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A company that makes marketing decisions by considering consumers' wants and
long-run interests, the company's requirements, and society's long-run interest is said to
be practicing consumer-oriented marketing.
Consumers can easily explain what influences their purchases.
Although products that remain in the maturity stage of the PLC seem unchanged, the
most successful ones actually evolve to meet changing consumer needs.
Sales assistants confirm appointments, follow up on deliveries, and answer customers'
questions when outside salespeople cannot be reached.
Customer-perceived value is defined as the customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of
competing offers.
Competitive marketing intelligence is the systematic collection and analysis of publicly
available information about consumers, competitors, and developments in the
marketplace.
Wholesalers realize that they increase value to their customers by watching for better
ways to meet the needs of their suppliers and target customers. This involves reducing
the services they provide to retailers.
The whole-channel view recognizes that to compete internationally a company must
effectively design and manage a standardized global marketing plan.
A service refers to an activity, benefit, or satisfaction offered for sale that is essentially
intangible and does not result in the ownership of anything.
Launching a fighter brand is an effective way to deal with a situation in which the
market segment being lost is price sensitive and will not respond to arguments of higher
quality.
In a direct marketing channel, the producer sells directly to the intermediaries, who in
turn sell directly to the customers.
As long as a product is not identical to a competitor's product offering, a company can
introduce, market and sell it without penalty.
A product idea is an idea for a possible product that a company can offer the market.
The main differences between business and consumer markets are in market structure
and demand, the nature of the buying unit, and the types of decisions and the decision
process involved.
Like retailers, wholesalers must decide on product and service assortments, prices,
promotion, and place.
Cost-based pricing involves setting prices based on consumer perception of value.
Communications technologies such as cell phones and the Internet give companies new
media for interacting with targeted consumers, but these technologies also give
consumers more control over the advertising messages they receive.
Using a push strategy, the producer directs its marketing activities (primarily
advertising and consumer promotion) toward final consumers to induce them to buy the
product.
Direct marketing includes catalogs, direct-response TV, kiosks, the Internet, and mobile
marketing.
Dove body soaps are sold successfully in essentially the same form around the globe.
This is an example of straight product extension.
Interactive TV (iTV) lets viewers interact with television programming and advertising.
The selling concept holds that consumers will not buy enough of the firm's products
unless the firm undertakes a large-scale selling and promotion effort.
The total financial value of a brand is brand value.
Individual marketing is also known as one-to-one marketing, mass customization, and
markets-of-one marketing.
Markup pricing is used when a firm tries to determine the price at which it will break
even or make the target return it is seeking.
Ed purchased electronic devices such as a smartphone, and tablet after many people he
knew already owned the devices. Ed belongs to the adopter group called lagging
adopters.
Mass marketing involves identifying market segments, selecting one or more of them,
and developing products and marketing programs tailored to each.
Line extension refers to extending an existing brand name to new product categories.
Wholesaling includes all the activities involved in selling products or services directly
to final consumers for their personal, nonbusiness use.
A company will be at an advantage even if it costs more than its competitors to make
and sell a similar product.
Product mix width refers to the total number of items a company carries within its
product lines.
Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay
longer, visit more often, and spend more money during each visit. What type of strategy
are Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification
FedEx offers its customers fast and reliable package delivery. When FedEx customers
weigh these benefits against the monetary cost of using FedEx along with other costs of
using the service, they are acting upon ________.
A) brand loyalty
B) customer equity
C) customer-perceived value
D) customer lifetime value
E) a societal marketing campaign
Which of the following is a potential downside to using patriotic themes in marketing
programs?
A) Consumers rarely respond to patriotic marketing messages in a favorable manner.
B) A consumer's societal orientation has no visible impact on product consumption.
C) Patriotism could be viewed as an attempt to cash in on the nation's emotions.
D) Patriotic Americans may have less disposable income than reformers.
E) Mass marketing has limited appeal among patriotic Millennials.
Which of the following generations is the most educated to date?
