The document discusses various marketing concepts including the product life cycle, segmentation, competitive analysis, pricing strategies, and the marketing mix. It provides examples and case studies related to these topics. Multiple choice questions with answers are also provided to test understanding of the concepts.
The document discusses various marketing concepts including the product life cycle, segmentation, competitive analysis, pricing strategies, and the marketing mix. It provides examples and case studies related to these topics. Multiple choice questions with answers are also provided to test understanding of the concepts.
The document discusses various marketing concepts including the product life cycle, segmentation, competitive analysis, pricing strategies, and the marketing mix. It provides examples and case studies related to these topics. Multiple choice questions with answers are also provided to test understanding of the concepts.
The document discusses various marketing concepts including the product life cycle, segmentation, competitive analysis, pricing strategies, and the marketing mix. It provides examples and case studies related to these topics. Multiple choice questions with answers are also provided to test understanding of the concepts.
LO: 2.1: How does marketing affect customer value?
AACSB: Analytical thinking; Application of knowledge
7) The internal records system supplies results data, but the marketing intelligence system
supplies ________ data.
A) internal
B) revenue
C) thematic
D) happenings
E) process
Answer: D
Page Ref: 71
Objective: 3
Difficulty: Easy
8) A ________ is a set of procedures and sources managers use to obtain everyday information
about developments in the marketing environment.
A) data warehousing system
B) viral marketing campaign
C) product management system
D) marketing intelligence system
E) sales information system
Answer: D
Page Ref: 71
Objective: 3
Difficulty: Moderate
9) A company can take several steps to improve the quality of its marketing intelligence. Which
of the following best describes the practice used by McDonald's when it sent pseudo customers
to assess stores' internal speed standards?
A) training and motivating the sales force to spot and report new developments B) motivating intermediaries to pass along important intelligence
C) networking externally
D) purchasing information from outside research firms and vendors
E) using the sales information system to get accurate sales reports
Answer: B
Page Ref: 72
Objective: 3
AACSB: Analytic skills
Difficulty: Moderate
5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are
sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of
________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
Answer: D
Page Ref: 214
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
6) When Nike attempts to get close to its customers at the local level by sponsoring local school
teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the
following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing
Answer: E
Page Ref: 214
Objective: 2
AACSB: Analytic skills
Difficulty: Moderate
7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing
program to recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets
Answer: B
Page Ref: 214
Objective: 2
Difficulty: Easy
8) If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
Answer: C
Page Ref: 214
Objective: 2
AACSB: Analytic skills
Difficulty: Easy
7) The ________ defines which other brands a brand competes with and therefore which brands
should be the focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis
Answer: D
Page Ref: 276
Objective: 1
Difficulty: Easy
8) ________ refers to the products or sets of products with which a brand competes and which
function as close substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
E) Demand field
Answer: C
Page Ref: 277
Objective: 2
AACSB: Analytic skills
Difficulty: Easy
9) ________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups
Answer: B
Page Ref: 278
Objective: 1
Difficulty: Easy
10) A(n) ________ is a group of firms offering a product or class of products that are close
substitutes for one another.
A) community
B) task force
C) industry D) focus group
E) umbrella brand
Answer: C
Page Ref: 278
Objective: 1
Difficulty: Easy
66) ________ is the period of slow sales growth and nonexistent profits.
A) Growth
B) Decline
C) Maturity
D) Introduction
E) Stagnancy
Answer: D
Page Ref: 310
Objective: 4
Difficulty: Easy
67) Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5 in South California. It is incurring huge productions costs, but earning big profits, and fast sales growth. The company is in the ________ phase of its life cycle.
A) stagnancy
B) introduction
C) maturity
D) decline
E) growth
Answer: E
Page Ref: 310
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
68) ________ is a period of getting sustainable profit.
A) Stagnancy
B) Introduction
C) Maturity D) Decline
E) Growth
Answer: C
Page Ref: 310
Objective: 4
Difficulty: Easy
69) A dance school in the Bronx teaches hip-hop and salsa. It is experiencing an
decrease in student admissions, which its profit is going down. The school is going through the ________ phase of its life cycle.
A) decline
B) stagnancy
C) growth
D) introduction
E) maturity
Answer: A
Page Ref: 310
Objective: 4
AACSB: Analytic skills
Difficulty: Moderate
39) Realizing that although household products is a huge category, taking up an entire
supermarket aisle or more, it is an incredibly boring one, the founders of Method Products
designed a sleek, uncluttered dish soap container that also carried functional advantages, such as
ease of dispensing soap and cleaning. Method is competing in the crowded market for household
products on the basis of superior ________.
A) design
B) durability
C) conformance
D) reliability
E) performance quality
Answer: A
Page Ref: 332
Objective: 3
AACSB: Analytic skills
Difficulty: Difficult
10) Which of the following are tangible goods that normally survive many uses?
A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods
Answer: B
Page Ref: 327
Objective: 1
AACSB: Analytic skills
Difficulty: Easy
11) Because ________ are purchased frequently, marketers should make them available in many
locations, charge only a small markup, and advertise heavily to induce trial and build preference.
A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods
Answer: A
Page Ref: 327
Objective: 1
Difficulty: Easy
12) What types of goods are purchased frequently, immediately, and with minimum effort by the
consumers?
A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods
Answer: E
Page Ref: 327
Objective: 1
Difficulty: Moderate
5) Which of the following is an example of a hybrid service?
A) teaching
B) car
C) restaurant meal
D) soap
E) air travel
Answer: C
Page Ref: 357
Objective: 1
Difficulty: Easy
6) A flight with complementary drinks is an example of a ________.
A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services
E) hybrid
Answer: A
Page Ref: 357
Objective: 1
Difficulty: Easy
7) Which of the following is an example of a pure service?
A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal
Answer: B
Page Ref: 357
Objective: 1
Difficulty: Easy 8) Which of the following is true for services?
A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business
services.
Answer: B
Page Ref: 357
Objective: 1
Difficulty: Easy
8) Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent
because the perfume is from a well-known brand. What kind of a pricing is the company
depending on?
A) going-rate pricing
B) image pricing
C) market-skimming pricing
D) target pricing
E) markup pricing
Answer: B
Page Ref: 388
Objective: 1
Difficulty: Easy
11) After determining its pricing objectives, what is the next logical step a firm should take in
setting its pricing policy?
A) It should analyze its competitors' costs, prices, and offers.
B) It should select its pricing method.
C) It should select its final price.
D) It should determine the demand for its product.
E) It should estimate the cost of its product.
Answer: D
Page Ref: 389
Objective: 2
Difficulty: Easy
12) A firm that is plagued with overcapacity, intense competition, or changing wants would do
better if it pursues ________ as its major objective.
A) market skimming
B) product-quality leadership
C) survival
D) profit maximization
E) market penetration
Answer: C
Page Ref: 389
Objective: 2
Difficulty: Easy
13) After estimating the demand and costs associated with alternative prices, a company has
chosen to price its product in such a way that it gains the highest rate of return on its investment.
