a process of creating an image or identity of the product in the minds of the
target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in
their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their
spending to achieve good results.
Joseph, a student of Columbia University, found that many of his classmates had
purchased an iPad tablet from Apple. Several months after the product’s launch,
realizing that the iPad was widely considered to be useful and that many students in the
United States had rated it highly, Joseph also decided to purchase an iPad. Which of the
following is the adopter group to which Joseph belongs?
A) early adopter
B) innovator
C) late majority
D) laggard
E) early majority
Which of the following is TRUE for customer-perceived value?
A) It is the perceived monetary value of the bundle of economic, functional, and
psychological benefits customers expect from a product.
B) It is the difference between the prospective customer’s evaluation of all the benefits
and all the costs of an offering and the perceived alternatives.
C) It is the perceived bundle of costs customers expect to incur in evaluating, obtaining,
using, and disposing of the given market offering.
D) It is the net present value of the stream of future profits expected over the customer’s
lifetime purchases.
E) It is the process of investigating the hierarchy of attributes consumers examine in
choosing a brand if they use phased decision strategies.
Which of the following is an advantage of inside selling?
A) Inside selling is less expensive than in-person selling.
B) Inside salespeople need to be in the office.
C) Inside salespeople spend more time selling to major accounts.
D) Inside salespeople focus on systems contracts.
E) Outside reps free inside salespeople to convert new major prospects.
Even if consumers form brand evaluations, two general factors can intervene between
the purchase intention and the purchase decision: one is unanticipated situational
factors; what is the other factor?
A) amount of purchasing power
B) attitudes of others
C) short-term memory capabilities
D) ability to return merchandise
E) the self-concept
A reorder point of 10 means ordering the product ________.
A) every 10 days
B) when stock falls to 10 units
C) every 10 units
D) when stock falls to 9 units
E) in batches of 10 items
Which of the following is most likely to be a valid reason for initiating a price increase?
A) anticipated cost inflation
B) excess plant capacity
C) a drive to dominate the market
D) a low-cost strategy
E) a market share objective
Which of the following is considered a wholesaler?
A) retailer
B) broker
C) producer
D) manufacturer
E) farmer
Creative strategies refer to the ________.
A) way marketers translate their messages into a specific communication
B) amount of creative content in a communications message
C) degree of innovation involved in the marketing of a product
D) novelty of a marketing communication
E) type of medium used to deliver a marketing communication
In countries where much retailing is in the hands of small, independent retailers,
________ remains an important function of intermediaries and helps perpetuate long
channels of distribution.
A) breaking bulk
B) jobbing
C) type of transportation
D) information sharing
E) reinforcing policies
In response to threats from such companies as Amazon.com, established manufacturers
and retailers became “brick-and-click” oriented by adding online services to their
existing offerings. This is known as ________.
A) reintermediation
B) disintermediation
C) retail transformation
D) e-collaboration
E) new-market synchronization
Frederick Herzberg developed a two-factor theory that distinguishes dissatisfiers and
satisfiers. How does Herzberg’s theory affect sellers’ marketing strategy?
What are the various risks that a company must consider before making a decision to
enter foreign markets?
What activities are involved in an integrated logistics system?
Karl Lipton is the marketing communications coordinator for a major electronics
manufacturer. He is assigned with charting out a communications strategy for a new
range of mobile phones developed by his company. How will Karl’s communications
strategy look over the course of the mobile phones’ life cycle?
Local marketing reflects a growing trend called grassroots marketing. What are the
characteristics of grassroots marketing?
Imagine that you are in charge of creating a distinctive store atmosphere with engaging
experiences for a clothing retailer. What can you do to make your store stand out in the
customer experience?
What is a reference group? Describe three different types of reference groups that can
have an impact on a consumer’s purchasing behavior.
What are the legal and social issues associated with advertising?
Identify the three main strategies for growing a company’s core, as noted by UK
marketing guru David Taylor, and provide an example for each.
To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers,
but wants to make sure that only members who are want to participate in activities join
the club. What can it do to ensure this?
List and briefly describe the four roles brands can play as part of a brand portfolio.
What are the basic elements of the marketing mix for a bank? What does the holistic
marketing concept broaden these elements to include?
Briefly describe the steps in the segmentation process.
Briefly describe the advantages of direct investment.
Describe the darker side of direct marketing solicitations.
Compare innovation through development of new-to-the-world products with the use of
incremental innovation.