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Marketing final

Terms in this set (244)

. According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?
building profitable relationships and creating customer delight
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.
demand
A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.
A) market offering
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
D) marketing myopia
When marketers set low expectations for a market offering, they run the risk of ________.
C) failing to attract enough customers
When are sellers most effective?
C) when they focus more on the benefits and experiences produced by their products and services
What should sellers consider if they wish to avoid marketing myopia?
Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific product they offer.
Explain how and why marketers go beyond selling a product or service to create brand experiences.
Sellers are most effective when they focus more on the benefits and experiences produced by their products and services than on the specific products and services themselves. Smart marketers focus on creating a brand experience, incorporating several products and services for their customers. By doing so, marketers hope to increase customer satisfaction. Satisfied customers buy again and tell others about their good experiences.
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.
B) market segments
Which of the following customer questions is answered by a company's value proposition?
A) "Why should I buy your brand rather than a competitor's?"
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.
B) production
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
D) societal marketing concept
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.
A) product
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
D) Not all customers will be satisfied.
Company X, a manufacturer of office supplies, follows the selling concept. Explain how the firm may lose sight of customer relationships with this marketing orientation.
The selling concept of Company X focuses on selling its office supplies rather than making what the market wants; such a strategy creates sales transactions but not long-term customer relationships. The company would most likely have a faulty assumption that customers who are persuaded to buy the product will like it or that they will buy the product again later even if they weren't really initially satisfied. Company X will not foster customer loyalty with this approach.
. In which of the following situations has a company most actively embraced customer-managed relationships?
C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.
Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________.
B) promising only what they can deliver and then delivering more than they promise
Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?
basic relationships
. At Gina's retail stores, the posted policy reads, "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 ________.
E) capturing customer lifetime value
. Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase?
B) share of customer
A seller pursues a full partnership with what kind of customers?
D) a few high-margin customers
. A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________.
E) creating programs to cross-sell and up-sell to market more products and service to existing customers
The technology that involves machines that think and learn like humans is known as
C) artificial intelligence
Which of the following is true with regard to strategic planning?
C) The focus of strategic planning is to define a game plan for long-run survival and growth.
Which of the following is NOT a market-oriented business definition?
"We make high-quality consumer food products."
Companies that define their missions in terms of products or technologies are considered myopic primarily because ________.
D) products and technologies eventually become outdated
A company's broad mission leads it to develop all of the following EXCEPT ________.
A) budget objectives
Which of the following companies has a product-oriented business definition?
A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."
Which of the following best describes a strategic business unit?
C) the key businesses that make up a company
During portfolio analysis, a company ________ after identifying the key businesses that make up the company
E) assesses the effectiveness of its various channel intermediaries
Within a company, who is most likely to perform strategic planning?
D) cross-functional teams of divisional managers close to their markets
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.
C) question mark
Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.
D) market penetration
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2025, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
B) market development
Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.
C) diversification
Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
D) product development
Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."

Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"

"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."

Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."

Fun-Spot's mission is ________.
C) market oriented
Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.
A) star
Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?
A) market penetration
Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.
C) product development
Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.
B) market segment
Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
D) market nicher
. In the context of a company's marketing mix, ________ includes company activities that make the product available to target consumers.
B) place
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
A) SWOT analysis
More and more, companies are shifting their brand management focus from brand profitability toward ________.
C) customer management
Define marketing planning. What are the contents of a marketing plan?
The marketing plan details the strategy that a company will use to market its product to customers. The plan identifies the target marker, the value proposition of the brand or the product, the campaigns to be initiated, and the metrics to be used to assess the effectiveness of marketing initiatives.
. Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.
B) microenvironment
Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.
A) macroenvironment
Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture heavy machineries. In this instance, Sparex acts as a ________.
B) supplier
Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________.
C) marketing intermediary
Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________.
C) marketing services agency
Boxes, Inc. sells products to end users or to other companies that will sell to end users. Boxes, Inc. is a ________.
A) reseller
Which of the following groups influences the company's ability to obtain funds?
A) financial publics
Which of the following is true with regard to media publics?
