b. outside partnering
c. inside partnering
d. supply chain
e. customer development
Q2. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. The key to this goal is to match the customer-perceived performance of his product with ________.
a. customer expectations
b. company expectations
c. customer values
d. relationship levels
e. company-perceived performance
Q3. 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 ________.
a. societal marketing concept
b. product concept
c. selling concept
d. production concept
e. marketing concept
Q4. 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 ________.
a. profit marketing
c. virtual marketing
d. social responsibility
Q5. ________ is the set of benefits a company promises to deliver to its consumers to satisfy their needs.
a. Good customer service
b. A money-back guarantee
c. An attribute
d. Low pricing
e. A value proposition
Q6. Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?
a. product concept
b. selling concept
c. marketing concept
d. production concept
e. societal marketing concept
Q7. Customer-driven marketing is most likely to work well when ________ and when customers ________.
a. customers do not know what they want; have limited budgets
b. there are few competitors; are concerned about their long-run welfare
c. a clear need exists; know what they want
d. a clear need exists; are difficult to identify
e. a want exists; cannot afford it
Q8. The societal marketing concept seeks to establish a balance between consumer short-run wants and consumer ________.
a. value propositions
b. short-run costs and profits
c. long-run welfare
d. immediate health
e. short-run ethics
Q9. The ________ concept holds that firms must strive to deliver value to customers in a way that maintains or improves both the consumer’s and society’s well being.
e. societal marketing
Q10. Elisandra, a marketing manager at a regional chain restaurant, has decided to create 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 ________.
a. partner relationship management
b. customer lifetime value
c. community development around a brand
d. share of customer
e. consumer-generated marketing
Q11. The product concept says that a company should ________.
a. make promoting products the top priority
b. improve marketing of its best products
c. focus on the target market and make products that meet those customers’ demands
d. devote its energy to making continuous product improvements
e. market only those products with high customer appeal
Q12. ________ refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs.
a. The product concept
b. Selling myopia
c. Marketing management
d. Marketing myopia
e. Value proposition
Q13. The ________ concept calls for aggressive selling and focuses on generating transactions to obtain profitable sales.
d. societal marketing
Q14. Which of the following reflects the marketing concept philosophy?
a. ‘You won’t find a better deal anywhere.’
b. ‘We’re in the business of making and selling superior products.’
c. ‘When it’s profits versus customers’ needs, profits will always win out.’
d. ‘We don’t have a marketing department, we have a customer department.’
e. ‘We build them so you can buy them.’
Q15. 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?
a. the societal marketing concept
b. customer relationship management
c. database management
d. Web site hits
e. not-for-profit marketing
Q16. 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?
a. selective relationships
b. basic relationships
c. community relationships
d. full partnerships
e. club programs
Q17. Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________.
a. product mix
c. low-cost operator
d. value-delivery network
e. business model
Q18. Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy.
a. market penetration
b. market development
c. product development
Q19. For Hyundai Corporation, customers who care primarily about the price of a car and its operating economy make up one ________.
a. value chain
b. market position
c. market segment
d. customer extension
e. value network
Q20. Revlon has clearly defined its ‘mission’ of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company.
a. sets of tactics
b. sets of product mixes
c. sets of promotional tools
d. supporting objectives
e. sets of strategies
Q21. Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.
a. marketing control
c. strategic control
d. operating control
e. developmental control
Q22. A ________ defines a business in terms of satisfying basic customer needs.
a. technology-oriented mission statement
b. strategic plan
c. product-oriented mission statement
d. market-oriented mission statement
e. environment-oriented mission statement
Q23. The text suggests that instead of thinking of selling products, marketers would be wise to take the customer’s view and think of ________.
a. connecting services and products
b. providing convenience
c. offering discounts
d. offering solutions to problems
e. initiating two-way communication
Q24. The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers may decide to ________.
a. implement a harvest strategy
b. use money from a cash cow to promote the pharmaceuticals division
c. hold the pharmaceuticals division’s share
d. diversify the pharmaceutical division
e. divest the SBU
Q25. Effective positioning begins with ________ the company’s marketing offer in order to give consumers more perceived value.
Q26. In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness.
a. market growth rate
b. relative market share
e. cash cows
Q27. Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
a. market or industry growth rate; market or industry attractiveness
b. market penetration; market development
c. market growth rate; profits
d. market or industry attractiveness; strength of the SBU’s position
e. market share; strength of the SBU’s position
Q28. ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.
b. Question marks
c. Cash cows
Q29. 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?
b. manufacturing workers
c. nontraditional households
d. ‘micropolitan’ populations
e. Gen Xers
Q30. Which of the following is a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?
a. Companies are more focused on making practical, affordable versions of products.
b. Spending on research and development has decreased.
c. The time lag between new product ideas and their introduction to the market has decreased.
d. More companies have failed to meet safety standards.
e. Research costs for companies have grown.
Q31. Legislation affecting business around the world will continue to ________.
c. become simplified
d. relax consumer protections
Q32. Consumer organizations and environmental groups are examples of ________ publics.
