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Which of the following focuses on finding new ways to solve customer problems and
create more customer-satisfying experiences?
A) concept testing process
B) customer value proposition
C) customer-centered new product development
D) customer lifetime value
E) team-based new product development
By definition, ________ pricing is used when a firm sells a product or service at two or
more prices, even though the difference in price is not based on differences in cost.
A) segmented
B) variable
C) flexible
D) cost-plus
E) reference
Some companies obtain the rights to use the names or symbols previously created by
other manufacturers for a fee. This process is known as ________.
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing
Lubricants, coal, paper, and pencils are examples of ________.
A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations
The BCG matrix approach is problematic in that it ________.
A) focuses on planning for the future at the cost of ignoring the present
B) focuses solely on current businesses and provides little scope for future planning
C) tends to undermine the importance of market growth rate as a measure of market
attractiveness
D) tends to undermine the importance of relative market share as a measure of company
strength in the market
E) fails to classify SBUs
Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise
selection and fairly low levels of service. Despite the lackluster service and limited
selection of merchandise, customers still flock to Pierre's because it charges
rock-bottom prices. Pierre's Mart most likely uses the ________ positioning.
A) more for the same
B) more for less
C) same for less
D) less for much less
E) more for more
In the beginning of the buying process, Timothy Perry, a product development manager,
noticed that the raw materials that were being procured from his company's regular
supplier were of poor quality. Consequently, he decided to change the existing supplier
as a remedial measure. The stage of the buying process in which Timothy identified the
quality breach represents the ________ stage.
A) problem recognition
B) general needs description
C) product specification
D) supplier search
E) performance review
Some products that have entered the decline stage have been cycled back to the growth
stage through ________.
A) repositioning
B) harvesting
C) maintaining
D) pruning
E) expanding
________ measures the profits generated by investments in marketing activities.
A) A SWOT analysis
B) A marketing audit
C) Regression analysis
D) Return on marketing investment
E) Marketing budget evaluation
Many managers think that "doing things right," or ________, is as important as, or even
more important than, "doing the right things."
A) strategy
B) planning
C) positioning
D) implementation
E) targeting
Refer to the scenario below to answer the following question.
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small,
seaside motel to a thriving year-round resort in just a few years. Atop a cliff
overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during
summer, but then faced a tremendous downturn in business during winter. "But, given
the established industries in the nearby towns, very little year-round competition, and
our close proximity to Portland," Carol added, "I couldn't understand why seasonality
had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a
promotional package designed to attract business travelers year-round. Carol's plan also
involved a seasonal promotional gimmick'”to be implemented from early winter to late
spring'”that would attract the same numbers as the large summer crowd. Her idea
worked! During her second winter, Carol greeted numerous business travelers'”both
satisfied repeat guests as well as new guests who had been snagged by her promotional
appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that
are a part of the local cuisine, but we'd like to expand that. We provide health club
privileges off-site, but we'd like to eventually provide our own. These are goals I hope
to achieve in a few years. Our first project, however, included a renovation of our guest
rooms and I'm quite proud of the results." Carol then added, "Actually there are so
many possibilities. With an indoor pool area, I will eventually offer weekend getaways
throughout winter."
Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool
area are examples of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing
All of the following are benefits of online direct marketing for buyers EXCEPT
________.
A) access to numerous products
B) access to product reviews
C) live product demonstrations
D) convenience
E) privacy
Which of the following is included in the third part of the marketing strategy statement?
A) the planned value proposition
B) distribution strategy
C) the product's planned price
D) marketing budget
E) the planned long-run sales
If demand hardly changes with a small change in price, the demand is ________.
A) variable
B) inelastic
C) highly elastic
D) derived
E) negative
The movie industry in a country is controlled by six large studios that receive 90
percent of the annual revenues from movies. This is an example of a(n) ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) government monopoly
If Detroit DLX charges the same price for the delivery of its product to customers
located in the states near the Great Lakes, but a different price to customers elsewhere,
the company is using ________.
A) psychological pricing
B) promotional pricing
C) zone pricing
D) reference pricing
E) uniform-delivered pricing
Refer to the scenario below to answer the following question.
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a
merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a
popular family attraction with 20 rides, a restaurant, and an outdoor performing arts
theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart,
the owner. "We just knew that weekenders coming to the lakes in our rural area
represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even
senior citizens who enjoy strolling through the gardens and the arbors. "There's
something here for everyone," Gail Hart said with a smile. "Dozens of companies hold
annual company picnics here. We have welcomed class field trips. And we even had
one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so
successful. There is nothing else like Fun-Spot Fun Park in the area. We were just
lucky." "I think it's the ambience of the park that has brought so many visitors," Gail
added. "We provide a 'total package' of entertainment. Plus, we try to change our rides
and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has
always been our philosophy," they said. "Like the park's motto at the entrance reads,
'We're here to make you happy!' And we've always been able to deliver on that because
we've never allowed ourselves to grow too big too quickly."
Fun-Spot Fun Park represents a high-growth, high-share business. According to the
BCG matrix, it can be classified as a ________.
A) star
B) question mark
C) bear
D) cat
E) dog
Style simply describes the ________ of a product.
A) quality
B) appearance
C) utility
D) durability
E) long-term benefits
________ occurs when a company introduces additional items in a given product
category under the same brand name, such as new flavors, forms, colors, ingredients, or
package sizes.
A) Line extension
B) Megabranding
C) Interactive marketing
D) Internal marketing
E) Co-branding
Service ________ means that services cannot be seen, tasted, felt, heard, or smelled
before they are bought.
A) inseparability
B) variability
C) intangibility
D) perishability
E) heterogeneity
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed
countries with the goal of gaining mass-market share quickly. Which of the following
pricing strategies would help the firm meet its goal?
A) market-skimming pricing
B) market-penetration pricing
C) market-segmentation pricing
D) cost-plus pricing
E) captive-product pricing
The decision to use an NBA star player to communicate the desirability of Nike
basketball shoes represents the ________ process of the communication model.
A) sourcing
B) messaging
C) acknowledging
D) decoding
E) encoding
Under which type of geographic pricing strategy does each customer take responsibility
for the freight charges for the product from the factory to its destination?
A) zone pricing
B) basing-point pricing
C) uniform-delivered pricing
D) dynamic pricing
E) FOB-origin pricing
Which major promotion category uses catalogs, telephone marketing, kiosks, and the
Internet?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
E) advertising