B) This group carries news, features, and editorial opinion
Companies can succeed against their competitors by all of the following except ________.
E) providing the same product as the competition
Cape Sky Inc., 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 Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics?
D) general publics
Who are the major players in a company's microenvironment? Explain the role that each actor plays.
Marketing management takes other groups into account such as top management, finance, research and development, purchasing, operations, and accounting. Suppliers form an important link in the company's overall customer value-delivery system. Marketing intermediaries help the firm to promote, sell, and distribute its goods to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.
Which of the following is true of the baby boomers?
D) They control an estimated 42 percent of the United States' spending power.
Mary Adams is helping her company develop a marketing program for a new product line. The program is designed to appeal most to less materialistic consumer groups who are likely to prize experience, not acquisition. The marketing program is most likely designed to appeal to which of the following demographic groups?
A) Generation X
Marketers can group people in a number of ways, including by birth date. However, the following combination of groups has proven to be more effective:
C) lifestyle, life stage, common values they seek in products they buy
. An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________.
B) booming small office/home office market
. Many firms today use RFID technology to ________.
D) track products through various points in the distribution channel
Regulations force companies to be responsible. However, most companies want to be responsible. Impacts of government regulations include all of the following EXCEPT ________.
A) informing the public that products are safe
. The ________ limits the number of commercials aired during children's programs.
D) Children's Television Act
The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________.
B) protecting the privacy of knowing and unknowing customers
Marketers should understand that people's core beliefs and values tend to be ________.
A) fixed
. Babita Singh, a 51-year-old schoolteacher from Los Angeles, believes that people should choose a profession they like, which is an example of Babita's ________.
A) secondary belief
. Explain the controversy surrounding cause-related marketing.
Cause related marketing is the process of formulation and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue providing exchanges that satisfy organizational and individual objectives.
A good marketing information system balances the information users ________ to have against what they ________ and what is ________ to offer.
D) would like; need; feasible
Which of the following is a disadvantage of using information from internal databases?
D) Internal information may be incomplete or in the wrong form for making marketing decisions.
Which of the following is NOT a method of gathering good marketing intelligence?
B) interviewing competitors' employees to learn as much "inside information" as possible
Firms use competitive marketing intelligence to ________.
D) gain early warnings of competitor moves and strategies
. Which of the following is true with regard to marketing research?
C) Marketing research gives marketers insights into customer motivations.
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.
C) causal
Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?
B) descriptive research
Beth Williams works for a marketing research company in Chicago. Her current research involves finding the market potential for a client's new line of sports apparel. Given her objective, which of the following types of research is the most suitable for Beth?
D) descriptive research
The research plan ________.
B) outlines sources of existing data and spells out the specific research approaches
Which of the following is true with regard to gathering secondary data?
C) Internet search engines can be useful sources of relevant secondary data.
Which of the following is a disadvantage of using secondary data?
E) Relevant secondary data can be difficult to locate.
Which of the following is true of ethnographic research?
B) It involves sending observers to watch and interact with consumers in their natural environments.
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
B) experimental research
Which of the following is most likely an advantage of survey research?
A) The flexibility of survey research is high; it can be used to obtain many different kinds of information in many different situations.
Maria Ramirez is conducting research to determine consumers' personal grooming habits. Because of the personal nature of many of the survey questions, Maria wants to select the contact method that is most likely to encourage respondents to answer honestly and that will allow her to easily collect large amounts of data. Which of the following is best suited to meet Maria's requirements?
A) mail questionnaires
Happy Pets, a company manufacturing pet foods and accessories, created a membership club for its regular customers called "I Love My Pet." This group consists of animal lovers selected by the company to complete product-related polls, chat with product developers, and provide feedback about specific products. Which of the following best describes "I Love My Pet"?
B) immersion group
In a simple random sample, ________.
A) every member of the population has a known and equal chance of selection
Which of the following is most likely a disadvantage of focus group interviewing?
D) Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
Which of the following is a disadvantage of online focus groups?
B) Controlling the online sample is difficult
Which of the following questions is an example of a closed-end question?
