Most consumer sales promotions temporarily change the price/value relationship.
Commercialization comes in the middle of the new-product development process.
Consumer surveys are often important to marketers using demand-based pricing.
Differential benefits set products apart from competitors’ products by providing
something unique that customers want.
A representative for Tupperware who is implementing a party plan, demonstrating and
selling products at a social gathering of friends, is using direct selling.
Railroads are best for carrying coal, iron ore, grain, and lumber over long distances.
Bleeding edge technologies typically move rapidly from adoption by innovators to
adoption by the early adopters and early majority.
Unlike other currencies, bitcoin is not controlled by a single government entity, such as
the U.S. Treasury.
Heuristics can be used to explain why Madelyn always buys a specific brand of
deodorant and why Ralph always buys whatever brand he happens to see first.
Customer insight specialists work to understand how customers interact with each
other.
A firm’s pricing strategy includes plans for prices for the final consumer as well as
pricing that the firm will charge wholesalers and retailers.
When the Pharmaceutical Manufacturers Association spent eight million dollars
creating and placing a print campaign arguing that the most expensive drugs represent
just five percent of national health care expenditures, the association was using public
relations.
High-involvement purchase decisions likely involve extended problem solving.
Group dynamics are important to the success of party plan systems.
The purchase of a shopping product typically involves habitual consumer decision
making.
Consumers pay for necessities out of their discretionary income.
The final stage of the creative selling process is the close.
The FTC regulates the opt-out list for direct mail solicitations and catalogs.
Marketers define a need as the difference between a consumer’s actual state and some
ideal or desired state.
Consumers use compensatory decision rules when they allow one weak or unattractive
product attribute to be outweighed or offset by a strong or attractive product attribute.
The role of a customer insight specialist is typically a support role across a company’s
strategic business units (SBUs).
The terms market segment and target market represent the same concept.
Exploratory research is typically large scale and more expensive than other research
techniques.
Special events are public relations activities for which companies provide financial
support to help fund an event in return for publicized recognition of the company’s
contribution.
SeaFood Family markets its frozen seafood products to the domestic United States
market and to several Central American countries. SeaFood Family recently had a
surplus of products. Management decided to maintain prices in the U.S. market but
drastically cut prices in the Central American markets in order to reduce excess supply.
SeaFood Family would most likely be accused of pirating.
Although having something to eat or drink may be a want, the desire for a specific
brand name is referred to as a need.
A marketer who wants to achieve a competitive advantage over her rivals cannot use
the marketing mix to achieve this goal.
The goal of the World Bank is to improve economies and support sustainable
development in order to reduce poverty and improve lives.
Consumers would perceive a ceiling fan as having greater trialability than a new kind of
snack food.
Simulated test marketing can help a company determine where in a store a product
should be placed to maximize sales.
The final stage in one-to-one marketing is to identify customers in terms of both their
needs and their value to the company.
Differentiated marketing can involve connecting the same product with different market
segments by communicating differently to each segment.
Oligopolies most often exist in industries that require little investment in equipment,
technology, or materials to produce a product.
Cost per impression advertising is typically more expensive than cost per click
advertising.
A target market is not viable unless the segment is large enough to be profitable now
and in the future.
Long-term profitability will not be affected if the brand managers offer an excess of
coupons or cents-off packages to customers.
To implement the market fulfillment approach, an agent would first identify a client and
then identify an unmet need in the market that client could fulfill.
Fear appeal ads convey the message that not using the advertised product has negative
consequences consumers want to avoid.
________ is the process of selecting respondents for a survey.
A) Sampling
B) Prospecting
C) Modeling
D) Surveying
E) Representation
A mission statement is a formal document that describes the organization’s overall
purpose and what it hopes to achieve in terms of its products, resources, and ________.
A) customers
B) profits
C) employees
D) shareholders
E) competitors
A ________ sample is a type of probability sample in which a researcher divides the
population into segments that relate to the study’s topic.
A) systematic
B) convenience
C) stratified
D) quota
E) simple random
A focus on serving internal customers is part of ________.
A) total quality management (TQM)
B) Six Sigma
C) ISO 9000
D) ISO 14000
E) ISO 22000
________ components of the promotion mix do not seek a short-term increase in sales.
Instead, with these communication activities, the company tries to maintain a positive
image of an organization and its products.
A) Personal selling
B) Sales promotion
C) Public relations
D) Word-of-mouth
E) Direct marketing
When a product has ________ demand, an increase or decrease in the price of the
product has little or no effect on the demand for the product.
A) elastic
B) joint
C) derived
D) inelastic
E) fixed
________ is the step of the decision-making process in which the consumer checks her
memory and surveys the environment to identify what options might solve her problem.
A) Product evaluation
B) Behavioral targeting
C) Problem recognition
D) Problem screening
E) Information search
Arm & Hammer began as a producer of baking soda. Now the company manufactures
detergents, deodorants, and fabric softeners under the Arm & Hammer brand name.
Arm & Hammer uses a ________ strategy.
A) brand extension
B) product line contraction
C) downward line stretch
D) cannibalization
E) cobranding
Producers benefit from using intermediaries because they ________.
A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are rarely backlogged with orders
E) will store products indefinitely
After the business analysis phase of the new product development process, a physical
version of the product is typically developed. This is called a ________.
A) test market
B) focus group
C) business analysis
D) product concept
E) prototype
Through a process of ________, traditional intermediaries are being eliminated as many
companies question the value added by layers in the distribution channel.
