________, the fastest-growing U.S. demographic segment, now number more than 45 million.

Hispanics
________, the most affluent American demographic subculture, now have more than $450 billion in
annual spending power. Asian Americans
________ are a form of product that consists of activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in the ownership of anything. Services
________ are becoming a very attractive market: they are the ideal market for travel, restaurants,
high-tech home entertainment products, and convenient services. Mature consumers
________ are consumer products and services with unique characteristics or brand identification for
which a significant group of buyers is willing to make a special purchase effort. Specialty products
________ are consumer products that the consumer either does not know about or knows about but
does not normally think about buying. These products require a lot of advertising, personal selling,
and other marketing efforts. Unsought products
________ are groups to which an individual wishes to belong, as when a teenage basketball player
hopes to play someday for the Los Angeles Lakers. Aspirational groups
________ are human needs as shaped by individual personality and culture. Wants
________ are industrial products that aid in the buyer's production or operations, including
installations and accessory equipment. Capital items
________ are less frequently purchased consumer products and services that customers compare
carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering
information and making comparisons about these products. Shopping products
________ are people within a reference group who, because of special skills, knowledge, personality,
or other characteristics, exert influence on others. Opinion leaders
________ are products and services bought by final consumers for personal consumption. These
include convenience products, shopping products, specialty products, and unsought
products.Consumer products
________ are society's relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors. Social classes
________ are the sum of the ________ and ________ for any given level of production. Total costs;
fixed; variable costs
________ are those products purchased for further processing or for use in conducting a business.
Industrial products
________ consists of activities undertaken to create, maintain, or change attitudes toward particular
people. Person marketing
________ consists of activities undertaken to create, maintain, or change the attitudes and behavior of
target consumers toward an organization. Organization marketing
________ consists of strong short-term incentives that invite and reward quick responses from
customers. Sales promotion
________ contributes to a product's usefulness as well as to its looks. Design
________ describes how responsive demand will be to a change in price. Price elasticity
________ from marketing communications may suggest changes in the promotion program or in the
product offer itself. Feedback
________ has been affected by the need to include unit pricing, open dating, and nutritional
information. Labeling
________ involves activities undertaken to create, maintain, or change attitudes toward particular
cities, states, and regions. Place marketing
________ involves attaching features and services to differentiate a company's offers and to support
charging higher prices.. Value-added pricing
________ involves charging a constant, everyday low price with few or no temporary price discounts.
EDLP
________ involves designing and producing the container or wrapper for a product. Packaging
________ is(are) the most basic cause of a person's wants and behavior. Culture
________ is a company's power to escape price competition and to justify higher prices and margins.
Pricing power
________ is an approach in which all the company's people are involved in constantly improving the
products, services, and business processes. Total quality management
________ is a new-product development approach in which one company department works to
complete its stage of the process before passing the new product along to the next department and
stage. Sequential product development
________ is an important element in the marketing mix. It is the only element that does not represent
costs. Price
________ is a person's pattern of living as expressed in his or her psychographics, including his or
her activities, interests, and opinions. Lifestyle
________ is defined as a social and managerial process by which individuals and organizations obtain
what they need and want through value creation and exchange. Negotiating
________ is defined as the customer's evaluation of the differences between all the benefits and all
the costs of a marketing offer relative to those of competing offers. Customer-perceived value
________ is defined as the use of commercial marketing concepts and tools in programs designed to
influence individuals' behavior to improve their well being and that of society. Social marketing
________ is never simple, yet understanding it is the essential task of marketing management.
Consumer buying behavior
________ is one of the best ways to increase share of customer. Cross-selling
________ is one of the marketer's major positioning tools because it has a direct impact on product or
service performance; it is therefore closely linked to customer value and satisfaction. Product quality
________ is the act of obtaining a desired object from someone by offering something in return.
Exchange
________ is the amount of money charged for a product or service. Price
________ is the company's most expensive promotion tool. Personal selling
________ is the process by which people select, organize, and interpret information to form a
meaningful picture of the world. Perception (sự nhận thức)
________ is the product life cycle period when sales fall off and profits drop. Decline
________ is the systematic collection and analysis of publicly available information about
consumers, competitors, and developments in the marketing environment. Marketing intelligence
________ is the systematic design, collection, analysis, and reporting of data relevant to a specific
marketing situation facing an organization. Marketing research
________ is very believable because news stories, features, sponsorships, and events seem more real
and believable to readers than ads do. Public relations
________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service intangibility
________ means that services cannot be separated from their providers, whether the providers are
people or machines. Service inseparability
________ occurs when two established brand names of different companies are used on the same
product. Co-branding
________ pricing involves setting prices based on the costs for producing, distributing, and selling
the product plus a fair rate of return for the company's efforts and risks. Cost-based
________ pricing is the approach of setting a low initial price in order to attract a large number of
buyers quickly and win a large market share. Market-penetration
________ refers to the unique psychological characteristics that lead to relatively consistent and
lasting responses to one's own environment. It is usually described in traits such as self confidence,
dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. evaluation
Personality
________ results when a company uses pricing methods that make it difficult for consumers to
understand just what price they are really paying. Price confusion
________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and
even stores. Local marketing
 ________ that influence pricing decisions include the nature of the market and demand and
competitors' prices. External factors
________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to
pricing. Value-based pricing
_____ calls for testing new-product concepts with groups of target consumers. Concept testing
_____ describes changes in an individual's behavior arising from experience. Learning
_____ the manufacturer or service provider is the set of firms that supply the raw materials,
components, parts, information, finances, and expertise needed to create a product or service.
Upstream from
____ conflict, which occurs between different levels of the same channel, is more common than ____
conflict, which occurs among firms at the same level of the channel. Vertical; horizontal
____ pricing works only if that price actually brings in the expected level of sales.Target profit
___ are subtle stimuli that determine where, when, and how a person responds to an idea.Cues
__ occur(s) when a company introduces additional items in a given product category under the same
brand name, such as new flavors, forms, colors, ingredients, or package sizes.Line extension
A ________ consists of all the product lines and items that a particular seller offers for sale. product
mix
A ________ consists of the activities people are expected to perform according to the persons around
them. role
A ________ consists of the actual users of products, those who control buying information, those
who influence the decisions, those who do the actual buying, and those who make the buying
decisions. buying center
A ________ involves the use of a successful brand name to launch new or modified products in a
new category. brand extension
A ________ is a group of products that are closely related because they function in a similar manner,
are sold to the same customer groups, are marketed through the same type of outlets, or fall within
given price ranges.product line
A ________ is defined as any group that has an actual or potential interest in, or impact on, an
organization's ability to achieve its objectives. public
A ________ is the way consumers perceive an actual or potential product. product image
A __ is a need that is sufficiently pressing to direct a person to seek satisfaction. motive
A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell
its products to wholesalers and cities. This is an example of ________. personal selling
A(n) ________ is a descriptive thought that a person has about something. lifestyle belief
A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the
maker or seller of a product or service. brand
A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an
object or idea. attitude
A(n) ________ is the set of actual and potential buyers of a product. market
A(n) ______ argument is only likely to be effective when the audience is highly educated or likely to
hear opposing claims, or when the communicator has a negative association to overcome. two-sided
A(n) ______ controls the flow of information to others in the buying center. gatekeeper
ABC Company has decided to use mail questionnaires to collect data. Management recognizes this
method has all the following advantages EXCEPT which one? has an average response rate
ABC Enterprises sold 9,000 units @ $2.99/unit in July. The firm sold 9,000 units @ $4.29/unit in
August. This illustrates ________ demand. inelastic (không đàn hồi)
ABC Interior Designs wants to collect research data through mechanical observation. The three
typical methods are video cameras, checkout scanners, and Internet surveys. FALSE
A belief is the specific mix of human traits that may be attributed to a particular brand.FALSE
A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria
below EXCEPT which one? divisible
A break-even chart shows the total cost and total revenue expected at various sales volume
levels.TRUE
A business marketer normally deals with far fewer buyers than the consumer marketer does. TRUE
A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage,
occupation, economic situation, lifestyle, and personality and self-concept. personal characteristics
A buyer would be most likely to review trade directories in which stage of the business buying
process? supplier search
A buying center is not a fixed, formally identified, unit within an organization, but rather a set of
________ assumed by different people for different purchases. buying roles
Accent Software faces the conditions below, all of which support Accent's use of a market
penetration pricing strategy EXCEPT that __. the product's quality and image support a high price
According to Engel's laws, consumers tend to spend a larger percentage of income on savings as
income rises. TRUE
According to Freud's theories, people are ________ many of the psychological forces shaping their
behavior. unaware of
According to management guru Peter Drucker, "The aim of marketing is to ________." make selling
unnecessary
According to one analyst, a Harley-Davidson motorcycle can make you feel like "the toughest,
baddest guy on the block." Harley-Davidson promotes its motorcycles with images of independence,
freedom, and power. Harley-Davidson has created a ________. brand personality
According to the production concept, consumers will favor products that are ________ and
________. available; affordable
According to the simple five-step model of the marketing process, a company needs to ________
before designing a customer-driven marketing strategy. understand the marketplace and customer
needs and wants
According to the stages of the business buying process, after completing a general need description, a
business buyer should next invite qualified suppliers to submit proposals. FALSE
A challenge for management in product line pricing is to decide on the price steps between the
________. various products in a line
A channel consisting of one or more independent producers, wholesalers, or retailers that seek to
maximize their own profits even at the expense of profits for the channel as a wholeis a(n) ________.
conventional distribution channel
A church targeting different demographic groups to increase attendance is an example of ________.
not-for-profit marketing
A company's channel decisions directly affect every ________. marketing decision
A company's marketing communications mix is also called its promotion mix. TRUE
A company's product mix has four important dimensions: width, length, depth, and consistency.
TRUE
A company's salespeople should always follow the rules of ________. fair competition
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 _______. The
promotion mix
A company building its pricing strategy around the experience curve would be likely to ________.
price its products low
A company can increase its business in four ways. Which is NOT one of these ways? It can
discontinue some of its lines.
A company can stretch its product either upward or downward, but not both directions. FALSE
A company considering a price change should be more concerned about consumers' reactions than
competitors' reactions. FALSE
A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell
their product to the market for $12.00. How many units must they produce and sell to break even?
25,000
A company getting ready to launch a new product must make several decisions. The company must
first decide on ________. when to time the new product introduction
A company has four choices when it comes to developing brands. What is NOT one of those choices?
width and depth extension
A company launching a new product into the market must first decide on when to launch the product.
TRUE
A company markets wild and crazy games for teens to play at parties. This company's customer
market is a business market. FALSE
A company might stretch its product line upward to add prestige to its current products. TRUE
A company or market offer can be differentiated along the lines of product, image, services, channels,
or ________. people
A company or store gains a(n) _____ by differentiating its products and delivering more value.
competitive advantage
A company sets not a single price, but rather a ________ that covers different items in its line that
change over time as products move through their life cycles. pricing structure
A company should set prices that will allow ________ to receive a fair profit.resellers
A company should think of its intermediaries as both its_____and_____.customers; partners
A company would most likely consider launching a low-price "fighting brand" in response to a
competitor reducing prices if ________. the market segment being lost is price sensitive
A competitor is likely to interpret your firm's decision to cut prices in many ways, including
all of the following EXCEPT as ________. a personal decision due to management's
personality
A consumer is most likely to be paid a small fee for participating in which of the following? a focus
group interview
A consumer is reading a magazine with an advertisement, but is distracted from reading the
advertisement or its key points. This unplanned static or distortion during the communication process
is called ________. noise
A consumer organization, environmental group, or minority group has challenged your firm's stand on
a local issue. Your firm is being challenged by a ________ public. citizen-action
A conventional distribution channel consists of one or more ________ producers, wholesalers, and
retailers. independent
A corporate VMS has the advantage of controlling the entire distribution chain under ________.
single ownership
A country with a(n) ________ economy consumes most of its own agricultural and industrial outputs
and offers few market opportunities. subsistence
A country with a(n) ________ economy has rich markets for many different kinds of goods.
industrial
A customer's lifestyle can be measured by using the AIO dimensions. What does AIO stand for?
Activities, Interests, Opinions
A detailed version of a new idea stated in meaningful customer terms is called a ________. product
concept
A distinguishing feature of a contractual VMS is that coordination and conflict management among
the independent members of the channel are attained through ______.contractual agreements
A distribution channel is more than a collection of firms connected by various flows; it is a(n)
________ in which people and companies interact to accomplish individual, company, and channel
goals. complex behavioral system
Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What
does USP stand for? unique selling proposition
Advertisements for prescription drugs often feature potential benefits and negative side effects that
consumers may experience with use of the medication. These ads present two-sided arguments.
TRUE
Advertising, sales promotion, personal selling, public relations, and direct marketing are all
________. communications channels that should be integrated under the concept of integrated
marketing communications
Advertising Age, a magazine for advertising professionals, recently gave its Ad Agency of the Year
award to ________. the consumer
Advertising has some shortcomings. What is NOT one of them? It slowly reaches many people.
Afia, a team leader in charge of customer relationship management, is planning strategies for
improving the profitability of her firm's least profitable but loyal customers. She is also examining
methods for "firing" customers in this group who cannot be made profitable. To which of the
following customer relationship groups do these customers belong? barnacles
A firm can obtain new products in two ways: acquisition or new-product development. TRUE
A firm is using ________ when it charges a high, premium price for a new product with the intention
of reducing the price in the future. price skimming
A firm that uses the selling concept takes a(n) ________ approach. inside-out
After concept testing, a firm would engage in which stage in developing and marketing a new
product? marketing strategy development
After conducting formal marketing research for your department, you make an oral presentation with
notes to management. You are following the normal order of marketing research steps. FALSE
After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in
post-purchase behavior. TRUE
After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in
________. postpurchase behavior
A good MIS balances the information users would ________ against what they really ________ and
what is ________. like to have; need; feasible to offer
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from
locally grown wood is an example of a(n) ________. specialty product
Airlines, hotels, and restaurants call segmented pricing ________. yield management
A key element in a company's relationship with consumers, a ________ represents consumers'
perceptions and feelings about a product and its performance. brand
All of the following are accurate descriptions of a style product, EXCEPT which one? Styles last only
a short time and tend to attract only a limited following.
All of the following are accurate descriptions of modern marketing, EXCEPT which one? Selling and
advertising are synonymous with marketing.
All of the following are a manufacturer's sponsorship options for a product EXCEPT ________.
multibrands
All of the following are difficulties associated with selling to government buyers EXCEPT ________.
low sales volume
All of the following are methods for developing a differentiated service offer, delivery, or image
EXCEPT ________. increasing the quantity of service by giving up some quality
All of the following are reasons that marketers are losing confidence in television advertising
EXCEPT which one? TV and other mass media still capture the lion share of promotional
budgets.
All of the following are stages in the PLC EXCEPT ________. adoption
All of the following are strategies a marketer would use to lead consumers into making the final step
toward a purchase EXCEPT which one? use extensive "teaser" advertising
All of the following are typical ways a reference price might be formed in a buyer's mind EXCEPT
________. comparing it to a new product
All of the following make up a person's lifestyle EXCEPT ____.dissonance-reducing buying
behavior
All of the following organizations are likely considered to be a part of the institutional market
EXCEPT ________. Lancaster Township
All of the groups within a company are called the ________. internal environment
All of the institutions in a channel are connected by various flows. These include physical flow, flow
of ownership, payment flow, information flow, and ________ flow. promotion
All too often companies today have failed to ________ their various communications channels,
resulting in a hodgepodge of communications to consumers. integrate
Almost all major purchases result in ________, or discomfort caused by postpurchase conflict.
cognitive dissonance
Alternative evaluation is the process by which people select, organize, and interpret information to
form a meaningful picture of the world. FALSE
Although more price-conscious than other segments, ________ consumers tend to be strongly
motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion
conscious than other ethnic groups. African American
Although products that remain in the maturity stage of the PLC seem unchanged, the most successful
ones actually evolve to meet changing consumer needs. TRUE
Although test marketing costs can be high, they are often small when compared with ________. the
costs of a major mistake
Although there are many differences between business buying behavior and consumer buying
behavior, both respond to the same four stimuli: product, price, promotion, and ______. place
Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and
restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer
produce outlet. Always is now using a multichannel distribution system. TRUE
A major role played by intermediaries is to buy large quantities of products from many producers and
break them down into the smaller quantities and broader assortments wanted by consumers. TRUE
A maker of vitamin drinks wants to compete with the leading brands in the category and has decided
to use a heavy push strategy, putting most of the brand's marketing budget into trade and consumer
sales promotion. Which of the following is a potential disadvantage of this approach? The strategy
may spark a spiral of price-slashing that will undercut the brand's future for short-term gains.
A manager of a Holiday Inn said, "We have power and value in the market and people are willing to
pay for it." This manager is referring to ________. brand equity
A manufacturer is trying to determine its break-even volume. With fixed costs of $100,000, a variable
cost of $10, and expected sales of 50,000 units, what should the manufacturer's unit cost be to break
even? $12
A manufacturer of a variety of technological devices asked its marketing department to develop
inexpensive methods of building and maintaining brand awareness and excitement. The marketing
department then recruited consumers who were early adopters of technological devices to spread the
word about the company's new products. This is an example of ________. buzz marketing
A manufacturer offers 3/10, net 30, terms to a wholesaler for a recent purchase. The wholesaler may
deduct ________ percent if the bill is paid within ________ days. 3; 10
A manufacturer with a product in the decline stage of the product life cycle might decide to ________
if it has reason to hope that competitors will leave the industry. maintain the product without
change
A marketer focuses on several commonalities among all consumers. This marketer appears to be
engaging in ________. undifferentiated marketing
A marketer has chosen a multiple-city test market. What might we conclude from this choice of a
multiple-city test market? The marketer likely understands that the product being tested will be
perceived differently in different geographic regions.
A marketer has selected a single city in which to conduct a test market. What might we conclude from
this choice of a single-city test market? The marketer may feel assured that consumers in that city
are typical of the overall market.
A marketer must be familiar with the five major product mix pricing situations. Which of the
following is NOT one of them? unbundled product pricing
A marketer of frozen dinners has decided to collect consumer feedback via a focus group interview.
How might the marketer use the focus group interview to determine whether peas or green beans
should be included with the turkey entrée? The group might be given a prepared meal with both
vegetable options. Afterward, the marketer can obtain fresh feedback from the respondents or
through observation. The marketer could assess respondents' reactions and facial expressions
while they eat provided meals.
A marketer seeking to create brand familiarity should be more concerned about creative ad copy
content than ad repetition. FALSE
A marketing communications director has overall responsibility for the company's communications
efforts. TRUE
A marketing information system (MIS) consists of people and procedures to assess information needs,
________, and help decision makers analyze and use the information. develop the needed
information
A marketing research company asked members of a focus group to describe several motorcycle
brands as animals. This is an example of ________. interpretive consumer research
A market rarely exists for products that offer less and therefore cost less. FALSE
Amazon.com leverages relationships with its 35 million customers by offering them music, videos,
gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase
history, the company recommends related CDs, books, videos, or other products that might interest a
customer. This most directly helps Amazon.com capture a greater ________. share of customer
Ameriprise Financial has published a Dream Book guide, one of the first steps in their Dream > Plan
> Track approach to financial planning, as part of their strategy to attract ________ as customers.
baby boomers
A message showing a product's quality, economy, value, or performance is called a(n) ________
appeal. rational
AMF Research Group must guard against problems during the implementation phase of marketing
research for its clients. Which of the following is NOT a problem that should be anticipated during
this phase? interpreting and reporting the findings
Among the following, a market-penetration strategy will likely be most effective with ________.
convenience items for which there is much competition
Amos Zook, an Amish farmer, sells organically grown produce. Often he will trade some of his
produce for dairy products produced by other Amish farmers. The sum of the values that others
exchange is called a ________. price
Amy's law office has developed a new format and wording for wills. The staff believes they offer the
most in quality, performance, and innovative features. Her law office is practicing the production
concept. FALSE
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress
Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of
the communication model, the medium of this ad is ________. Ladies' Home Journal
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress
Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of
the communication model, the sender of this message is ________. Maybelline
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress
Melina Kanakaredes and offered readers a $1-off coupon when they try the new makeup. In terms of
the communication model, which of the following would be the best way for the source to measure
feedback? the number of people who redeem the coupon
An ad in a professional journal targeted to an audience of dentists asked dentists to recommend Crest
toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost to give to
their patients to encourage patients to take better care of their teeth. The manufacturer of Crest
toothpaste was using ________. a push strategy
An advantage of a channel of distribution over selling direct to consumers is that each channel
member plays a ________ in the channel. specialized role
An advantage of a vertical marketing system (VMS) is that it acts as a _____ system. unified
An alternative to product line stretching is ________, adding more items within the present range of
the line. product line filling
An apparel marketer is planning to launch an existing brand name into a new product category.