D) Would you like to try our new ice cream flavor?
. A successful Customer Relationship Management program is expected to help a company achieve all of the following EXCEPT ________.
D) understand the competition better
. Joe Kerry, owner of a small bakery, wants to obtain marketing insights to improve his business. Joe has a limited budget and would like to gather free secondary data. What is the best option for Joe?
C) Internet search engines
While collecting sensitive customer data, market researchers should adhere to all of the following guidelines EXCEPT ________.
D) sharing information without the customer's authorization
. In a company, the job of a chief privacy officer is to ________.
C) safeguard the privacy of a firm's customers
Which of the following statements is true of cultural factors that influence consumer behavior?
B) Social classes show distinct product and brand preferences in areas such as clothing and travel.
A shoe manufacturing 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 hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.
B) reference group
Which of the following is characteristic of online social networks?
E) interactive media content
A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.
C) lifestyle
Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand?
E) ruggedness
Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.
D) brand personality
A marketer of women's hair care products targeting Chinese customers created an advertising message that told women their hair could be worn any way they wanted as opposed to wearing it straight. The message suggested the women did not need to conform to the mainstream media definition of beauty. It is most accurate to say that this ad was based on an understanding of customers' ________.
C) self-concept
Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?
C) selective attention
George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.
B) complex buying behavior
Pat thought he had received the best deal on his new car. Shortly after buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________.
C) postpurchase dissonance
Which of the following would a marketer LEAST likely do to encourage habitual buying behavior?
D) stress unique features in ads
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 ________.
D) variety-seeking buying behavior
James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James' purchase decision?
C) personal sources
The information sources that are the most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer.
D) personal
Sara is about to purchase a new television. She is using several attributes to evaluate her choices. Which of the following is least likely to be a criterion Sara is using?
E) availability
Five characteristics are important in influencing an innovation's rate of adoption. Which of the following is NOT one of those characteristics?
D) complexity
A person's customer journey ________.
A) is unique to that person
Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group.
A) innovator
The business marketer normally deals with ________ than the consumer marketer does.
A) far fewer but far larger buyers
The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.
C) inelastic
Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.
C) derived
A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions?
B) What are the major influences on buyers?
Ralph works for a manufacturing company in Ohio. Recently, he called in a department manager to assist in the purchase of some heavy machinery. After consulting the department manager, Ralph is considering a change in product specifications and characteristics and expects suppliers to meet his requirements. Which of the following is evident here?
A) modified rebuy
Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________.
A) faces a new task situation
________ refers to buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
A) Systems selling
Jason Perkins has the informal power to approve the final suppliers in his organization. In other words, Jason plays the role of a(n) ________ in his organization's buying center.
B) decider
Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not durable enough. She informed the hospital authorities about Grace Care Inc., a new company selling lightweight and durable gurneys. In this instance, Marissa played the role of a(n) ________.
D) influencer
Which of the following factors influencing the business buying process do marketers typically find most difficult to assess?
C) interpersonal
Which of the following is an example of an internal stimulus that would most likely lead to problem recognition?
C) A buyer is unhappy with a current supplier's product quality
Johann 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. In the business buying process, this approach to cost reduction most likely took place in the ________ stage.
C) product specification
If a task is new, complex and costly, on which stage of the buying process will the buyer spend a greater amount of time?
C) conducting a supplier search
SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2016. This is an example of ________.
C) e-procurement
In ________, companies put their purchasing requests online and invite suppliers to bid for the business.
C) reverse auctions
Which of the following is LEAST likely a characteristic of business-to-business e-procurement?
D) an increase in the derived demand
All of the following are difficulties associated with selling to government buyers EXCEPT ________.
D) high advertising costs
Which of the following plays the most important role in government buying?
A) price
In the context of behavioral segmentation, who among the following is a potential user?
A) Anita, who recently had a baby
A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
C) segmentation by usage rate
Which of the following is true about multivariable segmentation systems?
E) Multiple segmentation bases help identify smaller, better-defined target groups.
Which of the following is NOT a benefit of using multivariable segmentation systems?