A) knowledge management
B) disintermediation
C) horizontal marketing
D) vertical marketing
E) hybrid marketing
Internal PR activities target a company’s ________.
A) current customers
B) prospective customers
C) brand ambassadors
D) investors
E) employees
Which of the following is LEAST likely to be of growing importance in marketing in
the near future?
A) mobile marketing
B) corporate citizenship
C) big data
D) a selling orientation
E) user-generated content
In terms of the communication model, the animated M&M candies in television
commercials ________.
A) are representatives of the source
B) are feedback mechanisms
C) are the medium
D) introduce noise
E) encode the message
A company’s total marketing communications mix consists of a special blend of
advertising, sales promotion, public relations, personal selling, and direct-marketing
tools that the company uses to communicate customer value and build customer
relationships. This is also called ________.
A) direct marketing
B) integrated marketing
C) competitive marketing
D) the promotion mix
E) target marketing
________ is the process by which people select, organize, and interpret information
from the outside world.
A) Perception
B) Learning
C) Attention
D) Motivation
E) Cognition
In a(n) ________ structure, one seller controls a market.
A) monopoly
B) oligopoly
C) monopolistic competition
D) perfect competition
E) natural competition
A(n) ________ is a pronounced modification to an existing product that requires a
modest amount of learning or change in behavior to use it.
A) dynamically continuous innovation
B) augmented product
C) competitive innovation
D) continuous innovation
E) discontinuous innovation
In which type of pricing is the selling price based on an estimate of volume or quantity
a firm can sell in different markets at different prices?
A) value
B) keystoning
C) demand-based
D) penetration
E) peak load
________ do not vary with the number of units produced.
A) Liquidity costs
B) Fixed costs
C) Variable costs
D) Marginal costs
E) Everyday costs
In terms of the communication model, ________ is a reaction to a message that helps
the source gauge the effectiveness of the message.
A) looping
B) feedback
C) translating
D) encoding
E) decoding
________ is the product life cycle period when sales fall off and profits drop.
A) Maturity
B) Decline
C) Development
D) Divestment
E) Leveling
Which of the following is the best example of a convenience product?
A) a silk scarf
B) a subscription to a magazine
C) a gallon of milk
D) a lawn mower
E) a CD player
Average collectors of an artist’s miniatures will buy four new miniatures each year. The
collectibles are available at a number of retail locations and from several catalog
retailers. To ensure she gets a greater ________, the owner of The Door Gift Shop sends
her customers who are collectors a postcard every time the store adds a new miniature
to her store’s inventory.
A) share of communication
B) segment profile
C) conversion
D) share of customer
E) brand perception
In 2003, Home Depot’s 40 Arizona stores participated with the Arizona Department of
Water Resources and the cities of Phoenix, Mesa, and Scottsdale in a $1.8 million
“Water, Use It Wisely” campaign. This is an example of ________.
A) place marketing
B) social networking
C) people marketing
D) idea marketing
E) societal benefit marketing
Tony, a vice president of the St. Louis One Gateway Credit Union, decided to measure
customers’ perceptions of the service quality of the credit union. He chose to use the
SERVQUAL scale because it included the ________ component, which involves the
knowledge and courtesy of employees, as well as their ability to convey trust and
confidence.
A) empathy
B) responsiveness
C) assurance
D) reliability
E) creativity
Functions provided by channel intermediaries that make the purchase process easier for
customers and manufacturers are referred to as ________ functions.
A) distributing
B) facilitating
C) risk-taking
D) marketing
E) wholesaling
When a gap exists between a consumer’s actual state and some ideal or desired state, the
consumer has a ________.
A) benefit
B) demand
C) need
D) value
E) utility
________ are large stores that combine an economy supermarket with other
lower-priced non-food merchandise.
A) Variety stores
B) Category killers
C) Supercenters
D) Box stores
E) Convenience stores
Christopher Messenger rents storage space to college students who go home for the
summer but do not want to haul all of their property home and back. The business is
profitable during the summer months, but when the storage space is unoccupied in the
off-season, Christopher is losing money. What characteristic of service is most likely
the source of Christopher’s problem?
A) intangibility
B) perishability
C) personalization
D) variability
E) inseparability
How does reverse marketing work?
What does the phrase “exchange relationship” mean in relation to marketing?
Why is m-commerce considered an important form of direct marketing?
Explain how companies identify and use brand ambassadors and brand evangelists.
Explain how customers are an important element of the service encounter.
What promotional efforts would a marketer be likely to use if the communication
objective was to increase awareness of the brand?
Explain why inventory control has such a major impact on the costs of logistics.
What are market research ethics and why is it important that a firm follows market
research ethics?
Briefly describe the four qualities SBU objectives should have. Why are these qualities
important?
Why might a company complain of having too much data?
Why might public relations efforts have a strong impact on public awareness at a
substantially lower cost than advertising?
How has the Internet made it easier for companies to use dynamic pricing strategies?
Use an example in your explanation.
Compare and contrast a conventional marketing system with a vertical marketing
system (VMS).
Explain why the Hispanic American population is particularly important to marketers.
The Chair Trade is an independent furniture store that specializes in selling Amish-style
furniture and household items. Until the first of the year, its overall sales revenue was
slowly increasing. Since the first of the year, however, sales of small items increased
while sales of furniture decreased, leading to declining sales revenue. How could the
owner of the store rely on market intelligence to understand the change in consumer
buying behavior? Should the owner rely solely on market intelligence? Why or why
not?