Which brand development strategy is being implemented? brand extension
An attractive idea must be developed into a ________. product concept
An effective MIS assesses information needs, develops needed information, and helps decision
makers use the information. TRUE
An e-mail from Amazon.com offers free shipping on your next purchase of more than $35. This is an
example of ________. sales promotion
A newspaper article announced that VoiceStream Wireless, the nation's sixth-largest wireless carrier,
was changing its name to T-Mobile and that to begin the makeover process it had replaced
spokesperson Jamie Lee Curtis with Catherine Zeta-Jones. Of which element of the promotion mix is
this an example? public relations
An example of a(n) ________ appeal is the Salvation Army appeal, "While you were trying to figure
out what to get the man who has everything, don't forget the man who has nothing." moral
An example of service variability is that within a given Marriott hotel, one registration-desk employee
may be cheerful and efficient, whereas another may be unpleasant and slow. TRUE
An experience such as a vacation can be defined as a market offering. TRUE
An increasing number of retailers and wholesalers have created their own ________, also called store
brands. private brands
Anita's DayCare plans to offer third-shift childcare, based upon the opening of two new
manufacturing plants in her area. Together the plants will hire 423 employees and run all three shifts.
Initial test marketing results look promising. In considering launching this new service, Anita must
first decide on ________. timing
Anna Gregory just read a marketing research report about the top 25 countries that purchase
American products. What would the report most likely say about international research involving
these countries? Despite the costs of international research, the costs of not doing it are higher.
Another name for systems selling is ________ selling. solutions
Another term for the supply chain that suggests a sense and respond view of the market is ________.
demand chain
An upward-sloping experience curve is beneficial for a company. FALSE
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor is called ________. Advertising
A person's attitudes fit into a pattern, and to change one attitude may require difficult adjustments in
many others. Thus, a company should ________ try to fit its products into existing attitudes rather
than attempt to change attitudes. usually
A person's buying choices are influenced by four major psychological factors: motivation, perception,
learning, and beliefs and attitudes. TRUE
A person's buying choices are influenced by four major psychological factors. Which is NOT one of
these factors? alternative evaluation
A person buying a car would be unlikely to exhibit complex buying behavior. FALSE
A potentially highly profitable, short-term customer is a ________. butterfly
Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120
million iPods have been sold, and the iPod captures more than 70 percent of the music player market.
This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of
the product life cycle. maturity
Applying ________, marketers can affect demand for a product by associating it with strong drives,
using motivating cues, and providing positive reinforcement. learning theory
A problem with the rapidly expanding use of e-purchasing is that it ________. can erode established
customer-supplier relationships
A product's position is based on important attributes as perceived by ________. Consumers
A product's position is the way the product is defined by the retailers who sell it to target markets. It
is how it is defined on important attributes the place the product occupies in the retailers' minds
relative to competing products. FALSE
A product idea is an idea for a possible product a company can offer the market, while a product
concept is a detailed version of the idea stated in meaningful consumer terms. TRUE
A product is a key element in the ________. At one extreme, it may consist of pure tangible goods or
at the other extreme, pure services. market offering
A quantity discount is a price reduction to buyers who purchase ________. large volumes
A radio station that carries news, features, and editorial opinions about your area is which type of
public? media
A recent trend toward more push than pull in the mixes of consumer-goods companies may achieve
short-run sales at the expense of brand equity. TRUE.
A regional supermarket chain runs print, radio, and television advertisements announcing that 1% of
each of its sales is donated to local after-school programs for underprivileged youth. This is an
example of ________ marketing. cause-related
A researcher is collecting data from travelers in an airport. Why might a sample be most
appropriate? People in an airport are often in a hurry; not everyone will want to participate in
providing data. Therefore, the researcher may be satisfied with collecting data from whoever is
willing to provide it.
A researcher who wants to calculate confidence limits for sampling error would use nonprobability
samples. FALSE
A review of the sales, costs, and profit projections for a new product to find out whether they satisfy
the company's objectives is called a ________. business analysis
A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of a
________. frequency marketing program
As a group, ________ are the most affluent Americans. baby boomers
As a manufacturer decreases price, ________ volume increases. break-even
As a manufacturer increases price, the ________ drops. break-even volume
As a marketer of pesticides, which of the following should give you the LEAST amount of concern?
persistence of cultural values
As a purchasing agent, Benni Lopez buys goods and services for use in the production of products
that are sold and supplied to others. Benni is involved in ________. business buyer behavior
As baby boomers reach their peak earning and spending years, they become lucrative markets for
financial services, travel, and entertainment. TRUE
Ascot Tires has decided to decrease its prices. The company can expect that ________ for their
product will increase. demand
A seasonal discount is a price reduction to buyers who buy merchandise or services while they are in
season. FALSE
A sensational ________ may grab attention and produce pleasing aesthetics, but it does not
necessarily improve a product's performance. style
A shoe company uses ads featuring the members of a country music band with the hope that the
band's fans will see them wearing the company's shoes and want to wear the same shoes. The shoe
company is hoping that fans of the band view the band as a ________. reference group
As in consumer segmentation, many marketers believe that ________ and ________ segmentation
provide the best basis for segmenting business markets. benefits; buying behavior
As indicated in the chapter opener, change in the ________ environment has had the most impact on
the marketing strategy at Xerox. technological
As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a
multichannel distribution system. You will likely enjoy all of the following EXCEPT which one?
selling at a higher gross margin
A society's ________ are expressed in how people view themselves, organizations, society, nature,
and the universe. cultural values
A society's basic values, perceptions, preferences, and behaviors are all part of its ________
environment. cultural
As production workers become better organized and more familiar with equipment, the average cost
per unit decreases. This is called the ________. experience curve
Assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected sales of
50,000 units wants to earn a 20-percent markup on sales. What is the manufacturer's markup
price?$15
Assume that you are a manager at a firm that has hired lobbyists to influence legislation affecting
your firm's industry to its advantage. Your firm takes a(n) ________ approach to the marketing
environment. proactive
A statement prepared by a business buyer describing the quantity and general characteristics of the
items needed is a product specification description. FALSE
A stripped-down model without any extras is the starting point; a company can create a higher-level
model by adding ________. features
As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring
products and marketing programs to suit the tastes of specific individuals and locations is referred to
as ________ marketing. micro
At a recent marketing seminar, the featured speaker stated that a target market consists of a set of
buyers who share common needs or characteristics that the company decides to serve. This is a correct
definition. TRUE
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design,
production, and finance work in a cross-functional group to save time and money in the new-product
development process. Fantastic Flavors uses a(n) ________ approach. team-based new-product
development
At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim
to delight each customer, and they are quick to offer discounts or extra services whenever a customer
is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It
is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put
a priority on ________. capturing customer lifetime value
Atlas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into
full national or international distribution. Even though test market results look promising, what will
be management's next step? develop a planned market rollout over time
At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller
drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of
the middle working class. This segmentation approach is ________. psychographic
A trucking company is considering purchasing new trucks that are powered by ethanol instead of
diesel fuel. In terms of the buying center, the truck drivers who must make sure that the trucks do not
run out of fuel are the ________. users
At the very least, the ________ identifies the product or brand. It might also describe several things
about the product and promote the brand. label
Attributes are the least desirable level for brand positioning because competitors can easily copy
attributes and customers are more interested in what attributes will do for them than in the attributes
themselves. TRUE
At what stage in the buying process was Richard when he sought input from others in the firm?
supplier selection
Average unit cost increases with accumulated production experience. FALSE
Awareness, knowledge, and preparation are buyer-readiness stages. FALSE
B2B e-procurement yields many benefits. These include all of the following EXCEPT ________.
elimination of inventory problems
Bait-and-switch advertising ________. A) attracts buyers under false pretenses B) is unethical C)
is illegal D) is deceptive E) all of the above
Banks, credit companies, insurance companies, and other businesses that help finance transactions or
insure against the risks associated with the buying and selling of goods and services are referred to as
________. financial intermediaries
Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the
following items should NOT be on the list? competition with superior resources
Because Cruise Ships International currently has limited financial and personnel resources, it should
avoid concentrated or niche marketing until resources are again substantial. FALSE
Because names, labels, and colors may not easily translate from one country to another, international
marketers must carefully assess ________. packaging
Because of ________, a company cannot make its product illegally similar to a competitor's already
established product. patent laws
Because of increasing ________, Americans will demand higher quality products, books, magazines,
travel, personal computers, and Internet services. levels of education
Because of the scarcity of good secondary data, international researchers often must collect their own
primary data. An initial problem with this collection is developing good ________. samples
Because people are able to move between social classes, these classes are relatively impermanent and
disordered divisions whose members share dissimilar values, interests, and behaviors. FALSE
Because secondary data provide good starting points and often help to define problems and research
objectives, most companies do not also need to collect primary data. FALSE
Because service quality depends on the quality of buyer-seller interaction during the service
encounter, service marketers use ________ to train employees in the art of interacting with customers
to satisfy their needs. interactive marketing
Because so many purchase decisions are made in stores, a product's packaging may be a seller's last
and best chance to influence consumers. TRUE
Because there is such variation among the economies of countries around the world, it is not practical
to segment international markets on the basis of economic factors. FALSE
Behavioral targeting, the practice of ________, is being used by more and more companies. tracking
consumers' online movements and using this information to target ads to them
Ben & Jerry's challenges all stakeholders, including employees, top management, and even ice cream
scoopers in their stores, to consider individual and community welfare in their day-to day decisions.
Actions such as this by companies seizing the opportunity to do well by doing good reflects
________. social responsibility.
Berkowitz Piano Company can expand its product line in one of two common ways. Which of the
following is one of those ways? line filling
Beyond simply retaining good customers, marketers want to constantly increase their "share of
customer." What does this mean in marketing terms? Marketers want to increase the share they get
of the customer's purchasing in their product categories.
Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold
varies according to individual customer accounts and situations. For example, long-time customers
receive discounts. This strategy is an example of ________. dynamic pricing
Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose, a
character from an animated television series originally broadcast in the 50s and 60s. Their version of
Rocky the Flying Squirrel, another character from the show, targeted at baby boomers was a strong
success. They need to make the new launch strategy for Bullwinkle consistent with the intended
________. product positioning
Blair Housewares wants to add new lines of products to its 46-store chain. Managers are correct in
believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding
stages is to increase that number. FALSE
Blake is in the process of buying a new car. He is highly involved in the purchase and perceives
significant differences among his three favorite models. Blake's next step is most likely to be
________. alternative evaluation
Blockbuster offers DVD rentals through its Total Access online rental service and through its
bricks-and-mortar stores. This is an example of a(n)________. multichannel distribution system
Bob's job description had been changed. The rationale for the changes made no sense to Bob when
they were explained. Bob continued to perform most of his job duties as usual. He has engaged in
________. selective attention
Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the
towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob
and Phyllis alter the product offerings between both locations in an effort to cater to both
demographic groups. This is an example of ________. local marketing, micromarketing
Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic
segmentation. TRUE
Bonneville Communications is concerned about test marketing its new device. Which of the
following is NOT a disadvantage of test marketing that would likely concern Bonneville
Communications? People who are surveyed tend to tell less than the truth.
Bose prices its most expensive noise reduction earphones at $399.95, which is a full $100.00 more
than its next most expensive earphones. It costs Bose only a few dollars more to make the most
expensive earphones. Bose is using ________ pricing. product-form
Branding can add consumer value to a product. TRUE
Brand personality is a mix of human traits attributed to a brand. Which of the following is NOT a
brand personality trait as discussed in your text? emotion
Break-even pricing, or a variation called ________, is when the firm tries to determine the price at
which it will break even or make the profit it is seeking. target profit pricing
Brown Baby Tanning Salon offers weekly tanning sessions for $15 and season passes with unlimited
tanning for $150. Brown Baby Tanning Salon is offering ________ pricing. discount
Building, keeping, and growing profitable relationships by delivering customer value and satisfaction
is called ________. customer relationship management
Build a better mousetrap and the world will beat a path to your door reflects the ________ concept.
product
Business buying behavior refers to the buying behavior of organizations that buy all of the following
EXCEPT ________. products purchased for personal consumption
Business demand ultimately derives from the demand for consumer goods and services. TRUE
Business legislation has been created for three basic reasons: to protect companies from each other, to
protect consumers, and to ________. protect the interests of society
Business marketers often alert customers to potential problems and then show how their products
provide solutions. These marketers are hoping to influence which stage of the business buying
process? problem recognition
Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while
business-to-business companies are more likely to emphasize a ________ promotion strategy. pull;
push
Buyer and seller are less dependent upon each other in the business buying process than in the
consumer buying process. FALSE
Buyers are heavily influenced by the current and expected economic environment. That includes
which of the following buyer influences? A) level of primary demand B) economic outlook C) the
cost of money D) A and B only, E) all of the above
Buyers are less price sensitive in all of the following situations EXCEPT ________. when the total
expenditure for a product is high relative to their income
Buyers have different buying styles influenced by interpersonal factors such as age, income,
education, professional identification, and attitudes toward risk. FALSE
Buy it now is the message of ________. sales promotion
Buzz marketing involves cultivating opinion leaders and getting them to spread information about a
product or service to others in their communities. TRUE
By definition, this type of pricing is used when a firm sells a product or service at two or more prices,
even though the difference in price is not based on differences in cost. segmented pricing
By offering a set of pens packaged with stationery and matching envelopes, Quills is using _______.
product bundle pricing
By pledging to be a leader in providing clean, renewable energy sources and developing products and
services that help consumers protect the environment, Green Mountain Power competes successfully
against "cheaper" brands that focus on more price-sensitive consumers.Green Mountain Power has the
firm belief that even kilowatt-hours can be ________. differentiated
By studying its less loyal buyers, a company can detect which brands are most ________ its own.
competitive with
ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________
against ________ when selecting this strategy. increased sales; increased costs
Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his
friends, he is almost always the first to own the newest electronic product. Often the products that
Cameron buys become adopted by large groups of consumers, but occasionally Cameron will
purchase a product that is adopted by only a small portion of the population. To which of the
following adopter groups does Cameron belong? innovator
Cannibalization and customer confusion about product differentiation are two potential results if line
filling is overdone. TRUE
Carls Jr. came out with a new hamburger and released it in two different cities with two different
price points. Marketers at Carls Jr. then analyzed the different levels of purchase made at the two
different price points, planning on using the information to help them set a nationwide price for the
new offering. This is an example of ________. experimental research
Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand;
instead, she does a lot of brand switching. Carrie exhibits__. variety-seeking buying behavior
Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in harmony with
its worldwide distribution network of independent dealers. Caterpillar has shared its successes with
its dealers and protected its dealers during difficult economic times. This is an example of ________.
partner relationship management
Cathy's Clothes is a small retail chain successfully selling women's clothing and accessories with a
profitable focus on buyers who have relatively modest means. This is an example of ________.
target marketing
Causal research is used to ________. test hypotheses about cause-and-effect relationships
Cause-related marketing is a(n) ________. primary form of corporate giving
Cause-related marketing is a slowing trend as companies have abused the practice, using it more to
increase sales than to support worthwhile causes. FALSE
CellTones, a new company selling several lines of cellular phones, has closely modeled its products
after successful products that are already in the marketplace. As it prepares to enter the market with
its new products and services, which of the following should concern CellTones the most? patent
laws
Channel members add value by bridging the major gaps of ________ that separate goods and services
from those who would use them. time, place, and possession
Channel members should be evaluated using all of the following criteria EXCEPT which one?
channel leadership
Charlie Van Dusen, executive vice president of National Central Bank, is going through all of the
stages of the buying process to purchase a computer system for the bank. Charlie is facing a(n)
________ situation. new-task buying
Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, priced a great deal lower
than other used cars. Cheap Heaps has chosen to position their products with a ________ strategy.
less-for-much-less
Chet Hoffman's chain of travel agencies has identified the lesbian, gay, bisexual, and transgender
community as a growing market that spends an increasing percentage of its income on travel. Which
of the following would be the LEAST effective component of a marketing plan for Chet to take
advantage of this opportunity? implement a mass marketing campaign
Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as
many outlets as possible. This is an example of ________ distribution. intensive
Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the
Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________. equity
Children exert little influence on family buying decisions, particularly in areas such as entertainment
and food. FALSE
China and India each contain more than one billion people. However, companies can access only a
small percentage of these potential markets due to _______. inadequate distribution systems
Choose the statement that is NOT a typical consumer concern about intrusion on consumer privacy.
Marketers make too many products and services available, creating unnecessary consumer
wants.
Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their
attempts to target ________. inner-city minorities
Clean and Clear, a large producer of all-natural hair care and beauty products, is most likely to use
which of the promotion mix strategies to gain increased shelf space in stores and to gain increased
customer sales? push and pull
Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase
behaviors can be identified by multivariable segmentation systems that merge and analyze
geographic, demographic, lifestyle, and behavioral data. TRUE
Commercial sources of information typically legitimize and evaluate products for buyers.FALSE
Communication through the mail is categorized as a_____ communication channel. personal
Companies are doing less ________ and more ________ as a result of an explosion of more focused
media that better match today's targeting strategies. broadcasting; narrowcasting
Companies are fortunate to have demand that is more ________ because they may be able to set
higher prices.inelastic
Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________. market-skimming pricing
Companies in several industries have recognized the buying power of the gay and lesbian segment of
the U.S. population and have begun explicitly targeting these consumers with gay specific marketing
efforts. TRUE
Companies involved in deciding which items to include in the base price and which to offer as
options are engaged in ________ pricing. optional-product
Companies manage their supply chains through ________. information
Companies may set prices low for which of the following reasons EXCEPT ________.to prepare for
an easy exit from a market
Companies need to pay attention to their aging products. Management should regularly review sales,
market shares, costs, and profit trends, and then decide whether to maintain, harvest, or drop these
declining products. TRUE
Companies often fail to integrate their various communications to consumers because ________.
communications often come from different parts of the company
Companies rarely solicit ideas from customers during the idea generation stage of product
development. FALSE
Companies should state their channel objectives in terms of targeted levels of ________. customer
service
Companies use all of the following methods to set their advertising budget EXCEPT the ________.
integrated method
Companies usually develop ________ rather than single products. product lines
Companies who use brand ambassadors are participating in ________. buzz marketing
Comparison pricing claims are legal if they are truthful. However, sellers should not advertise a price
reduction unless ________. all of the above
Competitors are most likely to react to a price change when _______. the product is uniform
Concept testing works best with people who are familiar with the new idea and the new product's
purpose. This generally includes top management, the sales force, and research and development.
