The production of a service is never tied to a physical product.
Brands like Victoria’s Secret underwear and Kettle gourmet potato chips, which carry a
significant premium over middle-market brands, but are easy to trade-up to because
they are relatively low-ticket items in affordable categories, are called Masstige brands.
The marketing funnel identifies the profitability of consumers at each stage in the
decision process.
Marketing accountability means that marketers must more precisely estimate the effects
of different marketing investments.
Relationship marketing aims to build mutually satisfying long-term relationships with
key parties.
Because the retail trade tends to think of profitability in terms of product categories,
some companies are switching to a category management organizational model.
A good example of collecting behavioral data would be when a store uses scanners to
read barcodes on products selected by consumers.
Service companies try to demonstrate their service qualities through physical evidence
and presentation.
Market challengers are companies that attack the leader and other competitors in an
aggressive bid for further market share.
Coors brand slogan “Turn it loose” translated into Spanish was interpreted as ‘suffer
from diarrhea,” which is an example of why marketers may need to change brand
elements when they launch products and services globally.
More than 90 percent of future population growth is projected to occur in the less
developed countries.
Most marketing plans conclude with a section that indicates how the plan will be
implemented.
Cooperative organizations carry on exporting activities on behalf of several producers
and are partly under their administrative control.
All functions in a marketing channel use up scarce resources and can be shifted among
channel members.
Sales of nylon have shown a scalloped PLC pattern because of the many new uses ‘”
parachutes, hosiery, shirts, carpeting, boat sails, automobile tires ‘” discovered over
time.
In the future, marketers should use the Internet more, improve the sales automation
system, apply market automation to routine decisions, and develop formal marketing
decision models and marketing dashboards.
Profitability control is the prime responsibility of line and staff management.
Skunkworks are formal workplaces where intrapreneurial teams attempt to develop new
products.
A spiral development process recognizes the value of returning to an earlier stage to
make improvements before moving forward.
A(n) ________ is a group of firms offering a product or class of products that are close
substitutes for one another.
A) community
B) task force
C) industry
D) focus group
E) umbrella brand
A ________ 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 that customer.
A) prospector
B) profitable customer
C) market challenger
D) market nicher
E) pioneer customer
With respect to the brand building pyramid, the branding objective of developing deep,
broad brand awareness corresponds to which of the following “building block levels”?
A) resonance
B) imagery
C) performance
D) salience
E) judgment
________ power can be effective, but its exercise produces resentment and can lead the
intermediaries to organize countervailing power.
A) Coercive
B) Reward
C) Legitimate
D) Expert
E) Referent
In IBM’s BANT acronym, A stands for ________.
A) action
B) authority
C) activate
D) austerity
E) autonomy
Hewlett-Packard is a highly respected brand. Many retailers want to be associated with
the brand because of this reputation. What kind of power does Hewlett-Packard obtain
due to this reputation?
A) referent
B) functional
C) legitimate
D) coercive
E) reward
After computing averages and measures of dispersion for the major variables and
applying advanced statistical techniques and decision models in the hope of discovering
additional findings from the gathered information, researchers ________.
A) define the problem, the decision alternatives, and the research objectives
B) present findings relevant to the major marketing decisions facing management
C) evaluate the costs associated with data collected
D) analyze the appropriateness of the data sources used
E) develop the research plan
Dean recently had a BRZ broadband connection installed. However, the connection was
poor and he didn’t get the quality he required. He contacted BRZ about the problem, but
the company did not solve his problem. Dean switched to Blue Broadband. Which of
the following was the cause of Dean’s switching behavior?
A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience
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.
A large FMCG company decides to test market Kora, a new brand of face cleanser, to
be launched soon. The company initially distributes a few free samples to some
prospective consumers. Later it offers the product to the customers at a discounted price
and observes that not only more than seventy percent of the customers are purchasing it
but the same number are also satisfied using it. The company keeps using this process
3-4 times to obtain a correct count of the number of people purchasing the product
repeatedly. Which of the following testing methods is being used here?
A) simulated testing
B) controlled testing
C) full test marketing
D) parallel testing
E) sales-wave research
The two-step flow supports the notion that consumption styles are primarily influenced
by a “trickle-down” or “trickle-up” effect from mass media.
Which of the following marketing communications tools is most influential at the
reordering stage of buyer readiness?
A) events and experiences
B) publicity
C) direct marketing
D) sales promotion
E) interactive marketing
According to the hierarchy-of-effects model, which of the following corresponds to the
behavioral stage that a buyer passes through?
A) awareness
B) knowledge
C) purchase
D) preference
E) conviction
Most companies would prefer to remain domestic if their domestic market were large
enough. Yet several factors are drawing more and more companies into the international
arena. List some of these factors.
In which of the following auctions does the auctioneer first announce a high price for a
product and then slowly decreases the price until a bidder accepts?
A) a Dutch auction with one buyer and many sellers
B) an English auction with one seller and many buyers
C) an ascending bid auction
D) a sealed-bid auction
E) a Dutch auction with one seller and many buyers
The growth of “house brands” has skyrocketed in recent years. What benefits do
intermediaries receive from sponsoring their own brands?
Briefly list the contents of a marketing plan.
Vertical coordination can facilitate stronger customer-seller ties but at the same time
may increase the risk to the customer’s and supplier’s specific investments. What are
specific investments and why are they risky?
Full costing allocates nontraceable common costs to marketing entities and has three
major weaknesses. What are they?
A Web site’s ease of use and physical attractiveness are important to marketers because
consumers use them to judge a site’s performance. Please explain three things marketers
should do to ensure high ratings on each.