Price-setting logic must be modified when the product is part of a product mix.
Doritos brand’s “Crash the Super Bowl” contest resulted in a healthy uptick in Twitter,
Facebook, and other social media activity.
All the response hierarchy models assume that a buyer passes through affective,
cognitive, and behavioral stages, in that order.
The supply-side measurement method focuses on potential exposure to a brand by
assessing the extent of media coverage, and the demand-side method focuses on
exposure reported by consumers.
The basis of cohort segmentation is that the experiences of key defining moments
during the time when an individual becomes an adult can influence his or her values,
preferences, and buying behaviors for the rest of his or her life.
Psychological discounting involves setting an artificially high price and then offering
the product at substantial savings.
A company seeking to expand the number of existing products sold to its current
markets, would be using a “market-penetration strategy.”
Marketing communications allow companies to link their brands to other people,
places, events, brands, experiences, feelings, and things.
Product adaptation not only involves altering the product to meet local preferences, but
also calls for a change in the communication strategy.
Situation questions focus on the problems, difficulties, and dissatisfaction a buyer might
be experiencing with the existing situation.
A person who has a bad customer experience is more likely to talk about it, but
someone who has a good experience will talk to more people.
Brands in highly differentiated product classes require heavy advertising to establish a
unique image.
Marketing channel functions such as storage and movement and communications
constitute a backward flow of activities.
One of the ways a company like Caterpillar could increase the customer-perceived
value of an offer, relative to a competitor like Komatsu, is to increase the total customer
benefit by improving psychological benefits of its product, services, people, and/or
image.
An alternate way to increase sales volume is to expand the number of users by
converting nonusers.
A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels,
and shampoos to detergents. It is a market leader in the United States and is planning to
tap the immense potential in the emerging markets. Market research, however, indicates
that the Brazilian culture and society are substantially different from their American
counterparts. If the company wants to target the masses, which of the following options
is most likely to succeed?
A) A2Z can use a price skimming strategy to increase market share.
B) The company’s existing strategies in the United States will work just as well in
Brazil.
C) A2Z can introduce smaller ‘sachets” of shampoos and detergents that are priced
lower.
D) The company can introduce large family packs of shampoos and soaps even if they
are priced higher than competitors.
E) A2Z can use a predatory pricing strategy to capture the market.
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 stage ‘” affective stage ‘” behavioral stage
B) affective stage ‘” cognitive stage ‘” behavioral stage
C) behavioral stage ‘” affective stage ‘” cognitive stage
D) cognitive stage ‘” behavioral stage ‘” affective stage
E) affective stage ‘” behavioral stage ‘” cognitive stage
Which of the following is a challenge in which business marketers differ from
consumer marketers?
A) understanding deep customer needs in new ways
B) identifying new opportunities for organic business growth
C) geographically concentrated buyers
D) calculating better marketing performance and accountability metrics
E) competing and growing in global markets, particularly China
A store selling expensive artwork and luxury goods typically falls into the ________
group with respect to margins and volume.
A) mixed markup, high-volume
B) low-volume, mixed markup
C) low-volume, low-markup
D) high-volume, low-markup
E) high-markup, low-volume
Which of the following is NOT a main part of managing the sales force?
A) recruiting and selecting sales representatives
B) identifying prospects for sales representatives
C) training sales representatives
D) motivating sales representatives
E) evaluating sales representatives
Many banks and phone companies now charge fees for once-free services to ensure
minimum customer revenue levels. This helps banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
________ assumed that the psychological forces shaping people’s behavior are largely
unconscious, and that a person cannot fully understand his or her own motivations.
A) Abraham Maslow
B) Frederick Herzberg
C) Sigmund Freud
D) John Cacioppo
E) Karl Marx
Some service firms often engage in ________, consisting of a fixed fee plus a variable
usage fee.
A) pure bundling
B) pure pricing
C) mixed pricing
D) captive pricing
E) two-part pricing
Of key interest to marketers are the major informational sources to which the consumer
will turn and the relative importance of each. Which of the following can be considered
an experiential information source?
A) consumer-rating organizations
B) mass media
C) acquaintances
D) Web sites
E) personal handling and examination
A supplier creates better information systems, and introduces barcoding, mixed pallets,
and other methods of helping the consumer. The supplier is most likely to be
differentiated on its ________.
A) innovativeness
B) reliability
C) insensitivity
D) resilience
E) accuracy
Bill and Josh are considering opening a retail store. They have identified their target
market and location and are finalizing the details of the merchandise they will carry.