FALSE
Consumer and business marketers use many of the same variables to segment markets. Business
marketers use all of the following EXCEPT ________. brand personalities
Consumer-generated marketing, a relatively new phenomenon, has so far had little impact as a
marketing force. FALSE
Consumer organizations such as environmental and minority groups that may questions a company's
marketing decisions are referred to as local publics. FALSE
Consumer perceptions of the product's value set the ________ for prices. ceiling
Consumer research, product development, communication, distribution, pricing, and service are all
core ________ activities. marketing
Consumers can show their allegiance to brands, stores, or companies. Marketers can use this
information to segment consumers by ________. loyalty status
Consumers learn about new products for the first time and make the decision to buy them during the
________. adoption process
Consumers position products and services ________. with or without the help of marketers
Consumers position products in their minds in order to simplify the buying process. TRUE
Consumers today receive commercial messages from a broad range of sources. However, consumers
________ the way marketers do. don't distinguish between message sources
Consumers undertaking which of the following would be LEAST likely to be identified as
"Adventurers" by the Yankelovich Monitor? having a home entertainment center installed
Consumers usually perceive higher-priced products as ________.having a higher quality
Consumers usually perceive higher-priced products as ________. having high quality
Consumers who have less time and patience for watching for supermarket specials and clipping
coupons would most likely prefer ________. EDLP
Consumers will base their judgments of a product's value on the prices that competitors charge for
similar products. TRUE
Consumers will be most likely to gladly provide research information when researchers provide
________. value for the exchange
Consumer use price less to judge the quality of a product when they ________.have experience with
the product
Cost-based pricing relies on consumer perception of value to drive pricing. FALSE
Costco's Kirkland products are an example of a(n) ________. private brand
Costs that do not vary with production or sales level are referred to as ________. fixed costs
Costs that vary directly with the level of production are referred to as ________. variable costs
Creating word-of-mouth campaigns by cultivating opinion leaders and getting them to spread
information about a product or service to others in their communities is known as___.buzz marketing
Cultural differences, especially those involving language, can add to research costs in foreign markets
and can increase the ________. risk of error
Cultural forecasters have noted a renewed American interest in ________. spirituality
Currently, Diego Calabresa is employed by a firm that conducts marketing research and creates ads
for other companies that help them target and promote their products to the right markets. Who is
Diego's employer? a marketing service agency
Customer-driven marketing usually works well when ________ and when customers ________. a
clear need exists; know what they want
Customer-perceived value is defined as the customer's evaluation of the perceived difference between
all the benefits and all the costs of a marketing offer relative to those of competing offers.TRUE
Customer-perceived value is determined by a customer's ________ of the benefits and costs of a
market offering relative to those of competing offers. personal assessment
Customer retention is perhaps the best measure of qualitya service firm's ability to hang on to its
customers depends on how consistently it delivers value to them. TRUE
Customers can be classified into four relationship groups, according to their profitability and
projected loyalty. Which type of customers have the highest profit potential and strong loyalty? true
friends
Customers come to know a brand through a wide range of contacts and touch points, including word
of mouth, personal interactions with company people, telephone interactions, and company Web
pages. TRUE
Decoding is the process of putting thought into symbolic form. FALSE
Delia's is a clothing retailer that targets teenage girls. It runs coordinated promotions for its catalogs,
Web site, and retail outlets. It uses the same models in its catalog and in its print ads as well as on its
Web site. Delia's works to make sure its public relations activities as well as its sales promotions
harmonize with its advertising in all venues. From this information, you can infer that Delia's is using
________. integrated marketing communication
Del Monte has created an ________ called "I Love My Dog"; this online community allows
company-selected dog enthusiasts to complete product-related polls, chat with product developers,
and provide feedback about specific products. online social network
Demand and consumer value perceptions set the floor for prices. FALSE
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of
________ demand. derived
Demand in business markets is subject to more fluctuation than in consumer markets.TRUE
Demarketing is a marketing philosophy focused upon product differentiation and positioning. FALSE
Demographic segmentation uses different marketing approaches for different time periods of people's
lives and different family situations. FALSE
Demographic variables are so frequently used in market segmentation because they ________. Are
easy to measure in comparison to many other methods
Designing a channel system calls for analyzing consumer needs, setting channel objectives,
________ and evaluation. identifying major channel alternatives
Despite the data glut that marketing managers receive, they frequently complain that they lack
________. enough information of the right kind
Developing a product or service involves defining the benefits that it will offer. These benefits are
communicated and delivered by ________ such as quality, features, and style and design. product
attributes
Developing a stronger position within several segments creates more total sales than undifferentiated
marketing across all segments. TRUE
Developing a strong position within several segments creates more total sales than ________
marketing across all segments. undifferentiated
Diana Dion is currently researching data sources from within her company to make marketing
decisions. Diana is making use of ________ databases. internal
Disintermediation as a trend is on the rise in U.S. business. TRUE
Disintermediation has occurred when an online marketer takes business away from traditional
brick-and-mortar retailers. TRUE
Dissonance-reducing buying behavior typically occurs when a buyer sees little difference among
brands but is highly involved with the purchase. TRUE
Distribution channel decisions often involve ________ with other firms, particularly those that
involve contracts or relationships with channel partners. long-term commitments
Distribution systems are relatively consistent from county to country, making it easy for international
marketers to design channels. FALSE
Don Amspacher, in his role on the buying committee, provides information for evaluating the
alternative purchase decisions and helps define and set specifications for evaluating alternatives for
purchasing. Don is a(n) ________. influencer
Don Brady is responsible for obtaining price quotations from various vendors. After reviewing them,
Don then determines whether or not to include the vendor on the approved vendor list. Don
apparently plays two roles, that of ________ and ________. decider; buyer
Donna wants to buy a new coat. During the ________ stage of her purchase process she will ask her
friends to recommend a store and/or a style of coat. She will search the newspaper for coat sales, and
she will visit nearby stores to see what is available in her price range. information search
Dove marketers can go beyond the brand's cleansing cream properties and talk about the resulting
benefit of softer skin. This is known as product attributes in brand positioning. FALSE
Dreams don't retire is the theme of a(n) ________ marketing campaign aimed at baby boomers.
financial services
Due in a large part to advances in technology, ________ is a major trend whereby product and service
producers are bypassing intermediaries and going directly to final buyers, or radically new types of
channel intermediaries are emerging to displace traditional ones. disintermediation
Durango China Company charges all customers within a given geographical area a single total price.
The more distant the area, the higher the price. This is ________.zone pricing
During the ________ stage of the business buying decision process, the buying center assesses the
proposals. supplier selection
During which stage of new-product development will management most likely estimate minimum
and maximum sales to assess the range of risk in launching a new product? business analysis
During which stage of the business buying process is a buyer most likely to conduct a value analysis,
carefully studying components to determine if they can be redesigned, standardized, or made less
expensively? product specification
Each culture contains smaller ________, or groups of people with shared value systems based on
common life experiences and situations. subcultures
Each new iPod product introduction advances the causes of democratizing technology and
approachable innovation. iPod, an expert at fostering customer community, has been ranked one of
the Breakaway Brands by the brand consultancy Landor Associates. iPod is positioned on ________.
beliefs and values
Each of the following economic factors can have a strong impact on a firm's pricing strategy
EXCEPT ________. the reseller's reaction to price changes
Early adopters are opinion leaders in their communities and adopt new ideas early but carefully.
TRUE
Economic, technological, and cultural forces are all ________ in the stimulus-response model of
buyer behavior. stimuli
Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company sells the
drug in bottles of 50 pills for $10.00. They estimate that they must sell 200,000 bottles to break even.
What is the total cost to produce a bottle of 50 pills ?$5.00
EDLP is very similar to high-low pricing. TRUE
Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he
knows already own the devices. However, Ed is rarely among the last people he knows to purchase a
new technology. Ed is part of the laggard adopter group. FALSE
Elisandra, a marketing manager at a regional chain restaurant, has decided to sponsor a contest
calling for customers to create commercials for the restaurant. Winning entries will be posted on the
organization's home page. Elisandra's plan is an example of ________. consumer-generated
marketing
Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged
in ________. supplier search
Encoding is the process by which the receiver assigns meaning to symbols. FALSE
Environmental, organizational, interpersonal, and individual factors all influence business buyer
behavior. TRUE
Environmental elements are categorized as external factors that affect pricing decisions. TRUE
E-procurement typically reduces drudgery and paperwork, thereby freeing purchasing personnel to
focus on more strategic issues. TRUE
Ernst Engel's laws generally have been supported by recent studies. He discovered that as family
income rises, the percentage spent on ________ declines and the percentage spent on ________
remains about constant. food; housing
Ethnographic research ________. is gathered where people live and work
Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to
effortlessly sweep the floors of on-the-go and elderly consumers. product concept
Evelyn's vacuum is at the ________ stage of the product life cycle. product development
Even the most liberal advocates of free-market economies agree that the system works best with
________ regulation. at least some
Even though several options are available at any one time, there ________ to segment a market. Is no
single way
Exclusive dealing is legal as long as it does not ______ or tend to create a monopoly and as long as
both parties enter into the agreement _______. substantially lessen competition; voluntarily
Exclusive territorial agreements are normal in ________. franchises
Executives, manufacturing employees, and salespeople are all examples of ________. internal
sources for new-product ideas
Experimental research is best suited for gathering ________ information. causal
Explain how marketers may be able to reduce postpurchase cognitive dissonance. Marketers must
make every effort to enhance after-sale communications, providing evidence and support to
help consumers feel good about their purchases.
Explain how selective distortion is somewhat controllable by a marketer. Marketers can attempt to
understand consumers' mindsets and how these will affect perceptions of advertisements.
Explain how the PLC applies differently to a product class than to a product form. Product classes
have longer life cycles, while product forms tend to have the standard PLC shape.
Explain why it's important for both the researcher and the marketing manager to interpret the
findings of market research. Both a marketing manager and a researcher bring important points
of view to the task: a marketing manager is an expert in the problem and the decisions that
must be made, but also may be biased about the results; a researcher is an expert in statistics.
Because findings can be interpreted in many ways, discussions between a researcher and
marketing manager will lead to the most appropriate interpretation for the given situation.
Failure to enter the current price into a retailer's system may result in charges of ________. scanner
fraud
Fast Food, Inc. views marketing as the science and art of finding, retaining, and growing profitable
customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.
FALSE
Federal legislation on price-fixing requires that sellers set their prices ________.without
communication from competitors
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these
benefits against the monetary cost of using FedEx along with any other costs of using the service,
they are acting upon ________. customer-perceived value
Few people can afford the best in everything they buy. At times everyone needs a product with less
quality or performance with a correspondingly lower price. In this case a consumer would purchase a
product positioned with a ________ strategy. less-for-much-less
Firewalls and encryption are ________. two commonly used techniques to safeguard Internet and
extranet transactions
Fixed costs ________ as the number of units produced increases. remain the same
Fixed price policies one price for all buyers is a relatively modern idea that arose at the end of the
nineteenth century. TRUE
Flurrbies, a winter accessory which fell in and out of favorability with customers quickly, are an
example of a ________. fad
Focus group interviewing has become one of the major marketing research tools for getting insight
into consumer thoughts and feelings. However, if the sample size is too small, it is likely to be
difficult to ________. generalize from the results
Focus groups use no interviewer to bias the answers, may produce more honest answers, and can be
used to collect large amounts of data at a low cost per respondent. FALSE
Following a purchase, the buyer and seller would both monitor which phase of the new-task buying
situation? performance review
Following the decision to "time" the introduction of the new product, a company must decide
________ to launch the new product. where
For a fee, some companies ________ names or symbols previously created by other manufacturers,
names of well-known celebrities, and/or characters from popular movies and books, any of which can
provide an instant and proven brand name. license
Ford Motor Company emphasizes "Quality FirstFord Tough" in its truck products. In doing so, the
company has developed a differentiation strategy based on ________. image
For most marketers, customer relationship management (CRM) is exclusively a matter of customer
data management. FALSE
For primary data to be useful to marketers, it must be relevant, current, unbiased, and ________.
accurate
For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few
variables. FALSE
For some ________, a simple description consisting of a word or picture might be sufficient. concept
tests
For the past 10 years Bill and Margaret Kennedy have saved money to go to the Super Bowl should
their team, the Chicago Bears, ever win the NFC championship. This is the year, and several tour
companies offer attractive, but very similar, packages to the game. They want to be certain to choose
the best one. Bill and Margaret are most likely to exhibit ________.dissonance-reducing buying
behavior
Four common sources of internal data include the accounting department, operations, the sales force,
and the ________. marketing department
Fredia Pellerano has just discovered the major advantage of survey research. She reports to her
supervisor that the major advantage is its ________. flexibility
Freight-absorption pricing is used for ________ and ________. market penetration; holding on to
increasingly competitive markets
From the economic system's point of view, the role of marketing intermediaries is to transform the
assortment of products made by producers into the assortment of products wanted by_.consumers
Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.TRUE
General Electric's campaign stating, "We bring good things to life" is an example of ________.
corporate image marketing
Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors
can come between the purchase intention and the purchase decision. Which of the following is one of
these factors? attitude of others
Generally speaking, a company's marketing channel objectives are influenced by the level of
customer service sought, the nature of the company, its products, its marketing intermediaries, its
competitors, and the environment. TRUE
General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This
approach is called ________. target-profit pricing
Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher
parental divorce rates, recession, and corporate downsizing. They tend to care about the environment
and value experience over acquisition. Generation Xers make up a ______. subculture
George is buying his first house. He has found two houses that he thinks he likes. He is highly
involved in the purchase and perceives significant differences between these two houses. George will
likely undertake ________. complex buying behavior
Giant Food Stores buy a lot of frozen turkey products at Thanksgiving and Christmas due to high
consumer demand. This is an example of ________ demand. derived
Gina's Nail Salon is serious about pleasing its customers. Employees are trained to immediately and
pleasantly respond to any customer complaints, and they are empowered to offer discounts and free
add-ons to customers who believe they have received anything less than the best service. Gina's Nail
Salon focuses on ________. good service recovery
Give two ways that a researcher should evaluate information in online databases. Answer: The
researcher should evaluate whether the data are relevant, current, unbiased, and accurately
presented.
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising
consumers to request their body shops use Glasis paint is an example of how a company uses
________. a pull strategy
Good service recovery can turn angry customers into loyal customers and can even win more
customer purchasing and loyalty than if no problem had occurred in the first place. FALSE
Good sources of marketing intelligence information include competitors' annual reports, business
publications, trade show exhibits, press releases, advertisements, and Web pages. Answer: TRUE
Google and Yahoo! routinely post ads related to a user's keyword searches alongside the searches.
This practice is called ________. contextual targeting
Governmental agencies are becoming more involved in marketing as the years pass. When a local
government advertises keeping the area's streams and water supply cleaner, it is involved in
________. social marketing campaigns
Government organizations tend to favor ____ suppliers over ____ suppliers. domestic; foreign
GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services
after visiting several buying fairs. The owners will begin the first idea-reducing stage, called
________, to arrive at a realistic number to adopt. idea screening
Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It
has just been awarded a contract with a company 500 miles down the coast. Management should
consider switching from truck to ________ transport. water
Greater consumer control means that companies must rely more on marketing by ________ than by
________. interaction; intrusion
GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit
projections for some new products to find out whether they satisfy the company's objectives. This
activity is called business product development. FALSE
GreenTree Lawn and Garden Products is engaged in marketing strategy development. Management
should first create a statement outlining the product's planned price, distribution, and marketing
budget for the first year.FALSE
Greg Williams now has the buying power to purchase the computer system he has wanted for the last
six months. Greg's want now has become a(n) ________. demand
Gretchen Kabor has formal authority to select the suppliers and arrange terms of purchase for many of
the items her firm uses. Her role in the buying center is that of ________. buyer
Harpo Enterprises maintains the Oprah Winfrey show, a Web site, and O magazine. Because Harpo
Enterprises practices integrated marketing communications, these different brand contacts all
maintain ________ in design and tone. consistency
Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use
excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated hair.
This is an example of ________. line filling
Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for
increased consumer affordability. This reflects the ________ concept.production
Herb Kelleher of Southwest Airlines used the marketing concept in his successful organization.
Having a customer department rather than a marketing department, as suggested by Kelleher, is an
example of a(n) ________ perspective. outside-in
Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal
computers. This demonstrates an economic principle called ________. derived demand
HiPoint Telephone Company uses two-part pricing for its long-distance call charges. Because this is a
service, the price is broken into a fixed rate plus a ________. variable usage rate
Historically, conventional channels have lacked the leadership to ________. attain efficiency and
assign member roles
How does marketing through online social networks differ from more traditional marketing?
Marketers hope to use social networks to interact with consumers and become a part of their
everyday lives instead of relying on the one-way commercial messages of more traditional
media.
How might a firm benefit from implementing an "intrapreneurial" program? Such programs
encourage employees to be innovative and to develop new-product ideas.
HP's advertising agency assembles words and illustrations into an advertisement that will convey the
company's intended brand message. In the communication process, HP is______.encoding
Human needs are shaped by culture and individual personality. FALSE
Hybrid marketing systems are also called ________. multichannel distribution systems
Ideally, a sample should be representative so that the researcher can make accurate estimates of the
thoughts and behaviors of the larger population. TRUE
If a consumer's experience is rewarding, that consumer will probably use the product more and more.
The consumer's response to the product will be ________. reinforced
If a large retailer sold numerous items below cost with the intention of punishing small competitors
and gaining higher long-run profits by putting them out of business, the retailer would be guilty of
________. predatory pricing
If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10
percent what is the price elasticity of demand? 5
If a seller charges ________ than the buyer's perceived value, the company's sales will
________.more; suffer
If baby boomers are predictors of where product and service demand will be, increased demands will
most likely be evident in ________ in the upcoming years. financial services
If Canon Camera Company follows a high-price, high-margin strategy, what will competitors such as
Nikon, Minolta, and Pentax most likely do? They will want to compete against Canon.
If Canon Camera Company follows a low-price, low-margin strategy for a product, what will
competitors most likely do? They will not be able to compete or may leave the market.
If demand changes greatly with a small change in price, we say the demand is _______. elastic
If demand changes greatly with price, we say the demand is inelastic. FALSE
If demand falls by 1 percent when price is increased by 2 percent, then ________. A and B
If demand hardly changes with a small change in price, we say the demand is ______. inelastic
If Herb produced a variety of styles of pens and pencils with various wood types and engravings that
he tailored specifically to each individual's order, he would be practicing ________. mass
customization
If Northwest Awnings charges the same price for delivery of their product to any customer that is
located within the Great Lakes states, the company is using ________.zone pricing
If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy
it then. If not, the consumer may store the need in memory or undertake a(n) ________. information
search
If the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will take some or
all of the rest of the line, the result is ________. a tying agreement
If the pull strategy is effective, consumers will then demand the product from channel members, who
will in turn demand it from producers. TRUE.
I love New York is an example of ________. place marketing
Imaginative distribution systems can be used to gain a competitive advantage. TRUE
In ________, price is considered along with the other marketing mix variables before the marketing
program is set. Value-based pricing
In 1950, women made up under 40 percent of the workforce; now they make up ________ percent.
59
In a ________, two or more companies at one level join together to develop a new marketing
opportunity. horizontal marketing system
In a conventional distribution channel, no channel member has much control over the other members,
and no formal means exists for assigning roles and resolving channel conflict. TRUE
In a pure monopoly, the market consists of one seller. TRUE
In a recent radio spot, John and Barb gave a quick explanation of Sparkle's cleaning process and a
description of the value consumers receive for their money. This is an example of a(n) ________.
rational appeal
In a service business, the customer and front-line service employee interact to create the service.
TRUE
In assessing which new features to add to a product, a company must weigh each feature's ________
to customers versus its ________ to the company. value; cost
In a tiered market, companies target which of the following? consumers at all levels of income
distribution
In a typical organization, buying activity consists of two major parts: the buying ________ and the
buying ________. center; decision process
In business buying decisions, the role of emotion is negligible in comparison to the role of reason.
FALSE
In choosing a transportation mode for a product, shippers must balance the considerations of speed,
dependability, cost, and ________. availability
In considering the changing American family, which of the following are marketers likely to consider
the LEAST important? The number of traditional households has increased.
Increasing profits will most likely occur at which stage of the PLC? growth
In creating customer value, it is more important for a company to build relationships with
downstream channel partners than with upstream supplier partners. FALSE
In CRM, findings about customers discovered through ________ techniques often lead to marketing
opportunities. data mining
In designing its marketing channel, Chairs for Every Occasion has moved from a make-and sell view
of its business, which focused on productive inputs and factory capacity as a starting point for
marketing planning, to a sense-and respond view, which begins instead with the needs of target
customers. With this new view, Chairs for Every Occasion is developing its ________. demand chain
In designing the message structure, marketers must decide whether to present the ________
arguments first or last in a message. strongest
In evaluating different market segments, a firm should look at three factors: segment size and growth,
segment structural attractiveness, and company objectives and resources. TRUE
Information collected from online databases is an example of ________ data. secondary
ING, an international insurance and financial services company, is the primary sponsor of the annual
New York City Marathon, which is attended by over one million fans and watched by approximately
300 million viewers worldwide. The ING logo and name appear throughout the race course. ING
most likely sponsors the event in order to appeal to which type of public? general
In general, a company should enter only segments in which it can ________ and ________. offer
superior value; gain advantages over competitors
In general, innovators tend to be relatively older, be more mature, and have a lower income than late
adopters. FALSE
In industrial markets, ________ typically has the final say in setting the pricing objectives and
policies of a company. top management
In industries in which pricing is a key factor, ________ often set the best prices or help others in
setting them. pricing departments
In many industries, traditional intermediaries are dropping by the wayside because of changes in
________ and the growth of ________ marketing. technology; direct and online
In marketing his writing utensils to his four specialty-shop customers, Herb is using ________
marketing. niche
In marketing research, the ________ phase is generally the most expensive and most subject to error.
data collection
In marketing terms, we say that the number of intermediary levels indicates the ________ of a
channel. length
In most ________ situations, one company licenses another company's well-known brand to use in
combination with its own. co-branding
Innovations is a producer of electronic circuits that power a variety of technological devices produced
by other companies. Innovations sells its products to ________ markets. business
In one way or another, most large companies sell to ________. other organizations
In order to form a consistent and effective integrated marketing program, price decisions should be
coordinated with each of the following EXCEPT ________.competitors' prices
In order to get their new products to market more quickly, many companies are adopting a faster,
team-oriented approach called ________. team-based new-product development
In recent years, product safety and environmental responsibility have become major ________
concerns. packaging
In routine buying situations, which members of the buying center have formal or informal power to
select or approve the final suppliers? deciders
Instead of focusing on managing individual purchases, a seller should focus on managing the
________. total customer relationship
In target marketing, the issue is not really who is targeted, but rather __ and for___. how; what
Integrated logistics management aims to provide better customer service and trim distribution costs
through teamwork, both inside the company and among all the marketing channel organizations.