Q33. Which of the following best explains why Gen Xers who are parents tend to put family before career?
a. Gen Xers are more skeptical about marketing than members of other generations are.
b. Gen Xers are not as educated as members of other generations are.
c. Gen Xers were the first generation of latchkey kids.
d. Gen Xers were minimally affected by the recent economic downturn.
e. Gen Xers do not face as many economic pressures as members of other generations do.
Q34. In the 1950’s the American population began shifting from large cities to ________.
a. rural areas
b. foreign countries
c. coastal towns
d. farming communities
Q35. 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 the ________ environment.
Q36. A country with a(n) ________ economy has rich markets for many different kinds of goods.
Q37. Because of an expected increase in ethnic populations, marketers are likely to place a greater emphasis on ________.
a. mainstream advertising
b. mass marketing
c. targeted advertising messages
d. cause-related marketing
e. geographic segmentation
Q38. 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?
a. laws enforced by the Federal Trade Commission
b. the Fair Packaging and Labeling Act
c. the Nutrition Labeling and Education Act
d. state laws regulating advertising of pharmaceuticals
e. approval from the Food and Drug Administration (FDA)
Q39. Which demographic group includes large tween and teen markets?
b. baby busters
c. Generation X
d. the elderly
e. baby boomers
Q40. With an expected increase in ethnic diversity, marketers are likely to place a greater emphasis on ________.
a. geographic segmentation
b. mass marketing
c. ‘us and them’ paradigms
d. differing advertising messages
e. tiered markets
Q41. A good MIS balances the information users would ________ against what they really ________ and what is ________.
a. need; can afford; useful
b. use; have to use; available
c. need; like; feasible
d. like to have; need; feasible to offer
e. like; can afford; needed
Q42. Which of the following most accurately identifies the purpose of a data warehouse?
a. to prioritize information
b. to integrate information a company already has
c. to identify and discard old data
d. to analyze data
e. to interpret data
Q43. Which of the following is true about customer relationship management (CRM)?
a. Its aim is to maximize profit margins.
b. Most companies who first implemented CRM have greatly benefited from the results.
c. Its aim is to increase the efficiency of each customer touchpoint.
d. It relies on information produced through primary research.
e. Its aim is to maximize customer loyalty.
Q44. 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?
a. personal interviews
b. focus group interviews
c. telephone surveys
d. Internet surveys
e. mail surveys
Q45. Marketing information is only valuable when it is used to ________.
a. identify a target market
b. simplify management’s job
c. please shareholders
d. make better marketing decisions
e. increase efficiencies in the supply chain
Q46. Four common sources of internal data supplied to internal databases include the accounting department, operations, the sales force, and the ________.
e. marketing department
Q47. 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 is it most important for Malaya to do before administering this questionnaire to a sample of the market?
a. make sure that the survey includes both open-end and closed-end questions
b. determine which type of research instrument to use
c. determine whether to focus on descriptive or causal objectives
d. have the questionnaire translated back into English to check for accuracy
e. decide whether to focus on primary or secondary data
Q48. After a research instrument is selected, the next step in the marketing research process is ________.
a. collecting secondary data
b. interpreting the findings
c. selecting a research approach
d. selecting a sampling method
e. implementing the research plan
Q49. Marketers must weigh carefully the costs of additional information against the ________ resulting from it.
b. ethical issues
Q50. 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.
Q51. 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 ________.
b. informal surveys
c. marketing intelligence
e. direct marketing
Q52. Which of the following is the best advice about creating research questionnaires?
a. Avoid personal questions that may make some respondents uncomfortable.
b. Use simple and direct language.
c. Questions should not be arranged in a particular order.
d. Ask personal questions in the middle of the instrument.
e. Ask difficult questions in the beginning to ‘weed out’ uninterested respondents.
Q53. ________ are subtle stimuli that influence where, when, and how a person responds to an idea.
Q54. ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.
a. Stealth marketers
b. Opinion leaders
c. Habitual buyers
d. Social networkers
e. Buzz marketers
Q55. Many companies, such as JetBlue and Sony, enlist everyday consumers who are enthusiastic about their brands to become ________ who share their passion for a company’s products with large circles of friends and acquaintances in return for insider knowledge and other rewards.
a. aspirational consumers
b. early adopters
c. direct sellers
d. brand ambassadors
e. direct marketers
Q56. Marketers describe the way the consumer processes information to arrive at brand choices as ________.
a. alternative evaluation
b. situational factors
c. information search
d. post-purchase dissonance
e. purchase decision
Q57. Applying ________, marketers can affect demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement.
a. learning theory
b. subliminal advertising
c. cognitive dissonance
d. social classes
e. need recognition
Q58. Opinion leaders are sometimes referred to as ________.
a. buzz marketers
b. the upper class
c. the influentials
d. the middle class
Q59. All of the following make up a person’s lifestyle EXCEPT ________.
a. dissonance-reducing buying behavior
b. AIO dimensions
Q60. Which statement is true regarding social class in the United States?
a. People are relegated to a permanent class layer in the United States.
b. Lines between social classes in the United States are fixed and rigid.
c. Social classes show distinct product preferences in clothing and automobiles.
d. Wealth is more critical than education level in measuring social class.
e. Social class is determined primarily by income level.
