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A firm can obtain new products through acquisition or new product development
efforts.
Sellers must understand the ways that consumers in different countries think about and
use certain products before planning a marketing program.
Using a segmented marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer.
In a vertical marketing system, two or more companies at one level join together to take
advantage of a new marketing opportunity.
One valid criticism of the four Ps concept of the marketing mix is that services are not
considered.
Return on marketing investment refers to the net return from a marketing investment
divided by the costs of the marketing investment.
Acquisitions of competitors can be an effective way to gain economies of scale that can
lead to lower costs and, subsequently, lower prices.
You receive a text message on your phone from Upscale Furnishings about an
upcoming sale on custom furniture. Upscale Furnishings is developing a direct
customer relationship with you through kiosk marketing.
Multichannel marketing occurs when a single firm sets up two or more marketing
channels to reach one or more customer segments.
The four major communication functions are encoding, decoding, response, and noise.
A conventional distribution channel consists of one or more independent producers,
wholesalers, and retailers; each seeking to maximize its own profits, perhaps even at the
expense of the system as a whole.
Firms competing in a given target market, at any point in time, are similar in their
objectives and resources.
External databases are electronic collections of consumer and market information
obtained from data sources within a company's network.
Companies stretch downward to add prestige to their current products.
Using value-based pricing, a marketer would not design a product and marketing
program before setting the price.
Industrial economies are major importers of manufactured goods, services, and
investment funds.
The real value of marketing research lies in the customer insights that it provides.
Benchmarking refers to the process that turns marketing plans into marketing actions to
accomplish strategic marketing objectives.
Convenience products are less frequently purchased consumer products and services
that customers compare carefully on suitability, quality, price, and style.
A company's channel decisions directly affect the prices of its products.
Producers use intermediaries because they create greater efficiency in making goods
available to target markets.
In some markets, competitors live in relative harmony.
Viviana wants to be the first to own the new fashion style of shoes. Viviana is an early
mainstream adopter.
Joint venturing involves the least change in the company's product lines, organization,
investments, or mission.
To avoid too few new product ideas and the failure of many good ideas, management
should implement an innovation management system that collects, reviews, evaluates,
and manages new product ideas.
In the proposal solicitation stage of the business buying process, the buyer invites
qualified suppliers to submit proposals.
Online social networks represent an important avenue to create buzz for marketers.
Branded community Web sites are designed to present brand content that engages
consumers and builds closer customer relationships rather than to sell the company's
products directly.
While the process of showrooming can hurt in-store sales of merchandise, retailers can
make it a positive by enhancing the in-store shopping experience.
In addition to its customary services, On the Spot, a moving company, also sells the
boxes and padding that are used when moving household furniture. This is an example
of customer-segmented pricing.
Harvesting the product involves reducing various costs such as maintenance, R&D, and
advertising to increase profits.
Good service recovery can turn angry customers into loyal ones.
The business analysis stage represents the first large jump in financial investment in the
new product development process.
In the business buying process, the buyer and seller are relatively less dependent on
each other.
Under ________ pricing, different versions of the product are priced differently but not
according to differences in their costs.
A) product form
B) optional product
C) captive product
D) by-product
E) seasonal
Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of
Company B, 15 percent is in the hands of Company C, and the remaining 5 percent is in
the hands of Company D. Based on these hypothetical numbers, Company D is the
market ________.
A) leader
B) challenger
C) follower
D) nicher
E) maven
What is an advantage of consumer-generated content?
A) It will be less expensive.
B) It cannot be controlled by the company.
C) It can provide new creative ideas.
D) It can entice customers to become brand evangelists.
E) It can use social media sites more effectively than the company can.
Which of the following promotion categories is most likely to include the use of
displays, discounts, coupons, and demonstrations?
A) sales promotion
B) direct and digital marketing
C) horizontal diversification
D) public relations
E) advertising
Overhead costs ________ as the number of units produced increases.
A) decrease
B) increase steadily
C) fluctuate
D) remain the same
E) increase rapidly
Cameron loves to own and be up-to-date on the latest technological gadgets available in
the market. Among his friends, he is always the first to own the latest electronic
gadgets. He loves trying out new products before others. Cameron most likely belongs
to the ________ adopter group.
A) innovator
B) surrogate consumer
C) late mainstream
D) early mainstream
E) lagging
After searching extensively for vendors, Shalina D'Souza, the owner of a manufacturing
firm, selected Texcom Technologies Inc. as her firm's primary supplier of bearings and
shafts of a specific dimension. Shalina is currently preparing an order form that
specifies the number of shafts needed and the expected time of delivery. In other words,
she is preparing the ________.
A) order routine specification
B) general needs description
C) product specification
D) marketing mix
E) product mix
Which consumer group tends to show more brand loyalty and makes shopping a family
event, with children having a big say in the purchase decision?
A) Hispanic Americans
B) African Americans
C) Arab Americans
D) working class consumers
E) middle class consumers
Which of the following is true of the bottom of the pyramid?
A) It is a market segment that has been tapped into and depleted.
B) It consists of people who have easy access to luxury goods.
C) It comprises people who have easy access to the basic amenities of life.
D) It is considered a source of fresh growth opportunities.
E) It is a market segment that has insignificant purchasing power.
Which of the following is the most effective way for a company to ship bulky,
non-perishable products if its key requirement is low price?
A) pipelines
B) air transport
C) trucks
D) water carriers
E) piggyback
Alpha Motors offers "Green automobiles for a greener world." This refers to the
________ of Alpha automobiles.
A) brand resonance
B) position
C) brand equity
D) pleasure value
E) added value
Which group includes neighborhood residents and community organizations?