A) Lost Generation
B) Baby boomers
C) Millennials
D) Generation X
E) Silent Generation
Pace Hardware uses Learningnow.com to improve sales force effectiveness and
facilitate sharing of expertise. It allows Pace retailers to connect with each other for
seeking managerial and marketing advice. It also allows Pace retailers to ask their
suppliers about product usage, deliveries, and warranties, and send new-product
information directly to the retailers. In this instance, Pace Hardware is facilitating
communication through ________.
A) extranet links
B) podcasts
C) search engines
D) trading exchanges
E) reverse auctions
Which of the following microenvironment actors has had the most influence on The
Landing?
A) competitors
B) suppliers
C) marketing intermediaries
D) resellers
E) citizen-action publics
________ are society's relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors.
A) Social classes
B) Societal norms
C) Reference groups
D) Universal cultures
E) Social networks
Laws are passed to define and prevent unfair competition primarily because ________.
A) business executives tend to favor pure monopolies
B) businesses sometimes try to neutralize threatening firms
C) governments in free market economies tend to nationalize ailing firms
D) private lobbying hurts the interests of national and state governments
E) most multinational entities in advanced economies are averse to invest in emerging
markets
Which type of retailer usually carries more specialty goods at high prices and is more
likely to provide customers with assistance in every phase of the shopping process?
A) self-service retailer
B) limited-service retailer
C) full-service retailer
D) independent retailer
E) off-price retailer
Which of the following companies has a market-oriented business definition?
A) An electronics company, whose business definition is: "We produce microchips."
B) A hotel, whose business definition is: "We rent rooms."
C) An apparel company, whose business definition is: "We make and sell women's
clothing."
D) A cosmetic company, whose business definition is: "We sell hope and self-esteem."
E) A pizzeria, whose business definition is: "We sell the world's most delicious
thin-crust pizzas."
Which of the following statements is true of the approaches to marketing strategy?
A) Intrepreneurial marketing applies to companies that sometimes lose their marketing
creativity and passion that they had at the start.
B) As small companies achieve success, they inevitably move away from
more-formulated marketing.
C) Within a company, a single strategy exclusively applies to all different businesses
and products.
D) Formulated marketing seldom involves developing formal marketing strategies and
adhering to them closely.
E) Formulated marketing encourages more marketing initiative and "intrepreneurship"
at the local level.
When companies watch both their buyers and their competitors, they are called
________ companies.
A) product-centered
B) market-centered
C) customer-centered
D) competitor-centered
E) cost-centered
Which of the following is a major type of vertical marketing system?
A) corporate
B) conventional
C) multilevel
D) intrinsic
E) extrinsic
All of the following are difficulties associated with selling to government buyers
EXCEPT ________.
A) excessive paperwork
B) bureaucracy
C) strict regulations
D) high advertising costs
E) decision-making delays
Who among the following does NOT participate in the purchase decision process of a
buying organization?
A) individuals who use the product or service
B) individuals who influence the buying decision
C) individuals who make the buying decision
D) individuals who supply raw materials
E) individuals who control the flow of information to others
Which of the following is most likely true of marketing channel decisions?
A) They often involve long-term commitments to other firms.
B) They have minimal influence on the prices of products offered to customers.
C) They increase the amount of time a company spends connecting with customers.
D) They increase the amount of effort a company puts in to distribute goods.
E) They are easily altered, replaced, or discarded.
Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a
service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate
for activities, including kite-sailing and child care.
A) fixed
B) variable
C) standard
D) market
E) optional
Which of the following product characteristics refers to the degree to which the
innovation appears superior to existing products?
A) compatibility
B) divisibility
C) communicability
D) relative advantage
E) complexity
With their size and buying power, ________ can offer better merchandise selections,
good service, and strong price savings to consumers.
A) convenience stores
B) franchises
C) megaretailers
D) power centers
E) lifestyle centers
Which of the following stages of new product development was Evelyn involved in
when she set up a demonstration booth to learn about consumers' feelings toward her
vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing
In a(n) ________, new products and marketing tactics are tested among specifically
identified groups of customers and stores.
