Marketers can assume that people who buy a given product want the same benefits
from it.
The public relations function of lobbying involves advising management about public
issues as well as company positions and image during good times and bad.
All functions in a marketing channel use up scarce resources and can be shifted among
channel members.
Database marketing is ideal when a company does not have direct contact with its
customers.
When State Farm uses consumer research to create a mental map of consumers that
indicates that consumers perceive State Farm as conservative, safe, responsive, and
convenient, they are interested in subliminal perceptions.
Product adaptation not only involves altering the product to meet local preferences, but
also calls for a change in the communication strategy.
The product-line length can be obtained by averaging the number of variants within the
brand groups.
Electronic shopping is a form of direct marketing.
One-sided presentations that praise a product are found to be more effective than
two-sided arguments that also mention shortcomings.
Although supply-side exposure methods provide quantifiable measures of sponsorship
activities, equating media coverage with advertising exposure ignores the content of the
respective communications.
A leverageable advantage is one that a company can use as a springboard to new
advantages.
The subscription manager at Cosmopolitan magazine keeps track of the subscription
renewal rate, which is a good measure of customer lifetime value.
Customers cause many service failures, and many firms find managing these more
difficult than managing their own failures.
Quality is the totality of features and characteristics of a product or service that bear on
its ability to satisfy stated or implied needs.
A marketing audit only benefits a company that is in trouble; companies in good health
do not need to conduct them.
An undifferentiated marketing approach to full market coverage designs a marketing
program for a product with a superior image that can be sold to the broadest number of
buyers.
Firms are increasingly recognizing the importance of influencing consumers at the point
of purchase.
Business segmentation based on purchasing approaches may divide the market by
technology, user and nonuser status, and general purchasing policies.
Warranties are formal statements of expected product performance by the manufacturer.
Place marketers include economic development specialists, real estate agents,
commercial banks, local business associations, and advertising and public relations
agencies.
Loss leader pricing dilutes a company’s brand image.
Transforming into a true market-driven company involves organizing around products.
An important part of reinforcing brands is providing uniform and unchanging marketing
support.
Few consumers actually delete cookies frequently. When customers do not delete
cookies, they expect customized marketing appeals and deals.
Media coordination can occur across and within media types, but marketers should
combine personal and nonpersonal communications channels through multiple-vehicle,
multiple-stage campaigns to achieve maximum impact and increase message reach and
impact.
The business buying process begins when someone places an order with a sales
representative.
Direct mail permits target market selectivity and allows early testing and response
measurement.
Channel power is the ability to alter channel members’ behavior so that they take
actions they would not have taken otherwise.
Prospect theory maintains that consumers frame decision alternatives in terms of gains
and losses according to a value function.
A product’s purchase cost plus the discounted cost of maintenance and repair less the
discounted salvage value is known as the product’s activity cost.
Ingredient branding can take on a form called ‘self-branding” in which the company
advertises its own branded ingredients.
The “customer is king” category of buyer-seller relationship is relatively simple, and
one in which routine exchanges with moderately high levels of cooperation and
information exchange occur.
All attempts to target marketing to children, minorities, or other special segments are
discriminatory and unethical.
If the Coolest Cooler introduced its cooler to the general market and developed
communications around the idea that it was going to develop awareness, interest,
evaluation, trial, and then adoption, it would be anticipating a learn-feel-do sequence of
consumer responses.
Selling through creative advertising is the most important element in business
marketing.
An advertising objective is a specific communications task and achievement level to be
accomplished with a specific audience in a specific period of time.
Shopper marketing is the way manufacturers and retailers use stocking, displays, and
promotions to affect customers while they are in a store.
Customer lifetime value is affected by revenue and by the costs of customer acquisition,
retention, and cross-selling.
If demand hardly changes with a small change in price, the demand is said to be
________.
A) strained
B) marginal
C) inelastic
D) flexible
E) unit elastic
A brand developed by a retailer and/or wholesaler that is available only in selected
retail outlets is called a ________ brand.