A) local publics
B) government publics
C) internal publics
D) citizen-action publics
E) media publics
If Ruben interacted one-to-one with his customers to design his products and services
according to individual needs, he would be practicing ________.
A) concentrated marketing
B) trigger-based marketing
C) undifferentiated marketing
D) mass customization
E) segmented marketing
Which of the following is being followed as a guiding principle by a company that
produces and heavily markets cigarettes, with many promotions aimed at young
(although legal age) nonsmokers?
A) the philosophy that companies should have a social conscience and be morally
responsible for current and future populations
B) the philosophy that companies can do in good conscience whatever the market and
legal systems allow
C) the philosophy of environmentalism
D) the philosophy of consumer-oriented marketing
E) the philosophy of consumerism
An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If
your body is your temple, build it one piece at a time." This ad uses the ________
execution style.
A) slice of life
B) lifestyle
C) fantasy
D) scientific evidence
E) personality symbol
Most products in the marketplace are in the ________ stage of the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development
Which type of store is much larger than regular supermarkets and offers a large
assortment of routinely purchased food products, nonfood items, and services?
A) off-price retailer
B) specialty store
C) factory outlet
D) superstore
E) convenience store
Consumers' spending patterns since the Great Recession include ________.
A) spending freely, without caution
B) buying less and looking for greater value in what they buy
C) amassing record levels of debt
D) experiencing rapid increases in housing values
E) participating in a booming stock market
How are acquisitions good for society?
A) Acquisitions eliminate barriers to entry.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry may become less competitive after an acquisition.
E) The acquisition may result in higher costs, leading to higher prices for consumers.
Excel Enterprises uses a Web site, online social networks, and print advertisements to
promote its products. Since Excel Enterprises practices integrated marketing
communications, all these different brand contacts maintain ________ in design and
tone.
A) variety
B) simplicity
C) creativity
D) consistency
E) flexibility
Purposes of social selling, the use of online, mobile, and social media, are to do all of
the following EXCEPT ________.
A) augment sales performance
B) eliminate person-to-person selling
C) build stronger customer relationships
D) engage customers
E) provide customers more control over the selling process
Income distribution is the second economic factor. While much of Africa consists of
countries with subsistence economies, companies are increasingly targeting ________
consumers in subsistence and emerging economies.
A) upper-class
B) "bottom of the economic pyramid"
C) middle-income
D) low-income
E) middle-income and low-income
________ marketing is more suited for products that vary in design.
A) Mass
B) Local
C) Direct
D) Differentiated
E) Individual
Which of the following is most likely a true statement about sales compensation in
economically tough circumstances?
A) Cutting sales force compensation is usually a last resort for firms that want to
maintain positive customer relationships.
B) Morale is boosted by distributing commissions equally among low and high sales
performers.
C) Online selling is discontinued to improve customer relations.
D) Compensation for the inside sales force is reduced to increase commissions for the
outside sales force.
E) Low performers are retained and top performers are dismissed to reduce commission
payments.
Which of the following is a product decision that may be called into question under the
law?
A) stealing trade secrets
B) misrepresenting
C) patent protection
D) unfair discrimination
E) excessive cost
Which of the following promotion tools involves building up a positive corporate image
and handling unfavorable stories and events?
A) sales promotion
B) personal selling
C) direct marketing
D) public relations
E) advertising
Erica wants to replace her old washing machine with a new one. In order to get the
maximum value for her money, she plans to spend substantial time and effort in
gathering information and making product comparisons before making the actual
purchase. In this instance, Erica is planning to buy a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
Marbles Inc. has placed vending machines in most of its retail stores in Florida.
Consumers can order a pack of marbles by just selecting their requirements on the
touch screen. Which term best describes such machines?
A) POP
B) kiosk
C) virtual catalog
D) interactive television
E) automated teller machine
Which of the following is true of Gen Xers?
A) They are considerably larger than the boomer generation.
B) They were the first to grow up in the Internet era.
C) They are less educated than the baby boomers.
D) They are more materialistic than the Millennials.
E) They rarely research a product before purchasing it.
Which of the following is most likely a result of regulations set up by the Food and
Drug Administration and the Consumer Product Safety Commission?
A) The time between new product ideas and their introduction to the market has
decreased.
B) Annual spending on research and development has decreased.
C) Research costs for companies have risen.
D) Product innovation has significantly declined.
E) Marketers have grown increasingly apathetic toward meeting safety standards.
Which of the following strategies would a company most likely use to increase
customer satisfaction?
A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand
What is e-procurement? Briefly describe its major advantages.
Explain the significance of a downward-sloping experience curve.
What are the primary requirements for effective market segmentation?
What are the major characteristics of government markets?
Briefly compare and contrast the concepts of needs, wants, and demands and provide
examples to illustrate your answer. How do these three concepts relate to marketing
practices?
What role does message format play in print advertisements?
What is supplier development?
Briefly describe the steps in the new product development process.
How does direct marketing give buyers access to more comparative information about
companies, products, and competitors?
In what way might a marketer rely on opinion leaders?
What is high-low pricing?
Explain why some critics worry that American multinationals are causing countries
around the globe to lose their individual identities. Give an example of the
"Americanizing" of the world's cultures.
Explain the impact of the baby boomers, Generation Xers, Millennials, and Generation
Zers on today's marketing strategies.
What are the two levels in the sustainability portfolio that deal with "beyond greening"
activities that tend to pay off in the longer term?
Advertisers should regularly evaluate two types of advertising results: the
communication effects and the sales and profit effects. How are these two results
measured?
How can a marketer increase its "share of customer"?
Marketers can prolong the lives of many products in the maturity or decline stages of
the PLC, sometimes even moving these products back into the growth stage. How is
this undertaken?
Explain the four major steps in designing a customer-driven marketing strategy.
In what way does the government regulate pricing?