C) help companies more accurately price their products to appeal to key customer segments
. Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?
B) political
Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.
A) income
Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?
D) intermarket segmentation
Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
B) age and life-cycle
What are the primary requirements for effective market segmentation?
Measurable, Accessible, Substantial, Differentiable, Actionable
. A segment is less attractive if it ________.
D) already contains many strong and aggressive competitors
Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT ________.
B) the segment does not match the company's long-run objectives
Which of the following is a disadvantage of using a differentiated marketing strategy?
C) The costs of doing business increase.
Which of the following is a drawback of local marketing?
A) Local marketing increases manufacturing costs by reducing the economies of scale
Which of the following marketing strategies is most suitable for smaller firms with limited resources?
C) niche marketing
Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________.
C) when customers opt in to receive focused content
All of the following are ways a company can differentiate itself or its product EXCEPT ________.
C) price
Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?
D) less for much less
Which of the following is a goods-and-services combination?
B) a milk shake at an ice cream store
Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?"
C) core customer value
If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and Pandora, what is the core customer value involved?
A) connection to entertainment and information
If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved?
E) tech support and warranty
The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example of ________ marketing.
B) corporate image
Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing.
B) social
Product attributes include all of the following EXCEPT ________.
C) price
________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
B) Product quality
________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes.
C) Total quality management
What are the two dimensions of product quality?
A) consistency and level
Features are a competitive tool for differentiating a company's product from competitors' products. Which question are companies LEAST likely to ask in a survey of buyers regarding product features?
C) How much would (a certain new feature) be worth to you?
Which of the following questions is most important for product designers to consider while developing a product?
D) How would customers use and benefit from the product?
The first step in designing support services is to ________.
C) survey customers to assess the value of current services and obtain ideas for new ones
A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.
C) widened its product mix
Service companies can differentiate their service delivery by ________.
E) having more able and reliable customer-contact people
Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________.
B) good service recovery
Service productivity can be increased by hiring new employees who will work harder, by giving up some quality, or by ________.
A) using technology more effectively
BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________.
B) high brand equity
After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand Asset Valuator, this reflects brand ________.
C) relevance
The strongest brands are positioned on ________.
D) strong beliefs and values
Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy, Kendell Associates. Gainville is most likely positioned on ________.
E) strong beliefs and values
Which of the following is an advantage offered by co-branding?
C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.
Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
B) brand extension
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.
B) acquisition
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
D) Product research was too extensive
The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?
B) decreased manufacturing costs
John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?
B) idea generation
Which of the following statements is true of the idea generation stage in the new product development process?
D) Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
Which of the following statements best explains why idea screening may be the most important step of new product development?
E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.
Which of the following statements is true of the new product development process?
B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.
C) consider the sales history of similar products
A group of business entrepreneurs who worried about their teenage children
drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.
A) prototype
Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
A) test marketing
All of the following are disadvantages of test marketing EXCEPT that test marketing ________.
D) encourages dishonesty among participants
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
E) when the costs of developing and introducing the product are low
Which of the following involves costs that most likely occur during the commercialization stage of new product development?
A) building or renting a manufacturing facility
. Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
A) timing
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
B) develop a planned market rollout over time
New product success requires all of the following EXCEPT ________.
E) efficient engineering and manufacturing
Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.
B) growth
Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the Product Life Cycle.
C) maturity
When Kraft focused on cost cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.
D) harvest
Which of the following is a consequence of standardizing an international product?
A) image consistency
. Price is important to managers ________.
B) because a small percentage improvement in price can generate a large percentage increase in profitability
Factors a company considers in setting its price include all of the following EXCEPT ________.
D) value of the product on the pre-owned market
Which of the following is true of value-based pricing?
A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.
C) atmosphere and décor of the restaurant
Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.
D) having frequent sale days for store credit-card holders
Which of the following is true with regard to value-added pricing?
B) Companies practicing value-added pricing differentiate their offers by attaching value-added features to offerings that, in turn, justify higher prices.
Companies with lower costs ________.
C) can set lower prices that result in smaller margins but greater sales and profits
In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.