A) generic
B) franchisee
C) marque
D) national
E) private-label
The three criteria that determine whether a brand association can truly function as a
point-of-difference are ________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability
A(n) ________ is when a company might seek new businesses to purchase that have no
relationship to its current technology, products, or markets.
A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy
Which of the following is a disadvantage of using Yellow Pages as an advertising
medium?
A) high competition
B) poor local market coverage
C) low believability
D) lack of adequate reach
E) high total costs
Which of the following is an example of a functional hub?
A) Plastics.com allows plastics buyers to search the best prices among thousands of
plastics sellers.
B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals.
C) SteelMart.com concentrates on steel buyers from the United States.
D) SupplyLink.com offers manufacturers from different industries information on
ensuring workplace safety.
E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality
in the paper market.
Which of the following elements of the marketing communications mix consists of a
collection of incentive tools, mostly short-term, designed to stimulate quicker or greater
purchase of particular products or services by consumers, or the trade?
A) advertising
B) public relations
C) sales promotion
D) events and experiences
E) personal selling
Which of the following is a prepurchase service offered by retailers?
A) accepting orders over the telephone
B) shipping the product
C) delivery to the customer’s doorstep
D) general information
E) interior decoration of the retail outlet
Which of the following best represents the chief advantage of pursuing a strategy of
multiple segment specialization?
A) It makes the company almost bulletproof to competitors’ actions.
B) It diversifies the firm’s risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.
A new firm typically starts as a local operation selling in a fairly circumscribed market
by ________.
A) finding and developing new intermediaries
B) using a few existing intermediaries
C) forming partnerships with the market leader
D) creating a special channel
E) forming partnerships with other firms
In which of the following is a person performing the role of an influencer?
A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the
possible alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah’s job to weed out the
good prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.
________ research is designed to capture cause-and-effect relationships by eliminating
competing explanations of the observed findings.
A) Experimental
B) Behavioral
C) Observational
D) Focus group
E) Descriptive
Unistar Inc., is an FMCG company that produces a wide range of offerings such as
grocery items and personal care products. If Unistar wants to estimate the demand for
its new line of body moisturizers, which are all priced at $18, it should opt for
________ research.
A) descriptive
B) exploratory
C) prescriptive
D) causal
E) qualitative
The practice of using call centers, where employees receive calls from customers and
provide service by taking orders and answering queries, is called ________.
A) customer response marketing
B) guerilla marketing
C) reactive marketing
D) internal marketing
E) inbound telemarketing
________ consists of putting goods in boxes or trailers that are easy to transfer between
two transportation modes.
A) Containerization
B) Haulage
C) Inventory carrying
D) Order processing
E) Warehousing
The most important determinant of service quality is ________ which refers to the
ability to perform the promised service dependably and accurately.
A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles
In the ________ step of the market segmentation process, the marketer determines
which demographics, lifestyles, and usage behaviors make each needs-based segment
distinct and identifiable.
A) segment “acid test”
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification
The success of online purchasing resulted in ________ in the delivery of products and
services by intervening in the traditional flow of goods through distribution channels.
A) disintermediation
B) diversification
C) reduced competition
D) deregulation
E) privatization
An umbrella manufacturing company’s fixed costs are $275,000. The variable cost per
unit is $5 and each umbrella is sold at $10. How many units should the firm sell in
order to break even?
A) 1,819
B) 5,500
C) 18,000
D) 27,500
E) 55,000
The starting point for understanding consumer behavior is the ________ model in
which marketing and environmental stimuli enter the consumer’s consciousness, and a
set of psychological processes combine with certain consumer characteristics to result
in decision processes and purchase decisions.
A) self-reliance
B) self-perception
C) psychogenic
D) stimulus-response
E) projective
Capital items are long-lasting goods that facilitate developing or managing the finished
product. They include two groups: installations and ________.
A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials
Which of the following will help a service provider overcome the limits imposed by the
inseparability of services?