A) controlled test market
B) simulated test market
C) standard test market
D) systematic sample
E) accidental sample
Relative advantage, compatibility, complexity, divisibility, and communicability are all
characteristics of ________.
A) alternative evaluations
B) the degree of buyer involvement
C) a product's rate of adoption
D) unexpected situational factors
E) postpurchase behaviors
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm
wants to know how consumers will perceive the new product. The firm is concerned
with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement
In a SWOT analysis, ________ include favorable trends in the external environment.
A) strengths
B) challenges
C) weaknesses
D) opportunities
E) threats
Tony Pool Chemical Co. purchased 144 buckets of chlorine tablets over the Internet
from Chemical Inc. Then Chemical Inc. placed the order with the manufacturer, and the
manufacturer then transported the tablets directly to the Tony Pool store. In this case,
Chemical Inc. is an example of a ________.
A) drop shipper
B) truck jobber
C) rack jobber
D) full-service wholesaler
E) cash-and-carry wholesaler
An American airline company started a grocery chain in Australia. This is an example
of product development.
________ involves persuading people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
An increasing number of American workers currently work from their homes or remote
offices and conduct their business by phone or the Internet. This trend has created a
________.
A) booming real estate market in the big cities
B) booming SOHO market
C) decline in the demand for convenience foods
D) decline in the demand for financial services
E) steady increase in global enterprises
A good design begins with ________.
A) brainstorming new product ideas
B) making prototypes of the planned product
C) identifying the most suitable and aesthetic packaging
D) brainstorming technical product specifications
E) observing and understanding customers and shaping their product-use experience
If Azerbaijan imported wheat from Romania in exchange for crude oil, and Vietnam
exchanged rice for Philippine fertilizer and coconuts then these scenarios would be
examples of ________.
A) cash transaction
B) compensation
C) buyback
D) blocked currency
E) barter
Envirosax reusable shopping bags are stylish and affordable, and they eliminate the
need for plastic store bags. Envirosax reusable shopping bags most likely fall in the
category of ________ products.
A) deficient
B) pleasing
C) mature
D) desirable
E) unpleasing
All of the following are basic types of compensation plans for salespeople EXCEPT
________.
A) straight commission
B) straight salary
C) salary plus commission
D) salary plus company shares
E) salary plus bonus
Among the buyer-readiness stages, the first stage is ________.
A) preference
B) knowledge
C) liking
D) awareness
E) insistence
Companies that pursue a clear strategy will likely perform well. Firms that do not
pursue a clear strategy are called ________.
A) jack-of-all-trades
B) middle-of-the-roaders
C) niches
D) red oceans
E) laggards
In reacting to the marketing environment, what strategies do firms adopt in order to
shift from a reactive to a more proactive stance?
A company's marketing communications mix—also called its promotion mix—blends
five different components. List and define these components.
Why is a company unlikely to set a uniform price all around the world?
Distinguish between value-based pricing and cost-based pricing.
Define commercialization. Explain two important decisions the company must make
during this stage.
Why are ad expenditures high for products in the introduction stage of the PLC?
How are specialty products distributed?
Why are competitors considered a good external idea source?
What are the different types of off-price retailers?
Why are demographic factors the most popular bases for segmenting customer groups?
Companies that go global confront several major risks. Describe three of these risks.
What might drive a company to create international divisions or subsidiaries? Discuss
the three ways these divisions can be organized.
For what types of products might marketers use market-skimming pricing?
Describe some important strategies for a marketer of a high-involvement product.
A marketer has selected a single city in which to conduct a test market. What can be
concluded from this choice of a single-city test market?
Explain how selective retention affects what consumers remember about marketing
messages.
Discuss formal and informal marketing strategies and give examples of companies that
follow these strategies.
Describe the principal functions of packaging.
Why are more companies using team selling? What are its pros and cons?
