Once the total market potential has been estimated by a firm, the next step in the market
segmentation process is to forecast the probable market share.
a. True
b. False
The term “atmospherics” exclusively refers to the interior dcor of a store.
a. True
b. False
An organization creates a customer through a threestep approach: identifying needs in
the marketplace, finding out which needs the organization can profitably serve, and
developing goods and services to convert potential buyers into customers.
a. True
b. False
A product is a bundle of physical, service, and symbolic attributes designed to satisfy a
customer’s wants and needs.
a. True
b. False
Majority of emarketing activities are businesstoconsumer transactions.
a. True
b. False
The customs taxes are uniform among all member nations of the European Union.
a. True
b. False
A cosmetics company offers incentives to its retailers for advertising its new shampoo
by placing it in a special display unit near the billing counters. This incentive offered by
the manufacturer is an example of a _____.
a. rebate
b. promotional allowance
c. cash discount
d. trade-in
To decide where to locate a new shoe store, you need to know the size of the population
in different towns. Unfortunately, you have almost no money to spend on data
collection. The type(s) of data most accessible to you can be described as:
a. Secondary
b. United States government
c. Primary
d. Repositioned
e. Micro
Convenience products that customers constantly replenish to maintain a ready inventory
are categorized as:
a. staples.
b. impulse goods.
c. emergency goods.
d. shopping products.
A firm that permits variable prices for different customers is adopting _____.
a. promotional pricing
b. price flexibility
c. odd pricing
d. product-line pricing
Analysis of sales performance records helps marketers to find clues to potential
problems.
a. True
b. False
Advertising by stores that sell goods or services directly to the consuming public is
called _____.
a. noise
b. advertising
c. promotion
d. publicity
e. sales promotion
f. guerrilla marketing
g. posttesting
h. split runs
i. cooperative advertising
j. marketing public relations
k. media scheduling
l. pretesting
m. informative advertising
n. persuasive advertising
o. retail advertising
p. missiles
q. cross-promotion
r. interactive advertising
s. sponsorship
t. institutional marketing
During the growth stage of the product lifecycle, available supplies exceed industry
demand for the first time.
a. True
b. False
Master Cookie Bakers sells customized cookies to restaurants and standardized cookies
to individual buyers. The firm is using:
a. Undifferentiated marketing, since it only sells cookies
b. Differentiated marketing, since it sells different products to different markets
c. Concentrated marketing, since it concentrates only on restaurants and individuals
d. Micromarketing, since cookies are small
e. Niche marketing, since cookie buyers are a single niche among buyers of baked
goods
Online retailers normally provide directions on how to return merchandise when they
deliver a customer’s order. This is called _____________.
a. supply chain management
b. fulfillment
c. reverse logistics
d. logistics
e. distribution
The term _____ describes the turnover in a company’s customer base.
a. customer win-back
b. customer lifetime value
c. customer distribution pattern
d. customer churn
The process of dividing a B2B market based on how a business purchaser will use a
product is called _____.
a. merchandisers
b. trade industries
c. remanufacturing
d. nearshoring
e. end-use application segmentation
f. global sourcing
g. joint demand
h. inelastic demand
i. outsourcing
j. value analysis
k. gatekeeper
l. commercial market
m. reciprocity
n. vendor analysis
o. category advisor
p. modified rebuy
q. demographic characteristics based segmentation
r. influencers
s. buyer
t. customer-based segmentation
After defining the problem, the next step in the marketing research process is to conduct
the exploratory research.
a. True
b. False
The postpurchase evaluation of the consumer decision process attempts to measure the:
a. selling success experienced by the vendor.
b. follow-up effectiveness of the firm.
c. consumer satisfaction with the purchase.
d. advertising influence on the purchase.
Which of the following bans the purchase of domain names that are identical or
confusingly similar to existing registered trademarks?
a. The Anticybersquatting Consumer Protection Act
b. The Identity Theft and Assumption Deterrence Act
c. The Antitrust Act
d. The Privacy Protection Act
Jose is part of a team that is analyzing current demographic trends. The team will make
a recommendation concerning the groups of consumers toward whom the firm should
direct its new marketing effort. Jose’s team is involved in which of the following
elements of the firm’s marketing strategy?
a. Target market
b. Distribution
c. Product
d. Promotion
A major constraint on consumer spending is deflation, which devalues money by
reducing the products it can buy through persistent price increases.
a. True
b. False
Justin is the marketing director for Tire Rack and is responsible for working with their
advertising agency and identifying the messages and means for communicating with
customers. Justin’s job involves the ______ strategy of the marketing mix.
a. promotion
b. product
c. communication
d. distribution
Lehmann Systems provides a space on its website for users to provide feedback on
products and also to suggest new ideas and ideas for improvement. Customers can also
subscribe to a newsletter sent by Lehmann Systems, which informs the customers about
latest offers and sales. Lehmann systems is engaging in:
a. social welfare marketing.
b. interactive marketing.
c. integrated marketing.
d. search marketing.