A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process
Which of the following is NOT a standard that producers would use to evaluate
intermediaries’ performance?
A) sales-quota attainment
B) average inventory levels
C) modification of channel design
D) customer delivery time
E) cooperation in promotional programs
Which of the following is an example of a zero-level channel?
A) A manufacturer takes online orders from customers and ships the products to them.
B) An organization uses a combination of direct salespeople and sales agencies to
increase sales.
C) A manufacturer sells its products through wholesalers and retailers.
D) A manufacturer sells its products through chains of supermarkets and other large
sellers.
E) A large company forms alliances with smaller companies to increase sales coverage.
Which of the following is an example of direct marketing?
A) E&OE sells its herbal skincare products exclusively through its stand-alone stores.
B) TCJ is a telemarketing firm that sells products from a number of different suppliers.
C) Jayne’s sells most of its products to customers through home sales parties.
D) J3 is a storeless retailer that organizes the retail activity of the employees of four
firms.
E) Reynold’s tries to minimize its staff costs by installing vending machines in its
stores.
Some firms might delay the launch of their products until after the competitor has borne
the cost of educating the market. Such an entry is called ________ entry.
A) strategic pay off
B) parallel
C) balancing
D) late
E) compensating
Which of the following best describes BR Chicken’s value proposition?
A) We sell chicken at most major malls.
B) We undertake home delivery services.
C) We target quality-conscious consumers of chicken.
D) We sell tender golden chicken at a moderate price.
E) We charge a 10 percent premium on our chicken.
Gillette uses ________ pricing when it offers razor handles at a low cost, but places a
high markup on the replacement razor blades that fit in the handles.
A) optional-feature
B) two-part
C) by-product
D) product line
E) captive-product
Which of the following factors forms the basis of assessing sponsorship activities
through supply-side methods?
A) consumers’ brand knowledge
B) impact on sponsor’s bottom line
C) extent of media coverage
D) brand exposure reported by consumers
E) sales pattern of sponsored products
Straight extension of the product means introducing ________.
A) the product to the foreign market without any changes to the product
B) the product to the foreign market with minor changes to the product
C) the product to the foreign market with major changes to the product
D) a customized product to the foreign market with a new marketing strategy
E) a customized product to the foreign market with existing marketing strategy
________ is a marketing communications tool that includes a variety of programs to
promote or protect a company’s image or individual products.
A) Public relations
B) Advertising
C) Sales promotion
D) Personal selling
E) Direct marketing
________ exhibit replacement cycles dictated by physical wear or obsolescence
associated with changing style, features, and performance.
A) Frequently purchased products
B) High-moving goods
C) Inexpensive products
D) Commodity products
E) Infrequently purchased products
Briefly describe the current marketing communications environment.
What are the four factors that customers who thrive in customer contact positions have
an internal drive to do?
What is the role of advertising as a communications tool in marketing for business
markets?
Describe the practices of systems buying and systems contracting.
In what marketing tasks does marketing public relations play a role? Illustrate with
examples.
What are the five elements of an offer strategy in direct marketing?
As a consumer gathers information about purchase alternatives, the number of
alternatives decreases as he advances through four sets of brands before reaching a
decision. What are those four sets?
Compare the uses of a product-positioning map and a brand-positioning map.
Identify some of the brand benefits that can accrue to a company that engages in cause
marketing.
List the four categories of nonstore retailing and briefly explain each.
Distinguish between the concepts of value and satisfaction.
In the brand resonance model of brand equity, the creation of significant brand equity
involves reaching the top or pinnacle of the brand pyramid. What are the six
components of this pyramid?
List the various tasks that the salespeople of an organization may perform to achieve
sales force objectives.
Compare responsive marketing, anticipative marketing, and creative marketing. Which
is the most proactive?
How is coordination of media achieved through integrated marketing communications?
Given that the power of a brand resides in the minds of consumers and how it changes
their response to marketing, there are two basic approaches to measuring brand equity.
Briefly, describe each of these approaches.
Selling is not the most important part of marketing. Explain why not.