Prestige pricing entails giving most of the value to the customer and retaining a small
margin.
When the rugby approach is used for new product development, the project teams
usually consist of members with different functional specializations and personalities.
Product-based promotions carry the most risk to the company.
Customers who fall under the hostage group are completely satisfied, have high loyalty,
and are very supportive of the company.
Product form competition involves battling for exactly the same customers in terms of
who they are and why they buy.
The price skimming strategy involves entering the market with a low initial price.
Pure awareness research that uses ________ recall gives the respondents a list from
which to choose brands.
A) unaided
B) aided
C) image evaluation
D) price
The probability of a customer being active or purchasing in a given time frame is
represented by:
A) retention rate.
B) P (Active).
C) win-back rate.
D) lifetime duration.
________ attributes are characteristics, the quality of which can be assessed only after
purchase or during consumption.
A) Experience
B) Search
C) Credence
D) Solution
The haircut you get in January is different from the haircut you get in June. Which
characteristic of services best describes this event?
A) intangibility
B) tangibility
C) nonstandardization
D) inseparability
The most common form of equilibrium used for solutions to game theory models is
called:
A) budget equilibrium.
B) nash equilibrium.
C) generic equilibrium.
D) cooperative equilibrium.
The stage where customers are becoming aware of the product and developing
knowledge of the products attributes and benefits is known as:
A) cognitive stage.
B) affective stage.
C) behavioral stage.
D) evaluation stage.
Which of the following types of qualitative research generates hypothesis for further
research, often quantitative?
A) phenomenological research
B) exploratory research
C) clinical research
D) behavioral research
________ and ________ are both highly loyal, but for different reasons.
A) Apostles; Hostages
B) Defectors; Mercenaries
C) Apostles; Defectors
D) Mercenaries; Hostages
Which of the following is an action-focused marketing event that attempts to get
customers to purchase within a limited period of time?
A) sales promotion
B) market penetration
C) marketing research
D) market segmentation
Which of the following statements is true regarding the early stages of the product life
cycle?
A) competition is generic
B) there are several competitors
C) products are positioned against a particular competitor
D) positioning decisions focus more on differentiating benefits and features
Which of the following methods is characterized by low levels of control in the data
collection process?
A) personal interviews
B) telephone interviews
C) mail surveys
D) focus group
Which of the following best defines perceptual mapping?
A) It compares different products on a quantitative basis.
B) It identifies the new features which should be introduced in the product.
C) It measures perceptions of competing products on a variety of attributes.
D) It measures the strengths of important attributes of products.
Which of the following statements is true about advertisements that are created using
emotional appeals?
A) Emotional appeals are rarely used for television advertisements.
B) It is difficult to use emotional appeals for those products which do not have any
tangible differential advantage.
C) Advertisements created using emotional appeals focus on imagery and symbols.
D) Advertisements created using emotional appeals have poor recall.
The estimate of market potential is best described as:
A) the number of current customers times the awareness ratio.
B) the number of current customers times the potential buying rate.
C) the number of potential customers times the potential buying rate.
D) the number of potential customers multiplied by the current buying rate.
Which of the following best describes a competitor with an ability to develop new
products?
A) a serious long-term threat in a market
B) an aggressive competitor
C) a cooperative competitor
D) a possible short-term threat in a market
Activities of channel management that require motivating customers to ask for your
brand by name are referred to as ________ activities.
A) vertical
B) push
C) horizontal
D) pull
Coke and bottled water brands continue to run sales promotions and compete strongly
on price. Clearly, the best solution would be for neither to promote which would jointly
maximize their profits. However, both are worried that if they stop promoting while the
other does not, they will suffer. As a result, the equilibrium is heavy promotion by both
and lower total profits. With reference to the game theory, this is an example of:
A) generic equilibrium.
B) prisoners dilemma game.
C) leader-follower game.
D) best strategy game.
Describe the five major pricing objectives discussed in the text.
List the conditions in which companies spend more on advertising and promotion
relative to sales.
List and briefly describe the five dimensions of service quality.
List and briefly describe the information required to assess the strengths and
weaknesses of a competitor.
List and briefly describe the four different methods of forecasting available.
List and briefly describe the main parts of a competitor analysis.
List and briefly describe the three kinds of sales organization structures.
List and briefly describe the four different levels of competition.
Do you think marketing can influence choices? Explain your answer.