TRUE
Integrated marketing communications allows brand messages to be developed by different
departments within an organization. FALSE
Integrated marketing communications involves identifying the target audience and shaping a
well-coordinated ________ to elicit the desired audience response. promotional program
Integrated marketing communications produces better communications ________ and greater
________ impact. consistency; sales
Integrated marketing communications require a company's mass-market advertisements, Web site,
e-mail, and personal selling communications to all have____. The same message, look, and feel
Intensive distribution seeks many outlets in a market, while selective distribution seeks only one
outlet in a given market area. FALSE
Intermediaries play an important role in matching ________. supply and demand
International Drilling Company segments its foreign markets by their overall level of economic
development. This firm segments on what basis? economic factors
Interpretation of market research data should be the responsibility of the researchers, not the
marketing managers. FALSE
In the ________ stage, the firm faces a trade-off between high market share and high current profit.
growth
In the ________ stage of new-product development, products undergo rigorous tests to make sure
that they perform safely and effectively or that consumers will find value in them. product
development
In the "chaos scenario" predicted by some advertising industry experts, the old mass-media
communications model will be abandoned in favor of__. the possibilities of new digital technologies
In the 1950s, the American population began shifting from large cities to ________. suburbs
In the case of excess demand, ________ may be required to reduce the number of customers or to
shift demand temporarily or permanently. demarketing
In the case of maintenance, repair, and operating items, buyers may use a ________ rather than
periodic purchase orders. blanket contract
In the communication process, an actual HP printer/fax machine advertisement is called ________.
the message
In the communication process, the more the sender's field of experience ________ that of the
receiver, the more ________ the message is likely to be. overlaps with; effective
In the communication process, the reaction of the receiver after being exposed to a message is called
the ________. response
In the competition between ________ and ________ brands, retailers have the advantages of
controlling what products will be stocked, where products will be stocked, what prices will be
charged, and which products will be featured in print promotions. national; private
In the concept testing stage of new-product development, a product concept in ________ form is
presented to groups of target consumers. physical or symbolic
In the cultural environment, core values and beliefs and secondary values and beliefs differ in that the
former are more open to change. FALSE
In the generally accepted stages of the business buying process, the step following problem
recognition is ________. general need description
In the generally accepted stages of the business buying process, the step following product
specification is ________. supplier search
In the model of buyer behavior, which of the following is NOT a major type of force or event in the
buyer's environment? channel
In the model of buyer-readiness stages, the first stage is ________. awareness
In the product specification stage of the business buying process, the buyer ranks the importance of
reliability, price, and other desired product characteristics. FALSE
In the proper order, identify the correct terms for these intermodal transportation combinations: rail
and truck, water and truck, water and rail. piggyback; fishyback; trainship
In the scenario, how does Herb segment his market? usage rate
In the second step of the marketing research process, research objectives should be translated into
specific ________. information needs
In this scenario, which of the following had the greatest influence on the business buying behavior at
A-1 Stampings? technological changes
In today's world, marketing should be done by ________ employees in an organization. all
Introducing a new product into the market is called ________. commercialization
In using air transportation and then expedited truck carriers to deliver specialty items to customers
outside of a designated delivery range, Miller Meats is using ________. intermodal transportation
In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood
products on one street. An individual store dare not charge more than the going price without the risk
of losing business to the other stores that are selling the fish at a common price. This is an example of
what type of market? pure competition
In what type of buying situation would a seller most likely send only a catalog to the buyer during the
proposal solicitation stage of the business buying process? straight rebuy
In what way might a marketer rely on opinion leaders? Opinion leaders can influence other larger
groups of consumers to be attracted to a marketer's products.
In which of the following situations has a company most actively turned its consumers into marketing
partners? iRobot invites enthusiastic Roomba owners to develop and share their own programs
and uses for the company's robotic vacuum.
In which of the following ways is GE like most other large companies? Most of its business comes
from commercial and industrial customers.
In which stage of the business buying process is a supplier's task to make sure that the supplier is
giving the buyer the expected satisfaction? performance review
In which stage of the business buying process is a supplier most likely to provide a buyer with
information about the values of different product characteristics? general need description
In which stage of the PLC will promotional expenditures be especially high in an attempt to create
consumer awareness? introduction
In which stage of the PLC will promotional expenditures be high in an attempt to respond to
increasing competition? growth
In which type of buying situation would a supplier most likely focus on maintaining product and
service quality? straight rebuy
iRobot, the makers of Roomba, have involved their customers in product development, marketing,
and technical support in an effort to foster which of the following? customer delight
It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product
during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which
one of these is NOT likely to be one of those costs? few concerns about company image and other
products
It is common for international marketers to____ their channel strategies for each country.adapt
It is considered socially irresponsible when the marketing of adult products spills over into the
________ segment. child
It is important to note that data ages quickly, so keeping the database current requires a major effort.
TRUE
It is most accurate to say that customers buy from stores and firms that offer which of the following?
the highest customer-perceived value
It is most likely that each consumer segment attracted to The Attic Trunk would have which of the
following in common with the other consumer segments? AIO dimensions
It is safe to say that distribution channels are fairly simple behavioral systems in which people and
companies interact to accomplish individual company and channel goals. FALSE
Jack Weiss recently won a $10 million lottery. Jack's life will change a great deal, particularly how he
spends money. According to Engel's laws, Jack is LEAST likely to change the percentage of his
income that he spends on which of the following? housing
Jason wanted to better understand how his customers assess service quality. This is an example of a
________. research objective
Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of
individual customers. Which of the following terms does NOT apply to this type of marketing?
concentrated
Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to
customers around the world. Speed of delivery to distant markets is a must. Management should
consider using ________ as its main carrier. air
Jimmy's Hardware, an independent local retailer, is losing business to Wal-Mart. This is most likely
because he cannot match Wal-Mart's pricing strategy of ________. EDLP
Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do
what and for what rewards. Joanie is experiencing ________. channel conflict
JoAnn Fabrics, Inc., has just created a new combination of colors and fabric types. The firm wants to
be sure of the way consumers perceive its new product. The firm is concerned with the product
________. image
Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more
than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by
working with intermediaries? scale of operation
John Herr's company has standardized the size of its paper bags so that each bag can be used in five
to seven different store departments. This approach to cost reduction likely took place in the
________ stage of the business buying process. product specification
Johnson Boats wants to introduce a new model of boat into mature markets in highly developed
countries with the goal of quickly gaining mass-market share. As a consultant, you should
recommend a ________ pricing strategy. market-penetration
Jolene's firm markets preplanning services for a mortician. She finds that most of her target market
wants to avoid discussing their future funeral needs, and she must somehow first get their attention.
Jolene's firm is most likely practicing the ________. selling concept
Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes
it. This firm uses ________ marketing. undifferentiated
Juana looked at her September issue of O magazine and did not see anything of interest. After her
mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it
offered advice on how to help people who are suffering from this problem. The issue became quite
interesting to Juana due to ________. selective attention
Juanita Petino operates a dress shop in a suburban mall. Her research budget is very small, so she
utilizes low-cost or no-cost methods to gather research data. One method that works very well for her
is to change the themes in her local newspaper and radio advertising and watch the result. Juanita is
using ________ to gather data for marketing decisions. experiments
Judy Smith is the manager of the local McDonald's franchise in Carterville. Recently the home office
did not let her participate in co-op advertising like the other McDonald's in her district. Now she is
irritated and demands fairness. This is an example of horizontal conflict. FALSE
JumBo Games is launching a new set of game toys in the commercialization stage. The first decision
to make is introduction timing and the second is where to launch the new product. TRUE
Just Hats prices its various types of caps at ten different price levels, ranging from $2.00 to $4.95.
This is an illustration of price steps. TRUE
Keeping in mind that a seller must sell by-products at a price that covers more than the cost of
storing and delivering them, which of the following will by-product pricing permit a seller to do?
make extra profit, reduce the main product's price
Knowing that selective retention prevents consumers from remembering everything about an ad, what
might a marketer do to enhance retention? Use of drama, fear, or extreme humor in an ad can
often promote retention among consumers; ad repetition may also work.
LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first time
users, and regular users of its flowers and services. This firm uses usage rate as its segmentation
approach. FALSE
Lancaster Box Company wants to provide better customer service while trimming distribution costs
through teamwork, both inside the company and among all the marketing channel organizations.
Lancaster Box is thinking of ________. integrated logistics management
Lancaster Recycling has a history of problems with customers who do not pay their bills on time.
Lancaster Recycling wants to improve its cash situation, reduce bad debts, and reduce
credit-collection costs. The company might consider which of the following forms of pricing? cash
discounts
Large business purchasers usually call for detailed product specifications, written purchase orders,
careful supplier searches, and formal approval. These are all examples of how the business buying
decision process is more ______ than the consumer buying decision process is. formalized
Large-scale advertising conveys a positive message about the seller's size, popularity, and success.
TRUE
Large-scale marketing approaches that foster two-way customer relationships are made possible by
new communication technologies. TRUE
Large tween and teen markets belong to which demographic group?Millennials
Lawyers, accountants, and other professionals typically price by adding a standard markup for profit.
This is known as ________. cost-plus pricing
Leadership in which type of marketing system is assumed not through common ownership or
contractual ties but through the size and power of one or a few dominant channel members?
administered VMS
Learning occurs through the interplay of all of the following EXCEPT ________.dissonance
behavior
Legislation affecting business around the world will continue to ________. increase
Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the
wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste
that she really enjoyed. These statements were made during the ________ stage of the purchase
decision. postpurchase behavior
Less-for-much-less positioning involves meeting consumers' ________. lower quality requirements
in exchange for a lower price
Lexus targets wealthy consumers with similar needs and buying behaviors, even though the
consumers are located in different countries. This is an example of _____. intermarket segmentation
Lexus works to keep customers happy after each sale, aiming to delight the customer in order to gain
a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision
process?postpurchase behavior
Loft Industries sells roof trusses to contractors and builders and would like to conduct research to
determine how customers assess customer service. Which of the following research instruments
would be best for this firm? questionnaires
Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price
ranges. She wants to make sure she gets the most for her money. This product is a(n) ________
product. shopping
Mach 3 razor blades must be used in the Mach 3 razor. Which type of pricing is most likely used?
captive-product pricing
Major brand marketers often spend huge amounts on advertising to create brand ________ and to
build preference and loyalty. awareness
Malaya Ramirez is organizing marketing research in Central American countries for a large
American corporation that is interested in expanding its market. The survey Malaya is using was
written in English and then translated into Spanish for use by Spanish-speaking respondents. Which
of the following should Malaya do before administering this questionnaire to a sample of the market?
have the questionnaire translated back into English to check for accuracy
Malibu Beach Parties finds that the tastes and preferences of its customers change more rapidly than
in the past. The manager should constantly look for external ideas from customers, suppliers, and the
competition. TRUE
Managers often start with ___ research and later follow with __ research. exploratory; causal
Manor Cinemas has announced that seniors over 60 years of age can enter the theater for free prior to
4:00 p.m. when accompanied by a paying customer. This is an example of ________.promotional
pricing
Manor Plaza Barber's customers have noticed that the quality of a haircut depends on who provides it
as well as when, where, and how it is provided. What have the customers noticed? A) service
intangibility service variability
Manufacturers may offer functional discounts within trade channels for channel members who store
inventory. TRUE
Manufacturers must comply with specific laws regarding ______. product quality and safety
Many companies, such as JetBlue and Sony, enlist everyday consumers who are enthusiastic about
their brands to become ________ , brand ambassadors who share their passion for a company's
products with large circles of friends and acquaintances in return for insider knowledge and other
rewards. brand evangelists (người truyền bá thương hiệu)
Many companies now use a combination of phone, e-mail, fax, Internet, and other technologies to
provide ________ . support services
Many families with children are now attracted to the shopping district in Forest Ridge. What
characteristics about families as consumer groups might the owners of The Attic Trunk want to keep
in mind? Children have considerable amounts of disposable income and have a strong influence
on family buying decisions.
Many firms make an effort to identify smaller, better-defined target groups by using ________.
multiple segmentation bases
Many institutional markets are characterized by____ and ____. low budgets; captive patrons
Many major companies have created the position of ________ to address concerns about the privacy
of customers. chief privacy officer
Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual
convenience store, to reduce the cost of ________. test marketing
Many marketers believe that which of the following variables are the best starting point for building
marketing segments? behavioral
Many marketers use the self-concept premise that people's possessions contribute to and reflect their
identities; that is, "we are what we have." Under this premise, consumers ________. buy products to
support their self-images
Many people feel that ______ pricing is fairer to both buyers and sellers. Sellers earn a fair return on
their investment but do not take advantage of buyers when buyers' demand becomes great. markup
Many producers who use captive-product pricing set the price of the main product ________ and set
________ on the supplies necessary to use the product. low; high markups
Mariah Goldberg, a marketing manager for a manufacturer of children's toys, is looking for ways to
reach potential customers who typically avoid salespeople and advertisements. Which of the
following would be the most economical promotional tool for Mariah to use? public relations
Marialba Hooper is conducting marketing research for a company that is investigating the possibility
of entering multiple international markets. As Marialba plans her research in 30 different countries,
upon which of the following is she LEAST likely to rely? free secondary data
Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands and anticipates
customer needs even better than customers themselves do and creates products and services to meet
current and future wants and demands. Marie's firm practices ________ marketing.
customer-driving
Mark's Markers, a manufacturer of color markers, has required its dealers to charge a specified retail
price for its markers. Mark's is most likely guilty of ________. retail price maintenance
Marketers are always trying to spot ________ in order to discover new products that might be wanted.
cultural shifts
Marketers can take a(n) ________ by taking aggressive action to affect the publics and forces in their
marketing environments. proactive stance
Marketers describe the way the consumer processes information to arrive at brand choices as
________. alternative evaluation
Marketers may learn a few simple rules that apply equally to all price-demand relationships. FALSE
Marketers must be most careful to guard against which of the following when using age and life cycle
segmentation? stereotyping
Marketers must increasingly consider the needs of traditional households because this segment of the
population is growing more rapidly than nontraditional households. FALSE
Marketers must weigh carefully the costs of additional information against the ________ resulting
from it. benefits
Marketers of automobiles, financial services, and travel are most likely to use which of the following
types of segmentation? income
Marketers should be aware of laws, government agencies, and pressure groups that influence or limit
various organizations and individuals in a given society. This is most accurately described as the
________ environment. political
Marketers should understand that a society's core beliefs and values have a high degree of ________.
persistence
Marketers using humor in their messages claim that they attract more attention and create more
loyalty and belief in the brand. This type of message is called a(n) ________ appeal. emotional
Marketing channel management calls for selecting, managing, ________, and evaluating channel
members over time. motivating
Marketing communicators must be good at ________ messages that take into account how the target
audience ________ them. encoding; decodes
Marketing communicators must do all of the following EXCEPT ________. deliver products to the
customer
Marketing information from which type of database usually can be accessed more quickly and
cheaply than other information sources? internal
Marketing information is only valuable when it is used to ______.make better marketing decisions
Marketing logistics involves getting the right product to the right customer in the right place at the
right time. Which one of the following is NOT included in this process? gathering customer's ideas
for new products
Marketing logistics involves which of the following distribution flows? outbound, inbound, and
reverse
Marketing researchers can conduct their own searches of secondary data sources today by using
commercial online databases. TRUE
Marketing researchers usually draw conclusions about large groups of consumers by studying a small
________ of the total consumer population. sample
Marketing research firms, advertising agencies, media firms, and marketing consulting firms are all
referred to as marketing services agencies. TRUE
Marketing stimuli consist of the four Ps. Which is NOT one of these? politics
Market offerings are limited to physical products. FALSE
Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and
regular users of a product. This method of segmentation is called ________. user status
Market segmentation is the process of seeking fewer customers and reduced demand for profit
maximization only. FALSE
Market-skimming is a more popular strategy for pricing new products, while market penetration is a
more popular strategy for pricing products that are more advanced in the product life cycle. FALSE
Market-skimming pricing would likely be most effective in selling ________. an electronic device
for which research and development must be recouped
Mark has long supported the actions and decisions of his city's mayor. However, many recent news
stories have raised questions about the ethics of the mayor's programs and initiatives. Mark doubts
that the mayor, in whom he has such faith, could behave unethically, and Mark tends to distrust the
information in the media. Mark continues to support the mayor. Mark has engaged in ________.
selective distortion
Markup pricing is popular because prices tend to be similar and price competition is thus minimized.
TRUE
Maryann Rose is conducting research to determine consumers' personal grooming habits. Because of
the personal nature of the survey questions about this topic, Maryann wants to select the contact
method that is most likely to encourage respondents to answer honestly. Which contact method
should Maryann select? mail questionnaires
Maslow's theory is that ________ can be arranged in a hierarchy. human needs
Maslow's theory is that human needs including physiological, safety, social needs, esteem, and
self-actualization needs are arranged in a hierarchy and that an unsatisfied need motivates an
individual to take action to satisfy it. TRUE
Mass marketers, such as Target and Venture Stores, often ignore market segment differences and
target the whole market with one offer. What is their approach to segmenting? undifferentiated
marketing
Mass marketers can expect consumers to distinguish between commercial message sources to
maintain a clear image of a company and its brands. FALSE
Mass marketing is becoming a marketing principle for the 21st century. FALSE
Mass markets have fragmented; thus, marketers are shifting away from mass marketing. TRUE
Mass-media advertising routinely involves a company investing millions or even billions of dollars to
reach tens of ________ of customers with a single ad. millions
Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy,
is in the ________ stage of the PLC. maturity
Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited
number of highly reputable retailers. Max uses ________. exclusive distribution
Measuring ________ can be difficult. A company might conduct surveys or experiments to test this
in the different products they offer. perceived value
Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier
attributes and their relative importance. Next, they intend to compare several suppliers to these
attributes. In which step of the business buying process is the buying center at ABC Kid's World
engaged? supplier selection
Members of the early majority are deliberate; although they rarely are leaders, they adopt new ideas
before the average person. TRUE
Members of the marketing channel may help a company complete transactions by performing key
functions such as promotion and negotiation. TRUE
Members of the sales team at Dekko International visit only prospective customers who purchase a
minimum of $50,000 of insulated wire per year. Dekko is using ________. selective relationship
management
Members of which of the following groups are more likely than the average American to have a
professional job, have a household income over $250,000, own a vacation home, own a notebook
computer, and own individual stocks? gays and lesbians
Mercy University's initial ads for the school's new MBA program are most likely intended to create
________. awareness
Michael and John both own leather jackets and are currently shopping for two new ones. They both
have prices in mind and refer to them when shopping. These prices are termed _______. reference
prices
Michael Quinones is a customer service agent for a national car rental business. He has access to the
company's intranet, which provides performance reports, shared work documents, contact
information, and detailed information about customers. Which of the following is this access most
likely to enable Michael to do during interactions with customers? customer loyalty with an
upgrade or discount
Millennials comprise the most commercially influential group in America today. FALSE
Millennials represent a larger demographic segment than the baby boomers or Gen Xers. TRUE
Milt Alden says that his line workers "know each product like the back of their hands," and that this
knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most
likely uses which of the following strategies? the experience curve
Milt Alden uses a target costing strategy. Which of the following is he most likely to do in executing
this strategy? start with customer-value considerations
Moral appeals are directed to the audience's sense of what is "right" and ________. proper
More companies are adopting the concept of ________, which carefully integrates and coordinates
the company's many communication channels to deliver a clear, consistent, and compelling message
about the organization and its brands. Integrated marketing communications
More government legislation and the green movement are the likeliest causes of a general decline in
environmental concerns in the past decade. FALSE
Most attempts to target children and minority groups provide ____ to target customers. benefits
Most companies adjust their basic prices to account for various customer differences and changing
situations. TRUE
Most companies practice strong PRM to forge long-term relationships with channel members. What
does PRM stand for? partner relationship management
Most companies that conduct international business ________ to ________. adjust their prices; take
local market conditions into consideration
Most large companies research ________ buying decisions to find out what they buy, where they buy,
how and how much they buy, when they buy, and why they buy. consumer
Most manufactured materials and parts are sold directly to ________. Price and service are the major
marketing factors; branding and advertising tend to be less important. industrial users
Most newspapers rely on ________ so they do not need to rely on only one supplier to provide the
tons of paper that they use annually. multiple sourcing
Most producers today sell their goods to ________. intermediaries
Most products in the marketplace are in the ________ stage of the product life cycle. maturity
Most unhappy customers explain their reasons for dissatisfaction to the company who sold the
product. FALSE
Moving away from_, marketers have been shifting toward highly focused marketing, spawning a new
generation of more specialized and highly targeted communications efforts.mass marketing
MTV targets the world's teenagers, who have similar needs and buying behavior even though they are
located in different countries. This is called ________ segmentation. intermarket
MySpace.com and YouTube are both examples of ________. social networks
Nancy Zahm works for LeBray Beverage Company. She often helps to define product specifications
and also provides information for evaluating alternatives. In this role she is acting as a gatekeeper.