C) $650,000
A manufacturing plant is designed to produce 2000 flat-screen TVs per day. But demand is higher than that. If the company tries to increase its production to 2500 TVs per day, the average costs will ________ because ________.
E) increase; the plant becomes inefficient
A downward-sloping experience curve is indicative of ________.
C) the falling unit production cost of a company
To take advantage of a downward-sloping experience curve, a company must do all of the following EXCEPT ________.
A) increase the product's price
Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie?
B) $25
Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.
D) $300
A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even? (100,000 / (12-8))
B) 25,000
Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?
E) 125,000
A market-penetration pricing policy should LEAST likely be used for a new product when ________.
C) the product's quality and image support a high price
Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?
B) market-penetration pricing
Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?
C) Electrowhip operates in a market with many competitors.
Which of the following companies is most likely to use product line pricing?
B) Mobile Point, which launched a range of cell phone models, each priced according to its features
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?
B) captive product pricing
Which of the following companies is most likely to use captive product pricing?
A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries
Which of the following is true of product bundle pricing?
A) It promotes the sale of products that consumers might not otherwise buy.
Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?
C) cash discounts
Segmented pricing is only effective when ________.
B) the cost of segmenting does not exceed the revenue obtained from the price difference
Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
B) psychological pricing
. Consumers are less likely to use price to judge the quality of a product when they ________.
C) have experience with the product
Which of the following is an adverse effect of using promotional pricing?
A) It makes shopping stressful if used by multiple stores simultaneously.
Which of the following likely does NOT play into products being offered for different prices in different countries?
B) product commonality
Which of the following is true of the bottom of the pyramid?
D) It is considered a source of fresh growth opportunities.
Reasons for a price increase include all of the following EXCEPT ________.
E) increasing supply of product
Ways to avoid accusations of price gouging include ________.
C) communications to customers explaining why prices are being increased
When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?
C) by altering the company's marketing communications
. Which of the following questions is NOT of major concern regarding marketing channels?
B) What impact do marketing channels have on the profitability of the firm and its partners?
Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________.
C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change
Which of the following companies uses a direct marketing channel?
D) Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs
Refer to the scenario below to answer the question.

Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country.

Which of the following is Giant Beanstalks' upstream partner?
B) the farmers of Riverdale
Which of the following does NOT apply to channel systems?
D) Intermediaries play interchangeable roles in the system.
Which of the following is an example of an indirect marketing channel?
C) Wine & Dine, which sells its picnic baskets to select novelty stores across the country
Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.
E) horizontal
Conflict in the channel can be healthy because ________.
C) the channel could become passive and non-innovative
Ford and its network of independent franchised dealers is an example of a ________.
A) manufacturer-sponsored retailer franchise system
Fire Up makes fireproof clothing material and it licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here?
B) manufacturer-sponsored wholesaler franchise system
Which of the following is NOT a step in designing an effective marketing channel?
D) determining pricing policy for channel members
In designing the marketing channel, a company must balance customer needs and wants with ________.
E) the firm's resources and skills to provide all the desired services
Producers motivate channel members using all of the following EXCEPT ________.
A) using strict rules to force compliance with contract terms
Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them?
B) air carriers
Which of the following statements is true regarding today's marketing communications?
E) Today's consumers are better informed about products and services.
Companies often fail to integrate their various messages to consumers because ________.
C) communications often come from different parts of the company
Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all ________.
E) deliver a clear, consistent, and compelling message
Excel Enterprises uses a Web site, online social networks, and print advertisements to promote its products. Since Excel Enterprises practices integrated marketing communications, all these different brand contacts maintain ________ in design and tone.
D) consistency
The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model.
E) encoding
Marketing communicators must know what ________ and what ________.
D) audiences they wish to reach; responses they want
While developing an effective integrated communication, once the target audience has been defined, marketers must do all these steps EXCEPT ________.
D) identify potential distractions
Based on the target audience, the communicator makes decisions regarding what will be said, who will say it, when it will be said, where it will be said, and ________.
B) how it will be said
In which step of the communication process does the marketing communicator need to know the buyer-readiness stage of the target audience?
C) determining communication objectives
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