Since the neighborhood is rundown and the customers in the area are very
price-conscious, Bill and Josh want to offer goods from well-known brands, but at
lower rates than the full retail prices of the products. They choose to stock excess
production from manufacturers or goods that have remained unsold at other retailers.
This is a description of a(n) ________ retailer.
A) off-price
B) specialty
C) discount
D) department
E) catalog
Which of the following is a disadvantage of using direct mail as an advertising
medium?
A) low audience selectivity
B) lack of flexibility
C) high competition within same medium
D) relatively high cost
E) lack of personalization of advertising message
A brand ________ can be defined as any information-bearing experience a customer or
prospect has with the brand, the product category, or the market that relates to the
marketer’s product or service.
A) value
B) personality
C) trait
D) character
E) contact
Top Gear is an award-winning British television series about motor vehicles, mainly
cars. It is presented by hosts who test drive new cars and provide reviews on the cars’
performance, their prices, and other factors. Which of the following personal
communications channels is Top Gear closest to in description?
A) expert channel
B) formal channel
C) social channel
D) sponsored channel
E) advocate channel
Which of the following is a disadvantage of using newsletters as an advertising
medium?
A) low audience selectivity
B) high chances of runaway costs
C) lack of adequate control
D) relatively high costs
E) lack of interactive possibilities
Co-optation is an effort by one organization to win the support of the leaders of another
by ________.
A) including them in advisory councils
B) engaging in mediation and arbitration
C) encouraging joint memberships in trade associations
D) encouraging employee exchanges
E) offering strategic justifications
Which of the following is an element of an offer strategy?
A) the medium used for delivery
B) the number of customers in the locality
C) the vision of the company
D) the skills required for production
E) the details of customer order received
Consumers are less price sensitive when ________.
A) price is only a small part of the total cost spent on the product over its lifetime
B) they perceive the higher prices to be unjustified
C) they change their buying habits regularly
D) there are many substitutes and competitors in the market
E) they are buying high-cost items
Sony is an unusual market leader. It gives its customers new products that they have
never asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n)
________ firm.
A) market-driven
B) market-driving
C) operations-driven
D) vision-driven
E) virtually-driven
When higher-priced competitors match lower prices of their competitors but have
longer staying power because of deeper cash reserves, it leads to a(n) ________ trap.
A) low-quality
B) fragile-market-share
C) price war
D) escalator
E) shallow-pockets
When ConAgra learned that many mothers switched to time-saving meals and snacks
when school started, it launched its “Seasons of Mom” campaign to help grocers adjust
to seasonal shifts in household needs. Which of the eight possible actions to improve
the quantity and quality of its marketing intelligence yielded this insight?
A) Train and motivate the sales force to spot and report new developments.
B) Motivate distributors, retailers, and other intermediaries to pass along important
intelligence.
C) Hire external experts to collect intelligence.
D) Network internally and externally.
E) Set up a customer advisory panel.
Which of the following auctions is characterized by one seller and many buyers?
A) Walrasian auctions
B) ascending bid auctions
C) closed auctions
D) sealed-bid auctions
E) reverse auctions
The value delivery process can be divided into three phases, out of which “choosing the
value” implies ________, which is the essence of strategic marketing.
A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering
A consumer who uses Google to find comparative reports on new automobiles, is most
likely using which of the following information sources for assistance?
A) personal
B) public
C) experiential
D) commercial
E) under-the-radar
A firm that is plagued with overcapacity, intense competition, or changing consumer
desires would do better if it pursues ________ as its major objective.
A) market skimming
B) product-quality leadership
C) survival
D) profit maximization
E) market penetration
Mobile phone company HCF delayed the introduction of a new cell phone model with
innovative features so that the launch could coincide with that of its competitor, LCM,
which was introducing a phone with similar features. What kind of entry did HCF use?
How can this benefit the company?
On sites such as eBay and Amazon.com, the seller puts up an item and bidders raise the
offer price until the top price is reached. What kind of auctions are these?
What are end-user and vertical-level specialists?
Over the past three years, skincare products retailer E&OE has realized that it is losing
sales to competitors who sell products online. E&OE has always cultivated an exclusive
upscale image, and the management feels that shifting to the online route will only
harm the brand image and sales in the long run. How can E&OE encourage customers
to frequent its stores?
In what ways does franchising benefit the franchisor? In what ways does it benefit the
franchisee?
What are the different price-setting methods? Briefly describe each of them.
Give an example of how a brand can be affiliated with a category in which it does not
hold membership.
Identify and briefly describe each of the four As. What distinctive roles are they based
on? Which role is missing? Why does it matter?
What is a market-management organization?
Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly
and accurately?