You are learning about product lines in your marketing class and want to impress your
professor with some details you have learned on your own.
Required:
Which of the following assertions can you make about expanding a company’s product
lines?
a. Product line expansion is a risk not worth the reward.
b. Product line expansion is a fairly inexpensive process.
c. Product line expansion increases production costs in the long term.
d. Product line expansion can help to cut production and marketing costs.
e. Product line expansion does not affect the cost of a company’s marketing mix
variables.
Daphne commonly purchases national brands that are sold exclusively by retail chains,
and frequently buys these items from Target. What type of brand is Daphne purchasing?
a. family brand
b. captive brand
c. individual brand
d. generic brand
e. manufacturer’s brand
Step outs occur when a company refuses to participate in price escalation between
competitors.
a. True
b. False
Paul and Amanda have 6 season tickets to the St. Louis Cardinals – a major league
baseball team. During the season, they often offer their unused tickets to the highest
bidder – especially when the Cardinals play the Chicago Cubs. This practice, known as
“scalping” is illegal in all US cities.
a. True
b. False
Fred’s Wholesale Club sends emails and catalogs to all members. Additionally, instore
pamphlets promote the benefits of its products. All of these materials are part of the
integrated marketing communications intended to send a consistent and unified
promotional message.
a. True
b. False
A(n) _____ describes various activities, interests, and respondent’s opinions that allows
researchers to develop lifestyle profiles.
a. target market
b. market segmentation
c. cohort effect
d. primary metropolitan statistical area
e. differentiated marketing
f. concentrated marketing
g. micromarketing
h. positioning map
i. VALS
j. AIO statement
k. core region
l. consumer product
m. demographic segmentation
n. Pareto’s law
o. psychographic segmentation
p. geographic information systems
q. positioning
r. geographic segmentation
s. business product
t. mass marketing
Firms that make the most efficient use of buzz marketing claim that it is a “oneway”
approach to building customer relationships.
a. True
b. False
_____ are the features a consumer considers in choosing among alternatives.
a. evoked set
b. consumer behavior
c. culture
d. reference group
e. Asch phenomenon
f. opinion leader
g. need
h. motive
i. perception
j. attitude
k. learning
l. subliminal perception
m. high-involvement purchase decision
n. closure
o. cognitive dissonance
p. routinized response behavior
q. shaping
r. perceptual screens
s. evaluative criteria
t. self-concept
Very few residents of a micropolitan statistical area commute outside the area.
a. True
b. False
The goals of a social media marketing plan have to be flexible for marketers to be able
to adapt to the changing conditions in the marketing environment.
a. True
b. False
As head of social media for your firm, you’re giving a talk at a lunch for coworkers who
are unfamiliar with social media tools. The organizer of the lunch gives you an agenda
that includes a mistake one of the topics concerns a social media platform, not a tool.
Identify this mistake.
a. Understanding microblogs
b. How to use media sharing
c. Effective blog posting
d. A review of the newest app in our industry
Describe how companies use the communication function of the Web in their marketing
strategies.
Define relationship marketing and explain its characteristics.
How do buyers and sellers handle transportation costs? What are the alternative policies
that sellers implement for handling transportation costs in their pricing policies?
What is psychographic segmentation? What is the most common method for developing
psychographic profiles of a population?
What are the various safety measures employed by emarketers to develop safe online
payment systems?
Discuss the concept of protective packaging and materials handling.
Identify and describe the organizational entities used in new product development.
Explain how a strong brand identity benefits firms in marketing their products.
Describe the three categories of problem-solving behavior with examples.
Explain target-return objectives.
Discuss the major categories of business market demand.
Describe the role of the Internet in business-to-business markets.
What are some of the qualities shared by successful CRM systems?
Explain the communication process. What are the three tasks that an effective message
should accomplish?
Differentiate between a consumer product and a business product. Give examples.