FALSE
Nearly 10 percent of American workers currently work out of their homes with technological
conveniences such as PCs, Internet access, and fax machines. These workers are referred to as the
________ market. SOHO
Neiman Marcus claims superior quality, performance, and style. The owners provide the most
upscale products and services and charge a higher price to cover the higher costs. What type of
positioning does Neiman Marcus use? more-for-more
New communications technologies such as cell phones and the Internet give companies new media for
interacting with targeted consumers, but these new technologies also give consumers more control of
the advertising messages they receive. FALSE
New product development begins with a systematic search for new product ideas through idea
generation. TRUE
New product development starts with ________. idea generation
New World Releases is conducting a business analysis to determine which of the many new songs
available to management should be released. Sales must be estimated before costs can be estimated.
Which of the following did your text recommend for forecasting sales? considering the sales history
of similar products and conducting surveys of market opinions
Niche marketing offers smaller companies an opportunity to compete by focusing their limited
resources on serving niches that may be unimportant to or overlooked by larger companies. TRUE
Niche marketing offers smaller companies the opportunity to compete by focusing their limited
resources on serving niches that may be ___or____ larger companies unimportant to; overlooked by
Nonpersonal communication channels include major media,_____, and events. atmospheres
Non Regulated monopolies always charge the full price because they do not fear attracting
competition. FALSE
Nonregulated monopolies are free to price at what the market will bear. However, they do not always
charge the full price for a number of reasons. What is NOT one of those reasons? They want to
encourage government regulations.
Noora DeLange is helping her company develop a marketing program for a new product line. The
program involves emphasizing experience over acquisition and uses a marketing pitch that is less
overt than the company's previous programs. The marketing program is most likely designed to
appeal to which of the following demographic groups? Gen Xers
Norma Bernanke is a marketer at a pharmaceutical company that has just developed a new
medication to treat asthma. Which of the following components of the political environment should
Norma be LEAST concerned with as her company begins to develop a marketing plan for the new
product? the Nutrition Labeling and Education Act
Observational research is best suited for gathering ________ information. exploratory
Of the different types of buying situations, the modified rebuy presents the fewest decisions for a
business buyer to make. FALSE
Of the following, which is the fastest-growing ethnic minority in the United States? Hispanics
Of the following, which is the most important concept of modern marketing? customer relationship
management
Of the following, which statement would NOT support a market-skimming policy for a new product?
Competitors can enter the market easily.
Of the following diversity segments in the American population, which is currently the largest?
adults with disabilities
Once managers of The Grecian Urn have decided on their product concept and marketing strategy,
they can evaluate the business attractiveness of the proposal in the ________ stage of the
new-product development process. business analysis
Once the product or service passes the business analysis test, it moves into what stage? product
development
Once the prototype of Wainwright Industries' new riding lawn mower, made especially for women,
passes product tests, the next step is ________. test marketing
Once the research problems and objectives have been defined, researchers must determine the exact
information needed and present it to management. FALSE
Once thought of as slackers, Gen Xers are now displacing the lifestyles, culture, and materialistic
values of the baby boomers. TRUE
One aspect of managing service differentiation is the company's service delivery. TRUE
One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize
his tools without using any water because water tends to cause the tools to rust or corrode over time.
Dr. Albrecht, who runs a solo practice in a small rural town, located some articles on the chemical
sterilizer and read about how the machine works. After gathering more information and talking to
salespeople, Dr. Albrecht placed his order for the machine. In terms of the buying center, Dr. Albrecht
had the role of ________. decider
One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize
his tools without using any water because water tends to cause the tools to rust or corrode over time.
In terms of the buying center, the dental assistant had the role of ________. influencer
One reason ________ remains popular is that sellers are more certain about costs than about demand.
markup pricing
One set of business purchases is made for each set of consumer purchases. FALSE
Online social networks represent an important new form of buzz for marketers. TRUE
Online social networks such as the "I Love My Dog" community organized by Del Monte offer
marketers much broader and deeper information than can be obtained from traditional focus groups.
TRUE
Only sellers of products, services, and ideas practice marketing; buyers do not. FALSE
Open-ended survey questions are particularly useful in exploratory research. Answer: TRUE
Opinion leaders are sometimes referred to as ________. the influentials
Overhead cost is another term for fixed cost. TRUE
Over the past 100 years or so, Binney and Smith's Crayola crayons have become a household staple in
more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
maturity
Over the past two decades, the U.S. population has shifted most heavily toward the ________ states.
Sunbelt
P&G surveyed the market and identified an unserved segment of electric toothbrush market. Using
these results, they created Spinbrush. The unorthodox order of this marketing mix decision is an
example of ________. target costing
Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of
expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing
advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and
warranties, and it allows suppliers to send new-product information directly to Pace retailers. In this
scenario, Pace Hardware is using a(n) ________. extranet
Paper, pencils, lubricants, paint, nails, and brooms are examples of ________. supplies
Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to
notice certain disadvantages of his new car as he learned more about other cars available. Pat is
experiencing ________. post purchase dissonance
Patti Lovelace is making a presentation to the owners of her company. She is trying to convince them
to conduct some current marketing research. Which of the following would she be LEAST likely to
emphasize as a benefit or selling point of marketing research? measuring the effectiveness of pricing
and accounting
Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income,
and family life cycle. What type of segmentation does Pendergraff use? demographic
People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen
out most of the information to which he or she is exposed is called _______.selective attention
People change the goods and services they buy over time because of the two changing factors of
________. age and life-cycle stage
People differ greatly in their readiness to try new products. In each product area, there are
"consumption pioneers." They are also called laggards. FALSE
People forget much that they learn. They tend to retain information that supports their attitudes and
beliefs. This is called ________.selective retention (lưu giữ có chọn lọc)
People tend to interpret new information in a way that will support what they already believe. This is
called ________. selective distortion (biến dạng có chọn lọc)
Percy Original caters to a market of individuals and households that buys goods and services for
personal consumption. Percy Original caters to a ________ market. consumer
 Perhaps the most logical budget-setting method is the ________ method because it is based on
spending necessary to accomplish specific promotion goals. objective-and-task
Personality is a person's pattern of living as expressed in his or her psychographics. FALSE
Pete Sanchez, a recent graduate of business school, has a different approach than his marketing
manager, who believes in keeping customers at arm's length and using mass media advertising. Pete
knows that today few successful firms still practice true ________ and are instead turning to selective
relationship management. mass marketing
Policies, procedures, and systems are all examples of ________ influences on business buyer
behavior. organizational
PoolPak produces climate-control systems for large swimming pools. The company's customers are
more concerned about service support for maintaining a system than its initial price. PoolPak may use
this knowledge to become more competitive through ________.a nonprice position
Price competition is minimized when all firms in an industry use which pricing method? markup
pricing
Price discrimination is legal under which of the following conditions? when a seller can prove its
costs are different when selling to different retailers
Price discrimination may be used to match competition as long as the strategy is temporary, localized,
and ________. defensive
Price elasticity of demand is ________ divided by ________. percent change in quantity
demanded; percent change in price
Price escalation in international markets may result from differences in market conditions or
________. selling strategies
Price escalation in international markets may result from four of these five marketing conditions.
Which one will have the LEAST effect? language barriers
Price-fixing, predatory pricing, retail price maintenance, and deceptive pricing are examples of
________. major public policy issues in pricing
Price is the only element in the marketing mix that produces ________. revenue
Price setting is usually determined by ________ in large companies. divisional managers,
product-line manager
Price setting is usually determined by ________ in small companies. top management
Prices have a direct impact on a company's bottom line. TRUE
Pricing is often difficult because various products have related demand and costs, and they face
different degrees of competition. TRUE
Pricing strategies tend to change and evolve as the average product passes through its life cycle.
TRUE
Procter & Gamble has sold off a number of lesser or declining brands such as Oxydol detergent and
Jif peanut butter. In these examples, management decided to ________ the products. drop
Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of
six laundry segments Procter & Gamble has identified. Together, these six brands take 62% of market
share. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing
strategy? increased costs for separate marketing plans for each brand
Producers benefit from using intermediaries because they ________. offer greater efficiency in
making goods available to target markets
Producing a product or service and making it available to buyers requires building relationships not
just with customers, but also with key suppliers and resellers in the company's supply chain. TRUE
Product costs set a(n) ________ to a product's price. floor
Product costs set a floor to the price; consumer perceptions of the product's value set the ceiling.
TRUE
Product improvements, product modifications, and original products can all be classified as
________. new products
Product mix ________ refers to the number of different product lines the company carries. Procter &
Gamble markets 250 brands organized into many product lines. width
Product mix ________ refers to the number of versions offered of each product in the line. Crest
toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations.
depth
Product planners must design the actual product and find ways to ________ it in order to create the
bundle of benefits that will provide the most satisfying customer experience. augment
Product planners need to consider products and services on three levels. Each level adds more
customer value. The most basic level is the ________, which addresses the question, "What is the
buyer really buying?" core customer value
Products and services fall into two broad classifications based on the types of consumers that use
them. Which is one of these broad classes? industrial products
Product support services identify the product or brand, describe several things about the product, and
promote the product through attractive graphics. FALSE
Profits rise during the growth stage of the PLC because promotion costs are spread over a large
volume and unit manufacturing costs fall. TRUE
Promotional pricing can have all of the following adverse effects EXCEPT ________.giving pricing
secrets away to competitors
Proposals should be marketing documents and not just technical documents. Answer: TRUE
Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional
chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new
channel member? identifying raw materials and other productive inputs
Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all examples of
________. social marketing
Quaker produces a variety of cereals. This variety is called its product line. TRUE
Quantity discounts provide an incentive to the customer to buy ________. more from one given
seller, rather than from many different sources
Rachel Patino works for a wholesale company called Distributors Unlimited. She is responsible for
buying and selling goods at a profit to small retailers. What is her market?reseller
Railroads were once operated based on the thinking that users wanted trains rather than
transportation, overlooking the challenge of other modes of transportation. This reflects the ________
concept. product
Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge with a
wide group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and
her advice is often followed. Rashmi is an example of a(n)________. opinion leader
Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of
________. product characteristics that influence rate of adoption
Rent, electricity and executive salaries are examples of ________. fixed costs
Research about and planning for loyalty status as a segmentation approach is generally not useful or
practical for most firms. FALSE
Researchers found that a number of well-known brands tended to be strongly associated with one
particular trait, such as Jeep with "ruggedness." Which of the following terms would a marketer use
to describe a specific mix of human traits that may be attributed to a particular brand? brand
personality
Research has shown that the most important demographic trend in the United States is the ________.
changing age structure of the population
Retailers and wholesalers who have created their own brandssuch as Wal-Mart's Sam's Choice
beverages and food productsare participating in co-branding. FALSE
Reverse auctions, trading exchanges, and company buying sites are all ways that companies can
participate in ________. e-procurement
Rob Taylor is the buyer for Major Memories. He regularly orders inexpensive merchandise in a fairly
routine fashion without any modifications. He may choose other suppliers from time to time. Rob's
decisions take the form of a modified rebuy. FALSE
Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other
customers. Ryanair then charges for all extra services, such as baggage handling and in flight
refreshments. Which of the following best describes Ryanair's pricing method? low-cost pricing
Sage, Inc., provides food services to schools, hospitals, and nursing homes in the Midwest.
Management at Sage is involved in the ________ market. institutional
Sales declined in the decline stage of the PLC because of technological advances, increased
competition, and ________. shifts in consumer tastes and preferences
Sales for the time-tried household cleansers made by Brite and New, Inc., have been declining for
some time. If these products are typical, sales are declining because of technological advances, shifts
in consumer tastes, and lack of raw materials from foreign suppliers. FALSE
Sales promotion features a wide assortment of tools. Which of the following is NOT one of these
tools? catalogs
Sales promotion makes use of press releases and special events. FALSE
Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel
and look to her expectations for Brand X lotion, Sally was measuring her level of ________.
customer satisfaction
Samples of less than one percent of a population cannot provide good reliability. FALSE
Sanguine Services practices a marketing strategy where its limited resources are used to go after a
large share of two small niches. Sanguine practices which one of these strategies? concentrated
Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings
for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies
with less purchasing power out of the market. Savings for You is most at risk of being accused of
________. predatory pricing
Secondary data are ________. not always very usable
Secondary data consists of information ________. that already exists but was collected for a
different purpose
Secret Sneaker will give anyone $10 for their old sneakers, regardless of condition, when purchasing
a new pair of sneakers. The end result is essentially reducing the price of the new sneakers by $10.
What is this type of price adjustment called? trade-in allowance
Segmented pricing is known by other names; two of the most common are revenue management and
yield management. TRUE
Segmenting voters as either democrats or republicans is an example of ________. psychographic
segmentation
Selecting which segments of a population of customers to serve is called ___target marketing
Selling is managing profitable customer relationships. FALSE
Sequential product development has the advantage of not only being a team-oriented approach, but it
is also faster in bringing products to market. FALSE
Service Industries, Inc., plans to offer a price-adjustment strategy in the near future. They could
consider each of the following EXCEPT ________. physiological pricing
Service inseparability means that the quality of services depends on who provides them, as well as
when, where, and how they are provided. FALSE
Service providers must consider four special characteristics when designing marketing programs.
Which is NOT one of these characteristics? interactive marketing
Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________
segmentation. usage rate
Shane Sudendorf is an active member of her sorority, two intramural teams, and a service
organization at her college. She also actively participates on two online social networks, posting
information about her day along with her thoughts on music, food, fashion, and culture. From this
description, which of the following is the best way to describe Shane? an opinion leader
Shania works hard to foster an emotional relationship between her Internet customers and the beauty
products and services that she and her staff sell. By promoting a company culture that values
exceptional value and service, Shania aims to create ________ by going beyond the expected.
customer delight
Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she
stock in her store? fashions
Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in
exclusive clothing, high-end cars, travel, and financial services. This firm most likely uses income
segmentation. TRUE
Shopping products are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style. TRUE
Significant trends in the natural environment include shortages of raw materials, increased pollution,
and decreased government intervention. FALSE
Skippy Peanut Butter has a new peanut butter and bacon product and finds a small number of
representative test cities. They plan to use the results to forecast national sales and profits. Skippy is
using ________. standard test markets
Small organizations can obtain, with minimal effort, most of which type of data available to large
businesses? secondary
Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and
customers to improve customer service and reduce channel costs through ________.
cross-functional, cross-company teams
Social class is based on shared value systems and common life experiences and situations.: FALSE
Some analysts see ________ as the major enduring asset of a company, outlasting the company's
specific products and facilities. brands
Some companies are reversing the fixed pricing trend and using ________.dynamic pricing
Some companies have adopted a ________ strategy, offering just the right combination of quality and
good service at a fair price. Good-value pricing
Some consumers worry that they will be affected by marketing messages without even knowing it.
They are concerned about ________ advertising. subliminal
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they
contribute to a national obesity epidemic and environmental problems. These fast-food restaurants
overlook the ________ philosophy. societal marketing concept
Some industries commonly use two-part pricing, breaking the price down into a fixed fee and a fixed
usage rate. FALSE
Some major corporations such as Procter & Gamble and General Motors have developed logistics
systems that both maximize customer service and minimize distribution costs. FALSE
Some products that have entered the decline stage have been cycled back to the growth stage through
________. promotion or repositioning
Sometimes a producer chooses only a few dealers in a territory to distribute its products or services.
Generally these dealers are given a right to ________ distribution. exclusive
Sometimes a seller requires its dealers to abstain from handling competitors' products in an
arrangement called ________. exclusive dealing
Sony offers consumers more than just camcorders; it provides consumers with a complete solution to
their picture-taking problems. This offering is called an augmented product. TRUE
SRAC is the acronym for which concept related to costs at different levels of production?short-run
average cost
Staples Office Supply opened an online store that created competition with many of its dealers. The
corporate office created a ________ conflict. vertical
State and federal governments accept some reasons for price-fixing when it does not limit
competition. FALSE
Status, empathy, and persuasiveness are all examples of ________ influences on business buyer
behavior. interpersonal
Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions about
what was important to implement in their jobs. Both used the information in different ways,
according to what each already believed was important. They have engaged in ________. selective
distortion
Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an
example of a(n) ________. indirect marketing channel
Stew Leonard, the owner of a highly successful regional supermarket chain, reacts adversely to losing
a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a
customer is likely to make if he or she remains in the area. Stew Leonard's concern is an illustration
of which of the following? customer lifetime value
Style is a larger concept than design. Design describes the appearance of a product. FALSE
Subcultures are society's relatively permanent and ordered divisions whose members share similar
values, interests, and behaviors. FALSE
Successful niche marketing relies on a firm's ________ and its ________. greater knowledge of
customers' needs; special reputation
Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company
positioning and brand positioning in a formal way. Superior's management would use a ________.
positioning statement
Superior Luggage Company has undertaken the task of identifying its products in the decline stage of
the PLC. Which of the following should NOT be done in the identification process? A) regularly
reviewing sales regularly reviewing management's pet projects
Suppliers are more likely to stay price competitive when the purchasing company uses single
sourcing than when it uses multiple sourcing. FALSE
Survey research, though used to obtain many kinds of information in a variety of situations, is best
suited for gathering ________ information. descriptive
Survey research is least likely to be conducted through which of the following? observation
Suzie Chan strengthens her company's connections by treating suppliers of raw materials, vendors,
and distributors as partners in delivering customer value. What type of management is she practicing?
supply chain
Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural health
products and related services. In order to implement integrated marketing communications, Tara has
hired a marketing communications director, whose job it will be to ensure that each ________ will
deliver a consistent and positive message about the company. brand contact
Target marketing sometimes generates controversy and concern. Issues usually involve the targeting
of ________ consumers with ________ products. vulnerable or disadvantaged; controversial or
potentially harmful
Target profit pricing is used when a firm tries to determine the price at which it will break even or
make the profit it is seeking. TRUE
Target profit pricing uses the concept of a ________, which shows the total cost and total revenue
expected at different sales volume levels. break-even chart
Tasoula Jeannopoulos has a limited budget for the market research she needs to conduct; however,
the sample size for her research is quite large. Which of the following methods of contact would
provide Tasoula with the most cost-effective way to reach a large sample of potential customers?
Internet surveys
Teaser advertising is most closely associated with the buyer-readiness stage of liking a product.
FALSE
The ________ concept is aligned with the philosophy of continuous product improvement and the
belief that customers will choose products that offer the most in quality, performance, and innovative
features. product
The ________ environment consists of factors that affect consumer purchasing power and spending
patterns. economic
The ________ is the most important consumer buying organization in society; the roles and
influences of different members have been researched extensively. family
The ________ of the product mix refers to how closely related the various product lines are in end
use, production requirements, distribution channels, or some other way. consistency
The ________ requires sellers to provide detailed nutritional information on food products.
Nutritional Labeling and Educational Act of 1990
The "Stop. Think. Tylenol." ad is an example of a moral appeal. FALSE
The 55-year-old baby boomers share common needs in music and performers. When a music
company decides to serve this group, the group is called a(n) ________. target market
The ability to reach respondents is a major concern in international marketing research. TRUE
The Ad Council of America has developed dozens of ________ marketing campaigns, including
classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can Prevent Forest
Fires." social
The advantages of standardizing an international product include all of the following EXCEPT
________. the adaptation of products to different markets
The affordable method sets promotion budgets to match competitors' outlays. FALSE
The American workforce today is better educated but less white-collar than it was a generation ago.
FALSE
The answer to the customer's question "Why should I buy your brand?" is found in the ________.
value proposition
The art and science of choosing target markets and building profitable relationships with them is
called ________. marketing management
The availability of which of the following is most problematic in international marketing research?
secondary data
The basic difference between customer-segment pricing and product-form pricing is that the latter
offers alternative versions of the product that are priced differently but not according to differences in
their costs. TRUE
The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more
time-efficient order processing and delivery. TRUE
The Bentley department store chain makes extensive use of e-procurement. As a buyer, the store
should expect to enjoy all of these benefits of e-procurement EXCEPT ______. reduced payroll
The best approach for researchers to take to guard consumer privacy includes all of the following
EXCEPT which one? Sell the information only when it is financially worthwhile.