Q61. Learning occurs through the interplay of all of the following EXCEPT ________.
e. dissonance behavior
Q62. The term ________ refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.
a. need recognition investigation
b. motivation research
c. neuromarketing research
d. perception analysis
e. depth research technique
Q63. A customer’s lifestyle can be measured using the AIO dimensions. What does AIO stand for?
a. Activities, Interests, Opinions
b. Adoptions, Interests, Occupations
c. Accommodation, Investment, Orientation
d. Acknowledgement, Interests, Observations
e. Achievement, Involvement, Organizations
Q64. 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 ________.
b. social class
d. life-cycle stage
e. social network
Q65. The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation.
a. age and life cycle
Q66. ‘Less-for-much-less’ positioning involves meeting consumers’ ________.
a. quality performance requirements at a lower price
b. lower quality requirements in exchange for a lower price
c. high quality requirements at the lowest possible price
d. lower quality requirements at the lowest possible price
e. high quality requirements at a discounted rate
Q67. Under what circumstances would local marketing likely be the most effective?
a. when pronounced differences in lifestyles are present
b. when pronounced regional and local differences in demographics and lifestyles are present
c. when regional demographics and lifestyles are similar
d. when pronounced similarities in psychographics are present
e. when pronounced differences in psychographics are present
Q68. 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?
Q69. By studying its less loyal buyers, a company can detect which brands are most ________ with its own.
c. often overlooked
Q70. A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________.
a. segmented marketing
b. concentrated marketing
c. differentiated marketing
d. undifferentiated marketing
e. mass customization
Q71. 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.
Q72. What are the four steps, in order, to designing a customer-driven marketing strategy?
a. market alignment, market segmentation, differentiation, and market positioning
b. positioning, market segmentation, mass marketing, and targeting
c. market segmentation, differentiation, positioning, and targeting
d. market segmentation, targeting, differentiation, and positioning
e. market recognition, market preference, market targeting, and market insistence
Q73. When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
Q74. Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies.
a. unknown by; desired by
b. too large; undesirable to
c. unimportant to; overlooked by
d. disappointed by; geographically far from
e. unimportant to; desired by
Q75. ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy.
a. attitudes; perceptions
b. extra research; costs
c. increased sales; increased costs
d. geographic segmentation; demographic segmentation
e. sales analysis; sales
Q76. Jaygo Food Stores hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors. Jaygo has gained a strong competitive advantage through which type of differentiation?
Q77. 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.
c. industrial users
d. government buyers
Q78. Major brand marketers often spend huge amounts on advertising to create brand ________ and to build preference and loyalty.
a. internal marketing
Q79. At the very least, the ________ identifies the product or brand. It might also describe several things about the product and promote the brand.
a. social marketing
c. specialty product
d. line extension
Q80. Which of the following is the MOST important for product designers to consider as they develop a product?
a. what the product’s technical specifications are
b. how customers will use and benefit from the product
c. which product features can be added to create higher-level models
d. how the product appears
e. how the product is packaged to attract spontaneous purchases
Q81. The impossibility of a barber storing haircuts for later sale is an example of which of the following?
a. service variability
b. service intangibility
c. service perishability
d. service inseparability
e. provider-customer interaction
Q82. 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 ________.
a. differentiating its offer
b. image marketing
d. good service recovery
e. internal marketing
Q83. ________ means that services cannot be separated from their providers, whether the providers are people or machines.
a. Service heterogeneity
b. Service intangibility
c. Service variability
d. Service perishability
e. Service inseparability
Q84. ________ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.
a. Intermarket marketing
b. Corporate image advertising
c. Person marketing
d. Organization marketing
e. Social marketing
Q85. A key element in a company’s relationship with consumers, a ________ represents consumers’ perceptions and feelings about a product and its performance.
a. product attribute
b. product experience
d. product line
Q86. 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.
Q87. ________ 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.
a. Interactive marketing
b. Person marketing
c. Internal marketing
d. Social marketing
e. Unsought product marketing
Q88. The total financial value of a brand is estimated through the process of brand ________.
Q89. Many marketers are now using new simulated marketing technologies, such as Frito-Lay’s online virtual convenience store, to reduce the cost of ________.
a. concept testing
b. marketing strategy development
c. product development
d. concept development
e. test marketing
Q90. 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.
a. delay planning
b. harvest the product
c. drop the product
d. maintain the product without change
e. search for replacements
Q91. 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?
a. product development
b. concept testing
c. business analysis
d. test marketing
e. marketing strategy development
Q92. In the ________ stage, the firm faces a trade-off between high market share and high profit.