The break-even volume is the point at which ______. the total revenue and total costs lines
intersect
The business analysis stage represents the first large jump in financial investment in the new-product
development process. FALSE
The business buying process consists of business buyers determining which products and services
their organizations need to purchase, and then finding, evaluating, and choosing among alternative
suppliers and brands. TRUE
The buyer decision process consists of five stages. Which of the following is NOT one of these
stages? variety-seeking buying behavior
The buying center and the buying decision process are affected by all of the following factors
EXCEPT ________. self-concept factors
The buying center is not a fixed or formally identified unit within an organization. TRUE
The buying process starts with ________, in which the buyer recognizes a problem. need recognition
The Chicago Bears organization charges different prices for seats in different areas of the Soldier
Field, even though the costs are the same. This form of pricing is called____. location pricing
The communication channel a company uses to move its advertising messages from sender to
receiver is called the ________. media
The communications process should start with mass media advertising to reach many consumers.
FALSE
The communicator must decide how to handle message structure issues. One issue is whether to
________ or not. draw a conclusion
The company designs what it considers to be a good product, totals the expenses of making the
product, and sets a price that adds a standard mark-up to the cost of the product. This approach to
pricing is called ________. cost-plus pricing
The consumer can obtain information from any of several sources. Which of the following is NOT
one of these types of sources? attitude
The consumer market is made up of which of the following? individuals who acquire goods or
services for personal consumption; households that purchase goods or services for personal
consumption (keys: A and B)
The creation of a successful new product depends on a company's understanding of its ______ and its
ability to deliver _____ to customers. customers, competitors, and markets; superior value
The decider is the person in the business buying process who controls the flow of information to
others involved. FALSE
The decision-making unit of a buying organization is called the ________. buying center
The decision to use a cleaning genie to communicate the strength and power of Mr. Clean cleaning
liquid is representative of the ________ process of the communication model. encoding
The demand curve shows the number of units the market will buy in a given time period at different
prices that might be charged. In normal cases, the higher the price, the lower the demand. TRUE
The demand for A-1 Stampings' products is ultimately based on the demand for new automobiles in
the consumer market. This is an example of ________ demand. derived
The demand for many business goods and services tends to change more, and more quickly, than the
demand for consumer goods and services does. This is referred to as___ demand. fluctuating
The demographic environment is of major interest to marketers because it involves people, and
people make up markets. TRUE
The difference between distribution centers and storage warehouses is that the former are designed to
________. move goods rather than just store them
The difference between human needs and wants is that needs are not influenced by marketers.TRUE
The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a
product is ________ segmentation. behavioral
The EPA has mandated that, in order to reduce local pollution, your printing plant switch from
oil-based to water-based inks. This will require entirely new printing presses and a new printing plate
technology. After carefully searching through numerous manufacturers' equipment descriptions and
gathering opinions from all relevant parties related to the work, the printing plant's buying center will
be ready to make this ________ purchase. new task
The experience curve reveals that ________. A, B, and C
The fact that a hot dog cost five times more at Disneyland than at Sam's Club is an example of
________. captive-product pricing
The faster the delivery, the greater the assortment provided, and the more add-on services supplied,
the more the channel's service level is restricted. FALSE
The federal government may prevent a company from adding products through acquisitions if
acquisition threatens to lessen competition. TRUE
The final step in the marketing process is ________. capturing value from customers
The first part of the marketing strategy statement describes the target market; the planned product
positioning; and goals for sales, profits, and ________. market share
The first step of the business buying process is ________. problem recognition
The FOB-origin pricing strategy means that the goods sold are placed free on board a carrier. At that
point the title and responsibility pass to the customer, who pays the freight from the factory to the
destination. TRUE
The four major communication functions are encoding, decoding, response, and noise. FALSE
The frequent use of promotional pricing can lead to industry price wars. TRUE
The fundamental asset underlying brand equity is ________–-the value of the customer relationships
that the brand creates. A powerful brand is important, but what it really represents is a set of loyal
consumers. customer equity
The goal of marketing logistics should be to provide a ________ level of customer service at the least
cost. targeted
The green movement will likely spark the LEAST interest in which of the following? Internet usage
The impossibility of a barber storing haircuts for later sale is an example of which of the following?
service perishability
The innovation management system approach yields two favorable outcomes: it helps create an
innovation-oriented company culture, and it ____. yields a larger number of new-product ideas
The integrated marketing concept ties together all of the company's messages and images.TRUE
The international growth of many professional and business services such as accounting, consulting,
and advertising led to the globalization of the client companies they serve. FALSE
The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
dynamic pricing
The introduction of new technologies is beneficial to all industries, as new markets and opportunities
are created. FALSE
The Jay Group hires better employees than the competition by conducting lengthy searches and
interviews. Management also trains employees much better than competitors do. The Jay Group has
gained a strong competitive advantage through which type of differentiation? people
The JC Whitney Company of Chicago offers replacement parts for older Volkswagen Beetles. Parts
are often shipped from other locations throughout the United States. However, the company charges
for shipping as if every part was shipped from their Chicago headquarters. The company practices
________. basing-point pricing
The key to managing inventory is to balance the costs and benefits of holding larger inventories with
the costs and benefits of holding less. TRUE
The leading barrier to expanding electronic links with customers and partners online is
________.concern over security
The legislation created to limit the number of commercials aired during children's programming is
called the ________ Children's Television Act
The less ______ the demand, the ________ it pays for the seller to raise the price. elastic; more
The long-run average cost curve (LRAC) helps the producer understand which of the following? It
shows how large a business should be, to be most efficient.
The macroenvironment consists of the factors close to the company that affect its ability to serve its
customers, such as suppliers, customer markets, competitors, and publics. FALSE
The main differences between business and consumer markets include market structure and demand,
the nature of the buying unit, and the types of decisions. TRUE
The major disadvantage of a multichannel system is that it is harder to control and it can generate
________. channel conflict
The major influences on the buying process at General Aeronautics include company policies and
systems, technological change, and economic developments. The types of influences on the buying
process in this scenario are most accurately categorized as ________ and ________. A) individual;
environmental organizational; environmental
The major product line decision involves ________. product line length
The major purpose of test marketing is to provide management with the information needed to make
a final decision about ________. whether to launch the new product
The management directive to reduce the number of steel suppliers is most accurately classified as
which type of influence affecting business buying behavior? organizational
The marketer wants to understand how the stimuli are changed into responses inside the consumer's
________, which has two parts. First, the buyer's characteristics influence how he or she perceives
and reacts to the stimuli. Second, the buyer's decision process itself affects the buyer's behavior.
black box
The marketing mix includes production, price, promotion, and packaging; this is known as the four
Ps of marketing. FALSE
The markets you have chosen to serve in four western states can be effectively reached and served.
You would tell the marketing manager that these segments are ________. accessible
The microenvironment consists of larger societal forces that affect a company, such as demographic,
economic, political, and cultural forces. FALSE
The more elastic the demand, the more it pays for the seller to raise the price. FALSE
The most common research instrument used is the ________. questionnaire
The most common type of contractual agreement in business is the___. franchise organization
The most effective sources from which consumers obtain information are ________ because they
legitimize or evaluate products for the buyer. personal
The most important issue facing online researchers is the lack of a broad cross section of consumers
who have access to the Internet. FALSE
The most likely effect of the frequent use of promotional pricing is an industry ____. price war
The move toward individual marketing mirrors the trend in consumer _______. self-marketing
The natural resources that are needed as inputs by marketers or that are affected by marketing
activities are referred to as the ________. natural environment
The New Age Gallery has three admission prices for students, adults, and seniors. All three groups
are entitled to the same services. This form of pricing is called_____.customer-segmented pricing
The Niketown running club that organizes twice weekly evening runs and follow-up meetings in the
Nike Store is an example of which of the following? a club marketing program
The objective of ________ research is to gather preliminary information that will help define the
problem and suggest hypotheses. exploratory
The owners of the company you work for have developed a core network of suppliers they are
working closely with to ensure an appropriate and dependable supply of products. This is an example
of ________ management. supplier development
The percentage-of-sales method wrongly views sales as the cause of promotion rather than the result.
TRUE
The PLC concept can be applied by marketers as a useful framework for describing how ________.
products and markets work
The potential market strengths and weaknesses are being determined for a new-product idea at Art for
Kids. In what stage of the new-product development process does this occur? It occurs in the
business analysis stage of the new product development process.
The producer and intermediaries need to agree on the terms and responsibilities of each member,
including price policies, conditions of sale, territorial rights, and specific services to be performed by
each party. TRUE
The product concept says that a company should do which of the following? focus on making
continuous product improvements
The production concept and product concept are orientations that can lead to marketing
myopia.TRUE
The promotion mix is the company's primary communication activity; the marketing mix must be
coordinated for the greatest communication impact. What is NOT included in the entire marketing
mix? competitor
The purchasing agent at your company is working with engineers and users to define the items to
purchase by describing general characteristics and quantities needed. He is also ranking the
importance of reliability, durability, and price. The buyer is preparing a(n) ______. general need
description
The Pure Drug Company produces insulin, a product with a very stable demand, even though the price
has changed several times in the past two years. Insulin is a product with ____ demand. inelastic
The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding
stages is to ________ that number. large number; reduce
The RBC Royal Bank has identified five life-stage segments. Members of which segment are most
likely to be interested in debt-load management services? Builders
The real value of marketing research and information lies not in quantity but in the customer insights
provided. TRUE
There are many exceptions to the geographic segmentation assumption that consumers in nations
close to one another will have many common behaviors and traits. TRUE
There are many factors considered in government buying, but ________ is, above all, the most
important. price
There are many reasons why a firm might consider cutting its price. All of the following are among
them EXCEPT ________. monopolistic competition
There are many sets of ___ purchases made for each set of ___ purchases. business; consumer
There are three types of appeal from which marketers may choose as they design their message
content. These types are rational, emotional, and moral appeals. TRUE
The receiver assigns meaning to the symbols encoded by a company in its advertisements through a
process known as ________. decoding
The recent rash of business scandals and increased concerns about the environment have created
fresh interest in the issues of ___ and ____. ethics; social responsibility
There is a trend in the United States toward rediscovering the flavor of regional cooking and the use
of locally grown ingredients. People are choosing to spend hours in the kitchen using only the
freshest ingredients to recreate local culinary traditions. This change in ________ is one of the
reasons the number of farmers markets in the United States has increased by 70 percent in the last
eight years. lifestyle
The relationship between the consumer's expectations and the product's ________ determines
whether the buyer is satisfied or dissatisfied with a purchase. perceived performance
The relationship between the price charged and the resulting demand level can be shown as the
________. demand curve
The Robinson-Patman Act seeks to prevent unfair ________ by ensuring that sellers offer the same
price terms to customers at a given price level. price discrimination
The search for new-product ideas should be ________ rather than haphazard. systematic
The second part of the marketing strategy statement outlines the product's planned price, distribution,
and ________ for the first year. marketing budget
The selling concept holds that consumers will not buy enough of the firm's products unless it
undertakes a large-scale selling and promotion effort. TRUE
The service-profit chain is the set of all product lines and items that a particular seller offers for sale.
FALSE
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
marketing mix
The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the
formation of ________. monopolies
The simplest pricing method is ________. cost-plus pricing
The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the
cost of the product. TRUE
The single most important demographic trend in the United States that marketers should understand
is the changing family structure. FALSE
The six ________ stages that consumers normally pass through on their way to making a purchase
include awareness, knowledge, liking, preference, conviction, and purchase. buyer-readiness
The six buyer-readiness stages include all of the following EXCEPT ________. hesitation
The societal marketing concept calls on marketers to balance consumer wants and desires, company
profits, and society's interests. TRUE
The societal marketing concept seeks to establish a balance between consumer short-run wants and
consumer ________. long-run welfare
The stage at which new product and marketing programs are introduced into realistic market settings
is called concept testing. FALSE
The starting point of understanding a consumer's response to various marketing efforts is the
________ of a buyer's behavior. stimulus-response model
The starting point of understanding how consumers respond to various marketing efforts is called the
marketing stimulus model of buyer behavior. FALSE
The strongest brands go beyond attributes or benefit positioning; they are positioned on ________.
strong beliefs and values
The success of each channel member depends on the performance of_.the entire supply chain
The team-based new-product development approach is faster because departments work closely
together through ________. cross-functional teams
The team-based new-product development approach uses cross-functional teams that overlap the steps
in the process to achieve which of the following goals? save time and increase effectiveness
The term ________ refers to qualitative research designed to probe consumers' hidden, subconscious
motivations. motivation research
The term supply chain may be too limited because it takes a make-and-sell view of the business.
TRUE
The third level of a product that product planners must consider is a(n) ______ around the core
benefit and actual product that offers additional consumer services and benefits. augmented product
The third part of the marketing strategy statement includes all of the following EXCEPT ________.
short-run sales
The three areas of consideration that should be balanced in the societal marketing concept are
consumer wants, society's interests, and ________. company profits
The three largest generational groups in America are the baby boomers, Generation Xers, and
________. Millennials
The total financial value of a brand is estimated through the process of brand ________. valuation
The two broad types of ________ channels are personal and nonpersonal. communication
The ultimate aim of customer relationship management is to produce_______. customer equity
The use of multichannel systems in the United States is ________. increasing
The use of short-term incentives to encourage the purchase or sale of a product or service is called
________. Sales promotions
The world's largest buyer of products and services is ________. the U.S. government
The youngest of the baby boomers are now in their ________. mid-40s
This group of consumers tends to buy more branded, higher-quality products. and to make shopping a
family event, with children having a big say in the purchase decision. In general, they are very brand
loyal, and they favor companies who show special interest in them. Hispanic (người Tây Ban Nha)
Though a popular appeal, when used poorly ________ can detract from comprehension, quickly wear
out its welcome, overshadow the product, or even irritate consumers. humor
Though mass marketing was effective in past decades, large companies no longer routinely invest
large chunks of their advertising budgets in mass-media outlets such as television and magazines.
FALSE
Though often criticized, the selling concept is particularly appropriate and effective with which of the
following types of products? unsought
Though the ________ method of setting an advertising budget is simple to use and helps management
think about the relationships among promotion spending, selling price, and profit per unit, it wrongly
views sales as the cause of promotion rather than the result. percentage-of-sales
Though the use of mass marketing has been widespread in the past 100 years, for centuries
consumers were served as individuals as businesses practiced individual marketing. TRUE
Through ________, many companies today are strengthening their connections to all partners, from
providers of raw materials to components to final products that are delivered to final buyers. supply
chain management
Through ________, the service firm trains and motivates its customer-contact employees and
supporting service people to work as a team to provide customer satisfaction. internal marketing
Through market segmentation, companies divide large, heterogeneous markets into smaller segments
that can be reached more ________ with products and services that match their unique needs. A)
Efficiently; B) Effectively; E) Both A and B
Through talking to numerous competitors at a regional trade show, you learn that most of them use the
most popular base for segmenting markets. What is it? demographic
Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a
product is within the supply chain. RFID
Through which of these sources of information is a competitor LEAST likely to reveal intelligence
information? internal marketing conferences
Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of
________ distribution. exclusive
To ________, a marketer can ask target audience members whether they remember the message, how
many times they saw it, and what points they remember. collect feedback
To achieve their social change objectives, social marketing programs _____. work to influence
individuals' behavior to improve their well-being, utilize all of the Ps in the marketing mix
To address concerns about the misuse of research study findings, several highly regarded marketing
associations have developed ________. codes of research ethics
To a producer of goods, a greater number of channel levels means ________ and greater channel
complexity. less control
To avoid too few new product ideas and the failure of many good ideas, management should install
an innovation management system that collects, reviews, evaluates, and manages new-product ideas.
TRUE
To avoid traffic gridlock in large metro areas, a community might use ________ to discourage
travelers from driving during peak commuting hours. demarketing
To combat marketing intelligence efforts by competitors, Unilever Corporation is now providing
________ to employees. competitive intelligence training
To communicate effectively, a marketing communicator must ________ the consumer's field of
experience. understand
To create customer value and build strong customer relationships, marketers know they cannot go it
alone; therefore, they practice ________. partner relationship management
Today, a growing number of firms now outsource some or all of their logistics to ________.
third-party logistics providers
Today, marketers are moving toward viewing communications as managing the ________ over time.
customer relationship
Today, marketing managers view marketing information not only as an input for making internal
decisions but also as an input for external partners. TRUE
Today, most companies have moved back toward mass marketing and are being choosier about the
customers with whom they wish to build relationships. TRUE
Today, the low cost of setting up shop ________ makes it even more profitable to serve very small
niches. on the Internet
Today's consumers do not need to rely on marketer-supplied information about products and services
because they can use_____ to seek out a wealth of information.the Internet and other technologies
Today's marketers must successfully build relationships to connect effectively with customers, others
in the company, and external partners. TRUE
Today's successful marketers recognize the importance of working with their intermediaries as
channels through which they sell their products rather than as full-fledged partners. FALSE
Today almost every company, small and large, is affected in some way by which of the following?
global competition
To differentiate themselves, many companies are going beyond products and services, they are
developing and delivering customer ________. experiences
To ensure an adequate and available supply of key scarce materials, many companies are now willing
to ________. buy and hold large inventories of the materials
To evaluate the different market segments your company serves, you would look at all of these
factors EXCEPT which one? company values
To increase a channel's service level, it must provide a greater assortment of products, more add-on
services, and ________. faster delivery
To increase their "share of customers," a firm concentrates on retaining as many customers as possible
over their lifetimes. FALSE
To maintain and increase a company's ________, a firm must retain or build the value of its
marketing offer. pricing power
Tommy Baker is in charge of CRM for American Pie Nostalgia. As a result of his successful efforts
in this area, his firm will likely enjoy all of the following EXCEPT ________. understanding the
competition better
Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions
installation business. He is a smart operator who knows that the key to this goal is to match ________
with ________. customer expectations; company performance
Too much marketing information can be as harmful as too little. TRUE
To produce better communications consistency, a unified company image, and greater sales impact,
some companies employ a(n) ________. marketing communications director
To reduce inventory management costs, many companies use a system called ________, which
involves carrying only small inventories of parts or merchandise, often only enough for a few days of
operation. just-in-time logistics
Total government spending is determined by ________ rather than by any ________ to develop this
market. elected officials; marketing effort
Toward the end of the fiscal year, the owner of a small company came back from lunch concerned
because he had learned that a business targeted to the same customers as his was planning on
spending $150,000 on promotion. As soon as he arrived at the office, he called his financial manager
and said, "I want to budget $150,000 for next year's promotion." Which method of promotional
budgeting did the owner want to use? the competitive-parity method
Toyota's Prius was the first mass-produced hybrid vehicle, known for its fuel efficiency and
environmental friendliness. The Prius was initially most likely marketed to which of the following
groups? the LOHAS market
Trade or functional discounts are offered by manufacturers to which of the following? channel
members who perform tasks that the manufacturer would otherwise have to perform
Trader Joe's offers an assortment of exclusive gourmet products at impossibly low prices. These
prices are not limited-time offers or special discounts. Instead, they reflect Trader Joe's ________
strategy. everyday low pricing
Trends in people's views of organizations indicate that which of the following has increased in the
past twenty years? distrust in big American businesses
Trudie Jones works for a distribution channel firm that helps several electronics companies find
customers or make sales to them. Trudie works for a reseller. TRUE
Two of the characteristics that are especially important in influencing an innovation's rate of adoption
are relative advantage and compatibility. TRUE
Typically, customer information is buried deep in separate databases, plans, and records of many
different company functions and departments. To overcome such problems, which of the following
should you try? customer relationship management
U.S. Government Purchasing, Specifications, and Sales Directory is a(n) ________ publication.
government
Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing
and marketing strategies. oligopolistic competition
Under ________, the market consists of many buyers and sellers trading in a uniform commodity
such as wheat, copper, or financial securities. pure competition
Under ________, the market consists of many buyers and sellers who trade over a range of prices
rather than a single market price. monopolistic competition
Under a ________, a supplier monitors and replenishes a buyer's stock automatically as needed.
vendor-managed inventory
Underpriced products sell very well, but they produce less revenue than they would have if price
were raised to the ________ level. perceived
Under the strategy of exclusive distribution, a seller allows only certain retail outlets to carry its
products. TRUE
Under what circumstances can local marketing be quite effective? when pronounced regional and
local differences in demographics and lifestyles are present
Under what circumstances might it be wise for a company to do little or no test marketing? when the
costs of developing and introducing the product are low
Under which type of geographic pricing strategy does each customer pay the exact freight for the
product from the factory to its destination? FOB-origin pricing
Unfortunately, most governments do not provide would-be suppliers with detailed guides describing
how to sell to the government. FALSE
Unsought products are products that the customer usually buys frequently, immediately, and with a
minimum of comparison and buying effort. FALSE
UPS serves both consumer and business markets, but most of its revenues come from its business
customers. UPS has become a strategic logistics ally for many of its business customers, going far
beyond offering delivery services to offering inventory management, international trade management,
and even financing to its commercial customers. This is an example of which of the following
differences between the consumer and business markets? Buyers and sellers in the business market
build close, long-term relationships.
UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with logistics,
is an example of ________. a third-party logistics provider
Up to 90 percent of all new consumer products fail. TRUE
Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value
in the eyes of customers. TRUE
Using ________, retailers can share real-time data on sales and current inventory levels with
suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time
and money. continuous inventory replenishment systems
Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a
small market large; one or a few niches
Using customer profitability analysis to weed out unprofitable customers and target winning ones for
pampering is referred to as ________. selective relationship management
Using integrated marketing communications, the communications process should start with ________.
an audit of all the potential customer touch points
Using the ________ method for setting an advertising budget, the company starts with total revenues,
deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds
to advertising. affordable
Using the PLC concept to develop marketing strategy can be difficult because strategy is both a
________ and a(n) ________ of the product's life cycle. cause; result
Using the PLC concept to develop marketing strategy can be problematic because strategy is both a
cause and a result of the product's life cycle. TRUE
Using this pricing strategy, the seller takes responsibility for part or all of the actual freight charges in
order to get the desired business. freight-absorption
Using value-based pricing, a marketer would not design a product and marketing program before
setting the price. TRUE
Valeo Fashions has just introduced a new line of fashion dresses for teens. They will initially enter
the market at high prices in a ________ pricing strategy. market-skimming
Value-based pricing is being used when costs vary directly with the level of product.FALSE
Value-based pricing is the reverse of cost-based pricing. TRUE
Value-based pricing is the reverse process of ________. cost-based pricing
Value-based pricing uses the company's perception of value.FALSE
Value marketing is the strategy of offering consumers_____.reasonable quality at a fair price
Vast improvements in information technology are speeding the movement toward segmented
marketing. TRUE
Vast numbers of consumers are aware of your product. It is now your goal to enhance preference for
your product. You plan to use nonpersonal communications through print media. This will include all
of the following EXCEPT ________. Internet "chats"
Wainwright Industries will build a new prototype riding lawn mower especially for women. In the
product development stage, Joe Wainwright and his staff will incorporate the functional features and
convey the ________. intended psychological characteristics
Wal-Mart is famous for using what important type of value pricing? everyday low pricing
Wal-Mart sends a trained observer to watch and interact with customers as they shop in a Wal-Mart
store. This is an example of ________. ethnographic research
Watching the cultural trends of how people view society, observers have noted that since September
11, 2001, marketers responded to the increased ________ of Americans with special products and
promotions. patriotism
Water Light Fishing Boats is like most companies. They commercialize their new product ideas one
at a time rather than developing a product line. FALSE
Web 2.0 is distinguished by its poorly conceived e-tailers and Web start-ups. FALSE
We define a ________ as anything that can be offered to a market for attention, acquisition, use, or
consumption and that might satisfy a want or need. product
What are the differences between innovators and early adopters? Innovators are more willing to
take on risk; early adopters try new ideas early on but are much more deliberate.
What are the four steps, in order, to designing a customer-driven marketing strategy?market
segmentation, targeting, differentiation, and positioning
What are the two dimensions of product quality? consistency and level
What are the two main types of research instruments used to collect primary data? questionnaires
and mechanical devices
What competitive positioning can attack a more-for-more strategy by introducing a brand offering
with comparable quality at a lower price? more-for-the-same
What do companies call a set of benefits that they promise to consumers to satisfy their needs?
market offering
What do many researchers encounter when conducting market research in foreign countries? A) Some
countries have few telephones, limiting access to respondents. B) Some countries have poor mail
services. C) Some countries have poor roads that limit personal contacts. D) Some cultures do not
value marketing research. E) all of the above
What elements may help to create a product image? Any number of product attributes, as well as
packaging and intended use, create product image; the promotional campaign also affects
product image.
What is a major advantage of product bundle pricing? It can promote the sales of products
consumers might not otherwise buy.
What is a major drawback of probability sampling? It can be time consuming.
What is one way that social class is NOT measured? number of children in the family
What is the first step in the marketing research process? defining the problem and research
objectives
What is the following example of? "To busy, mobile professionals who need to always be in the loop,
BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay
connected to data, people, and resources while on the go." positioning statement
What is the goal of integrated supply chain management? to reduce costs; to increase services with
minimal cost through teamwork; to harmonize all of the company's logistics decisions; to reduce
conflict and increase cooperation among channel members
What is the LEAST pressing in Maslow's Hierarchy of Needs? self-actualization needs
What is the purpose of a data warehouse? to gather and integrate information a company already
has
What may be learned in a test market? Test marketing lets a company assess customer response to
its product and the effectiveness of its positioning strategy, advertising, distribution, pricing,
branding, and packaging.
What role do the four Ps play in consumer behavior? The four Ps are the marketing stimuli that
affect buyer behavior: marketers use product, price, place, and promotion to attract the
targeted consumers.
What source of marketing information provides those within the company ready access to research
information, stored reports, shared work documents, contact information for employees and other
stakeholders, and more? an intranet
What strategy should a marketer use upon learning that consumers are not buying a product because
they do not perceive a need for it? Marketing might launch an advertising campaign that shows
customers how the product can solve their existing problems and meet their existing needs.
What type of pricing is being used when a company temporarily prices it product below the list price
or even below cost to create buying excitement and urgency? promotional pricing
When a business market segment is large or profitable enough to serve, it is termed _______.
substantial
When a car-maker wants to introduce a new model, it is most likely to began with an extensive
________ advertising campaign to create name familiarity and interest. teaser
When a company charges the same rate to ship a product anywhere in the United States, it is using
which form of geographic pricing? uniform delivered
When a company chooses a target marketing strategy, its choices are influenced by factors related to
company resources, the degree of product variability, and the product's life-cycle stage.TRUE
When a company compares the likely sales, costs, and profitability of different channel alternatives, it
is using ________ criteria to evaluate its channel options. economic
When a company decides to maintain a product in the decline stage, it will reduce costs and hope that
sales hold up to increase the profits in the short run. FALSE
When a company hires lobbyists to influence legislation affecting its industry, it is taking a reactive
approach to the marketing environment. FALSE
When a company identifies the parts of the market it can serve best and most profitably, it is
practicing ________. Market targeting
When a company interacts one-on-one with large numbers of customers to create customer- unique
value by designing products and services tailor-made to individual needs, it is following ________.
mass customization
When a company introduces a new brand name in the same product category, it is called line
extension. FALSE
When a company is identifying its major channel alternatives, it should consider its choices in terms
of types, number, and ________ of intermediaries. responsibilities
When a company lengthens its product line beyond its current range, it is ________. product line
stretching
When a competitor cuts its price, a company is most likely to decide to ________ if it believes it will
not lose much market share or would lose too much profit by cutting its own price. maintain its
current prices and profit margin
When a consumer learns about a new product for the first time and makes a decision to try it, the
consumer is engaged in the alternative evaluation process. FALSE
When a customer lets a producer know something about its products or advertising, the customer is
providing ________. feedback
When a downward-sloping experience curve exists, a company should usually ________ the selling
price of that product in order to bring in higher revenues. decrease
When a firm improves the quality and increases the price of a product in reaction to a competitor
making a price reduction, the firm in essence is ________. moving its brand into a higher
price-value position
When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.
time
When a manufacturer seeks a market for by-products and accepts a price that covers more than the
cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's
price to make it more competitive. TRUE
When amusement parks and movie theaters charge admission plus fees for food and other attractions,
they are following a(n) ________ pricing strategy. captive-product
When an airline goes after a "share of travel" from its customers, it is attempting to increase
________. share of customer
When an effective program can be designed for attracting and serving a chosen segment, the segment
is best described as ________. actionable
When a product enters the maturity stage, the company should consider ________modifying the
product, market, or marketing mix
When backed by buying power, needs become demands. FALSE
When backed by buying power, wants become ________. demands
When Burger King targets children, teens, adults, and seniors with different ads and media, it is
practicing ________ segmentation. age and life cycle
When choosing a target marketing strategy, many factors need to be considered. Which of the
following does your text NOT mention as important? product cost
When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it
is using ________. product line pricing
When companies set prices, the government and social concerns are two ________ affecting pricing
decisions. external factors
When compared to consumer markets, business markets are ________. huge
When competing products differ greatly, business buyers are more accountable for their purchase
choices and tend to pay more attention to ________. economic factors
When competitors use differentiated or concentrated marketing, ________ marketing can be
disastrous. undifferentiated
When conducting a performance review, the seller monitors different factors than those monitored by
the buyer to make sure that the seller is giving the expected satisfaction. FALSE
When consumers are highly involved with the purchase of an expensive product and they perceive
significant differences among brands, they most likely will undertake ________. complex buying
behavior
When consumers cannot judge quality because they lack the information or skill, price becomes
________.an important quality signal
When consumers cannot judge the quality of a product because they lack information or skill, they
are likely to perceive a higher-priced product as having higher quality. TRUE
When customers buy products from manufacturers' dealers within a specified time period, the
manufacturer sends the customer a check called a ________. cash rebate
When customers don't know what they want or don't even know what's possible, the most effective
strategy is ________ marketing. customer-driving
When customers have a low involvement in a purchase but perceive significant brand differences,
they will most likely engage in ________. variety-seeking buying behavior
When determining the number of channel members to use at each level, three strategies are available:
intensive, exclusive, and ________ distribution. selective
When do marketers need marketing research? Marketing research becomes important when
marketing intelligence cannot provide the detailed information needed for a specific situation.
When establishing the responsibilities of channel members, the producer establishes a list price, sets
discounts for intermediaries, and defines each channel member's ________. territory
When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum
cleaner, she was doing which of the following? concept testing
When faced with a competitor who has cut its product's price, which of the following is typically the
most efficient way for a company to maintain its own price but raise the perceived value of its
offer?altering the company's marketing communications
When faced with price competition cutting prices is often not the best answer.TRUE
When firms use symbols, colors, or characters to convey their personalities, they are using ________
differentiation. image
When General Motors provides payments or price reductions to its new car dealers as rewards for
participating in advertising and sales support programs, it is granting____.promotional allowance
When Gibson Guitar Corporation, long known for its high quality instruments, lowered its prices to
compete more effectively with Japanese rivals, the company sold fewer guitars. Which of the
following best explains this?Customers did not distinguish the superiority of the Gibson guitar
when it was at a lower price.
When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome
Orange to revitalize consumer buying, the company was ________. modifying the product
When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising
programs, it is implementing a ________. shared projects
When it becomes necessary to reduce demand for a product or service, an organization may use
demarketing to reduce or shift the number of customers. TRUE
When it first opened for business, Home Depot claimed to offer better products at lower prices. This
hard-to-sustain value proposition is called ________. more-for-less
When Johnny On the Spot, a house mover, sells boxes and pads that must be used in moving a
household's furniture, the company is practicing by-product pricing. FALSE
When Kia offers a new car model with the same features as a comparable Toyota or Ford and
provides a longer warranty, Kia is following a more-for-less strategy. FALSE
When Kraft focused on cost-cutting with its older and established brands, leaving them to wither
without much investment or modification, Kraft had decided to _______ the older products. harvest
When managers use small convenience samples such as asking customers what they think or inviting
a small group out to lunch to get reactions, they are using ________.informal surveys
When marketers at Procter & Gamble selected the Millennials, a demographic that includes college
students, as an untapped group of potential customers for their Febreze line of products, they were
executing which step in the process of designing a customer-driven marketing strategy?targeting
When marketers set low expectations for a market offering, the biggest risk they run is ________.
failing to attract enough customers
When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,
they are using ________. value pricing
When McDonald's offers its products inside of a Wal-Mart store, it is following a ________.
contractual VMS
When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly
attract a large number of buyers, the company is practicing market-skimming pricing. FALSE
When Netflix began delivering DVDs directly to customers through the mail instead of using a
brick-and-mortar system, Netflix was following the trend of ________. disintermediation
When New Port Shipping uses segmented marketing, it targets several segments and designs separate
offers for each one. This approach is called ________ marketing. differentiated
When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New
Zealand, it is using which segmentation base? geographic location
When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers they were using,
Pepsi was using ________. market-penetration pricing
When Polaroid set the general price range of its cameras low and the markup on its film high, it was
practicing ________. captive-product pricing
When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using
which type of segmentation? gender
When pricing internationally, most companies adjust their prices to reflect ________. all of the above
When product managers at Schwinn make decisions about which types of bicycle seats, handle bars,
and saddlebags to offer customers on their bikes, they are engaged in ________. optional-product
pricing
When Redman's Variety raised their store prices 40 percent and then ran a 20 percent off sale,
Redman's was guilty of deceptive pricing. TRUE
When sales of a product falter during the PLC, a company can take several approaches. The more
common ones are to modify the marketing mix, modify the product, or modify the market. TRUE
When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from
marketing myopia. FALSE
When sellers set prices after talking to competitors and engaging in collusion, they are involved in
________. price-fixing
When Sherwin Williams Paint Company has single ownership of integrated, successive stages of
production and distribution, it has created a corporate VMS. FALSE
When shipping large amounts of bulk products such as forest products, coal, sand, or rock over long
distances, a company should choose large trucks because of their low cost per ton shipped.FALSE
When suppliers, distributors, and customers partner with each other to improve the performance of
the entire system, they are participating in a ________. value delivery network
When suppliers' offers are very similar, business buyers have little basis for strictly ________.
rational choice
When the marketing manager Suzie Kwan discusses factors and forces outside marketing, such as
political that affect marketing management's ability to build and maintain successful relationships
with target customers, she is talking about the external marketing concept. FALSE
When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow
a new marketing opportunity, they are forming a horizontal marketing system. TRUE
When there is price competition, many companies adopt ________ rather than cutting prices to match
competitors. value-added strategies
When the size, purchasing power, and profiles of a market segment can be determined, it possesses
the requirement of being ________. measurable
When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable
service which even allows customers to hand-select their own cuts of meat________ is(are) are
evident. a core benefit, an actual product, and an augmented product
When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a
discount to the local high school band, they are in a ________ conflict. horizontal
When using price steps, the seller must establish perceived ________ that support the price
differences. quality differences
When using product bundle pricing, sellers combine several of their products and offer the bundle at
an increased price for increased profit. FALSE
When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing
________. local marketing
When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the
week after Christmas, Whallans is giving a(n) ________ discount. seasonal
When you glean information from your company's accounting and sales records stored in the
company's computer system, you are developing an internal database. TRUE
When ZIBA designers looking for ideas on how to craft a shower-cleaning tool spent 10 days in
people's homes, watching consumers wash shower stalls, they were conducting ________ research.
ethnographic
Which business buying situation is the marketer's greatest opportunity and challenge? new task
Which concept calls for aggressive selling and focuses on generating transactions to obtain profitable
sales? selling
Which concept holds that achieving organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than competitors do?marketing
Which concept holds that firms must strive to deliver value to customers in a way that maintains or
improves the consumer's and society's well-being? societal marketing
Which customer question is answered by a company's value proposition? "Why should I buy your
brand rather than a competitor's?
Which demographic group is also referred to as the echo boomers? Millennials
Which demographic group is characterized by a total fluency and comfort with computer, digital, and
Internet technology? Millennials
Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"? more-for-less
Which form of data below can usually be obtained more quickly and at a lower cost than the others?
secondary
Which form of marketing research is flexible, allows for explanation of difficult questions, and lends
itself to showing products and advertisements? individual interviewing
Which group determines a product's position relative to competing products? consumers
Which major promotion category makes use of catalogs, telephone marketing, kiosks, and the
Internet? Direct marketing
Which major promotion category makes use of displays, discounts, coupons, and demonstrations?
sales promotion
Which method could a marketing researcher use to obtain information that people are unwilling or
unable to provide? observational
Which method of setting an advertising budget is based on analyzing competitors' spending?
competitive-parity method
Which of the five major promotion tools includes building up a positive corporate image and
handling unfavorable stories and events? Public relations
Which of the following accurately describes a cultural difference international marketers should be
aware of? Japanese people tend to put a high value on rank.
Which of the following American government agencies is charged with setting and enforcing
pollution standards? the Environmental Protection Agency (EPA)
Which of the following are the three major types of vertical marketing systems? contractual,
corporate, and administered
Which of the following best describes the role of a product steward? A) to protect consumers from
harm D) to protect the company from liability by identifying and solving potential product
problems (A and D)
Which of the following best explains why a rush of marketers now participate in established online
social networks? Consumers are more likely to view peer-to-peer communication as credible.
Which of the following best explains why consumers have greater power and control in today's
marketplace? Through new communication technologies, customers have more access to
information and more methods of sharing their opinions with other customers.
Which of the following best explains why Gen Xers as a group may be more economically cautious
than baby boomers? Gen Xers grew up during times of corporate downsizing and recession.
Which of the following best represents the options a company has when a product is declining?
maintain, harvest, or drop the product
Which of the following can be especially useful for a company that needs to conduct secure and
frequent communications and transactions with key suppliers? an extranet
Which of the following CANNOT be described using the PLC concept? product image
Which of the following capital items is NOT considered accessory equipment? buildings
Which of the following conditions should exist for segmented pricing to be an effective strategy? All
of the above.
Which of the following contact methods has the poorest response rate? mail
Which of the following contact methods is generally the LEAST flexible? mail
Which of the following costs is most likely associated with the commercialization stage of
new-product development? building or renting a manufacturing facility
Which of the following demographic groups has NOT seen a percentage increase in the past 50
years? women staying at home with their children
Which of the following demographic trends is likely the most responsible for the increasing number
of people who telecommute? the migration toward micropolitan and suburban areas
Which of the following descriptions most accurately characterizes Gen Xers? They were the first
generation of latchkey kids.
Which of the following descriptions most accurately characterizes Millennials? They are children of
baby boomers.
Which of the following descriptions most accurately characterizes the baby boomers? They hold
75% of the country's assets.
Which of the following does NOT belong to the materials and parts group of industrial products?
repair and maintenance items
Which of the following explains why few companies have been successful in shutting down critics
who post complaints on the Web? The criticism is usually interpreted as protected speech.
Which of the following factors has NOT contributed to today's age of the "tapped-out consumer"?
rising incomes in the upper class
Which of the following forces would marketers be MOST likely able to influence? media publics
Which of the following geographical areas has NOT seen a recent population increase? the Northeast
Which of the following groups of expenses uses up the most household income? A) food, housing,
retirement planning food, housing, transportation
Which of the following groups of workers is projected to become smaller over the next ten years?
manufacturing workers
Which of the following has encouraged marketers to pursue environmentally sustainable strategies?
the green movement
Which of the following has NOT contributed to the deeper, more interactive nature of today's
customer relationships? traditional advertising
Which of the following has the highest rating for speed of data collection and compilation? Internet
surveys
Which of the following innovations has created opportunities for significant gains in distribution
efficiency? Web-based logistics systems
Which of the following is(are) examples of product line depth? hamburger and cheeseburger, Coke
and Diet Coke
Which of the following is a cost-based approach to pricing? target profit pricing
Which of the following is a customer-oriented approach to pricing? value-based pricing
Which of the following is a disadvantage of a team-based approach to new-product development?
Organizational confusion and tension can affect the process.
Which of the following is a disadvantage of online focus groups? The Internet format can restrict
respondents' expressiveness.
Which of the following is a major factor that influence price increases? cost inflation
Which of the following is an accurate statement about the diversity of the American population?
More than 12 percent of people living in the United States were born in another country.
Which of the following is an advantage offered by co-branding? A company can expand its existing
brand into a category it otherwise might have difficulty entering alone.
Which of the following is an example of a cash discount? 2/10, net 30
Which of the following is an example of a core belief? Marriage is important.
Which of the following is an example of a free online database that a company could access in order
to develop marketing intelligence? the U.S. Security and Exchange Commission's database
Which of the following is an example of a manufacturer-sponsored retailer franchise system? Ford
and its network of independent franchised dealers
Which of the following is an example of a multichannel distribution system? J. C. Penney's catalog
and retail store sales
Which of the following is an example of an internal stimulus that might lead to the business buying
process stage of problem recognition? A buyer is unhappy with a current supplier's price.
Which of the following is an example of consumer-generated marketing? MasterCard's use of
"Priceless" commercials shot by customers
Which of the following is an example of horizontal channel conflict? managers of two separate
Holiday Inns disagreeing over what constitutes poor service and the BMW dealership in Fort
Wayne complaining that the BMW dealership in Indianapolis is situated too close
Which of the following is an external factor that affects pricing decisions? competition
Which of the following is a potential downside to using patriotic themes in marketing programs?
Such promotions can be viewed as attempts to gain from others' triumph or tragedy.
Which of the following is a potential drawback of multibranding? The company's resources may be
spread over too many brands.
Which of the following is a product concept? a thin, lightweight laptop with extended battery life
appealing to students and young professionals who want access to their computer anywhere,
anytime
Which of the following is a reason for a company to raise its prices? to address the issue of
overdemand for a product
Which of the following is a reason that a marketer would choose a penetration pricing
strategy? to discourage competition from entering the market
Which of the following is a reason why markup pricing is NOT practical? This method ignores
demand.
Which of the following is a result of regulations set up by the Food and Drug Administration and the
Consumer Product Safety Commission? Research costs for companies have grown.
Which of the following is a risk a company takes when building a strategy around the experience
curve? Aggressive pricing may give the product a cheap image, causing customers to lose
interest.
Which of the following is a trend that depicts the increasingly nontraditional nature of today's
American family? the falling percentage of married couples with children
Which of the following is currently the fastest-growing form of marketing? online marketing
Which of the following is good advice about creating research questionnaires for Mark Hammel,
research specialist at New Wave Data, to follow? Use care in the wording and ordering of
questions.
Which of the following is LEAST important for integrating a firm's marketing communications?
study the competitor's communications and promotions
Which of the following is LEAST likely to cause price escalation in foreign markets? the additional
costs of improving a country's infrastructure
Which of the following is most likely to be included in an executive's write up of a new product idea
to be presented to a new-product committee? the proposed customer value proposition
Which of the following is most likely true about a straight rebuy? It often involves products with
low risks.
Which of the following is necessary for successful new-product development? A) a holistic and
sequential product development approach a customer-centered, team-based, systematic approach
Which of the following is NOT a challenge presented by the product life cycle that a firm must face?
It is difficult to plot the stages as a product goes through them.
Which of the following is NOT a desirable quality for a brand name? The brand should almost
always be a long word to get attention.
Which of the following is NOT a disadvantage of telephone interviews? Interviewers can explain
some questions and probe more deeply on others.
Which of the following is NOT a drawback of local marketing? Supporting technologies are
expensive.
Which of the following is NOT a factor in the changes occurring in today's marketing
communications? Mass media no longer capture the majority of promotional budgets.
Which of the following is NOT a key function that intermediaries play in completing transactions?
negotiation
Which of the following is NOT a key function that intermediaries play in helping to fulfill a
completed transaction? promotion
Which of the following is NOT a major category in a company's promotion mix? Strategic
positioning
Which of the following is NOT an advantage of Web-based research? control over who respondents
are
Which of the following is NOT an area of responsibility for a logistics manager? marketing
Which of the following is NOT an example of a specialized and highly-targeted media that an
advertiser might use to reach smaller customer segments? network television
Which of the following is NOT an example of the type of public that is part of a company's
marketing environment? marketing department
Which of the following is NOT a potential reason for a new product to fail? an underestimated
market size
Which of the following is NOT a potential source for marketing intelligence? collecting primary
data
Which of the following is NOT a price adjustment strategy? free samples
Which of the following is NOT a recommended method for companies to tap into their customers as
sources for new-product ideas? relying heavily on customers to know what types of technical
products they need
Which of the following is NOT a type of factor in a company's macroenvironment?competitive
Which of the following is NOT a typical supply chain member? government agencies
Which of the following is NOT a way that business and consumer markets differ? satisfaction of
needs through purchases
Which of the following is NOT considered an important American subculture by marketers? opinion
leaders
Which of the following is NOT considered a source of marketing intelligence? causal research
Which of the following is NOT included in the decision-making unit of a buying organization?
individuals who supply the product
Which of the following is NOT on an effective action that a company can take to combat a
competitor's price cut on a product? bundle products together
Which of the following is NOT one of the four consumer perception dimensions used by ad agency
Young & Rubicam to measure brand strength? brand valuation
Which of the following is NOT one of the four major communication functions? noise
Which of the following is NOT one of the links in the service-profit chain, linking service firm
profits with employee and customer satisfaction? evidence management
Which of the following is NOT one of the reasons a segment would be less attractive to a company?
concentrated market
Which of the following is NOT one of the stages that customers go through in the process of learning
about and making decisions about a new product or service? culture
Which of the following is NOT part of Maslow's Hierarchy of Needs? stimulus needs
Which of the following is NOT part of the business market? Sue buys a gift for her mother.
Which of the following is NOT true of mature consumers? They place more importance on brand
names and are more brand loyal than members of other age groups.
Which of the following is one of Miller Meat Company's upstream partners? Midwestern farmers
who raise beef and pork for the meat processing center
Which of the following is perhaps the most important external source of new-product ideas?
customers
Which of the following is the best advice for an international marketer planning to interact with
businesspeople from many different cultures? Cultures really are different, so do your best to learn
about those differences.
Which of the following is the lowest level on which marketers can position their brands in target
customers' minds? product attributes
Which of the following is the most important for product designers to consider as they develop a
product? how customers will use and benefit from the product
Which of the following is the most likely reason that employees at your firm regularly attend trade
shows and seminars? to get new-product ideas
Which of the following is the most likely result of a marketing strategy that attempts to serve all
potential customers? Not all customers will be satisfied
Which of the following is the most logical reason for Procter & Gamble offering products that
compete with one another on the same supermarket shelves? Different people want different mixes
of benefits from the products they buy.
Which of the following is the most reasonable to assume as more and more Americans move to
"micropolitan areas"? Micropolitan areas are likely to offer the same advantages as metropolitan
areas.
Which of the following is the narrowest marketing strategy? local marketing
Which of the following is the opposite of FOB-origin pricing? uniform-delivered pricing
Which of the following is the process of the buying center deciding on the best product
characteristics? product specification
Which of the following is the set of benefits a company promises to deliver the customer to satisfy
their needs? a value proposition
Which of the following is the term for customers who make repeat purchases and tell others about
their positive experiences with a product or service? customer evangelists
Which of the following is the total combined customer lifetime values of all a company's current and
potential customers? customer equity
Which of the following is true about business marketers in comparison to consumer marketers? They
deal with far fewer but far larger buyers.
Which of the following is true about customer relationship management (CRM)? Its aim is to
maximize customer loyalty.
Which of the following is true about the demand curve? It shows the relationship between product
demand and product price.
Which of the following is true of ethnographic research? It provides greater insight into customer
behavior than interviews do.
Which of the following marketing management concepts is most likely to lead to marketing myopia?
production
Which of the following marketing management orientations focuses primarily on improving
efficiencies along the supply chain? production concept
Which of the following refers to sellers being preoccupied with their own products and losing sight of
underlying consumer needs?marketing myopia
Which of the following refers to the prices that a buyer carries in his or her mind and refers to when
looking at a given product? reference prices
Which of the following reflects the marketing concept? "This is what I want; won't you please
make it?"
Which of the following reflects the marketing concept philosophy? "We don't have a marketing
department; we have a customer department."
Which of the following represent(s) a two-sided message? Listerine tastes bad twice a day; Heinz
Ketchup is slow good.
Which of the following should be the first step in designing a marketing channel? identifying what
consumers want from the channel
Which of the following statements about break-even analysis is true? It is calculated using variable
costs, the unit price, and fixed costs.
Which of the following statements about buying centers is true? The buying center may involve
informal participants who are not obvious to sellers.
Which of the following statements about e-procurement security issues is true? Providing
e-procurement security can involve a substantial financial investment from a company.
Which of the following statements about income distribution in the United States is NOT true? In
recent decades, the middle class has grown.
Which of the following statements about the Internet is most accurate? The Internet makes it easy
for consumers to view, interact with, and create marketing content.
Which of the following statements about the supplier selection stage of the business buying decision
process is true? Before selecting a supplier, many companies consider the supplier's reputation,
ethical corporate behavior, and honest communication.
Which of the following statements best explains why idea screening may be the most important step
of new product development? It saves the company money in product development costs by giving
the green light to only the product ideas that are likely to be profitable.
Which of the following statements illustrates why stereotypes should be avoided when using age and
life cycle segmentation? Some 70 year olds use wheelchairs; others play tennis.
Which of the following statements is NOT true regarding information collected for marketers?
Managers have enough of the right information.
Which of the following statements is true regarding social class in the United States? Social classes
show distinct product preferences in clothing and automobiles.
Which of the following statements regarding marketing intelligence is true? Marketing intelligence
relies upon publicly available information.
Which of the following strategies would a company most likely use to increase customer satisfaction?
lowering prices
Which of the following terms is used to describe the factors and forces outside marketing that affect
marketing management's ability to build and maintain successful relationships with target customers?
the marketing environment
Which of the following transportation modes is used for digital products? the Internet
Which of the following types of factors influencing members of a buying center are typically the most
difficult for marketers to assess? interpersonal
Which of the following types of quality refers to freedom from defects and consistency in delivering
a targeted level of performance? conformance
Which of the following typically occurs with habitual buying behavior? A) There is high consumer
involvement. B) There is strong brand loyalty. C) Consumers search extensively for information. D)
Ad repetition creates brand conviction. E) none of the above
Which of the following was most likely being used when Boeing received orders for $100 million in
spare parts in the first year its Web site was in operation? e-procurement
Which of the following would a marketer be LEAST likely to do to encourage habitual buying
behavior? stress several key points in ad copy
Which of the following would be classified as bait-and-switch advertising? advertising a cheaper
brand but only making a more expensive one available to customers
Which of the following would be the LEAST effective way for John and Barb to reach new potential
customers? network television advertising
Which of the following would lead to greater competition in the maturity stage of the PLC?
overcapacity
Which of the following would most likely be considered predatory pricing? pricing below cost to
drive out competitors, pricing below cost in order to entice customers to your store
Which of the listed choices is NOT a positioning task? Surveying frequent users of the product
Which of the segmenting strategies carries higher-than-average risks in consumer markets?
concentrated
Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or
services at a lower price? same-for-less
Which product(s) will most likely be intensively distributed? Coca Cola
Which product will most likely be exclusively distributed? BMW cars
Which promotional mix strategy directs marketing efforts toward final consumers? pull
Which promotional mix strategy directs marketing efforts toward market channel members?push
Which promotional tool is described as nonpublic, immediate, customized, and interactive? direct
marketing
Which promotional tool is most effective in building up buyers' preferences, convictions, and, most
importantly, actions? personal selling
Which stage in the PLC is characterized by rapid market acceptance and increasing sales? growth
Which stage in the PLC normally lasts longer and poses strong challenges to the marketing
managers? maturity
Which stage of the new-product development process focuses on finding new ways to solve customer
problems and create more customer-satisfying experiences? customer-centered new-product
development
Which stage of the typical consumer product life cycle is out of order below? maturity
Which step in the four-step marketing research process has been left out of the following list: defining
the problems and research objectives, implementing the research plan, and interpreting and reporting
the findings? developing the research plan
Which steps of the five-step marketing process are about understanding customers, creating customer
value, and building strong customer relationships? the first four only
Which strategy involves weeding out weaker brands and focusing marketing dollars only on brands
that can achieve the number-one or number-two market share positions in their categories?
megabrand
Which type of differentiation is used to gain competitive advantage through the way a firm designs its
distribution coverage, expertise, and performance? channel differentiation
Which type of distribution is used when the producer wants more than one, but fewer than all, of the
intermediaries who are willing to carry its products? selective
Which type of market buys goods and services for further processing or for use in the production
process? business
Which type of market buys goods and services to produce public services or to transfer them to others
who need them? government
Which type of organization helps companies to stock and move goods from their points of origin to
their destination? physical distribution firms
Which type of product might require a more direct marketing channel to avoid delays and too much
handling? perishable products
Which type of research would be best suited for identifying which demographic groups prefer diet
soft drinks and why they have this preference? descriptive
Which type of segmentation centers on the use of the word when, such as when consumers get the
idea to buy, when they actually make their purchase, or when they use the purchased item? occasion
Which type of statement first states the product's membership in a category and then shows its
point-of-difference from other members of the category? positioning statement
While advertising campaigns can help to create name recognition, brand knowledge, and maybe even
some brand preference, brands are not maintained by advertising but by ________. brand experience
Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the
ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature
college-aged students enjoying Wholesome Soups in between classes and during study breaks.
Wholesome Soups' new marketing campaign is most likely aimed at which of the following?
Millennials
Why do marketers consider prestige goods to be an exception to the typical demand curve?Increasing
the price of prestige goods can make them seem more desirable.
Why is it important for manufacturers to be sensitive to the needs of their dealers? Dealer support is
essential to creating value for the customer.
Why is it important for the statement of the problem and the research objectives to guide the entire
research process? Answer: The specific nature of the problem and the research objectives
determine which type of research, contact methods, sampling plans, and instruments should be
used; without a focus on a specific problem and objectives, the marketing research process
would not result in relevant data.
Why might a company choose to develop a planned market rollout? A company without the
confidence, capacity, or capital to introduce its product in several regions or the full national
market may find it less risky and more manageable to enter attractive cities or regions one at a
time, using success in regional markets to build up to a larger market rollout.
Why might ad expenditures be high for products in the introduction stage of the PLC? Consumers
have very little awareness about such products; promotional spending can enhance customer
awareness.
Why might Charles Powell have avoided using market-skimming pricing at Quills? The quality and
image of the products would not have likely supported the high initial price.
Why might individual departments prefer sequential product development? This process allows
individual departments to work individually with a new idea, completing its stage of
development before passing the product on; other departments are less likely to interfere.
Why might the Hispanic market be a viable targeted group for a new marketer of products? Answer:
Hispanics are the fastest growing U.S. subculture and they tend to favor companies who show
special interest in them, attributes a new marketer of a product could capitalize on.
Why should marketers set up systems that encourage customers to complain about products? Most
customers never share their complaints with marketers; without this information, it is difficult
for a company to identify how it can improve.
Why would survey research be a better approach than observation research when attempting to assess
customer satisfaction?Survey research is more effective than observation in measuring customer
satisfaction because observations of smiling customers or armloads of merchandise, for
example, do not necessarily indicate customer satisfaction.
With _____, price is set to match consumers' perceptions of product value.value-based pricing
With a higher volume of product, most companies can expect to ____. gain economies of scale
With an expected increase in ethnic diversity within the American population, marketers are most
likely to place a greater emphasis on which of the following? differing advertising messages
With an expected increase in ethnic populations, marketers are likely to place a greater emphasis on
________. targeted advertising messages
With product bundle pricing, sellers can combine several products and offer the bundle ________. at
a reduced price
With selective relationship management, companies use customer profitability analysis to eliminate
losing customers and target winning ones. TRUE
With target costing, marketers will first ________ and then ________. determine a selling price;
target costs to ensure that the price is met
With what groups do firms conduct concept testing for new products? target customers
Workers, managers, and members of the board are all part of a company's ________ public. internal
Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to
market. The owner of the farm needs to buy some replacement coops and is considering buying
plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.
This purchase of coops is an example of a ________. modified rebuy
Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to
market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not
be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the
business buying process when he decided to replace his old coops? problem recognition
Xbox 360 decided to add a free subscription to XBOX magazine with every game bought in an effort
to differentiate its offering from PS3 games. This is an example of ________.value-added pricing
You are about to test hypotheses about decreasing sales in certain markets and their causes. You are
involved in what type of research? causal
You are an assistant marketing director for a firm in a market with many low-margin customers. What
type of relationship would it be most profitable for you to develop with these customers? basic
relationships
You are directed to study the actors close to the company that affect its ability to serve its
customers-departments within the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics. What are you studying? the microenvironment
You are directed to study the demographic, economic, natural, technological, political, and cultural
factors that are larger societal forces affecting your company. What are you studying? the
macroenvironment
You are trying to determine whether retired people drink more coffee at McDonald's during lunch
than they do during dinner. Why is observation research NOT effective in this scenario? Answer: It is
difficult to determine, just by looking, whether people are retired.
You call in a department manager to assist in a purchase of industrial equipment. You are considering
a change in product specifications, terms, and possibly suppliers. This is most likely a ________
situation. modified rebuy
You generally need to ask three questions when developing a sampling plan. Which of the questions
below is one of these three? How should participants be chosen (sampling procedure)?
You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of
Pepto-Bismol. This product is a(n) ________ product. convenience
You have been asked to locate secondary data for your small organization's research needs. Which of
the following is NOT a common source for this type of research? online surveys
You have decided to use only closed-end questions on your survey. Which of the following questions
would NOT be found on your survey? What do you like about your teacher?
You have decided to use only open-end questions on your survey. Which of the following questions
would NOT be found on your survey? How many cars does your family own?
You have discovered that the segments you are targeting are conceptually distinguishable and respond
differently to different marketing mix elements and programs. These segments are ________.
differentiable
You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand
is differentiated and positioned. This full positioning of the brand is called ________. its value
proposition
You have just extracted sales and cost data used by the accounting department for preparing financial
statements. Most likely, this information is complete and in usable form to build an internal
marketing database. FALSE
You have just identified the "touch points" of the 400 best customers in your database. At this point,
you want to manage detailed information about each of them to maximize customer loyalty. You
should use customer relationship management (CRM). TRUE
You have just taken a new position in an organization and you're learning about the job functions of
your new colleagues. You observe that your marketing manager is heavily involved in the process of
building and maintaining profitable customer relationships. Your marketing manager frequently
speaks about the need to deliver superior customer value and satisfaction. Your manager is concerned
with which one of the following? customer relationship management
You just lost a major account because a competitor provided the most complete system to meet the
customer's needs and solve the customer's problems, and made the sale. In other words, the
competition beat you with ________. solutions selling
Younger consumers are better off financially than mature consumers. They are the ideal market for
travel, restaurants, high-tech home entertainment products, and convenient services. FALSE
Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and
personality characteristics. After a planning session with the marketing and sales staff, you issue a
memo to upper management recommending psychographic segmentation. You are right on target.
TRUE
Your assistant wants to use secondary data exclusively for the current research project. You advise
him that the use of secondary data has some potential problems. Which of the following is NOT one
of them? It is generally more expensive to obtain than primary data.
Your colleague is confused about using the marketing research process, as he knows that something is
wrong but is not sure of the specific causes to investigate. He seems to be having problems with
_______, which is often the hardest step to take.defining the problem and research objectives
Your company decides to use internal sources for developing new product ideas. Which of the
following would NOT be consulted? suppliers
Your company is making negotiations to enter a market in Lower Albania. You would most likely
discover that __ beliefs and values are open to change in this country. secondary
Your company may respond to a competitor's price reduction by launching a low-price fighting
brand. This is likely necessary if the particular market segment being lost is price sensitive and will
not respond to arguments of higher quality. TRUE
Your company wants to move away from mass marketing and engage in customer-driven marketing.
The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and
targeting. FALSE
Your current assignment at York Foods is to find the major benefits people look for in product
classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
What is this segmentation method called? benefit
Your department holds that achieving organizational goals depends on knowing the needs and wants
of target markets and delivering the desired satisfaction better than competitors do. Your department
is practicing the selling concept. FALSE
You regularly purchase cleaning supplies for your custodial staff, using the same vendor and ordering
relatively consistent amounts of the same products with each purchase. This is an example of a
________ situation. straight rebuy
Your firm added three new products earlier this year to increase variety for customers. Two of them
failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of
their failure? Research was too extensive.
Your firm asks you to consult external sources for new product ideas. All of the following are
common external sources EXCEPT ________. the firm's executives
Your firm has decided to localize its products and services to meet local market demands. A good
approach to use would be ________ segmentation. Geographic
Your manager asked you to go through three of your competitors' garbage bins to gather marketing
intelligence from their discarded paperwork. One of them caught you in the act and has summoned
you to court. The judge will most likely rule this to be an illegal activity and fine you and your
company. FALSE
Your marketing department is attempting to improve strategic decision making, track competitors'
actions, and provide early warning of opportunities and threats. To achieve this goal, which of the
following would be the best for your department to use? marketing intelligence
Your marketing department is currently researching the size, density, location, age, and occupations
of your target market. Which environment is being researched? demographic
Your state's department of education has budgeted a significant amount of money for a radio, print,
television, and online advertising campaign emphasizing the long-term benefits, both educationally
and professionally, of reading every day. This is an example of a(n) ________ campaign. social
marketing
You want to determine whether no-smoking policies have impacted employee morale in the United
States among workers in companies that employ fewer than 50 workers in Fort Wayne, Indiana. Are
any secondary data likely available? Why? Answer: Because the data sought are so specific, there
will likely not be much, if any, data that specifically answer the question.
You want to determine whether no-smoking policies have impacted employee morale in the United
States in the past two decades. Are any secondary data likely available? Why? Answer: Yes, there are
likely to be several studies conducted from which the researcher could extract information
because many companies have implemented no-smoking policies in the past twenty years.
You want to find out whether Americans between 21 and 40 years of age tend to vote Democratic and
whether Americans between 41 and 70 tend to vote Republican. You will most likely use a ________
to collect your data. stratified random sample
You want to observe how often consumers listen to music throughout their day and what different
audio devices they use. You are also interested in how consumers store and access their own music
collections. You should conduct ________ research. exploratory
Zone pricing involves the customer paying for the shipping if they live outside the zone where the
company is located. FALSE